A Haifa Magistrates’ Court recently terminated an insolvency proceeding for a 47-year-old debtor after finding he concealed income from organizing adult swingers parties. Judge Ilana Hadar justified the decision, accepting the trustee’s recommendation to end the case due to the debtor’s lack of transparency about his financial situation.
The debtor, a single father of three from two relationships, lives with one of the mothers, who claims she allows him to stay out of pity, not romance. A former undercover unit soldier, he was injured during the 2006 Second Lebanon War and is recognized as disabled, citing mental health issues that limit his ability to work.
The insolvency case, initiated in November 2024, involved 13 claims totaling approximately NIS 1.7 million ($450,000). The trustee argued there was no basis to consider these claims, citing the debtor’s improper conduct.
She discovered he was earning income by producing adult parties in Caesarea and Pardes Hanna, pointing to a Telegram group he managed, where he advertised the events and posted job listings.
The debtor admitted involvement in the party scene but denied significant earnings, claiming they amounted to “a few hundred shekels at most,” insufficient to indicate earning capacity.
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He sought leniency based on his military service and injury, proposing a repayment plan of 30,000 shekels ($8,000) over five years for economic rehabilitation. Hadar rejected his plea, siding with the trustee. While acknowledging his notable military service and its consequences, she ruled it did not justify withholding financial information in an insolvency proceeding.
The judge noted the debtor repeatedly claimed willingness to answer questions and even requested to examine witnesses, yet acted with significant concealment. He failed to provide documents, including evidence of his party-related income or details about other event organizers, which she deemed a lack of good faith.
Attorney Vered ZilbermanPhoto: Maayan SelaDespite his assertion of minimal earnings, he provided no supporting documentation. “Had he done so, it might have refuted the trustee’s claims but vague statements only raise suspicions of concealment,” Hadar wrote.
Consequently, she ordered the insolvency case terminated, informing the debtor he must wait a specified cooling-off period, as set by precedent and deposit 4,000 shekels ($1,060) to the receiver’s fund if he wishes to reapply in the future.