A Tel Aviv Law Enforcement and Collection System Authority registrar recently approved a request from an Israel Defense Forces reservist to pay only 42 percent of an 85,000-shekel debt (about $26,000) he had accumulated. Registrar Chen Levy thanked him for his sacrifice since the start of the war and ruled that the remaining payments would be spread over four years with all accumulated interest removed.
The man, a married father of two, incurred the debt about six months before the start of the Iron Swords war. On October 7, he left his work and has since served intermittently in Gaza with an infantry brigade. During that time, he was unable to handle his debts, which grew because of interest charges.
At one point, an insolvency process was opened in the Enforcement and Collection Authority. In a hearing held last week, he described the difficulties he faced. He said he had been discharged just a week before the session and was expected to return to duty in about two weeks. “I’m constantly moving from one reserve call-up to the next,” he said.
The reservist told the court that his family rents a basement apartment in the Shephelah region for 3,000 shekels a month (about $925). He said he believes the property will soon be sold, which will force them to find a replacement rental at nearly double the cost, since “rent in the area doesn’t go below 5,000 to 6,000 shekels” ($1,540 to $1,850).
He added that the family uses an old car “full of problems that my mother gave us,” which his wife needs for work, while he relies on public transportation. His attorney argued during the hearing that this was a “classic case” for reducing interest.
Registrar Levy agreed, noting that during the reservist’s nearly two years of combat service he was unable to defend himself legally, submit requests or manage his debts. She said it was therefore appropriate to ease the payment plan and eliminate interest across his files.
The decision noted that the family’s financial difficulties began with the birth of their second child and the increase in expenses. “The individual fought on the front, and his wife fought to maintain the home. In this situation, the least that can be done within the insolvency process is to approve his proposal.”
Another factor, Levy wrote, was the personal rehabilitation the reservist will face once he leaves the army and returns to civilian life, including finding work and a new place to live. Not only are his expenses expected to rise, she said, but he must also have time to meet those challenges and reconnect with his family after two years largely away from home. “In these circumstances, beyond my deep gratitude to him for his sacrifice for the State of Israel, I find it appropriate to approve the plan he proposed.”
Under the ruling, all interest accumulated in his files will be erased. To settle the remaining debt, he will pay 750 shekels a month (about $230) for 48 months, a total of 36,000 shekels (about $11,000), amounting to roughly 42 percent of what he owes. The registrar also referred him to a financial training program once he completes his reserve service.