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Canceling the Foreclosure of a Bank Account or Salary – How Do You Do It? (Legal Information)

Joshua Pex
Joshua Pex

Foreclosure of a bank account or salary has become a very common way to collect debts among individual creditors, companies, and state authorities. Naturally, this is a step that makes everyday life very difficult for debtors, and may have serious consequences. Our firm receives many inquiries from clients concerning the question of how to cancel the foreclosure of a bank account or salary. We explain all about this below.

Our law firm in Jerusalem and Tel Aviv specializes in the laws of bankruptcy and insolvency. The firm provides a comprehensive legal response to individuals and businesses on the issues of canceling the foreclosure of bank accounts, salaries, and assets such as a car or apartment; representing clients before the courts and Writ of Execution officials; receiving a stay of foreclosure proceedings; etc.

Foreclosure bank account salary

Foreclosure of Bank Accounts and Salaries – A National Calamity

If your bank account or salary has been recently foreclosed, you are not alone. Foreclosure of these assets and rights has become a real national calamity. Over the past years, accounts of millions of Israelis have been foreclosed. The phenomenon has become even more widespread during the corona crisis, due to the debts accumulated by many businesses and households.

Such foreclosures have one thing in common – they make everyday life very difficult for debtors. Therefore, foreclosure is an extreme step in debt collection. It is no wonder that there are various rules about what may and may not be done regarding foreclosure. Unfortunately, not everyone knows the rules and regulations on the subject; therefore, they do not always know that, in many cases, it is possible to take action and prevent the foreclosure.

What is the Difference Between Foreclosure of a Bank Account and Foreclosure of a Salary?

Although sometimes both types of foreclosure may take place, there are several differences between them. Foreclosure of a bank account is equivalent to foreclosure of property, as is foreclosure of a car or apartment. Foreclosure of a salary, however, applies to a future right to receive money. This is one of the reasons that there are specific laws regarding salary foreclosure, such as the Wage Protection Law. This law generally limits the salary amount that may be foreclosed. You can find an extended explanation on the subject here.

Who is Authorized to Initiate Foreclosure?

A salary or bank account may be foreclosed for various reasons, and by various kinds of creditors. Individual creditors and companies may initiate a foreclosure by filing an application in court, as part of a monetary claim. It is also possible to initiate a foreclosure in writ of execution proceedings, during which even the Writ of Execution Registrar conducting the proceedings may initiate the foreclosure.

Public authorities may initiate a foreclosure in any of the above-mentioned ways. In certain cases, the authorities may also initiate a foreclosure as part of administrative debt-collection proceedings, such as failure to pay parking tickets or Arnona (Israeli property tax). However, the authorities must take great caution when exercising these powers, since there are guidelines that limit how these foreclosures may be executed. Also, in some cases there may even be room to file defamation lawsuits against the authorities due to the foreclosure, as explained later in this article.

How Can You Cancel the Foreclosure of a Bank Account or Salary?

In most cases it is possible to request canceling the foreclosure. For each type of proceedings mentioned above, a different procedure is required for submitting a request to cancel the foreclosure. In court, foreclosures are usually considered temporary, and it is possible to request the court to cancel them or substitute a bank account or salary foreclosure with the foreclosure of a different asset.

In writ of execution proceedings, it is possible to request the Writ of Execution Registrar to cancel the foreclosure or initiate a stay of proceedings and debt collection. When the foreclosure is initiated as part of administrative debt collection proceedings, it is possible to request payment arrangements or, alternatively, cancellation of the foreclosure. In these cases, since the foreclosure was not ordered by a judicial institution, it is especially important to verify the correctness of the procedure, and it is advisable to seek the help of a lawyer for this purpose.

Defamation Lawsuit for the Foreclosure of a Bank Account – Is It Possible, and When?

Several defamation lawsuits have been filed in recent years against authorities who foreclosed bank accounts. An example of this is a lawsuit filed by a lawyer whose bank account was foreclosed due to failure on her part to pay Arnona taxes. Foreclosure of a bank account may often cause humiliation to the person whose account is foreclosed, especially if it is a business account. Compensation in these cases may reach tens of thousands of shekels. You can read about defamation lawsuits in length in another article published on our website on the subject.

Legal Assistance of an Attorney Specializing in Civil Law and in the Laws of Writ of Execution

As explained above, although foreclosure of a salary or bank account may sometimes occur, there are various ways to change the decree. If you need help with this, you can contact us and we will be happy to help. Our law firm specializes in civil law and in the laws of writ of execution. The firm is very experienced in providing legal assistance to debtors who are dealing with foreclosures.

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