*John owes money to Mary and doesn't pay. Can Mary sue him, obtain judgment and institute proceedings under the Enforcement and Collection Law 5727 – 1967? Through enforcement and collection proceedings, Mary can impose a lien on John's assets, apply for a receiver to be appointed for particular assets in which John holds rights, bring about the sale of his assets, have John summoned or brought for an interrogation of means before the head of the Enforcement and Collection Agency so that the latter will compel John to pay his debt on terms, and sometimes even to cause John to be arrested for contempt of the Enforcement and Collections Agency.
But sometimes, enforcement and collection proceedings are not effective or are insufficient to collect the debt, and Mary (the creditor) doesn't have other legal means of collection. It might also be that John's (the debtor's) assets are insufficient to pay his debts (to Mary and/or to other creditors). In such circumstances – also defined as "insolvency" - and where the debtor has more than one creditor, competition develops between the creditors for the debtor's assets and also with respect to who will succeed first in seizing such assets. Of course in such event, the earlier and swifter that a creditor employs extreme measures against the debtor, the greater his chances of collecting his debt. The debtor may evade payment of his debts – even if he is not insolvent; the debtor could pay debts to some creditors and refrain from paying debts to others (in bankruptcy proceedings, this is called "preferential creditor payment", which is of course prohibited by law). Another possibility is that the debtor is concealing his assets or transferring them to others to make it difficult for his creditors to find and realize them through enforcement and collection proceedings.
In these and other situations, when one of the creditors believes that enforcement and collection proceedings are not sufficient to collect his debt, it will be in the interests of such creditor to take more drastic steps than enforcement and collection proceedings, steps that will lead to the seizure and concentration of all the debtor's assets, after which they will be sold to pay off his debts. The law has provided the creditor with the power to institute bankruptcy proceedings against the debtor, with a view to achieving the goals referred to above.
On the other hand, and no less important, bankruptcy proceedings are intended to serve the interests of the insolvent debtor as well. This is because such a debtor is pursued to the bitter end by his creditors in enforcement and collection proceedings, and one can imagine that such a debtor lives a reality of persecution, with the whole world closing in on him. Life experience shows that this kind of despair (from the perspective of the debtor, of course) has on a number of occasions led to extreme and desperate measures, including the unthinkable - instances in which the debtor has succeeded in taking his own life. In most, less extreme cases, this difficult, new, unfamiliar and overwhelmingly insufferable situation can lead the debtor's family into crisis and sometimes even to fall apart.
This is exactly where bankruptcy proceedings come in, not as a "sword" in the hands of the creditor/s but as a "shield" in the hands of the debtor. And in fact, bankruptcy proceedings can be instituted by the debtor to stop the creditors and to freeze any enforcement and collection proceeding being conducted against him at the time.
It is therefore customary to say that bankruptcy proceedings are intended to achieve two goals, which are seemingly incompatible with each other:
One is to collect all of the debtors assets, sell them in the cheapest, swiftest, most efficient and egalitarian manner and divide the proceeds amongst the creditors; the second is to allow the debtor who is down on his luck and incapable of paying his debts to turn over a new leaf, by being discharged from his debts by the bankruptcy court.
So. It may be that you, the reader, were not aware of this option, which is legally available to you at this time of insufferable crisis you are currently undergoing – and that this is an acceptable course. When handling your affairs, the firm of Advocate Ron Major will also familiarize you with the Bankruptcy Ordinance and with the express intentions of the lawmaker, to allow you, in appropriate circumstances, to return to normative functioning in general and financial activity in particular, while wiping out your debts! Moreover, the lawmaker and legal theorists recognize that this interest of the debtor is a public interest for society as a whole.
No need to live life petrified – let alone the terror of living like wild prey ! Your interest of rehabilitating yourself – and doing so with dignity - is just as important as that of the creditor to receive his money.
It is, of course, clear to the intelligent reader that reality is a little more complicated, and that things are not so simple in practice. Every debtor knows, from personal experience, that even if they have fallen on hard financial times in good faith and sometimes through no fault of their own (such as guarantors for the debt of a family member), in the eyes of outraged creditors the debtor is considered a real crook, let alone a serial crook.
This is exactly where the firm of Adv. Ron Major comes into the picture. Through totally legal means, the firm will remove your angry creditors, including the most extreme among them, from the routine of your everyday life. No more liens, no more embarrassment, no more horror. No more bleary eyes of a distressed wild animal and no more feeling that "the sun has ceased to shine". The firm of Adv. Ron Major will give you back your dignity. "Give you back your life".
Adv. Ron Major came to the practice of law from the business world, with which he is intimately familiar and has personal experience. Adv. Major completed his studies at an elite University in England in commercial law (qualified July 10, 1990) and holds an MBA in marketing and economics from the prestigious business school in Edinburgh. For clients of the firm (business or private) who have suffered financial difficulties and whose business has collapsed, the synergy between Adv. Major's legal and academic qualifications in the field of business and commerce and his personal business experience are a real advantage. Adv. Major provides added value and depth, allowing for the best and most creative handling of problems brought for his attention.
The synergy between Adv. Major's legal and academic qualifications in the field of business and commerce, and his personal experience in the business sector alongside his expertise in court litigation are also an advantage for the firm's "debtor" and "insolvent" clients. Understanding the business context that has led to the financial crisis – alongside his legal and litigious abilities, together are a winning formula successfully applied for clients of the firm, which includes dealing with creditors before the head of the Enforcement and Collection Agency and/or before the bankruptcy court.
The firm operates with professionalism, creativity, assertiveness and personal attention, selecting the most suitable framework for the (business or private) client's real needs, in each individual case.
Adv. Major is involved in every case handled by the firm, including cases which are routinely dealt with by other lawyers.
*The above introduction is based on the book by the Hon. Justices Shlomo Levin and Asher Grunis "Bankruptcy", Second Edition, 5761 – 2000.