Joulus Gazit & Co.


“Concealment of Assets with the Help of the Israel Tax Authority”

Granting a discharge to honest but unfortunate debtors, with whom all possible collection proceedings have been exhausted, could offer welcome relief and be beneficial to the economy, but must be implemented in a way that prevents cynical abuse of the new law by debtors. If the Government does not act to minimize the damage to creditors who will be unable to recover their full debt, these creditors will be the debtors of tomorrow. Moreover, the bill to erase the debts of “economically disadvantaged” debtors in debt collection proceedings could unfairly favor the debtors. The debtor could take advantage of the lack of dissemination of information, and before he declares himself a debtor of limited means could transfer all his assets to the name of other parties in a trust mechanism, wait patiently until the storm blows over and receive a discharge, and then repossess all his assets.
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