As soon as a bankruptcy order is issued, an order is issued against theDebtor in bankruptcy
which is called “individual” in legal Israeli terms, to prohibit them from leaving the country.
The purpose of the order is to prevent the individual from fleeing the country and leaving their creditors in Israel without the ability to get their money or part of it back, and in addition – to prevent trips abroad which usually incur significant expenses.
An individual who is in insolvency proceedings is also expected to live at a lower standard of living adapted to the fact that they have debts and therefore should not travel for leisure abroad but only travel if they have a justified reason to do so.
Therefore, in order to leave Israel during insolvency, a special application must be submitted to the court, detailing the reason why they want to leave Israel, who is paying for the trip, and of course – presenting guarantees and bonds to dispel concerns that the individual will not return to the country at the end of the period.
The reasons which have been considered by the court as justified reasons for traveling abroad are diverse and considered on a case-by-case basis. Clearer cases are medical circumstances that require traveling abroad, or work trips that are required by the individual’s workplace in order to ensure that they can continue to pay the monthly payment. However, trips to Oman in Rush Hashana or Mecca, to the Hajj, are also recognized in court rulings as justified trips, and sometimes family visits of close relatives who are abroad under special circumstances and cannot come to Israel are recognized too – for example, visiting a parent who is very ill, going out for the wedding of a son or daughter abroad, or visiting to see grandchildren who were born in recent years and the grandparent has not yet seen them.
In all these cases, the individual must prove that he/she is not the one paying for the trip, unless it is a trip for medical needs. If it is a visit of a close relative, an affidavit and proof must be provided that the close relative is the one paying the expenses; If it is a work trip, documents must be provided showing that it is financed by the workplace.
However, that is not enough. In order to dispel concerns that the individual will travel abroad and not return, two guarantors must be provided, who will sign a guarantee at the offices of the supervisor of insolvency and deposit their passport with the supervisor. The guarantors must be people who are not in insolvency proceedings and who do not have debts in the Bailiff’s Office, and earn a salary that will allow them to repay the debts in case the individual does not return, or have an asset that can be seized. Upon signing, an order is issued prohibiting each of the guarantors from leaving the country, and the order will be removed only after the individual returns to Israel.
Submitting a request to leave Israel during insolvency proceedings has many intricacies and varies according to the circumstances of each case, and therefore it is important to consult with an attorney before submitting such a request.