Bankruptcy Ordinance [New Version], 5740-1980

Upon the request of a creditor, the trustee shall supply and send to that creditor by post a list of creditors showing the debt due to each of them; the expenses of preparing and sending the list shall be borne by the requesting creditor.

Any creditor may, with the consent of one-sixth of the creditors including himself, demand at any time from the trustee or the Official Receiver to supply and send to the creditors a financial statement of account to the date of the demand, and the trustee shall do so, provided that the person making the demand deposits with the trustee or the Official Receiver, as the case may be, a sum sufficient to cover the expenses involved, and that sum shall be refunded to him out of the estate if the creditors or the Court so direct.

The trustee shall keep and maintain, in the prescribed manner, proper books, and shall cause to be recorded therein entries or minutes of meetings and such other matters as are prescribed, and every creditor may, subject to the supervision of the Court, inspect the books himself or through his agent.

A trustee shall not deposit in his private bank account any sum received by him as trustee.

A trustee who retains in his hands, for more than ten days without an explanation satisfactory to the Official Receiver, a sum exceeding one thousand shekels or such other sum as the Official Receiver has permitted him to retain in a particular case, shall be required to pay interest on the excess amount to the bankrupt's estate, shall have no right to claim remuneration, shall be liable to pay all expenses occasioned by his default, and the Official Receiver shall be entitled to remove him from office.

An account which the debtor held at a bank on the date of the making of a receiving order shall not be closed before seven days have elapsed from the date fixed for the first meeting of creditors, unless the Official Receiver has directed its closure for the security of the account or for other sufficient reason, all subject to the Regulations concerning small bankruptcies under section 201.

An Order of the Official Receiver releasing the trustee shall discharge him from all liability in respect of any act or default of his in the administration of the affairs of the bankrupt, or in relation to any other matter concerning his conduct as trustee; however, the Order may be annulled if it is proved to have been obtained by fraud or by concealment of a material fact.

The territorial jurisdiction of every court empowered to hear bankruptcy matters at first instance shall be, subject to the provisions of this Ordinance, the entire territory of the State.

The authority prescribed for this purpose may, whether on the application of a party or without such application, transfer bankruptcy proceedings at any time and at any stage from one court to another, or direct that the proceedings shall continue in the court in which they were commenced even though it is not the court in which they ought to have been commenced.

Where a question of law arises in any bankruptcy proceedings in a Magistrate's Court empowered as aforesaid, and all the parties to the proceedings, or one party and the court, wish the District Court to decide it first, the court shall state the facts in the form of a case for the opinion of the District Court, and the case stated and the proceedings, or such proceedings as are necessary for the matter, shall be transferred to the District Court for determination.

A judge hearing a bankruptcy matter may, subject to the provisions of this Ordinance and the Regulations, hear the matter in chambers.

Where a trustee, debtor or other person has failed to comply with an Order or direction made by the court or the Official Receiver or another officer of the court in exercise of a power under this Ordinance, the court may, on the application of the receiver or another duly authorised person, order them to comply with the Order or direction, and may, on such application, order the imprisonment of the person in default, and this in addition to any other right and remedy in respect of such refusal.

The court may review any Order made by it in exercise of its jurisdiction in bankruptcy, and may rescind or vary it.

Where this Ordinance confers a right to appeal to the District Court against a decision of the Official Receiver, the appeal shall be brought within forty-five days from the date on which the decision appealed against was given, and it shall be heard and determined, as nearly as circumstances permit, as if it were an appeal from a Magistrate's Court.

The costs incidental to any proceedings in court under this Ordinance shall be in the discretion of the court, subject to the provisions of this Ordinance and the Regulations made thereunder.

The court may, on such terms as it has prescribed —

The court may, subject to the Regulations, receive in any matter all or any of the evidence orally or by affidavit or, outside Israel, by a commissioner.

Where a petitioner is not prosecuting a bankruptcy petition presented by him with due diligence, the court may substitute another creditor who is a creditor of the debtor in the amount required under this Ordinance for a creditor presenting a bankruptcy petition.

Where a debtor in respect of whom a bankruptcy petition has been presented by or against him dies, the proceedings in the matter shall continue as if he were alive, unless the court otherwise directs.

The court may at any time, on sufficient cause, order a stay of proceedings, either altogether or for a limited period, on such terms as it thinks just.

A creditor whose debt entitles him to present a bankruptcy petition against a partnership shall not present such petition against a partner or partners therein unless he is entitled to bring an action against him or them under the law of partnership.

Where there are several respondents in a bankruptcy petition, the court may dismiss the petition as against one or more of them, without prejudice to its effect as against the remaining respondents.

Where a receiving Order is made on a bankruptcy petition presented by or against a partner in a partnership, the following provisions shall apply:

A person who is a party to a contract together with a bankrupt may sue and be sued on the contract without joining the bankrupt.

Partners in a partnership that has not been duly registered, and any person conducting business in the name of such a partnership, may take proceedings or have proceedings taken against them under this Ordinance in the name of the partnership; however, the court may, upon the application of an interested person, order that the names of the partners or the name of the person conducting the business be set out in such manner as it directs and verified on oath or in such other manner as it directs.

Courts, and their officers, shall assist one another in all matters of bankruptcy; an order of a court requesting assistance from another court having jurisdiction in bankruptcy shall be sufficient to enable the requested court to exercise, in respect of the matters stated in the order, such jurisdiction as it or the requesting court has in similar matters within their respective jurisdictions.

A search order issued by the court for the discovery of property of a debtor shall be executed in the manner prescribed, or in the manner in which a search order is executed under the Criminal Procedure Ordinance (Arrest and Search) [New Version], 5729-1969.