Bankruptcy Ordinance [New Version]

A single proof of debt may be submitted in respect of wages owed to all or some of the debtor's employees; such proof of debt may be submitted by a representative of all or some of the employees, and a list specifying the names of the employees and the amount owed to each of them shall be attached thereto.

A proof of debt submitted as provided in Section 12 shall have the same effect as if each employee had submitted it individually in respect of the wages owed to that employee.

A secured creditor who has realized the creditor's security is entitled to claim the balance of the debt exceeding the net amount realized.

A secured creditor who has surrendered the creditor's security to the Official Receiver or to the Trustee for the benefit of all creditors is entitled to claim the full amount of the debt.

A secured creditor who submits a proof of debt without having realized or surrendered the security shall set out in the proof the particulars of the security, the date on which it was given, and its value according to the creditor's own valuation before claiming a dividend; the creditor shall be entitled to receive a dividend only in respect of the balance due after deducting that value.

Upon amendment of a valuation pursuant to Section 18, the creditor shall immediately return any dividend received in excess of what the creditor would have been entitled to receive under the amended valuation, or shall be paid, out of moneys then available for the payment of a dividend and before such moneys are made available for the payment of a future dividend, any dividend or part thereof that the creditor did not receive by reason of the inaccuracy of the original valuation; however, the creditor shall not be entitled to disturb the distribution of a dividend declared prior to the date of the amendment.

Where a creditor has realized the security after having valued it, or where the security has been realized pursuant to the provisions of Section 17, the net amount realized shall replace the amount of any valuation previously made by the creditor, and shall be treated for all purposes as an amended valuation made by the creditor.

A secured creditor who has not acted in accordance with the provisions of this Division shall not be entitled to participate in a dividend.

Subject to the provisions of Section 17, a creditor shall in no case receive more than the principal amount of the debt and interest as prescribed in this Ordinance.

Where a debtor, at the date of the Receiving Order, was liable in respect of separate debts as a partner in several separate Partnerships, or both as a sole contractor and as a partner in a Partnership, the fact that the Partnerships are composed wholly or partly of identical partners, or that the sole contractor is also one of the parties to a joint contract, shall not prevent a claim in respect of the contracts against each of the respective estates, as the case may be.

Where the due date for payment of rent or any other periodic payment falls at a fixed time, and a Receiving Order is made at a date other than that time, the person entitled to such payment may claim a proportionate amount of the debt due up to the date of the Receiving Order.

In respect of any debt or fixed sum — even if the time for payment is not fixed — on which there is no agreement to pay interest or other compensation for delay in payment, and which, on the date of the Receiving Order, has already fallen due and is provable in Bankruptcy, the creditor may claim interest, linkage differentials, or linkage differentials and interest as defined in the Interest and Price Index Law, 5721-1961, for the period from the time of payment as fixed in the written document until the date of the Order; and if no time of payment was so fixed — for the period from the day on which notice was given to the debtor — stating that interest or linkage differentials as aforesaid would be demanded from the date of the notice until payment — until the date of the Order.

A creditor in respect of a debt whose time for payment had not yet arrived at the time the debtor committed an act of Bankruptcy may prove such debt as though it were immediately payable, and shall be entitled to dividends equally with the other creditors, subject to a deduction of interest, linkage differentials, or linkage differentials and interest, as the case may be, to be computed from the date of declaration of the dividends until the time at which the debt would have been payable under the terms on which it was created.

Where a proof of debt has been submitted by an earlier date fixed by the Trustee pursuant to Section 2, the Trustee is required to examine it and to furnish the creditor with a reasoned decision within thirty days from the date so fixed.

The Court may, upon an Appeal by a creditor who is not satisfied with the trustee's decision on his claim, vary the decision or substitute another decision in its place, provided that the application is submitted to the Court no later than twenty-one days from the date of service of the decision on the creditor.

Until a trustee is appointed, the Official Receiver shall have all the powers of a trustee with respect to the examination, admission, and rejection of claims, and any act and decision of his in these matters shall be subject to Appeal as if they were those of a trustee.

Moshe Nissim

Minister of Justice

688 Book of Laws 34 28 Elul 5740 / 09.09.1980

Comparison Table

New Version

Previous Version

New Version

Previous Version

New Version

1

77 opening clause

77 closing clause

/

86.

26(9)

30(1),(2)

30(3)

30(4)-(7)

30(8)

33(1)

33(2)

33(4)

33(5)

33(6)

33(7)

33(8)

33(9)

37 opening clause

37(1)-(3)

37 closing clause

38(1)

38(2)

38(3)

40(1)

40(2)

40(3)

42a

46(1)

46(2)

47(1)

47(2)

47(3)

47(4)

47(5)

49(1)

49(2)

49(3)

35(g)

35(h)

35(i)

35(j)

35(k)

35(d)

34(d)

44(a),(b)

44(d)

44(e)

47(b)

44(b)

47(a)

59

61(a),(c),(d)

62(a) closing clause,(b)

63(a)

63(b)

68(2)

68(1)

61(b)

62(a) opening clause

16(10)

16(11)

16(12)

16(13)

16(14)

16(15) opening clause

16(15) closing clause

16(16)

16(17)

16(18)

16(19)

16(20)

16(21)

18(1)

18(2)

19(1)

19(2)

19(3)

19(4)-(6)

19(7)

19(8)

19(9)

19(10)

20(1),(2)

20(3),(4)

20(5)-(9)

20(10)

21(1)

21(2)

21(3)

22(1)-(3)

22(4)

25(1),(2)

25(3)-(5)

26(1)

26(2) opening clause

26(2) condition a

26(2) condition b

26(3)

26(4)

26(5)

26(6)

26(7) opening clause

26(7) closing clause

26(8)

Title

3, 5(6)

16(a)

16(b)

17(a), 18

17(b)

29(a)

29(b)

29(c)

29(d)

34(a)

34(b)

34(c)

35(a)

35(b)

35(c)

35(e)

35(f)

3(1)

3(2)

3(2)(1)

3(3)

5(1)

5(2)

5(3)

6(1)

6(2)

6(3)

6(4)

6(5)

6(6)

6(7)

6(8)

6(9)

7(1)

7(2)

7(3)

14(4) closing clause

15(1)

15(2),(3)

15(4)

15(5)

15(6)

15(7)

15(8)

15(9)

15(10)

16(1)

16(2)

16(3)

16(4)

16(5)

16(6)

16(7)

16(8)

16(9)

689 Book of Laws 34 28 Elul 5740 / 09.09.1980

New Version

Previous Version

New Version

Previous Version

New Version

208

Omitted

Omitted

216(9),(10)

Omitted

Omitted

Omitted

Omitted

Omitted

112(1)-(3)

112(4)

112(5)

112(6)

112(7)

112(8)

112(9)

126(1)

126(2)

126(3),(4)

127(17)

131(1)-(3)

131(4)

136(1)

136(2)

172(a) opening clause

172(b)

173(a)

173(c)

Omitted

173(d)

172(a) closing clause

173(b)

184(b)

184(a)

186(1)

186(2)

186(3)

186(4)

Omitted

84(1),(2)

84(3)

84(4) opening clause

84(4) closing clause

36(1),(2)

36(3)

86(4),(5)

86(6),(7)

88(1)

88(2)

88(3)

88(4)

88(5)

88(6)

90(1)

90(2)

90(3)

91

93(1)-(3)

93(4)

93(5)

94(1)

94(2)

94(3)

94(4)

94(5)

95(1)

95(2)

95(3)

95(4)

95(5)

138(a)-(c)

138(d)

50(1),(2)

50(3)-(5)

51(1)

51(2)

51(3)

51(4)

51(5)

51(6)

51(7)

51(8)

55a

71(1)

71(2)

71(3)

74(1)

74(2)

74(3)

74(4)

77(1)-(3)

77(4)

77(5)

78(1)

78(2)

78(3),(4)

690 Book of Laws 34 28 Elul 5740 / 09.09.1980