Some 25,000 insolvency cases of individuals and small businesses were opened in Israel in 2022, with a total value of about NIS 10 billion. The figures are about 9% higher than in 2021, and they are expected to increase another 5% to 10% in 2023, according to attorney Ofir Feder of the Feder Law Firm.
Factors that led to the increase in insolvency cases include the global recession, an increase in interest rates and the impact of the coronavirus crisis, he said this week.
“More than 50% of the insolvency cases have reached payment arrangements – a monthly payment of about 3% of the total amount of the debt – and this is after writing off tens of percent of the total value of the debts,” Feder said at a Direct Finance managers forum on the topic of insolvency and ways in which a creditor can be better insured against the possible economic collapse of a client.