Our law firm in Jerusalem, specializes in legal issues regarding insolvency, writs of execution, and bankruptcy law. In this article, Attorney Nechama Ovadia, a bankruptcy lawyer, explains the various issues relating to discharge orders.\u00a0<\/span><\/p>\n After receiving a Receivership Order and an examination of the financial status of the debtor as a part of the investigation, and as long as the debtor proceeds in accordance with requirements and in accordance with what the court decreed in regards to their payment plan (which usually takes between 3-5 years), the debtor receives the desired Discharge Order<\/a>. Two types of discharge orders exist, as explained below: <\/span><\/p>\n 1.\u201cConditional Order of Discharge\u201d<\/b><\/span><\/p>\n The court has the option of granting a \u201cconditional discharge\u201d to the debtor. This exemption is conditional upon the debtor fulfilling the required conditions so that the exemption can take effect. The court prescribes conditions as part of the order, amongst which is a payment plan that the debtor must comply with. The payment plan generally includes monthly payments that do not exceed a period of 3 to 5 years (in exceptional cases the court can prescribe a shorter or longer period). If the debtor does not meet the conditions stipulated in the exemption, the court can revoke it. \u00a0 \u00a0<\/span><\/span><\/p>\n The court has the option of granting an \u201cimmediate discharge\u201d to the debtor, which is exactly what its name implies. This exemption is given immediately after the debtor is declared bankrupt, usually during the initial review of<\/span> the declaration. In most cases, the exemption is given when it is found that the debtor has no present or future earning capacity, and owns no assets that could be used as collateral. Another condition is that it must be found that the creditors will not benefit from the procedure. <\/span><\/p>\n When this is the case, the court has no other option but to immediately grant the exemption to the debtor, since this is the main purpose of the bankruptcy process. The Immediate Order of Discharge is usually given to debtors who can demonstrate their economic health situation is unlikely to improve.Granting a Discharge Order by Israeli Law\u00a0<\/b><\/span><\/h4>\n
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<\/p>\n2. \u201cImmediate Order of Discharge\u201d<\/b><\/span><\/h4>\n
\n<\/span><\/p>\nThe Differences Between the Two Types of Orders<\/b><\/span><\/h4>\n