Calcalist: Individual bankruptcy filings in Israel rose during the first half of 2025
The number of individuals filing for bankruptcy in Israel increased by 9% during the first half of this year compared to the same period in 2024.
According to data from the Justice Ministry’s Insolvency Commissioner, Asher Engelman, reported by the Israeli economical newspaper Calcalist, the number of applications between January and June reached 8,050, compared to 7,373 in the first half of 2024 and 7,920 in the same period of 2023.
According to Engelman, “The increase in individual applications does not yet represent a general trend compared to pre-war levels in 2023, while a decrease in corporate applications is observed, which is a positive indicator”.
The data showed that the Haifa and North region recorded the largest number of applications (3,622), followed by Israel and the center (2,236), then Beersheba and the South (1,413), and finally Jerusalem (779).
Calcalist noted that courts have tightened their grip on debtors undergoing insolvency proceedings in recent months, stressing that requests to lift restrictions on travel abroad for leisure or vacation purposes “won’t be welcomed”.
Debtors must accommodate the change and maintain a sense of humility during the proceedings, except in cases of urgent health or family matters.
Calcalist quoted Judge Dalia Astreicher as rejecting a debtor’s request to travel on a third-party-funded vacation, stating that the desire for entertainment does not justify lifting the travel ban.
She had previously rejected a similar claim by another debtor who wanted to travel to Thailand under the pretext of “repairing the marital relationship”.
In contrast, corporate filings saw a slight decline, with the number of orders to open proceedings reaching 53 in the first half of 2025, compared to 55 in the same period last year.
In 2024, approximately 60,000 businesses closed, an increase of nearly 50% over the annual average in previous years.
The construction, restaurant, high-tech, and tourism sectors were among the most affected, as a result of the Israeli war on the Gaza Strip.
