Protection of Residential Apartments from Creditors

What is apartment protection and why is it important?

A residential apartment is not treated as ordinary property under Israeli law. The law grants special protection to an apartment where a person resides, recognizing that it is an asset of vital importance to the individual and their family. Apartment protection is a legal mechanism that limits the ability of a creditor (bank, mortgage company, business, individual, or government body) to attach or seize a residential apartment to collect a debt.

In Israel, there are two main levels of protection: partial exemption from attachment (protecting a certain amount from the property's value) and full exemption from attachment (under exceptional circumstances). Understanding these rights is essential for anyone recovering from an accident, illness, or facing financial difficulties — to ensure that even if there is a debt, their apartment remains in their ownership.

Our firm, Mandelboim, Gor, Witzman-Gor and Co., with more than 18 years of experience in tort law, real estate law, and civil law, assists clients in protecting their rights in this asset. We represent plaintiffs exclusively and are dedicated to protecting the rights of injured parties and debtors with personal commitment and devotion.

Who is entitled to apartment protection?

Entitlement to apartment protection is not automatic — it depends on a series of different legal criteria:

• Apartment owner or permanent tenant: The law protects those for whom the apartment is their primary residence, whether as an owner or as a tenant under a permanent lease.
• Family status: If minors, a pregnant woman, or a person with special needs reside in the apartment, the protection may be stronger.
• Apartment value and debt: The attachment exemption is calculated as a portion of the apartment's market value. If the debt is small compared to the value, the likelihood of protection is higher.
• Type of debt: Debts to the National Insurance Institute, income tax, or debts resulting from a judgment in an accident case may have different collection laws than bank debts or commercial debts.
• Period of ownership: An apartment purchased with the intention of protecting oneself from creditors (in a period very close to a lawsuit or debt) may be exposed to claims of fraud or evasion.

Attachment of a residential apartment – what is it and how does it happen?

Attachment is a legal procedure in which a creditor petitions the court to encumber or seize a property to collect a debt. In the context of a residential apartment, attachment means that the creditor attempts to place a lien on the apartment, and in extreme cases — even to force its sale.

The process typically begins when:

• A creditor obtains a court judgment or legal settlement requiring payment.
• After a certain period of time (usually 30 days), the debtor does not pay the debt.
• The creditor petitions the court for an attachment order on the property.
• The court examines whether there is entitlement to an exemption from attachment.

During this process, it is crucial that you have strong legal representation. An attorney can file objections, present evidence of your rights, and convince the court that the apartment is worthy of protection.

What is an apartment attachment exemption?

An apartment attachment exemption is a legal right that protects a portion of the value of a residential apartment from attachment. This is not a cancellation of the debt — the creditor can still pursue other remedies — but rather protection of the property itself.

In Israel, there are two main levels of exemption:

• Partial exemption: A portion of the apartment's value is protected from attachment. This amount varies depending on the circumstances, but is typically substantial.
• Full exemption: Under very exceptional circumstances (such as a family with minors, an especially difficult financial situation, or a special court order), the court may grant full exemption from attachment.

The decision on the type and level of exemption depends on the court's discretion, the evidence presented, and the principle of "judicial justice." This is why quality legal representation is critical.