Debts to Bituah Leumi: Can Your Bank Account Be Seized?

The Principle

The National Insurance Institute (Bituach Leumi), like other state authorities, has the right to place a lien (ikul) on your bank account to collect a debt. However, the law protects certain types of income and a minimum balance in the account from being debited. Your primary objective is to contact the creditor immediately to arrange a debt settlement and have the lien removed.

Who Is Affected?

An account lien can affect any individual or legal entity with a confirmed debt to Bituach Leumi or other creditors. Debts most commonly arise for:

• Self-employed individuals (atzmai) who have not paid their contributions.
• Non-working individuals who were obligated to pay contributions but failed to do so.
• Individuals who received benefits in error and did not return the overpayment.
• Employers who failed to remit contributions for their employees.

Who is not at risk: Individuals who have no official debts to state authorities. A lien is not placed without prior notifications.

Your Rights

Even when an account is under a lien, the law protects a portion of your funds. A creditor cannot debit:

• Benefits from Bituach Leumi (e.g., old-age pension, disability allowance, income support benefit). These funds are protected for 30 days from the date they are deposited into the account.
• The minimum sum required for living expenses. This amount is determined by law and depends on your family status (single, couple, with children).
• Housing rental assistance payments from the Ministry of Construction and Housing.

Important: If the account contains both protected and unprotected funds, the bank is obligated to leave the protected portion untouched.

Step-by-Step Guide

If you discover that a lien has been placed on your account, act immediately according to the following procedure:

1. Identify who placed the lien. Contact your bank and inquire which organization initiated the lien (ikul). The bank is obligated to provide this information.
2. Contact the creditor. Immediately call or visit the collection (gviya) department of Bituach Leumi. Explain the situation and express your willingness to settle the debt.
3. Establish a payment agreement. Request to divide the debt into installments (esder tashlumim). Bituach Leumi is generally cooperative if it recognizes an intent to pay. Discuss a monthly payment amount that is manageable for you.
4. Obtain a letter for the lien removal. After signing the payment agreement, Bituach Leumi will issue an official letter for your bank to cancel the lien. This may take from a few hours to one business day.
5. Deliver the letter to the bank. Take the received document to your bank branch. The account is typically unfrozen within 1-3 business days.

List of Documents

To negotiate with Bituach Leumi and remove the lien, prepare the following documents:

• Identity card (Teudat Zehut).
• All letters and debt notifications you have received.
• A bank account statement (ishur cheshbon) to show the deposit of protected benefits.
• Bank account details for setting up a standing order (hora'at keva).
• Documents confirming your financial situation (if you are requesting a significant reduction in payments).

Pitfalls

• Do not ignore notifications. An account lien is a measure of last resort. It is always preceded by written warnings. Open all mail from Bituach Leumi.
• Act quickly. The longer the account remains under a lien, the more complicated the situation becomes. Delays can lead to the debiting of funds and additional penalties.
• A lien does not exempt you from current payments. Even if the account is frozen, you are still obligated to make current contribution payments to Bituach Leumi.
• Protected funds. If the bank has mistakenly debited legally protected benefits, immediately submit a written request to the bank and to Bituach Leumi demanding the return of the funds.

Contacts and Links

Specific links to forms or direct telephone numbers for collection departments may change.

• Official Website: Look for current information on the official website of the National Insurance Institute (Bituach Leumi).
• Call Center: The general number for the Bituach Leumi call center is *6050. You can attempt to contact the collection department (mador gviya) through this number.
• Personal Account: You can check for the existence and status of a debt in your personal account area on the Bituach Leumi website.

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