Holistic assistance for debtors in insolvency proceedings, to ensure successful completion of the process and prevent returning to the debt cycle
Background
The Insolvency and Economic Rehabilitation Law, which came into effect in September 2019, defines the economic rehabilitation of debtors as part of its objectives. The goals of economic rehabilitation are twofold: completing insolvency proceedings and receiving discharge, and not returning to debt after discharge.
Program Objectives
The program is designed to promote rehabilitation goals through three channels of action:
- Training for professionals on poverty-aware service system and rehabilitative work model
- Training and guidance system for economic management for debtors in accordance with the law
- A limited and experimental response that will allow for holistic economic, legal, and social support for debtors within the process. The program deals with the following areas:
* Economic rehabilitation: financial literacy, employment, rights utilization, etc.
* Economic, legal, and social support for those dealing with debts
* Removal of bureaucratic barriers
* Developing a poverty-aware approach that encourages economic rehabilitation among professionals.
Paamonim is responsible for the pilot program of individual rehabilitation, which aims to assist debtors in insolvency proceedings to complete the insolvency processes in the best possible way and to assist in the process that will reduce the return to the debt cycle.
Target Audience
* Population in debt – Adults aged 18+ dealing with debts who have begun insolvency proceedings due to inability to pay their debts.
* Professionals – lawyers and employees of the Enforcement and Collection Authority.
Individual Program Outline
Development and operation of an economic-social support framework for debtors who are in the legal process of insolvency and have been referred by a judge for economic training through an “Economic Rehabilitation Order”.
The framework will be based on collaborations with existing community programs of the Ministry of Welfare and other bodies and will focus on topics such as: rights utilization, employment and income increase, emotional support, etc
