Bankrupt “repatriate cleaner” spent a fortune on restaurants and golf
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The debtor “dissolved the smokescreen” regarding his financial situation and where he lives, trying to give the impression of a “frugal lifestyle”.
A repatriate from Russia, who got into huge debts, applied for an order for financial rehabilitation. In the period following the issuance of the order, it became clear to the bankruptcy commissioner that, contrary to her statement, the woman was leading an extravagant lifestyle and had a cleaning business in Caesarea. Ephraim Chizik of the Haifa District Court ruled that the procedure would remain in place for the time being, sanctioning the debtor with an unlimited monthly payment.
The debtor, who immigrated to Israel in 2009, claims she got into financial trouble after her husband left her and stopped paying her 50,000 shekels a month, as he used to do. Due to her deteriorating condition, she said, she was forced to work as a cleaner in private homes and move from her luxurious home in Caesarea to a communal apartment in the Or Akiva slum.
As part of bankruptcy proceedings 14 debt claims were filed in her case, totaling over a million shekels. At some point, the Bankruptcy Commissioner issued an order to open proceedings, in which the debtor was ordered to pay a monthly payment of 1,500 shekels.
However, in January 2021, the commissioner suggested that the court cancel the procedure. According to him, the investigation showed that the debtor lied about her place of residence. The results of the investigation showed that only the debtor's girlfriend lives in the apartment, while the debtor herself is not there, and the housemates testified that they had never seen her.
The investigation also revealed that, contrary to her claim that she worked as a cleaning lady in private homes, in practice the debtor acts as an intermediary in the cleaning industry and employs workers. The company's online advertising showed that it provided cleaning services, particularly to embassies and luxury homes.
Judge Chizik, who heard the case, explained that bad faith behavior on the part of the debtor could lead to the cancellation of the insolvency procedure in his case. Moreover, the important goal of rehabilitating the debtor will not be achieved without correct and responsible financial behavior on his part.
wrote the judge. He pointed out that a simple Internet search showed that the debtor did not clean the floors herself, but operated a business with workers providing cleaning services to elite premises in the center of the country.
Regarding her place of residence, the judge wrote that the debtor "dissolved the smokescreen". The results of the investigation into her case even showed that she leads a clearly immodest lifestyle – spending time in restaurants, cafes and playing golf in Caesarea, which is not befitting a debtor in bankruptcy.
Therefore, the judge imposed on it the obligation of a monthly and unlimited payment in the amount of 1,500 shekels. He stated that after 3 years she would be able to ask for an expiration date for the rehabilitation order.
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