Woman, 78, gets NIS 340,000 debt wiped after son's gambling

A community bailiff in Israel has approved an extraordinary debt arrangement for a 78-year-old woman who ran up NIS 415,700 in debts across eight enforcement files after she took out loan after loan to cover her son's gambling addiction. Bailiff Korin Yitzchaki ruled that the woman will pay just 17% of the total and the rest will be written off.

The woman's financial collapse began when she stepped in to help her son, who was battling a severe gambling problem. To cover his debts, she borrowed repeatedly and eventually sold her own flat. Today she owns no property and no car. She rents for NIS 5,000 a month, and despite her age and deteriorating health, she continues to work two jobs.

"A woman who fought to pay" - creditors stayed silent, bailiff ruled

During the proceedings, the bailiff examined whether a workable arrangement could be reached rather than leaving the debt to sit in the system indefinitely. The woman's employer volunteered to help, committing to transfer NIS 2,000 a month directly to the bailiff's office even if her employment ends. The creditors, meanwhile, received notice of the hearing but filed no response.

Bailiff Yitzchaki noted that this was not a case of a debtor dodging payment, but of a woman who had fought to pay her debts even after losing everything she owned. The bailiff therefore ordered a dramatic reduction: the woman will pay NIS 2,000 a month for 36 months only, a total of NIS 72,000, and after that, all eight files will be closed permanently.

The decision joins a series of recent rulings in which Israeli courts and bailiffs have granted relief to debtors in genuine financial distress. In recent months, several similar cases have been recorded in which judges and enforcement officials exercised discretion and eased the burden on debtors who proved they had acted in good faith and fallen into hardship under difficult circumstances.