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Single mother forces rethink on jailing debtors
By Ruth Sinai

A court last week canceled an arrest warrant for an unpaid debt because the debtor had not known about the debt in time to repay it before legal proceedings began. The debtor is a single mother of three from Ashkelon who originally owed a grocery store NIS 112. She later repaid more than three times that amount, but was unaware of a tiny outstanding debt that ballooned and triggered the arrest warrant.

Now MKs will be considering a bill to end debtors' imprisonment, a punitive measure common in 19th-century Europe, but eradicated since in most Western countries.
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The Knesset Constitution, Law and Justice Committee is scheduled to discuss an amendment to the Bailiff's Office Law at its meeting today, and is under heavy pressure from the Bar Association to oppose the change.

Eran Knobel, whose law firm is a leader in debt collection through the Bailiff's Office, insists that jailing debtors is effective. "Checks that bounce and debts that cannot be collected are a plague," Knobel says. "The moment a person gets an order to report to the Bailiff's Office and pay, he shows up. Few arrest warrants are actually implemented."

Knobel's firm represents Blue Square in its case against Oksana Sidorchenko of Ashkelon, which reached the Ashkelon Magistrate's Court last week after an arrest warrant was issued at Knobel's firm's request.

A check Sidorchenko wrote for NIS 112.85 bounced in 2006. She said in an affidavit to the court that she had asked the grocery store to let her pay the debt in cash, but was told that her check had already been sent to a collection agency.

In February 2007 the Bailiff's Office opened a file on her at the request of Knobel's law firm. Sidorchenko, who barely speaks Hebrew, says she applied to the firm to settle her debt, but met with indifference. However, Knobel's records show that she was offered a repayment plan and turned it down. In June 2007 she received due warning that unless she paid, she would be arrested. The next day she paid NIS 395 - the original debt plus linkage to the consumer price index, interest, Blue Square's legal fees and expenses. "I thought it was over," she says.

But Sidorchenko did not know that the case was still open because of a debt, apparently of NIS 14, whose origins are not entirely clear. Because of that debt Blue Square incurred collection fees of NIS 174. With linkage, interest, and lawyer's fees, the sum climbed to NIS 953 - and resulted in an arrest warrant.
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