Hadlap or consolidation of cases

What are the differences between bankruptcy and consolidation of cases?
Many are debating what is the best option for them as debtors, consolidation of files or bankruptcy?
In this article we will try to shed light on the differences between the various procedures emphasizing the advantages and disadvantages of both procedures.
Although they appear to be similar procedures, the bankruptcy procedures and consolidation of cases are quite different for several reasons, which we will address one by one.

Types of debt included
The bankruptcy proceedings include all of the debtor’s debts, including types of debt that are not collected in the framework of execution procedures such as debts to the National Insurance, Income Tax, and VAT, and also include debts whose collection has not yet begun in execution procedures.
On the other hand, the consolidation of cases within the framework of enforcement procedures does not include the above-mentioned cases that are not collected as part of the enforcement, does not include future debts for which enforcement procedures have not yet been opened, and also does not include, among other things, enforcement cases due to alimony debt that do not enter into a consolidation procedure the bags
Therefore, a case consolidation procedure will be less useful to a debtor who has several debts to several different entities, or some of his debts have not yet been collected in execution procedures, who may find himself paying within the consolidation case, and paying to several other parties at the same time, which is not the case in the bankruptcy procedure which allows an umbrella of protection from all of the debtor’s obligations, regardless of their origin and in what procedure.

The discharge – as its name implies, discharge from the debtor’s obligations.
In bankruptcy proceedings, as opposed to case consolidation proceedings, the debtor may, after completing the rest of the procedure up to this point, which includes the appointment of an administrator and the issuance of a summons (for this see another article on bankruptcy), request the court to receive a discharge of his debts, in full or in part.
To the extent that the court accepts this request, the debtor will be freed from paying all of his debts, or some of them, and the debtor will be able to start a new page in his life and be debt-free, even though he has not paid his full debts.
There is no doubt that the discharge is the lion’s share of the bankruptcy due to the debtor’s ability to discharge the payment of the full amounts and start a new life within a relatively quick period of time.
On the other hand – in consolidating files, the debtor must pay all his debts until the last of them, although within a convenient payment framework as determined by his situation, but these files accrue interest, and when it comes to debts of a large financial scope it is very difficult to settle these debts, and this task sometimes becomes impossible.

treating court.
The bankruptcy proceedings are conducted in front of the official receiver and in front of the Magistrate’s Court, which is not the case in cases of consolidation of entities in execution which are conducted in front of the execution office where most of the debtor’s files were opened.

General delay of proceedings
When cases are consolidated in the execution, then all the proceedings conducted against the debtor in the execution are delayed, whereas proceedings conducted in front of state authorities and outside the scope of the protection of the execution, the delay of the proceedings will not apply to them.