Bankruptcy Law

Without prejudice to the provisions of Article 195 of this Law, upon initiation of the liquidation procedure or small debtors’ liquidation procedure, debts of a higher priority shall be satisfied before debts of a lower priority. The priority of debts shall be as follows: a) Debts secured by in-kind securities. b) Secured financing in accordance with Article 184(a) of this Law and any other security specified in the Regulations in accordance with Article 184(e). c) A 30-day wage for debtor’s employees. d) Family expenses established pursuant to a statutory provision or a court order. e) Expenses necessary for the continuation of the debtor’s business during the procedures, as specified in the Regulations. f) Outstanding wages of the debtor’s employees. g) Unsecured debts. h) Government fees, subscriptions, taxes, and unsecured entitlements, as specified in the Regulations. The Regulations shall determine the priority of debts within each of the priorities provided for in this Article.