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Home
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Law to Limit Lawyer's Fees for Mortgage Defaulters
by Eliezer Rauchberger
The Knesset has approved a law proposed by Rabbi Meir Porush
to limit fees charged by lawyers to those unable to meet
apartment mortgage payments. 36 MKs voted in favor of the law
last week, while 7 opposed the law. There was one
abstention.
Rabbi Porush explained that the proposal concerns tens of
thousands of couples suffering from financial problems and
unable to meet payments on their mortgages. In such cases,
the Housing Ministry tries to help by means of an
interministerial committee. However, lawyers' fees sometimes
mount up to tens of thousands of shekel, ensuring that large
portions of the government aid go to the lawyers instead of
to repay the debt.
According to the new law, the maximum rate of compensation
for the attorneys will be proportionate to the amount of the
debt. When a debt is 20,000 NIS, the lawyer will receive ten
percent and for a higher amount the fee will be 8 percent.
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