1. The creditors, whose rights are secured by movable or immovable property, shall take precedence over other preferred creditors and ordinary creditors, according to the extent of their securities, and shall be followed in rank by preferred creditors depending on the order of their priorities in accordance with the provisions of this Law. 2. All reasonable fees and expenses incurred by the Trustee in the course of sale of such assets shall be deducted from the proceeds of the sale of the assets securing the debts, before distributing such proceeds to secured creditors. 3. If the Trustee fails to commence sale of secured assets within thirty (30) days following the date on which the bankruptcy declaration judgment is rendered against the debtor, the secured creditors shall be entitled to petition the Bankruptcy Court permission to enforce their rights against their relevant securities, even if the securities have yet to be admitted. The petition for permission shall be decided on within ten (10) days following its filing date. 4. If the Trustee is convinced that the proceeds generated from the sale of any secured assets are not large enough to cover its fees and any relevant costs related to the sale of such assets, the Trustee may decide against completing the sale transaction. In which case, the Trustee shall immediately notify the secured creditor in writing of any decision made to discontinue the sale of secured assets. 5. The creditor may object to the Trustee's decision within five (5) days following the date of notification, and the Bankruptcy Court shall decide on the objection within ten (10) days, and its decision in respect thereof shall be final. 6. If there is a surplus generated from the sale proceeds of secured assets, the same shall be delivered to the Trustee in favor of the debtor. If the sale proceeds of secured assets are less in value than the secured debt's value, after the relevant fees and costs are paid, the outstanding balance of the secured debt shall become an ordinary debt owed by the debtor. 7. The categories of following debts shall be classified as preferred debts to be settled prior to the ordinary debts, and shall be repaid as follows: a. Any judicial fees or costs, including the fees of Trustees and experts, and any expenses spent for the sake of the collective interest of creditors to safeguard and liquidate the debtor's assets. b. The living expenses (alimony) debts imposed on the debtor under a judgment rendered by a competent court. c. The amounts payable to government authorities. d. End-of-service gratuities, unpaid wages and salaries that are due to the employees, workers and servants of the debtor and which are periodically paid (except for any type of other incidental allowances, bonuses and payments or any other benefits, whether monetary or in-kind), provided that the total amount of such items combined does not exceed a three-month wage or salary. In addition, the Bankruptcy Court may give permission to the Trustee to pay salaries and wages that are due and payable to the debtor's employees, workers and servants for a period of less than thirty (30) days from any of the debtor's funds that are in the Trustee's possession. e. The professional fees agreed upon between the debtor and any expert appointed by the debtor during the bankruptcy proceedings, including the legal consultation fees. The Bankruptcy Court may determine such fees sua sponte or based on a grievance to be filed by any eligible creditor. The filing of such a grievance shall not stay the proceedings, and the Bankruptcy Court shall decide on the grievance within five (5) days following its filing date, and its decision thereon shall be final. f. Any fees, costs or expenses that fall due following the date of issuance of the proceedings initiation decision, for the purpose of procuring goods and services for the debtor or to continue to perform any other contract that would be beneficial to the debtor's business or assets, or any fees, costs or expenses that arise for the sake of ensuring continuation of the debtor's business following the proceedings initiation date according to the provisions of this law. 8. The creditors belonging to each of the debt categories referred to in Clause (7) of this Article shall be treated on an equal footing, unless the debtor's assets are not valuable enough to cover their debts. In which case, their debts shall be reduced on an equal footing.
Interpretation and application must be checked against the official text and current version.