Enforcement and Bankruptcy Law Applications

What is Execution and Bankruptcy Law?

Execution and Bankruptcy Law is a special branch of law designed to protect the rights of creditors and ensure that debtors fulfill their obligations. This branch of law regulates the processes of forced fulfillment of debt-credit relations, conversion of assets into money and distribution among creditors.

These processes carried out within the framework of the Execution and Bankruptcy Law (EBL) are of critical importance for the orderly functioning of economic life. It provides a fair balance by securing the rights of creditors while also protecting the rights of debtors.

Scope of Execution and Bankruptcy Law

Execution Proceedings Process

1. Initiation of Execution Proceedings

Execution proceedings begin with the creditor's application to the execution office. At this stage, the existence and amount of the receivable is documented and a payment order is sent to the debtor.

2. Payment Order and Objection

An objection can be made within 7 days against the payment order sent to the debtor. If no objection is made, the creditor can request attachment.

3. Attachment Process

The debtor's assets are attached. Attachment is made according to the priority order specified in the law.

4. Sale and Collection

The attached goods are sold and the receivable is collected. The sale process is carried out through public auction.

Bankruptcy Process

Bankruptcy Conditions

For a bankruptcy decision to be made, the debtor must:

• Be unable to pay their debts
• Be a commercial enterprise owner (for ordinary bankruptcy)
• The bankruptcy request must be based on justified reasons

Bankruptcy Process Stages

1. Bankruptcy Request: Bankruptcy request is made by creditor or debtor
2. Bankruptcy Decision: Court makes bankruptcy decision
3. Bankruptcy Administration: Bankruptcy administration is established
4. Creditors' Meeting: Creditors' meeting is organized
5. Liquidation: Assets are liquidated
6. Distribution: The money obtained is distributed to creditors

Concordat Process

Concordat is a legal institution that provides debtors who cannot pay their debts with the opportunity to prevent bankruptcy by making agreements with their creditors.

Types of Concordat

• Ordinary Concordat: Concordat requested before bankruptcy is declared
• In-Bankruptcy Concordat: Concordat requested after bankruptcy is declared

Concordat Process

1. Submission of concordat request to court
2. Granting of provisional respite decision
3. Appointment of concordat commissioner
4. Preparation of concordat project
5. Holding creditors' meeting
6. Approval of concordat agreement

Legal Consultancy in Execution and Bankruptcy Law

Execution and bankruptcy processes are processes that involve complex legal procedures and require careful management. Getting professional legal consultancy in these processes is critical for both protecting rights and effective management of the process.

Our Services for Creditors:

• Initiating Execution Proceedings: Determining and initiating the most appropriate type of proceedings
• Attachment Procedures: Following and managing the attachment process
• Objection Defense: Defense against debtor objections
• Bankruptcy Request: Preparation and follow-up of bankruptcy request
• Receivable Follow-up: Protection of receivable rights in bankruptcy process
• Concordat Process: Defense of creditor rights in concordat process

Our Services for Debtors:

• Objection Petition: Preparation of objection petitions against execution proceedings
• Negative Determination Lawsuit: Filing lawsuit against the existence of receivable
• Concordat Application: Preparation of concordat request
• Bankruptcy Postponement: Preparation of bankruptcy postponement request
• Attachment Objection: Objection against unjust attachments
• Debt Restructuring: Negotiation and agreement with creditors

Special Situations in Execution and Bankruptcy Law

Bills of Exchange

Bills of exchange such as checks, promissory notes and bills of exchange are subject to special proceedings procedures. Special procedures are applied in the proceedings of these instruments.

Secured Receivables

Special procedures are applied in the proceedings of receivables with security rights. Secured creditors have priority over other creditors.

Revocation Lawsuits

Lawsuits filed for the revocation of transactions made before bankruptcy are of special importance. These lawsuits are filed to protect the rights of creditors.

Liability Lawsuits

Liability lawsuits filed when company managers cause bankruptcy require special expertise.

Current Developments in Execution and Bankruptcy Law

There are continuous changes and innovations in the field of Execution and Bankruptcy Law. It is important to closely follow these developments and reflect them in practice.

• Electronic execution system (UYAP) applications
• Special measures taken during COVID-19 process
• Changes in concordat legislation
• Updates in Execution and Bankruptcy Law
• New approaches in Supreme Court decisions

Recommendations for Successful Execution and Bankruptcy Process

For Creditors:

• Pay attention to documenting the receivable
• Follow the proceedings process closely
• Research the debtor's assets
• Take legal action on time
• Get professional support

For Debtors:

• Evaluate your debt situation early
• Communicate with creditors
• Research concordat opportunities
• Know your legal rights
• Get expert consultancy