In the Turkish legal system, enforcement and bankruptcy cases are legal disputes that examine the issues between creditors and debtors. Enforcement and bankruptcy law addresses the situation where a debt, arising from private law, is not fulfilled by the debtor, and it is enforced through the legal system with state intervention. Although a lawyer is not bound to any specific area of law, they may have more experience and expertise in certain fields, and in such cases, these lawyers are often referred to by the public as enforcement lawyers or criminal lawyers, for example.
An enforcement and bankruptcy lawyer is a representative who handles all types of enforcement and bankruptcy lawsuits or procedures. They represent their client in court in matters such as initiating enforcement proceedings, seizing the debtor’s assets, ensuring the sale of those assets, tracking the collection, and enforcing the creditor’s rights through legal means. Enforcement lawyers can represent either the creditor or the debtor.
In legal disputes between the debtor and the creditor, it is crucial to seek legal support from a professional lawyer specializing in this field to ensure the process runs in accordance with the law and to prevent any loss of rights.
What Does an Enforcement Lawyer Do in Turkish Law?
In the Turkish legal system, although enforcement and bankruptcy lawyers work in the same field, enforcement and bankruptcy cases should be handled under different headings depending on the subject matter of the case and the procedures applied. An enforcement lawyer specializes in enforcement law, developing expertise and gaining experience through enforcement cases, representing either the creditor or the debtor.
An enforcement lawyer generally initiates legal enforcement proceedings through the enforcement office upon the creditor’s request when the debtor fails to pay their debt. Before starting legal proceedings, the enforcement lawyer tries to negotiate a settlement with the debtor. However, if this attempt is unsuccessful, the lawyer proceeds with legal enforcement. With our experienced and knowledgeable lawyer team, we provide legal consultation or representation in the following types of cases and procedures:
- Conducting enforcement proceedings with or without a court decision,
- Cancellation of an objection or removal of an objection,
- Collection of rent arrears,
- Eviction due to non-payment of rent,
- Collection of alimony arrears,
- Concordat procedures,
- Filing objections to enforcement courts or reviewing objections made to the enforcement courts,
- Enforcement proceedings based on promissory notes, checks, and other securities,
- Following cases of negative determination, restitution, annulment of auction, or cancellation of dispositions,
- Handling cases related to child custody, delivery of movable property, and similar delivery issues,
- Executing court decisions of consumer arbitration boards,
- Conducting asset seizures, such as real estate, vehicles, and movable goods, and handling the sale of seized assets,
- Conducting asset seizures in bank accounts, salaries, bonuses, and similar assets,
- Filing objections against precautionary seizures, objections to asset valuations, and similar objection cases.
What Does a Bankruptcy Lawyer Do in Turkish Law?
In the Turkish legal system, both enforcement and bankruptcy lawyers work within the framework of the enforcement and bankruptcy law, and they are essentially lawyers working in the same field. However, while enforcement cases are typically initiated upon the creditor’s request, bankruptcy generally involves a financial regulation process that starts either with the debtor’s request or a court decision related to their financial situation.
A bankruptcy lawyer carries out the necessary legal procedures for the collection of debts and receivables arising from commercial transactions, follows procedures such as concordat, bankruptcy tracking, and handles litigation processes like objection cases. In general, the cases and procedures handled by bankruptcy lawyers in practice are as follows:
- Bankruptcy and bankruptcy objection cases,
- Cancellation of auction cases,
- Negative determination cases,
- Cancellation of disposition cases,
- Recovery cases,
- Concordat proceedings.
How Are Enforcement Cases Opened in Turkish Law?
In our legal system, there are three types of procedures to initiate an enforcement case. First, it is necessary to determine which type of enforcement procedure to initiate. The enforcement procedures are enforcement based on a court decision, enforcement without a court decision, and enforcement based on documents.
Enforcement based on a court decision: In this type of enforcement, the enforcement procedure begins by applying to the enforcement court. The person who obtains a court decision in their favor applies to the enforcement office and requests to collect their rights based on the decision. The subjects of enforcement cases include monetary claims, real estate delivery, eviction of real estate, child custody, or personal relationship/contact with a child.
Enforcement without a court decision: This type of enforcement does not require a court decision, and the creditor applies to enforcement in order to collect the debt from the debtor. Enforcement without a court decision is generally used for claims based on documents such as promissory notes or checks.
The competent court for enforcement cases, according to Article 2 of the Civil Procedure Code (HMK), is the civil court of first instance unless otherwise specified, regardless of the value and amount of the case. This court handles cases related to property rights and personal rights.
Individuals who wish to file enforcement and bankruptcy cases should seek legal support from an experienced lawyer specialized in this field, as it is essential for the case process. Enforcement and bankruptcy cases can be lengthy and painful due to their outcomes and procedures. Therefore, it is necessary to seek legal assistance from a lawyer to manage these processes efficiently and to ensure that the legal deadlines are met.
How to File Bankruptcy Cases in Turkish Law?
A bankruptcy case is the process of declaring that a person or a commercial enterprise who cannot pay their debts has gone bankrupt through a court decision. A bankruptcy case involves the liquidation of the debtor’s (the bankrupt party’s) assets and distributing them to creditors. A bankruptcy case can be initiated either by the creditors or by the debtor themselves. Creditors can file for bankruptcy if the debtor fails to pay their debts, and the debtor can file for bankruptcy to declare their own insolvency.
Bankruptcy cases are handled in the commercial courts of the debtor’s place of residence. Therefore, the petition must be submitted to the commercial court located in the debtor’s place of residence. After assessing the debtor’s financial situation and debts, if the court deems the bankruptcy claim valid, it will issue a bankruptcy decision. Once the bankruptcy declaration becomes final, the liquidation of the debtor’s assets begins, and the bankruptcy administration ensures that the assets are sold and distributed to the creditors.
In case of bankruptcy (Turkish Commercial Code)
Article 556- (1) In the event of the bankruptcy of a company suffering losses, the company’s creditors also have the right to request compensation to be paid to the company. However, the requests of shareholders and company creditors will first be presented by the bankruptcy administration.
(2) If the bankruptcy administration does not file the case specified in the first paragraph, each shareholder or company creditor may file the mentioned case. The proceeds obtained will first be allocated to the payment of the debts of creditors who filed the case according to the provisions of the Enforcement and Bankruptcy Law; the remainder will be paid to the shareholders who filed the case in proportion to their share capital; any excess will be given to the bankruptcy estate.
Who are the persons subject to bankruptcy under Turkish law?
The first group among individuals subject to bankruptcy consists of traders. Individual traders and those considered traders, as well as legal entity traders, are subject to bankruptcy. Those considered traders are individuals who announce to the public that they have started a commercial business, even if they have not actually started operating. Additionally, individuals who continue their commercial business despite being prohibited from trading are also subject to bankruptcy.
Another group of individuals subject to bankruptcy consists of those who, under the Turkish Commercial Code, are responsible like traders.
- Partners of collective and limited partnership companies,
- Participation in joint ventures,
- Those who have abandoned their trade,
- Those who act as if they have opened a commercial business, despite not having one,
- Debtors who apply for concordat,
- The estate of a deceased person who initiated bankruptcy proceedings before death,
- Individuals whose bankruptcy may be requested under Article 110 of the Banking Law.
Duties of Enforcement Courts in Turkish Law
Enforcement courts are the courts that examine objections and complaints made to enforcement and bankruptcy offices and resolve disputes related to enforcement and bankruptcy law. Enforcement courts consist of a single judge and operate with a simplified trial procedure.
According to Article 4 of the Enforcement and Bankruptcy Law, the structure and duties of enforcement courts are as follows: “Complaints and objections against the operations of the enforcement and bankruptcy offices are examined by the enforcement court judge or the judge assigned to this duty by law. Where necessary, with the positive opinion of the High Council of Judges and Prosecutors, the Ministry of Justice may establish multiple chambers within the enforcement court. In such cases, the chambers of the enforcement court are numbered. In places where there are multiple chambers in the enforcement court, the distribution of cases and the principles related to this are determined by the High Council of Judges and Prosecutors. Each enforcement court judge examines complaints and objections related to the operations of the enforcement and bankruptcy offices assigned to them by the Judicial Judiciary Justice Commission, and supervises and inspects these offices in places where the enforcement office presidencies are not established, and handles administrative matters.”
Some of the frequently encountered duties of enforcement courts in practice are as follows:
• Examining objections and complaints against the operations of enforcement and bankruptcy offices,
• Filing lawsuits for the compensation of damages arising from the operations of enforcement and bankruptcy offices,
• Stopping the seizure and sale procedures,
• Resolving disputes related to the annulment of auctions,
• Evaluating objections made to the ranking schedule in seizure and bankruptcy cases,
• Deciding on the suspension of enforcement in cases of enforced execution,
• Making decisions regarding the cancellation and postponement of enforcement actions,
• Conducting trials and imposing penalties for enforcement and bankruptcy crimes,
• Examining claims of entitlement raised in seizure and bankruptcy cases,
• Resolving disputes related to the annulment of auctions.
The decisions of enforcement courts do not constitute final judgments. An appeal can be made against the decisions of enforcement courts. The appeal against the enforcement court’s decision can be filed within 15 days from the notification of the decision.
TIMES UNDER THE ENFORCEMENT AND BANKRUPTCY LAW IN TURKISH LAW
In enforcement law, the first day is not counted when calculating deadlines. If the deadline falls on an official holiday, the period is extended until the end of the first business day. Deadlines specified in months or years will end on the same day of the month or year in which they started. Additionally, the deadlines set under enforcement and bankruptcy law are considered peremptory for the parties involved, meaning actions must be taken within the designated time. However, these deadlines are not peremptory for the enforcement bodies; they are regulatory in nature. Therefore, even if an action is performed after the deadline, it will still be valid. However, in such cases, the enforcement director may be held accountable for penalties, disciplinary actions, or compensation.
We can list the deadlines regulated under various articles of the Enforcement and Bankruptcy Law as follows:
- The objection period for enforcement without a judgment is 7 days, and the debtor must submit their objection to the enforcement office within 7 days from the notification of the payment order.
- The deadline for delivering personal property as ordered in the judgment is 7 days from the notification of the enforcement order.
- The deadline for delivering a child as ordered in the judgment is 7 days from the notification of the enforcement order.
- The period for filing a compensation lawsuit against the state is 1 year from the date of learning, and in any case, 10 years from the date the act occurred.
- The deadline for paying the debt or providing security in judgments regarding payment of money and provision of guarantees is 7 days from the notification of the enforcement order.
- The deadline to request the suspension of enforcement in cases based on a judgment is 7 days from the notification of the enforcement order.
- The statute of limitations for judgment-based enforcement is 10 years, starting from the last action.
- The deadline for sending a payment order to the debtor is 3 days from the enforcement request.
- The objection period for the payment order in general enforcement proceedings is 7 days from the date of notification of the payment order.
- The period for making a declaration of assets in general enforcement proceedings is 7 days from the date of notification of the payment order.
- The deadline to inform the creditor about the objection to the enforcement is 3 days from the objection.
- The deadline to file a delayed objection is 3 days from the removal of the obstruction.
- The deadline for filing a lawsuit for the cancellation of the objection is 1 year from the notification of the objection.
- The deadline for requesting the permanent removal of the objection is 6 months from the notification of the objection.
- The deadline for requesting the temporary removal of the objection is 6 months from the notification of the objection.
- The period for filing a debt relief lawsuit is 7 days from the notification or pronouncement of the decision to temporarily remove the objection.
- The period for filing a restitution lawsuit is 1 year from the date of payment.
- The period for the right to request seizure to expire is 1 year from the notification of the payment order.
- The deadline for filing a negative declaratory action based on a seizure notice is 15 days from the date of receipt of the notice.
- The objection period for a seizure notice is 7 days from the date of notification.
- The period for the debtor or third party to make a claim on the seized property is 7 days from the date of learning about the seizure.
- The deadline to object to the seizure claim is 3 days from the enforcement office’s notification.
- The objection period for participation in the seizure is 7 days from the deadline set by the enforcement officer.
- The deadline for requesting the sale of seized personal property is 6 months from the date of seizure.
- The deadline for requesting the sale of seized real estate is 1 year from the date of seizure.
- The validity period for a final appraisal of value is 2 years.
- The period for filing a complaint against the appraisal of value and the deadline for depositing the necessary fees and costs for expert examination is 7 days from the date of the complaint.
- The period for depositing the bid amount for real estate is immediately or within the given time frame.
- The deadline for requesting the annulment of the auction is 7 days from the auction date, and in any case, 1 year.
- The deadline for registering the auctioned property in the name of the buyer at the land registry is 7 days from the auction date.
- The deadline for eviction from auctioned real estate is 15 days from the notification date.
- The deadline to file a lawsuit against the order of priority schedule is 7 days from the delivery of the schedule copy.
- The period for filing a follow-up based on an insolvency certificate is 1 year from the receipt of the insolvency certificate.
- The statute of limitations for debts linked to an insolvency certificate is 20 years.
- The payment period in enforcement through the conversion of movable collateral into money is 15 days.
- The objection period in enforcement through the conversion of movable collateral into money is 7 days from the date of notification of the payment order.
- The period for making an asset declaration in enforcement through the conversion of movable collateral into money is 7 days.
- The deadline to request the suspension of enforcement in mortgage enforcement is 7 days from the notification of the enforcement order.
- The payment period in enforcement through the sale of mortgaged property without a judgment is 30 days.
- The objection period in mortgage enforcement through sale is 7 days from the notification of the payment order.
- The period for requesting the sale of movable collateral is 6 months from the notification of the payment or enforcement order.
- The period for requesting the sale of mortgaged real estate is 1 year from the notification of the payment or enforcement order.
- The period for enforcement based on a pledge gap certificate is 1 year, starting from the auction date if no sale is made or from the finalization of the sale.
- The payment period in enforcement through bankruptcy proceedings is 7 days from the notification of the payment order.
- The period for appealing an insolvency decision is 10 days from the notification date.
- The period for payment in enforcement proceedings based on a promissory note is 10 days from the notification of the payment order.
- The period for making a declaration of assets in enforcement proceedings based on a promissory note is 10 days if no objection is made and the debt is not paid.
- The period for filing a complaint in enforcement proceedings based on a promissory note, when the document is not a negotiable instrument, is 5 days from the notification of the payment order.
- The period for filing a complaint against the signature and debt in enforcement proceedings based on a promissory note is 5 days from the notification of the payment order.
- The period to request the implementation of a precautionary seizure decision is 10 days from the date the decision was made.
- The notification period for the precautionary seizure report is 3 days.
- The period for requesting the removal of an objection after the implementation of the precautionary seizure is 7 days from the date of notification of the objection.
- The objection period for a precautionary seizure decision is 7 days from the notification of the seizure report.
- The period to object to an eviction order is 7 days from the notification of the eviction order.
- The period to continue enforcement with an eviction order is 1 month after the deadline.
- The period for the eviction and delivery of real estate whose lease has expired is 15 days.
- The statute of limitations in an action for the annulment of a transaction is 5 years from the date of the void transaction.
- The period for appealing against the enforcement court’s decision regarding coercion and disciplinary imprisonment is 7 days from the notification or pronouncement of the decision.
- The period for appealing enforcement court decisions is 10 days from the notification or pronouncement of the decision.
ANTALYA ENFORCEMENT LAWYER – ANTALYA ENFORCEMENT LAW ATTORNEY
Enforcement and bankruptcy cases are legal processes that are long and complex. In such cases, it is crucial to receive legal support from an attorney who is well-versed in the legal process and can manage it professionally. As mentioned above, there are many legal deadlines in these types of cases, and these deadlines are prescribed deadlines. Therefore, to avoid the loss of rights and undesirable outcomes, legal assistance should be sought.
In our office located in Antalya, we are always at the service of our citizens with our experienced and qualified team of lawyers who have extensive knowledge and expertise in enforcement and bankruptcy law. You can contact us through the contact section and make an appointment.
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