Enforcement and bankruptcy law is a branch of law that regulates various ways and rules in order to collect the debt by the state organs in case of debt relations arising from private law. The main source of enforcement law is the Enforcement and Bankruptcy Law No. 2004.
In the enforcement law, all assets of the debtor are not confiscated, the assets sufficient to pay the debt are seized, sold and the receivable is paid to the creditor. If the assets are insufficient to pay the debt, an insolvency certificate is issued.
Enforcement offices are among the main bodies of the enforcement organization. The enforcement offices include the executive director, deputy chief executive officer, bailiffs and servants. Another principal body of the enforcement agency is the enforcement court. Complaints are filed against the transactions made by the enforcement offices. The complaint is made to the enforcement court. The duration of the complaint is seven days from the date of learning the enforcement proceedings that are the subject of the complaint.
There are three types of follow-up methods in enforcement law. These ways are execution without judgment, execution with judgment and conversion of pledge to money. Enforcement without a verdict is a follow-up method where the creditor can go directly to the enforcement office and initiate enforcement proceedings without having to rely on a court decision. İlamsiz execution is divided into two. There are two ways of enforcement without judgment: general attachment and lien for bills of exchange. General foreclosure is applied for money and guarantee receivables. Unless otherwise stated in the execution without a verdict, the general authorized executive office is the enforcement office at the place of residence of the debtor. The enforcement office issues and sends a payment order. Upon this, if the debtor does not pay the debt or object to the debt, the foreclosure stage is started. After the confiscation stage, the confiscated goods are sold and the creditor is paid. If the debtor does not have the goods to be attached or is not sufficient, a debt insolvency certificate is issued to the creditor.
It must be bound by a bills of exchange (policy, bond-warrant written note, check) that will be received in the way of foreclosure specific to bills of exchange. This road starts with a follow up request to the enforcement office. The stages are the same through the general foreclosure.
Enforcement with judgment is a follow-up method applied for the fulfillment of a court decision. This method can be used for all kinds of receivables. In order to apply for enforcement with a verdict, the verdict must not be expired. The limitation period is 10 years. In proceeding with judgment enforcement is authorized all executive offices in Turkey. An execution order is sent to the debtor and the execution order cannot be appealed.
When the debt is not paid because the creditor has secured his receivables with a pledge, it is obligatory to convert the pledge into money. If the price of the pledged property does not cover the amount of the receivable, an additional lien may be applied for the remaining part. However, if the receivable depends on the bill of exchange, the creditor may first apply for enforcement through bill of exchange. There is no foreclosure stage in this follow-up.
In the bankruptcy law, all the assets of the debtor that can be seized are seized and the debts of all creditors, if any, are paid. All creditors are found in front of the debtor. This follow-up method can be used not for all borrowers, but for borrowers who are subject to bankruptcy.
Traders are subject to bankruptcy. Those who are deemed merchants and those responsible, such as merchants, are also subject to bankruptcy. In addition, the trader is subject to bankruptcy for another year, even if he quits the trade. Partners of unlimited companies and active partners in limited companies are subject to bankruptcy due to their debts.
The creditor has the right to choose to seek foreclosure and bankruptcy. In fact, the creditor who applies to one of these ways can leave the path he applied for once and apply the other way without paying fees.
There are two types of bankruptcy, followed-up bankruptcy and non-prosecuted bankruptcy.
Proceeding bankruptcy is divided into two as general bankruptcy method and bankruptcy method for bills of exchange. It is sufficient for the creditors to apply for general bankruptcy if the trader does not pay the due money debt. The follow-up request is made to the enforcement office. A payment order is sent within 3 days. In the payment order, it is written that the Borrower can offer concordat and object to the payment order if it is not subject to bankruptcy. If there is no objection to the payment order, the follow-up is finalized and announced. Within 15 days of the announcement, if the other creditors claim that there is no need to decide for bankruptcy and do not intervene and appeal to the bankruptcy case, the debtor is given time. If the debt is not paid, bankruptcy is decided. The right to request bankruptcy ceases 1 year after the notification of the payment order.
In order to apply for bankruptcy for bills of exchange, the receivable must depend on the bill of exchange. The creditor must apply to the enforcement office and request a follow-up request and add the original of the bill to the follow-up request and state that he wants bankruptcy. If the enforcement office determines whether the bill is due and that the creditor has the right to apply for this method, it sends a payment order to the debtor.
In bankruptcy without follow-up, some reasons specified in the law must be realized in order for the creditor to ensure the bankruptcy of the debtor. In the event of these reasons, the creditor directly opens a bankruptcy lawsuit in the commercial court of first instance and demands the bankruptcy of the debtor. If the court determines that the reason has occurred, it decides on the bankruptcy of the debtor. The borrower may also request his own bankruptcy in some cases, and in some cases it is compulsory.
Bankruptcy proceedings can be opened within 1 year from the notification of the bankruptcy payment order. It is opened in the commercial court of first instance in the place where the trading center of the merchant is located. The jurisdiction of the commercial court of first instance is public order and it is certain. For this reason, an authorization agreement cannot be made. The case is examined according to the simple trial procedure.
As soon as the bankruptcy is opened, all property and rights of the bankrupt are subject to liquidation. The collection of all the property and rights of the bankrupt is called the bankruptcy desk. The bankruptcy's power of disposition on the property and rights within the scope of the bankruptcy estate is limited.
There are two types of bankruptcy. If the value of the goods and rights at the bankruptcy estate meets the liquidation expenses, ordinary bankruptcy is applied. Bankruptcy has special bodies here. This is the normal method of liquidation of bankruptcy. This liquidation is completed within 6 months. If it cannot be finished, it turns into a simple liquidation. The body responsible for simple liquidation is the bankruptcy office.
Concordat is an opportunity to protect debtors whose business does not go well due to reasons beyond their control and whose financial situation is deteriorated. Concordat is a compulsory enforcement agency made by a debtor with its creditors and which is in effect with the approval of the commercial court of first instance.
