Enforcement and Bankruptcy Law

Enforcement proceedings may be initiated to protect the rights of the creditor in case the debtor fails to fulfill its payment obligations. In order to initiate enforcement proceedings, the creditor may generally need to obtain a court decision or apply to the enforcement office due to the debtor's failure to pay or fulfill its commitments. Here are some situations in which enforcement proceedings may be initiated:

1. If the Debtor Does Not Fulfill His Commitments: If the debtor does not fulfill the promised payment or service, the creditor may initiate enforcement proceedings.

2. With court decision: Enforcement proceedings can be initiated by a court decision taken by the creditor against the debtor. This decision usually specifies the amount of the claim, the method of payment and other details.

3. By Enforcement Court Decision: If the debtor does not fulfill his payment obligation or objects to the enforcement proceedings, enforcement proceedings may be initiated by the decision of the enforcement court.
4. Non-Payment of Check or Promissory Note: If payment documents such as checks or promissory notes are not paid, the owner of this document can initiate enforcement proceedings.

5. Non-Payment of Rent Debts: If the tenant does not pay his rent debts, the landlord can initiate enforcement proceedings.

6. Default in Business Transactions: In case of payment default in commercial transactions, the creditor may initiate enforcement proceedings.

7. By Judicial Decision: If the creditor is entitled to collect his receivables from the debtor by a judicial decision, enforcement proceedings can be initiated.

8. Rejection of Objection to Enforcement Proceedings: If the debtor objects to the enforcement proceeding but the objection is rejected by the court, enforcement proceedings may be initiated.

9. Collection of Lease Receivables: If the tenant does not pay the rent debts, the landlord may initiate enforcement proceedings.

When a person or business declares bankruptcy, creditors may need to take certain steps to collect their debts. Here are the steps you can consider to collect your receivables during bankruptcy:

1. Determine Your Receivable Amount: As a first step, it is important to clearly determine the amount of your receivables and the transactions from which they arise.

2. Follow the Bankruptcy Announcement: When bankruptcy is declared by the debtor, you must follow the bankruptcy file and declaration of the relevant court. These announcements are usually published in the official gazette or on the court's website.

3. Contact the Bankruptcy Accountant or Bankruptcy Administrator: Following the declaration of bankruptcy, a bankruptcy accountant or bankruptcy administrator may be appointed by the court. You can report your receivables by contacting this person or organization.

4. Make Your Receivable Declaration: The bankruptcy accountant or bankruptcy administration gives you a certain period of time to declare your receivables. You must submit your receivables statement to the relevant person or organization within this period.

5. Understand the Order of Your Receivables: During the bankruptcy process, receivables are paid in order of priority. Priority receivables generally cover priority needs such as public debts and employee receivables.

6. Join the Court: As the bankruptcy process progresses, you may have the right to attend court. It is important to follow the necessary steps to collect your debts in court.

7. Track the Sale and Distribution of Assets: During the bankruptcy process, the debtor's assets can be sold and the proceeds distributed to creditors. You should learn the status of your receivables by following this process.

8. Follow Your Receivables Regularly: The bankruptcy process can take a long time. It is important to regularly monitor your receivables and the progress of the bankruptcy process.

9. Get Professional Help: The bankruptcy process can be complex and require legal procedures. Getting help from a lawyer or legal advisor to collect your receivables may be a good option.

The completion time of enforcement proceedings may vary depending on many factors and it is difficult to give an exact time. The completion time of enforcement proceedings may be affected by various factors such as the amount of the receivable, the objection of the debtor party, and the court density. Here are some factors that affect the completion time of enforcement proceedings:

1. Receivable Amount: The completion time of enforcement proceedings may vary depending on the amount of the receivable. Larger receivables may generally require longer processes.

2. Debtor Objection: If the debtor objects to the enforcement proceeding, the process of evaluating and deciding on the objection by the court is involved, which may prolong the process.

3. Density of Enforcement Courts: The density of enforcement courts may affect the speed at which transactions are processed. During busy periods, transactions may take longer.

4. Requirement for Court Order: If a court decision is required for enforcement proceedings, this process may change. It may take some time for the court decision to be received and forwarded to the enforcement office.

5. Type of Receivable: Enforcement procedures may vary depending on the type of receivable. For example, transactions such as real estate foreclosures may take longer.

6. Debtor Status: If the debtor resists enforcement proceedings or tries various ways to avoid paying his debt, the process may take longer.

7. Litigation Process: If litigation is required during enforcement proceedings, this may extend the process.

8. Other Relevant Factors: During enforcement proceedings, other variables may also affect the process. These may include factors such as the working order of enforcement offices, court density, and document preparation.

In our country, the objection period to enforcement proceedings is generally determined as 7 days from the date of announcement or notification. The debtor who is a party to the enforcement proceeding may exercise his right to object to the enforcement proceedings within this 7-day period. The debtor may exercise his right of objection in writing or verbally through the enforcement office. In order to exercise your right of objection, you must apply to the enforcement office within the specified period. The objection petition must contain a document explaining the reasons for the objected issue. The objection petition must be prepared in writing and signed.

A person who is a creditor may try to collect his receivables by initiating enforcement proceedings in cases where the debtor does not fulfill his payment obligation. If we briefly touch upon the issues that need to be taken into consideration in enforcement proceedings to be initiated against the debtor;

1. Determining the Receivable Amount: As a first step, you must clearly determine the amount of the receivable and the amount that must be paid by the debtor. This is the basic basis of enforcement proceedings.

2. Sending a Payment Alert: After the receivable amount is determined, a written payment notice is sent to the debtor. This payment notice gives the debtor one last opportunity to make payment.

3. Application to the Enforcement Directorate: If the debtor does not pay or objects despite the payment warning, enforcement proceedings may be initiated. To initiate enforcement proceedings, the creditor must apply to an enforcement office.

4. Filling out the Enforcement Proceedings Request Form: There is an enforcement proceedings request form that you must fill out when applying to the enforcement directorate. When filling out this form, you must provide the amount of your receivable, the debtor's identity and contact information, the reason for the debt, and other relevant information.

5. Adding Required Documents: You must attach documents supporting your claim to the enforcement proceedings request form. For example, documents such as contracts, invoices, checks, and promissory notes can be used to prove the validity of your receivable.

6. Evaluation of the Application and Notification Process: The enforcement office will evaluate your application and initiate notification procedures when necessary. The debtor is informed about the enforcement proceedings and enforcement proceedings are initiated.

7. Notification and Objection Period: The debtor may object to the enforcement proceeding within a certain period of time (usually 7 days) after receiving the notification.

8. Enforcement Court in Case of Objection: If the debtor objects, he can apply to the court to have his objection evaluated.

9. Seizure and Collection Procedures: If the debtor has no objection or the objection is rejected by the court, the enforcement directorate may initiate the necessary seizure procedures to collect the receivable.  

If the debtor is trying to evade assets, he or she may engage in misleading or fraudulent behavior in order to make it difficult or prevent the creditor from collecting the debt. You may need to take some measures to deal with this situation. Some precautions that can be taken in case the debtor tries to steal the assets in his possession are:

1. Initiating Enforcement Proceedings: As a creditor, you can try to collect your receivable through legal means by initiating enforcement proceedings. Enforcement proceedings include the process of identifying and seizing the debtor's assets.

2. Investigating the Debtor's Assets: You can determine the debtor's assets by researching his assets and properties. This can help you collect your receivables.

3. Taking Precautions on Immovable Assets: If the debtor owns immovable assets, you can request the enforcement court to impose a measure on the assets. This can make it difficult to sell or transfer real estate.

4. Seizing Bank Accounts: You can try to collect your receivable by placing a lien on the debtor's bank accounts. This can help you keep control of the debtor's assets.

5. Selling Assets to Persons Seized Without Objection: The debtor can sell his assets to another person without objection in order to evade his assets. In this case, this person becomes liable to creditors.

6. Objection and Legal Process: The debtor may object to transactions made for the purpose of evasion of assets. In this case, a legal process begins and this process is evaluated by the court.

You can get your confiscated belongings back when you pay the debt that caused the enforcement proceeding and the enforcement costs. You must also pay the fee for the trustee warehouse where your belongings are kept.

If the creditor requests, the seized items are taken to the trustee's warehouses. It is then sold by enforcement offices in accordance with the legal procedure. The sale price is paid to the creditor.

If you do not object, the enforcement proceedings against you will become final at the end of the objection period. After the proceedings are finalized, your house may be seized, your money in the bank, your real estate and your rights and receivables from third parties may of course be seized.

Concordat is a legal process that allows a debtor to create a structured payment plan by agreeing with his creditors in order to overcome his financial difficulties. In order to request concordat, you must meet some criteria. To request concordat, you can generally consider the following conditions:

1. Payment Difficulty: The debtor must be having difficulty in fulfilling his payments due to his current financial situation.

2. Inability to Pay Debts: The debtor must be faced with the situation of not being able to pay his debts on time.

3. Risk of Failure to Continue Its Activities: If the debtor is at risk in continuing its activities due to financial difficulties, it may request concordat.

4. Need for Agreement with Creditors: When requesting concordat, the debtor must undertake to create a payment plan in agreement with his creditors.

5. Creditor Majority and Power of Representation: The debtor must be able to obtain the approval of the majority of creditors (such as 2/3 or 3/5 percent) required for the concordat request. Additionally, the request may need to be supported by the creditor representative or the creditors' board.

6. Accurate Disclosure of Financial Situation: The debtor must honestly disclose his financial situation during the concordat request.

7. Goodwill: The concordat request must reflect the debtor's purpose of paying his creditors in good faith.
8. Application to Court: In order to request concordat, you must apply to the court. You request the court to initiate the concordat process.