Enforcement and bankruptcy law is an important branch of law that governs the resolution of financial disputes between creditors and debtors through legal means. With our expert team in this field, we are by your side to protect your rights and interests in the most effective way.
Services in the Field of Enforcement and Bankruptcy Law
What is Enforcement and Bankruptcy Law?
Enforcement and bankruptcy law regulates the legal seizure of debtors' assets to ensure creditors can claim their rights, whereas bankruptcy law aims to regulate the debtor's financial situation to cover all creditors and liquidate debts. Both processes require legal knowledge, diligence and experience.
Execution and bankruptcy law is the branch of law that adopts the principle of initiating enforcement proceedings by the authorised bodies of the state for the collection of claims arising from substantive law, placing attachments on the debtor's assets, and subsequently carrying out the sale of those goods.
Enforcement proceedings
Enforcement is the process by which a debt is collected through state power in the event that the debtor fails to pay the creditor. This process is regulated under the Enforcement and Bankruptcy Law and is conducted within a legal framework.
Enforcement proceedings To initiate proceedings, the creditor must apply to the enforcement office with a request to commence enforcement proceedings against the debtor, whether based on a court judgement or not.
What Are the Types of Enforcement Proceedings?
Under enforcement law, the types of enforcement proceedings that creditors may initiate to recover their debts are as follows:
- Enforcement Proceedings without a Judgement: This is a procedure in which a creditor applies directly to the enforcement office without a court order. Examples: Enforcement proceedings by way of general attachment; enforcement proceedings specific to bills of exchange.
- Enforcement Proceedings Based on a Court Order: This is an enforcement procedure initiated by a creditor on the basis of a court judgement, an arbitral award or court-approved documents. It is generally used for the compulsory enforcement of court judgements.
- Enforcement Proceedings Specific to Bills of Exchange: This is a fast-track enforcement procedure initiated on the basis of negotiable instruments such as promissory notes, cheques and bills of exchange.
- Enforcement Proceedings through the Realisation of the Pledge: Where a creditor holds a right of pledge over movable or immovable property, this refers to the enforcement proceedings undertaken to recover the debt by realising the value of the pledge.
- Tracking of Dispatch and DeliveryThis is the type of enforcement proceeding resorted to for the execution of court orders concerning the eviction or delivery of real estate.
What is Bankruptcy?
Bankruptcy, is a situation in which a debtor becomes unable to pay their debts and their entire estate is distributed amongst creditors in accordance with legal provisions. The causes of bankruptcy may stem from various factors, such as a deterioration in a company’s financial position, poor financial management or economic crises.
What is Insolvency Administration?
Insolvency administration is the process whereby a trader who is unable to pay their debts has their financial situation placed under court supervision, and their assets are managed with the aim of satisfying creditors’ claims. Following a bankruptcy order, a bankruptcy administrator is appointed; this administrator liquidates the debtor’s assets and ensures that payments are made equally to creditors.
Postponement of bankruptcy and composition, are legal processes that enable companies unable to pay their debts, but with the potential to improve their financial situation, to restructure their debts by reaching an agreement with their creditors and pay them under specified conditions.
What Are the Causes of Bankruptcy?
- Insufficient Funds: The company suffering a loss of assets or income to the extent that it is unable to pay its debts.
- Mismanagement: The company finding itself in financial difficulties due to poor decisions, inefficient spending or strategic errors.
- Economic Crises: Adverse changes in market conditions, economic fluctuations or sector-specific crises.
- Over-indebtedness: The company taking on a level of debt and financing that it cannot sustain.
- Unforeseeable Risks: Unexpected events such as natural disasters, pandemics and wars bringing business operations to a standstill.
- Market Loss: A decline in revenue due to the loss of customers or market share.
What is a seizure?
Seizure is an enforcement procedure carried out by the enforcement office, whereby the debtor’s assets are seized at the creditor’s request, with a view to recovering the debt. The aim is to ensure payment of the debt by seizing the debtor’s the conversion of movable or immovable property or rights into cash through sale.
The Enforcement Directorate identifies the debtor’s assets and carries out the attachment procedure. During the attachment procedure, the debtor may be granted an extension to make payment, or their assets may be put up for sale.
What Are the Different Types of Attachment?
- Provisional AttachmentIt is a type of interim attachment implemented by a court decision before enforcement proceedings are initiated, in order to secure the creditor's claim.
- Seizure of Movable PropertyIt is the seizure of the debtor's movable property (vehicles, goods, etc.) in order to collect the debt.
- Attachment of Real EstateIt is intended to recover the debt through sale by placing attachments on the debtor's immovable property (house, land, etc.).
- Attachment of earningsThe debt is collected by seizing a certain percentage of the debtor's income (salary, retirement pension, etc.).
- 3. Attachment of Receivables and Rights in Third PartiesIt is the seizure of the debtor's receivables or rights held by third parties (for example, bank accounts).
- Vehicle SeizureAttachment of seizure to the vehicles registered in the debtor's name shall be made to ensure the collection of the receivable through sale.
Enforcement proceedings are carried out in accordance with legal procedures, and the debtor has certain rights of appeal to protect their rights.
Our Enforcement and Bankruptcy Law Services in Ankara
Yakup Dedeoğlu, a solicitor at Azel Hukuk registered with the Ankara Bar Association, specialises in enforcement and insolvency law, managing legal proceedings for the recovery of debts—whether based on court judgements, as well as mortgage and pledge proceedings, and manages the legal process for debt recovery with his experienced team of clerks.
Operating in the field of enforcement and bankruptcy law in Ankara, our office plays an active role at every stage of enforcement proceedings from beginning to end, providing legal assistance to our clients with the aim of ensuring the collection of receivables within the framework of the law.
Enforcement Proceedings
Enforcement Proceedings Based on a Court Order: Enforcement proceedings initiated to recover debts that have been finalised by a court order.
Enforcement Proceedings Without a Court Order: A type of enforcement proceeding initiated without a court order, based on a creditor’s declaration.
Enforcement Proceedings Specific to Negotiable Instruments: Proceedings brought to recover debts arising from negotiable instruments such as promissory notes, cheques and bills of exchange.
Seizure and Pledge Procedures
Mortgage and Pledge Proceedings: Recovery of debts through mortgaged real estate or pledged movable property.
Provisional Attachment: The temporary attachment of the debtor’s assets prior to or during legal proceedings for the purpose of protecting the creditor.
Bankruptcy and Concordat Procedures
Bankruptcy Petition: A court ruling declaring a debtor bankrupt on the grounds of their financial circumstances.
Postponement of Bankruptcy/Composition Proceedings: The restructuring of debts by applying to the court to improve the debtor’s financial position.
Rental and Eviction Procedures
Eviction of Rented Properties: The legal processes carried out for the eviction of the tenant.
Appeals and Lawsuits
Objection to Payment/Enforcement Order: The debtor's opposition to the payment order sent to them.
Annulment and Lifting of Objections Actions: Lawsuits filed to establish the invalidity of the debtor's objection.
Claims for Ownership: Legal proceedings brought to establish that the ownership of seized property lies not with the debtor but with a third party.
Negative Declaratory Actions: Actions filed with the aim of proving that a debt does not exist.
Actions for Recovery of Undue Payment: Legal proceedings brought for the refund of a debt that has been unjustly paid.
Debt and Enforcement Criminal Proceedings
Debt Recovery Cases: Legal proceedings brought to recover a debt from a debtor.
Enforcement Criminal Cases: Criminal cases brought against debtors who do not comply with enforcement proceedings.
Enforcement Court Proceedings
Litigation and tracking of proceedings where disputes arising from enforcement and bankruptcy processes are resolved.
A Full Range of Advisory Services in the Field of Enforcement and Insolvency Law
With our dynamic team of specialist solicitors at our Ankara office, we offer bespoke solutions for all your individual and corporate needs in the field of enforcement and insolvency law. In this regard, our team of experts provides every kind of legal support, ranging from procedures carried out at Enforcement Offices to the handling of cases before the courts. Please feel free to contact us for further information!
Expertise and Reliability
With our legal expertise and years of experience, we are by your side even in the most complex processes.
Customer-Centric Service
By offering transparent, fast and effective solutions, we aim for the best result for you at every step.
Comprehensive Strategic Partnerships
Thanks to our strong local and international connections, we provide cross-border legal solutions.
Frequently Asked Questions in Execution and Bankruptcy Law and Proceedings
Enforcement proceedings based on a court judgement are initiated for claims supported by a court judgement or an official document. Enforcement proceedings without a court judgement are based on the creditor’s declaration and do not require a court judgement.
Concordat, is a legal process that enables a debtor to reach an agreement with their creditors to restructure their debts and extend the repayment period. It is often chosen as an alternative for debtors on the brink of bankruptcy.
The debtor may object to the payment order sent to them within the legal period (generally 7 days). The objection can be made to the whole or a part of the debt and temporarily halts enforcement proceedings. The objection is made in writing to the enforcement office.
A provisional attachment is ordered by the court to secure the debtor’s assets in cases where there is little likelihood of the debtor repaying the debt. It is particularly preferred when there is a high risk that the creditor’s rights may be compromised.
If the debtor claims that they do not owe the debt or that the amount owed is less, they may bring an action for a negative declaration to prove this. The purpose of this action is to prove that the debt does not exist.
Legal proceedings brought to recover debts that have been wrongfully collected through enforcement proceedings are known as recovery actions. For example, a person who has made a payment despite not being in debt may bring such an action.
These are lawsuits filed to impose penalties on debtors who fail to comply with enforcement proceedings. For example, these lawsuits come up in cases of concealing assets during seizure procedures or failing to comply with an enforcement order.
Enforcement proceedings are generally heard in enforcement courts. More complex matters, such as bankruptcy and concordat cases, are handled by commercial courts.
The debt collection period varies depending on the type of enforcement proceeding, the debtor's payment status, and objection processes. While in some cases the process is completed in a short time, objections or attachment procedures can prolong the process.
In enforcement and bankruptcy law cases, the legal fee is affected by many factors such as the type and scope of the case, and the lawyer's experience and area of expertise. You can contact us for our legal services tailored to your needs and detailed pricing information.
You can contact us for all your questions and needs regarding enforcement and bankruptcy law. Our expert lawyers manage the process quickly and effectively to prevent any loss of your rights.
