Execution and Bankruptcy Law

Enforcement and bankruptcy law is the field of law that regulates the collection of receivables by creditors through the coercive enforcement power of the state and the legal processes regarding the assets of debtors. Money receivables, court decisions, checks, promissory notes, rental receivables, commercial debts and mortgage receivables can be tracked within the scope of this area.

Due to the intensity of commercial life, rental relations, bank transactions and company activities in Istanbul, enforcement and bankruptcy processes come to the fore frequently. For this reason, it is of great importance that creditors choose the right course of action and that debtors exercise their rights in a timely manner.

What is Enforcement and Bankruptcy Law?

Enforcement and bankruptcy law is a branch of law that ensures the collection or liquidation of the debt relationship between the creditor and the debtor by the state. The creditor can initiate proceedings through the enforcement office when the debt is not paid.

This area of ​​law is not just about foreclosure transactions. It covers many legal institutions such as execution with judgment, execution without judgment, follow-up specific to bills of exchange, conversion of pledge into cash, bankruptcy, composition, provisional attachment and cancellation of disposition.

What is Enforcement Proceedings?

Enforcement proceedings are the legal process initiated by the creditor through the enforcement office in order to collect his receivables. Tracking can be done in different types depending on the basis of the claim.

If the debtor does not object to the payment order or does not pay the debt in time, the proceedings may become final. After the follow-up is finalized, foreclosure, sale and collection procedures come to the fore.

What are the Types of Enforcement Proceedings?

Enforcement proceedings are carried out in different ways depending on the nature and basis of the receivable. Choosing the right type of follow-up is important for the process to progress quickly and effectively.

Tracking Type	Description
Execution proceedings without judgment	It can be initiated for money receivables without a court decision.
Execution proceedings with judgment	It is based on a court decision or a document in the form of a judgment.
Foreign exchange tracking	It is based on promissory notes such as checks, bills or policies.
Conversion of pledge into cash	It is applied to receivables secured by pledge or mortgage.
Evacuation of rented real estate	It comes to the agenda for reasons such as rent debt or eviction commitment.
Pursuit through bankruptcy	Applicable to traders and debtors subject to bankruptcy.

Execution Proceedings Without Judgment

Execution proceedings without judgment is a method of prosecution that can be initiated for money receivables without the need for a court decision. Invoice, current account, rental receivable, contract price or ordinary debt relations can be followed this way.

If the debtor objects to the payment order in due time, the prosecution stops. In this case, the creditor may need to apply for the annulment of the objection if there are cases or conditions.

Execution Proceedings with Judgment

Enforcement proceedings with a judgment are initiated based on a court decision or a document in the form of a judgment. If the receivable has been adjudicated by a court decision, the creditor may apply for enforcement by judgment.

In proceedings with a judgment, the debtor's opportunity to object is more limited than in proceedings without a judgment. However, postponement of execution or certain objection methods may be brought to the agenda depending on the concrete case.

Pursuit Specific to Bills of Exchange

Bill of exchange-specific tracking is a special tracking method used for receivables arising from documents such as checks, bills or policies. This tracking method is important for faster collection of commercial receivables.

The promissory note or check must comply with the formal requirements. Signature, maturity, endorsement, authorized holder status and presentation periods should be carefully examined before follow-up.

Check and Promissory Note Receivables

Check and promissory note receivables are frequently encountered follow-up issues in commercial life. Bounced checks, unpaid promissory notes or promissory notes with an endorsement chain may be subject to enforcement proceedings.

Issues such as lack of form or signature objection in these documents may be raised by the debtor. For this reason, the document should be examined from a legal perspective before initiating follow-up.

Pursuit by Converting the Pledge into Cash

In cases of receivables secured by a pledge or mortgage, pursuit is brought into question by converting the pledge into cash. In this type of pursuit, the creditor first aims to collect his receivables by selling the pledged goods.

Guarantees such as real estate mortgage, vehicle mortgage or commercial enterprise mortgage can be evaluated within this scope. The pledge agreement, mortgage record and receivable amount should be examined carefully.

Rent Receivables and Eviction Follow-up

Enforcement proceedings can be initiated for rent receivables. If the tenant does not pay on time or does not object despite the payment order, eviction process may be brought to the agenda.

Deadlines are important in eviction proceedings based on rent debt. Incorrect follow-up or missing notice may cause the evacuation process to take longer.

What is a Payment Order?

Payment order is the document sent to the debtor by the enforcement office and requesting payment or objection of the debt. After receiving the payment order, the debtor must act within the periods specified in the law.

A payment order that is not objected in due time may cause the pursuit to become final. For this reason, debtors must make a legal evaluation without delay after receiving the notification.

Objection to Debt

The debtor may object to the debt in execution proceedings without a judgment and stop the proceedings. The objection may be for all or part of the debt.

Objection to the debt must be made in due time and in accordance with the procedure. If the deadline is missed, the follow-up may be finalized and the foreclosure phase may proceed.

Objection to Signature

In proceedings based on bills of exchange, the debtor may claim that the signature on the bill does not belong to him. Objection to signature is subject to special time and procedural rules.

Expert examination may be brought to the agenda in case of objection to the signature. If the objection proves unfair, consequences such as compensation and fines may arise against the debtor.

Finalization of Tracking

Enforcement proceedings may become final if the debtor does not object in time or if the objection is removed or cancelled. After the follow-up is finalized, the creditor can request a lien.

Finalization of the follow-up is important for the creditor to proceed to the collection stage. After this stage, the debtor's assets are investigated and seizure proceedings can be initiated.

What is Lien?

Seizure is the seizure of the debtor's assets through the enforcement office. Seizure is carried out for the purpose of collecting the receivable.

Bank accounts, salaries, vehicles, real estate, commercial goods, receivables from third parties and movable property may be subject to seizure. However, there are also properties and rights that cannot be seized.

How are Foreclosure Transactions Done?

After the proceedings are finalized, the creditor may request a lien. The enforcement office investigates the debtor's assets and carries out the seizure process.

In foreclosure procedures, the debtor's bank accounts, vehicles, real estate and commercial activities can be examined. After the seizure, the sale and conversion to cash process can be initiated.

Bank Account Seizure

Seizing the debtor's bank accounts is a frequently used method in enforcement proceedings. If there is money in the account, the creditor may have the opportunity to collect.

Bank foreclosure may not always produce sufficient results. Other assets of the debtor should also be investigated and the follow-up strategy should be determined accordingly.

Salary Garnishment

It is possible to seize the debtor's salary. However, there are legal limitations on wage garnishment and it cannot be imposed in a way that would make the debtor's livelihood completely impossible.

Wage garnishment is an effective collection method, especially for debtors who earn regular income. The employer must act in accordance with the lien letter.

Vehicle and Real Estate Seizure

Vehicles and real estate belonging to the debtor may be seized. After a lien is placed on these goods, the sale process may come to the fore.

In vehicle and real estate liens, the sales request, valuation and deadlines must be followed carefully. Missing the deadlines may cause the foreclosure to be dropped or the process to be extended.

Seizure of Receivables from Third Parties

If the debtor has receivables from third parties, these receivables can be seized. Seizure notices can be sent to third parties through the enforcement office.

This method can be especially effective in trade receivables. If the debtor has receivables from customers, business partners or other companies, the possibility of collection through lien may arise.

Goods That Cannot Be Seized

Some goods and rights are regulated in the law as non-seizable. Some items that are essential for the livelihood of the debtor and his family, certain social rights or special receivables may be excluded from seizure.

The claim of non-seizability must be made by the debtor within the required time. Otherwise, the foreclosure process may become final.

Sales Process

Seized goods can be sold for the purpose of collecting the receivable. The price obtained from the sale is paid to the creditor.

During the sales process, valuation, announcement, tender, sales request and deadlines should be followed carefully. Incomplete transactions or missed deadlines may extend the collection process.

Enforcement Court

Enforcement court is a court with special jurisdiction that examines some disputes arising from enforcement and bankruptcy proceedings. Complaints, removal of objection, entitlement, objection to signature and some follow-up disputes may fall within the jurisdiction of the enforcement court.

The enforcement court is not the general court that hears every receivable case. It must be determined correctly which application will be made in the enforcement court and which will be made in the general court.

Complaint Against Enforcement Procedures

Complaints can be filed against erroneous or unlawful actions of the enforcement office. The complaint is made to the enforcement court.

The complaint period may vary depending on the nature of the transaction. While some transactions may be subject to indefinite complaints, short periods are foreseen for some.

Objection Cancellation Case

If the debtor objects to enforcement proceedings without a judgment, the proceedings are stopped. The creditor may file a lawsuit for cancellation of the objection in order to prove his receivable in the general court.

If the court accepts the existence of the receivable, it may decide to cancel the objection. If there are conditions, enforcement denial compensation may also be on the agenda.

Removal of Objection

Removal of the objection is the way that the creditor can apply to the enforcement court if he has a document of the nature specified in the law. This method is more limited and document-based than the objection annulment case.

It is not possible to remove the objection for every receivable. The nature of the document, the debtor's objection and the type of follow-up should be evaluated together.

Benefit Case

The entitlement lawsuit is filed with the claim that the seized property belongs to a third party, not the debtor. This case may come to the fore if goods belonging to other people are seized during the seizure.

The third party must prove his ownership right over the property with evidence. Invoice, payment record, delivery document and witness statements may be important in this case.

Precautionary Seizure

Precautionary seizure is a legal protection method that allows the debtor's assets to be temporarily seized in order to secure the creditor's receivables. It is especially important in cases where the debtor may miss goods.

According to Article 261 of the Execution and Bankruptcy Law, the creditor must request the execution of the decision within ten days from the date of the provisional attachment decision; Otherwise, the provisional seizure decision is automatically lifted.

Precautionary Lien Conditions

For provisional attachment, the existence of the receivable and the possibility that the collection of the receivable may be in danger must be shown to the court. If the receivable is due, provisional lien may be brought to the agenda more easily.

For receivables that are not due, special conditions may be required, such as the debtor smuggling goods or running away. Therefore, the provisional lien request should be prepared carefully.

Case for Cancellation of Savings

The action for annulment of disposition is a case that ensures that some transactions carried out by the debtor in order to smuggle goods from the creditor are neutralized in terms of the creditor. The debtor's transfer of his real estate to his relative or his disposal of his assets for a low price may be the subject of this lawsuit.

This lawsuit is an important legal way to ensure the collection of the receivable. However, case conditions, deadlines and rules of evidence should be carefully evaluated.

What is Bankruptcy?

Bankruptcy is the process of liquidating all the debtor's assets and distributing them to creditors. As a rule, bankruptcy comes to the fore for merchants and persons subject to bankruptcy.

Bankruptcy, unlike individual foreclosure, is a collective liquidation method that covers all the debtor's assets. Therefore, the bankruptcy process has serious consequences for both the debtor and the creditors.

Pursuing Through Bankruptcy

Proceedings through bankruptcy is a special proceeding initiated against the debtor subject to bankruptcy. If the debtor does not pay his debt or his objection is not lifted, a bankruptcy case may be brought to the agenda.

In this process, whether the debtor is a merchant or not, the nature of the debt and the follow-up conditions should be carefully evaluated. Bankruptcy cannot be used against every debtor.

Direct Bankruptcy

In some cases, the creditor may file a bankruptcy case directly. The debtor's apparent inability to pay his debts or some special circumstances listed in the law may bring this process to the agenda.

Since direct bankruptcy has serious consequences, its terms should be carefully examined. Incorrect application may also create risks for the creditor.

What is Concordat?

Concordat is a legal protection method used to enable the debtor to pay his debts within a certain plan and continue his commercial activities. It has important consequences for both the debtor company and the creditors.

During the concordat process, the court may make decisions such as temporary respite, definitive respite and appointment of a commissioner. Creditors must notify their receivables in a timely manner and follow the process carefully.

Status of Creditors in the Concordat Process

Enforcement proceedings against the debtor who declares concordat may be limited or suspended. For this reason, creditors must report their receivables in the concordat file in a timely manner.

Receivable notification, objection, commissioner reports and court decisions are important for the creditor. Missing the deadlines may reduce the possibility of collection.

Mediation in Enforcement and Bankruptcy Law

As a rule, mediation is not mandatory to initiate enforcement proceedings. However, if the debtor objects to the follow-up and the creditor is forced to file a lawsuit, the mediation requirement may come to the fore, depending on whether the dispute arises from a commercial, business or rental relationship.

Especially in commercial receivables and compensation claims, the mediation requirement should be evaluated before filing a lawsuit within the scope of TCC Article 5/A. Overlooking this condition may result in the case being rejected due to procedural reasons.

Interest and Expenses in Enforcement Proceedings

In enforcement proceedings, the creditor may request interest, follow-up costs and attorney fees along with the main receivable. The interest type and starting date vary depending on the nature of the receivable.

Incorrect interest type or incorrect interest start may cause the debtor to object. For this reason, receivable items should be determined carefully when preparing a follow-up request.

The Importance of Notification in Enforcement Proceedings

In enforcement proceedings, the payment order must be notified duly. The notification initiates the debtor's objection and payment periods.

Irregular notification may cause serious problems in the tracking process. The debtor may request that the deadlines be re-evaluated, claiming that the notification is irregular.

Statute of Limitations in Enforcement Proceedings

The statute of limitations in enforcement proceedings varies depending on the type of receivable. Invoice, rent, check, promissory note, court order or contract receivable may be subject to different statute of limitations.

Missing the statute of limitations may make it difficult to collect the receivable. For this reason, creditors must follow up their overdue receivables without delay.

Rights of the Debtor in Enforcement Proceedings

The debtor may object to the payment order received within a timely manner. Objection to debt, interest, authorization or signature may be raised depending on the nature of the file.

In addition, objection and complaint methods such as non-seizability, improper notification, the fact that the debt has been paid or the pursuit is unfair may also be evaluated. Since the deadlines are short, action must be taken quickly.

Things to Consider in Enforcement Proceedings for Creditors

Before initiating proceedings, the creditor must determine the basis of the receivable, the debtor's assets and the correct course of pursuit. Missing documents or the wrong type of follow-up may cause the process to take longer.

If the debtor is likely to miss out on property, additional legal remedies such as provisional seizure or cancellation of disposition may be considered. Collection strategy should not be limited to just initiating follow-ups.

Execution and Bankruptcy Law in Istanbul

Enforcement and bankruptcy processes are carried out intensively in Istanbul. Company receivables, rent debts, check-note follow-ups, bank receivables, foreclosure transactions and bankruptcy files are common.

The authorized enforcement office for the European Side and Anatolian Side of Istanbul may vary depending on the address of the debtor, the authority requirement in the contract and the nature of the receivable. It is important to determine the competent enforcement office correctly.

The Importance of Working with an Enforcement and Bankruptcy Lawyer

Enforcement and bankruptcy law is a technical field where deadlines are short and faulty transactions can have serious consequences. The collection strategy for the creditor and the objection and defense methods for the debtor must be carefully determined.

Lawyer support; Choosing the type of follow-up is important for the correct execution of objection to payment order, foreclosure transactions, provisional lien, bankruptcy, composition and litigation processes.

Legal Support from Attorney Mehmet Emin Kurşun

Acting quickly and accurately in enforcement and bankruptcy law processes is important in terms of collecting the receivable or protecting the rights of the debtor. Follow-up request, objection, seizure, sale, provisional seizure, bankruptcy and composition processes must be carried out carefully.

Attorney Mehmet Emin Kurşun provides legal support in enforcement proceedings, receivables collection, foreclosure transactions, provisional lien, cancellation of objection, foreign exchange follow-up, bankruptcy, composition and cancellation of disposition cases in Istanbul.

Things to Know Before Starting the Legal Process

Before starting the enforcement or bankruptcy process, the basis of the receivable, the status of the debtor, the statute of limitations, interest, the type of prosecution and the authorized enforcement office must be determined correctly. For the debtor, when the payment order is notified, objection methods should be evaluated without missing the deadlines.

Receiving legal support at the beginning of the process for creditors or debtors who will take action in the field of enforcement and bankruptcy law in Istanbul reduces the risk of loss of rights. Properly prepared follow-up or defense helps the process to be carried out more effectively.

Frequently Asked Questions

What is enforcement and bankruptcy law?

Enforcement and bankruptcy law is the field of law that regulates the collection of receivables by the compulsory enforcement power of the state and the evaluation of the debtor's assets through seizure, sale, bankruptcy or liquidation.

What is enforcement proceedings?

Enforcement proceedings are the legal process initiated by the creditor through the enforcement office to collect his debt.

What is enforcement proceedings without judgment?

Execution proceedings without judgment is the process initiated for money receivables without the need for a court decision.

What is enforcement proceedings?

Enforcement proceedings with a judgment are proceedings initiated based on a court decision or a document in the nature of a judgment.

What is foreign exchange tracking?

Foreign exchange tracking is a special tracking method used for receivables based on bills of exchange such as checks, bills or policies.

What happens if the debtor objects to the payment order?

If the debtor objects in due time, the proceedings without a judgment will stop. The creditor may apply for the annulment of the objection if there is a case or conditions.

What is a lien?

Seizure is the seizure of the debtor's assets through the enforcement office. The purpose is to collect the receivable.

What is a provisional lien?

Precautionary attachment is a legal protection method that allows the debtor's assets to be temporarily seized in order to secure the creditor's receivables.

What is bankruptcy?

Bankruptcy is the process of liquidating all the assets of the debtor subject to bankruptcy and distributing them to creditors.

Why is enforcement and bankruptcy lawyer support in Istanbul important?

Enforcement and bankruptcy files in Istanbul involve intense and technical processes. Correct follow-up, compliance with deadlines, foreclosure strategy and legal support during objection processes reduce the risk of loss of rights.