Turkish Enforcement and Bankruptcy Law

FIRST CHAPTER

Organization and various provisions

Enforcement offices:

Article 1 – (Amended: 2/7/2012-6352/1 art.)

There are sufficient enforcement offices within the jurisdiction of each court of first instance.

Each enforcement office shall have an enforcement manager appointed by the Ministry of Justice, a sufficient number of deputy enforcement managers, enforcement clerks, and bailiffs and servants to be appointed by the justice commissions of the first instance courts of the judiciary.

(Additional third paragraph: 24/11/2021-7343/1 art.) In order to ensure that the office operates in an orderly, harmonious and efficient manner in enforcement offices where the workload or the number of personnel is high, the Ministry of Justice may appoint a chief enforcement officer with the powers of an enforcement officer from among the enforcement officers and deputy directors. The procedures and principles regarding the implementation of this paragraph shall be regulated by the regulation.

Enforcement officers and deputy enforcement officers are appointed based on the results of a written exam conducted by the Ministry of Justice and an oral exam conducted by the Ministry of Justice. Among the enforcement clerks, appointments can be made to the positions of enforcement officer or deputy enforcement officer based on the results of a written exam conducted by the Ministry of Justice and an oral exam conducted by the Ministry of Justice.

Those who will be appointed as enforcement clerks for the first time will be appointed according to the results of the application and oral examination to be held by the Ministry of Justice or the justice commissions of the first instance courts of the judiciary authorized by the Ministry in this regard, among those who are successful in the central examination to be held for those who will be appointed to public duties for the first time; those who will be appointed through a change of title will be appointed according to the results of the application and oral examination. Those who will be appointed as enforcement clerks through a change of title cannot exceed fifty percent of the allocated position.

Written exams, oral exams, assignments, transfers, title changes, promotions and other issues regarding the executive directors, deputy executive directors and executive clerks are regulated by regulations.

In enforcement offices, when necessary, court clerks, bailiffs and servants are assigned by the justice commission of the first instance court of the judiciary, within the framework of the principles to be determined by the Ministry of Justice.

In case of absence of the enforcement director, deputy enforcement director or enforcement clerk for any reason, their duties and powers are carried out by the clerk of the registry or court clerk to be assigned by the justice commission of the first instance court of the judiciary.

The Ministry of Justice is authorized to keep the enforcement offices together and connect them to the same enforcement court.

Bankruptcy offices:

Article 2 – There are as many bankruptcy offices as necessary within the jurisdiction of each court of first instance.

The first article also applies to bankruptcy offices.

Merging of enforcement and bankruptcy offices:

Article 3 – Enforcement and bankruptcy proceedings can be combined in one office.

Presidency of enforcement offices:

ARTICLE 3/a- (Added: 24/11/2021-7343/2 art.) 

In provinces where the workload or the number of enforcement offices is high, one or more enforcement offices may be established by the Ministry of Justice, by determining the area of authority.

There is a president and sufficient number of vice presidents in the presidency. The president is appointed by the Ministry from among first class judges and public prosecutors of the judiciary who have been promoted to first class, with their consent. In addition, sufficient number of chief executive officers, executive officers, deputy executive officers, executive clerks and civil servants are appointed by the Ministry of Justice in the presidency.

In cases not covered by this Law, the provisions of the Judges and Prosecutors Law No. 2802 dated 24/2/1983 regarding judges working in the central organization of the Ministry of Justice shall apply to the heads and deputy heads of enforcement offices.

The Presidency supervises and audits the enforcement offices, looks after their administrative affairs, and carries out the duties assigned by legislation.

The provision of this article also applies to the bankruptcy offices and the officials working in the bankruptcy offices.

The procedures and principles regarding the implementation of this article are determined by the regulation put into effect by the Ministry of Justice.

Enforcement court:

Article 4 – (Amended: 3/7/1940-3890/1 art.)

(Amended first paragraph: 17/7/2003-4949/1 art.) The examination of complaints and objections against the proceedings of the enforcement and bankruptcy offices shall be carried out by the enforcement court judge or by the judge to whom this duty has been assigned pursuant to the law. In places where the workload makes it necessary, more than one department of the enforcement court may be established by the Ministry of Justice with the positive opinion of the High Council of Judges and Public Prosecutors. In such cases, the enforcement court departments shall be numbered. In places where the enforcement court has more than one department, the distribution of workload and the principles related to this shall be determined by the High Council of Judges and Public Prosecutors. Each enforcement court judge shall examine complaints and objections against the proceedings of the enforcement and bankruptcy offices to which the Presidency of the Judiciary Justice Commission has assigned them on a rotational basis, and shall supervise and inspect these offices in places where no enforcement office presidency has been established, and shall look after their administrative affairs.

The court of enforcement of complaints and objections against the proceedings of the courts of peace having enforcement authority is the judge of that court.

Responsibility:

Article 5 – (Amended: 6/6/1985-3222/1 art.)

Compensation lawsuits arising from the faults of the Enforcement and Bankruptcy Office officials can only be filed against the administration. The state reserves the right to recourse against officials who are at fault in the occurrence of the damage. These lawsuits are heard in the courts of justice.

Debit:

Article 6 – (Amended: 6/6/1985-3222/2 art.)

In the event that the money deposited with the enforcement office or collected or kept by this office is embezzled by the relevant officer, the amount embezzled shall be immediately deposited into the enforcement treasury by the treasury without waiting for the outcome of criminal proceedings and without the need for a judgment for compensation. The state reserves the right to recourse against those who are primarily responsible.

Statute of limitations for damages and losses:

Article 7 – A lawsuit for damages and losses becomes time-barred one year after the day the injured party learns of the damage and, in any case, ten years after the act causing the damage occurred.

However, if the damage and loss is the result of an act that requires punishment and the criminal laws subject this act to a statute of limitations for a longer period, the statute of limitations also applies in the civil case.

Minutes:

Article 8 – (Amended: 18/2/1965-538/4 art.)

The enforcement and bankruptcy offices keep a record of the proceedings they carry out and the demands and declarations made to them. Verbal objections and the demands and declarations are signed by the relevant parties and the enforcement officer or his assistant or clerk.

(Additional paragraph: 2/7/2012-6352/2 art.) The decisions made by the enforcement and bankruptcy offices are recorded in the minutes with their reasons.

Interested parties can view these minutes and obtain a copy of them.

The minutes of the enforcement and bankruptcy offices are valid until proven otherwise.

Electronic transactions:

Article 8/a – (Added: 2/7/2012-6352/3 art.)

The National Judicial Network Information System is used in all kinds of enforcement and bankruptcy work and transactions to be carried out by the enforcement and bankruptcy offices; all kinds of data, information, documents and decisions are processed, recorded and stored through the National Judicial Network Information System.

Electronic data created with a secure electronic signature in accordance with the procedure are considered as promissory notes. A secure electronic signature has the same evidentiary power as a handwritten signature. A secure electronic signature can be used instead of a handwritten signature, except for transactions that are clearly stated in the laws that cannot be performed with a secure electronic signature. The provisions of the laws that require the preparation of multiple copies and the sealing process do not apply to documents and decisions created with a secure electronic signature.

Documents or decisions prepared physically due to compelling reasons are signed with secure electronic signatures by authorized persons and transferred to the National Judiciary Network Information System and, when necessary, transmitted to the relevant units through the National Judiciary Network Information System. The originals of documents and decisions transferred to the electronic environment in this way and transmitted to the relevant units are kept in the sending enforcement and bankruptcy office and are not sent physically. However, the cases where the examination of the original document or decision is mandatory are reserved.

In cases where a physical copy needs to be taken from an electronic environment, the document is signed and sealed by the enforcement officer or the personnel he/she designates, stating that it is the same as the original.

For transactions made electronically, the period ends at the end of the day.

(Additional paragraph: 6/12/2018-7155/10 art.) The creditor may inquire about the debtor’s property, rights or receivables through the National Judiciary Network Information System, through information systems integrated into this system, in return for fifty cents (…) . This amount shall be increased each year by the revaluation rate determined and announced in accordance with the provisions of Article 298 of the Tax Procedure Law No. 213 dated 4/1/1961 regarding the previous year. The Ministry of Justice is authorized to increase and decrease the fee increased by the revaluation rate up to five times and to exempt a certain number of inquiries based on day and file from the fee. This fee shall not be collected from public administrations within the scope of general administration, and no fee shall be collected from the inquiries that the creditor will make five times on the same file within a day. The fee to be collected within this scope shall be collected in accordance with the procedure to be determined by the Ministry of Justice and shall not be charged to the debtor as a follow-up expense.

The procedures and principles regarding the conduct of electronic transactions through the National Judiciary Network Information System are regulated by the regulation issued by the Ministry of Justice.

Payment of money and safekeeping of valuables:

Article 9 – (Amended: 2/7/2012-6352/4 art.)

All cash payments to be made to the enforcement and bankruptcy offices shall be made to an account opened in the name of the enforcement and bankruptcy office in banks deemed appropriate by the Ministry of Justice. During the seizure, the money collected due to the payment made by the debtor or third parties shall be kept in enforcement or court safes to be deposited into the bank account by the end of the working hours of the first business day following the day of collection at the latest.

Any cash payment to be made by the enforcement and bankruptcy offices shall be made in accordance with the instructions given to the bank by the enforcement director ex officio, to be transferred to the bank account indicated by the relevant person. The instructions shall be given no later than three business days following the deposit of the money into the enforcement and bankruptcy office account.

Enforcement and bankruptcy offices keep the valuable documents and valuables they receive in their safes or, in cases of necessity, in bank safes to be rented.

Satisfaction with work:

Article 10 – (Amended: 18/2/1965-538/6 art.)

Officers and employees who handle enforcement and bankruptcy matters

1. His own,
2. His/her husband or wife, his/her fiancée or blood or affinity relatives or relatives by blood or affinity up to and including the third degree,
3. A person who is his legal representative or agent or employee,

He/she is obliged to immediately notify the enforcement court if he/she cannot perform the work that is of interest to him/her. If the enforcement court finds the application justified, it assigns that work to another officer or, in places where there is no such officer, to one of his/her clerks.

Rejection of the enforcement court judge

Article 10/a – (Added: 18/2/1965-538/7 art.; Amended: 2/3/2005-5311/1 art.)

If the enforcement court judge is rejected, the provisions of the Code of Civil Procedure shall apply. The person requesting rejection must state the reasons for rejection together with evidence in his/her petition.

The appeal against the decision to reject the request for refusal does not prevent the judge from considering the case and making a decision. If the decision to reject the request for refusal is overturned, the decision given by the rejected judge will not be implemented. In this case, the file will be sent by the regional court of justice to another department of the enforcement court or, if there is no other department of the enforcement court in that location, to the nearest enforcement court. The provisions of Article 40 will be applied by analogy.

Satisfied works:

Article 11 – Judges and enforcement and bankruptcy officers and employees who perform the duty of investigation cannot make any contract with anyone on their own behalf or on behalf of others regarding a receivable that is being followed up by their departments or a thing that is being sold. If they do, it is null and void.

Payment to the enforcement office:

Article 12 – (Repealed: 2/7/2012-6352/105 art.)

Supervision and control:

Article 13 – (Amended: 6/6/1985-3222/3 art.)

(Amended first sentence: 17/7/2003-4949/2 art.) Enforcement and bankruptcy offices are under the permanent supervision and control of the enforcement offices directorate, or the enforcement court judge in places where this directorate has not been established, in accordance with the principles in Article 4. These offices are subject to inspection by public prosecutors and justice inspectors. Public prosecutors inspect these offices at least once a year.

The provisions of the Civil Servants Law on disciplinary penalties shall be applied to enforcement and bankruptcy officers and their assistants due to their acts and situations that require disciplinary punishment.

First inspection:

Article 13/a – (Added: 18/2/1965-538/9 art.)

According to Article 13, the first inspection to be carried out by public prosecutors shall be carried out in January of each year, covering the transactions of the previous year, and a copy of the reports to be prepared shall be kept in the enforcement and bankruptcy office and the public prosecutor’s office (…) is necessary.

The regulation specifies how inspections will be carried out, who will carry them out if the prosecutor’s offices are open, and how inspection reports will be prepared.

Regulations and Supreme Court decisions:

Article 14 – (Amended: 18/2/1965-538/10 art.)

The method of application of this law (…)12, the method of organizing the books, files and other printed papers to be kept in the enforcement and bankruptcy offices and enforcement courts are determined and determined by the regulation to be prepared by the Ministry of Justice.

(Second paragraph repealed: 6/6/1985-3222/47 art.)

(Additional paragraph: 17/7/2003-4949/3 art.) The Supreme Court of Appeals regularly publishes all decisions regarding enforcement and bankruptcy matters. The principles regarding this are regulated by the Supreme Court of Appeals through a regulation.

Fees:

Article 15 – (Amended: 3/7/1940-3890/1 art.)

The law determines the enforcement and bankruptcy fees. Unless otherwise stated in the law, all fees and expenses belong to the debtor and are collected without the need for additional judgment and follow-up.

In enforcement proceedings, assistance is given by the enforcement court authorized to follow the decisions of the courthouse in accordance with Article 465 and subsequent articles of the Code of Civil Procedure.

Complaints and conditions:

Article 16 – (Amended: 3/7/1940-3890/1 art.)

With the exception of matters that the law leaves to the court to resolve, a complaint may be made to the enforcement court regarding the actions taken by the Enforcement and Bankruptcy Offices due to their being contrary to the law or not being appropriate for the case. The complaint shall be made within seven days from the date of learning of these actions.

A complaint can be made at any time because a right has not been fulfilled or has been delayed without cause.

Procedures to be taken upon complaint:

Article 17 – If the complaint is accepted by the enforcement court, the complained-of transaction is either reversed or corrected.

The execution of the work that the officer has not done or has delayed without any reason is ordered.

Judicial proceeding:

Article 18 – (Amended: 18/2/1965-538/11 art.)

(Amended first paragraph: 2/7/2012-6352/6 art.) Matters submitted to the enforcement court are considered urgent matters and simple trial procedure is applied in these matters.

However, requests and responses may be made by petition or by having a statement recorded by the enforcement court.

(Amended third paragraph: 17/7/2003-4949/4 art.) In cases where there is no provision to the contrary, the enforcement court shall assess whether the enforcement office that carried out the transaction in question needs to make a statement and whether a hearing is necessary; if it deems it appropriate to hold a hearing, it shall call the relevant parties to the hearing as soon as possible and shall make the necessary decision even if they do not attend. In cases where a hearing is not held, the enforcement court shall make its decision within ten days at the latest from the date on which the case is brought before it. Hearings may only be postponed in cases of necessity and for a period not exceeding thirty days.

PERIODS

Beginning and ending:

Article 19 – (Amended: 18/2/1965-538/12 art.)

In periods determined as days, the first day is not taken into account.

Periods determined as months or years end on the same day of the month or year on which they started to run, and if there is no such day at the end of the month in which the period ends, on the last day of the month. (Additional sentence: 2/3/2024-7499/1 art.) If the period is determined as a week, it ends on the day corresponding to the day it started in the last week. 

If the last day of a period falls on an official holiday, the period ends on the day following the holiday.

The period is deemed to have ended at the holiday time of the last day.

No change in the terms:

Article 20 – All contracts that change the periods determined by this law are null and void. However, any debtor who has the right to benefit from the expiration of any period may waive this right. This waiver does not affect third parties.

Enforcement notifications:

Article 21 – (Amended: 18/2/1965-538/13 art.)

Notifications to be made by the enforcement offices shall be in writing and in accordance with the provisions of the Notification Law. These notifications may also be made by direct delivery against receipt.

Unless the creditor or debtor who changes the address written in the judgment and the documents deemed to be in force of judgment according to Article 38 and in the mortgage document notify each other through a notary, the notification is made to the same address and if it is not found at this address, Article 35 of the Notification Law is applied.

If the change of address is notified to the other party by the creditor or debtor in accordance with the above paragraph and the party who benefits from Article 35 of the Notification Law by having the notification made to the old address, he/she is obliged to pay all the damages he/she has caused to the other party with an additional 15 percent and the penalty in Article 343 is also applied to him/her.

Stay of execution:

Article 22 – A complaint does not stop the enforcement unless a decision is made by the enforcement court.

Terms in the Law:

Article 23 – (Amended: 14/1/2011-6103/41 art.)

In the implementation of this Law;

1. The term “mortgage” means mortgages, mortgaged debt notes, revenue notes, real estate mortgages established under the provisions of old law, real estate obligations, special privileges on some real estates and mortgage transactions on real estate annexes.
2. The term “movable pledge” means pledges based on delivery, pledges stipulated in Article 940 of the Turkish Civil Code, commercial enterprise pledges, lien rights, pledges on receivables and other rights.
3. The term “Pledge” includes all movable and immovable pledges falling within the terms “mortgage” and “movable pledge”.

contains.

Except for the exceptions expressly provided, the provisions of this Law on movables shall apply to all ships, regardless of their flag and whether they are registered in a registry. The annotations to be given to the ship registry pursuant to this Law shall be subject to the provision of Article 977 of the Turkish Commercial Code.

SECOND CHAPTER

Execution of Decrees

1. Enforcement of Decisions Regarding Debts Other Than Money and Collateral:

Delivery of movables:

Article 24 – (Amended: 18/2/1965-538/14 art.)

When a judgment for the delivery of a movable is given to the enforcement office, the enforcement officer orders the delivery of that thing to the debtor within seven days by serving an enforcement order.

In the enforcement order, the names and surnames of the creditor and debtor and their representatives, if any, their reputation and place of residence, the name of the court that gave the ruling, the nature of the ruling, the date and number of the ruling, and the fact that the forced enforcement will continue unless a decision is brought by the enforcement court or the court to which it belongs by way of appeal, cassation or retrial to postpone the enforcement.

If the debtor does not comply with this order or does not comply with it completely and the debt is found to be in a similar condition or in a similar condition, it will be forcibly taken from him and given to the creditor.

If it is not available, the value stated in the judgment is taken. If it is not provided, it is collected through seizure without the need for an enforcement order notification. If the value of the movable property is not stated in the judgment or is in dispute, it is assessed by the enforcement officer according to the market value on the date of seizure.

The value of the movable property that has been judged is determined according to the answer to be received from the stock exchange or chamber of commerce, or from an expert to be selected by the enforcement officer in places where there are none.

The parties concerned have the right to complain to the enforcement court regarding this matter.

(Repealed seventh paragraph: 14/1/2011-6103/41 art.)

Child delivery:

Article 25 – (Repealed: 24/11/2021-7343/32 art.)

Execution of the decision regarding the establishment of personal relations with the child:

Article 25/a – (Added: 18/2/1965-538/15 art.) (Repealed: 24/11/2021-7343/32 art.)

Appointment of experts in the execution of decisions regarding the delivery of children and the establishment of personal relations with children:

Article 25/b- (Added: 17/7/2003-4949/7 art.) (Repealed: 24/11/2021-7343/32 art.)

Evacuation and delivery of real estate:

1 – If in the hands of the debtor:

Article 26 – (Amended: 14/1/2011-6103/41 art.)

When a judgment for the evacuation and delivery of a real estate is given to the enforcement office, the enforcement officer orders the delivery of the judged thing to the debtor within seven days by serving an enforcement order as stated in Article 24.

If the debtor does not comply with this order while occupying the real estate, the judgment’s judgment is enforced by force.

The debtor who re-enters the real estate delivered to the creditor without a justified reason will be forcibly removed without the need for a separate judgment.

The items found in the real estate and not included in the judgment shall be removed and delivered to the debtor and if they are not ready, they shall be delivered to his/her representative or an adult person from his/her family or employees. If none of these are found, the said items shall be taken from the creditor in advance to be paid by the debtor in the future and kept in a safe place or in the possession of the creditor, and upon the immediate notification by the enforcement office, if the debtor is in the place where the items are located, he/she shall refrain from taking the items or paying the expenses within five or, if not, thirty days, or if deemed necessary, the enforcement officer shall sell them upon the decision of the enforcement court and pay the expenses from the amount. If there is any excess, it shall be deposited in the name of the debtor in one of the banks whose qualifications are determined in the regulation issued by the Ministry of Justice.

2 – If the real estate is in the hands of a third party:

Article 27 – If the real estate is occupied by a third party based on a contract registered in the land registry after the lawsuit and before the judgment, the creditor shall have the same rights as the debtor against that person. If he does not choose this option, he may file a lawsuit for compensation against the debtor. However, general provisions against third parties who commit fraud are reserved.

(Added: 29/6/1956-6763/42 art.; Repealed second paragraph: 14/1/2011-6103/41 art.)

Notification of judgments to the land registry office in real estate cases:

Article 28 – (Amended: 14/1/2011-6103/41 art.)

In cases involving real estate, if a decision is given in favor of the plaintiff, the court shall notify the land registry office of the summary of the decision together with the verdict without the need for the plaintiff’s request. The relevant office shall annotate the record of the real estate on which the decision is made in this respect. This annotation is subject to the provision of the second paragraph of Article 1010 of the Turkish Civil Code.

If the decision given on the real estate case becomes final against the plaintiff, the court immediately notifies the land registry office of the summary of this decision.

Change of the seven after the judgment on the real estate:

Article 29 – (Amended: 14/1/2011-6103/41 art.)

Any changes made after the judgment is notified to the land registry office will not affect the enforcement proceedings. The thing indicated in the judgment will be taken from the person in whose possession it is and delivered to the creditor.

However, if the third party present at that location shows a land registry record stating that he did not receive the property from the debtor but occupied it directly, he will be given a period of seven days to apply to the court and file a lawsuit. If a lawsuit is filed within this period, the execution will be postponed.

Decrees regarding the doing or not doing of a job: 

Article 30 – When a judgment for the execution of a work is given to the enforcement office, the enforcement officer orders the debtor to carry out the work within the period specified in the judgment and, if no period is specified, by determining the starting and finishing times according to the nature of the work, by serving an enforcement order as specified in Article 24.

If the debtor does not start or finish the work within a certain period of time and the work is something that can be done by another person and the creditor wishes, the necessary expense for its execution is determined by the enforcement officer to the attorney general. If the creditor consents to the execution of this expense without the need for a judgment in the future and to be collected from the debtor and given to him, the judgment is carried out. If he does not consent, the debtor’s property is seized and converted into money without the need for a judgment, and the work is carried out.

If the judgment is about failure to perform a task, the enforcement office notifies the debtor of the judgment with an order of the same duration. In this order, it is stated that the violation of the judgment is subject to the penalty in article 343.

(Additional last paragraph: 17/7/2003-4949/9 art.) If, after the judgment of a judgement regarding the performance or non-performance of a task is fulfilled, the debtor commits an action that would annul the judgment, the previous judgment is forcibly fulfilled again without the need to obtain a separate ruling from the court.

Decisions regarding easement rights:

Article 31 – (Amended: 14/1/2012-6103/41 art.)

When a judgment to terminate a right of easement or to establish such a right is given to the enforcement office, the enforcement officer sends a seven-day enforcement order as specified in article 24. If the debtor objects, the judgment of the judgment is enforced by force.

Execution of judgments regarding ships and real rights related to them:

Article 31/a – (Added: 14/1/2011-6103/41 art.)

Decisions regarding all ships and their real rights, regardless of their flag and whether they are registered or not, cannot be enforced unless they become final.

If a decision is given in favor of the plaintiff in cases concerning Turkish ships registered in the registry and rights in rem related to them, the court shall notify the summary of the decision together with the statement of the decision to the ship registry office without the need for the plaintiff’s request. The decision shall be annotated to the ship registry office. If the decision given in the case becomes final against the plaintiff in the future, the court shall immediately notify the summary of this decision to the ship registry office. For all foreign flagged ships, regardless of whether they are registered in the registry, the court shall make the notifications provided for in this paragraph to the nearest consulate of the state whose flag the ship flies. After the annotation of the decision to the ship registry, the person who acquires possession of the ship shall be subject to the action in accordance with the third paragraph without the need to obtain a new judgment.

When a judgment for the discharge and delivery of a ship, regardless of its flag and whether it is registered or not, is given to the enforcement office, the enforcement director orders the delivery of that ship to the debtor within seven days by serving an enforcement order. The enforcement order shall state the names and surnames of the creditor and debtor and their representatives, if any, and their places of residence, the name of the court that issued the judgment, the identity of the ship ordered to be discharged and delivered, the date and number of the judgment, and that the enforcement will continue unless a decision is made by the enforcement court or the court where the judgment is being heard by way of appeal, cassation or retrial to postpone the enforcement.

If the debtor does not comply with this order despite being in possession of the ship, the judgment shall be enforced by force. If the debtor is not in possession of the ship, the creditor may exercise one of the following optional rights:

1. The creditor may request the collection of the value of the ship as stated in the judgment. If the debtor fails to pay this value, the said value shall be collected from him by way of seizure without the need for a separate enforcement order. If the value of the ship is not stated in the judgment and the parties cannot agree on this value, it shall be determined by a committee of experts to be selected by the enforcement officer. The committee of experts shall base the value of the ship at the time of valuation.
2. The creditor may exercise the rights of the debtor against a third party who is in possession of the ship. However, if the third party is in possession of the ship based on a contract registered in the ship registry after the lawsuit and before the judgment, the provision of subparagraph (1) shall apply.

The debtor or a third party who re-enters the ship delivered to the creditor without a justified reason shall be removed by force without the need for a separate judgment.

The goods found on the ship but not included in the judgment shall be removed and delivered to the debtor, and if the person is not present, they shall be delivered to his attorney. If none of these are found, the said goods shall be taken from the creditor in advance, with the expense to be paid by the debtor in the future, and kept in a safe place or in the custody of the creditor, and if the debtor is at the location where the goods are located, and if not, within five days, or thirty days, upon notification to be made immediately by the enforcement office, or if deemed necessary, the enforcement officer shall sell them upon the decision of the enforcement court and pay the expense from the amount; if there is any excess, it shall be deposited in the name of the debtor in one of the banks whose qualifications are specified in the regulation issued by the Ministry of Justice.

When the judgment to establish or remove a mortgage or usufruct right on Turkish ships registered in the registry is submitted to the enforcement office, the enforcement officer sends a seven-day enforcement order as stated in the third paragraph. If the debtor does not comply with the order, the judgment is enforced by force.

Article 30 shall apply to the execution of decisions regarding the performance or non-performance of a work related to the ship and which are not covered by the provisions of the previous paragraph.

1. Execution of Decisions Regarding the Payment of Money and Guarantees:

Execution order and its contents:

Article 32 – (Amended: 18/2/1965-538/16 art.)

When a judgment for a monetary debt or for the provision of security is given to the enforcement office, the enforcement officer serves an enforcement order on the debtor. In this order, the type and amount of the judgment other than those stated in Article 24 are indicated and it is warned that it must be paid within seven days and that if the debt is not paid or the judgment security is not provided within this period, unless a decision is brought by the enforcement court or the court to which it belongs by way of appeal or cassation or retrial, that the enforcement will be carried out compulsorily and that within this period, the debtor must declare his/her assets in accordance with Article 74 and if he/she does not declare his/her assets or makes a statement contrary to the truth, he/she will be punished with imprisonment.

(Additional paragraph: 2/7/2012-6352/7 art.) In the enforcement order regarding the enforcement proceedings initiated against a foreign state, it is also warned that, without prejudice to international agreements, forced enforcement may be carried out on the property belonging to the debtor state.

Suspension of execution:

Article 33 – (Amended: 18/2/1965-538/17 art.)

Upon notification of the enforcement order, the debtor may apply to the enforcement court with a petition within seven days to object that the debt has become time-barred or has been extinguished or redeemed. If the claim of redemption or destruction is made ex officio by the competent authorities or duly confirmed or documented with a document confessed in the enforcement office or in the enforcement court or before the court, the enforcement is suspended.

Requests for redemption, destruction or postponement based on the accrued period after the notification of the execution order can be made at any time. Requests based on redemption or destruction must be based on documents made or certified by the notary or on the execution record.

If the enforcement court rejects the request for postponement, the debtor may only appeal or appeal on the condition that he/she shows cash or movable collateral or bonds or immovable collateral or a bank guarantee acceptable to the enforcement court to cover the debt within the period of application for appeal or appeal. If the debtor has sufficient property or if sufficient property is seized upon the request of the debtor within the period of application for appeal or appeal, there is no need to show the security specified in this paragraph.

The debtor who is obliged to pay money that is not owed has the right to file a lawsuit for recovery in accordance with Article 72 and request the money to be returned.

The claim that the judgment is time-barred:

Article 33/a – (Added: 18/2/1965-538/18 art.)

The enforcement court shall decide on the claims that the judgment has become time-barred or the statute of limitations has been interrupted or suspended. The court examines the case based on official documents and decides whether to postpone or continue the execution.

After the creditor is notified that the decision to postpone enforcement has become final, he/she may file a lawsuit in the ordinary courts within 7 days to prove that the statute of limitations has not expired. Otherwise, the fact that the judgment for which enforcement is requested has become statute-barred shall be deemed final.

If a decision is made to continue the execution, the last paragraph of Article 33 shall also apply here.

III. Common Provisions:

Where to request enforcement:

Article 34 – Execution of judgments may be requested from any enforcement office. If the creditor changes his place of residence, he may request that the new place of residence be referred to the enforcement office.

Start of tracking:

Article 35 – The enforcement proceedings commence with the delivery of the judgment to the enforcement office. A free and chargeable certificate with a registration number is given to the creditor who requests it.

Time period to be granted for postponement of execution

Article 36 – (Amended: 2/3/2005 – 5311/5 art.)

If the debtor who appeals or appeals against the judgment proves that the money or goods awarded have been deposited with an official authority or shows a movable mortgage, bond, security or immovable mortgage or valid bank guarantee that is acceptable to the enforcement court in the value of the money or goods awarded or if the debtor has property to cover the money or goods awarded, the enforcement director will grant him an appropriate period of time to obtain a decision from the enforcement court where the enforcement proceedings are carried out to postpone the enforcement. This period may only be extended in cases of necessity.

If the debtor is a person who benefits from the State or legal aid, there is no obligation to provide collateral.

(Amended third paragraph: 24/11/2021-7343/5 art.) If the fee is paid by the relevant parties, the decision to postpone the enforcement by the enforcement court is notified to the court that issued the decision and the enforcement office through the most appropriate means.

Such a period cannot be given in alimony provisions.

If the application is found to be justified by the regional court of justice, it will decide whether the security will be returned or not. If the Supreme Court overturns the decision, upon the application of the debtor, the court that will examine the merits after the overturn will make a final decision on whether the security will be returned or not, depending on the nature of the overturn.

If the regional court of justice decides to reject the application on the merits or if the Court of Cassation approves the decision, the money subject to the security shall be paid to the creditor upon the request of the creditor without the need for any further action. The property and rights shall be converted into cash by the enforcement office according to the type of property. (Additional sentence: 24/11/2021-7343/5 art.) If an appeal is available against the decision of the regional court of justice to reject the application on the merits, the effect of the decision to postpone the enforcement shall continue until the expiration of the period for appeal. The judgment creditor has the right of priority over the security.

Authority to seek seizure or bankruptcy:

Article 37 – The properties of those who fail to pay their debts after the period specified in the enforcement order has passed are seized, or if the debtor is a person subject to bankruptcy and the creditor so requests, the competent commercial court will decide on their bankruptcy.

Documents having the nature of a verdict:

Article 38 – (Amended: 18/2/1965-538/20 art.)

The settlements made before the court, the acceptances, the notarial deeds prepared ex officio containing the acknowledgement of debt, the letters of appeal and cassation, and the sureties in the enforcement office are subject to the provisions regarding the execution of the judgments. The enforcement sureties in this article have the force of joint suretyship.

Statute of Limitations:

Article 39 – The enforcement proceedings based on a judgment become time-barred after ten years have passed since the last transaction.

Pursuance based on a notarial deed is subject to the statutes of limitations specified in the laws of debt or commercial law, depending on the nature of the deed.

Return of execution:

Article 40 – (Amended first paragraph: 2/3/2005-5311/7 art.) The annulment of a decision by the regional court of justice or its reversal on appeal shall suspend the enforcement proceedings where they are.

(Amended second paragraph: 2/3/2005-5311/7 art.) If, after a judgment is executed, it is annulled by the regional court of justice or a new decision is given on the merits, or if it is overturned by the Court of Cassation and it is determined by a final judgment that the person against whom enforcement proceedings were initiated does not have any or the same amount of debt, the enforcement is returned to its previous state in whole or in part without the need for a separate judgment.

However, the rights acquired by third parties in good faith shall not be prejudiced.

General provisions:

Article 41 – Other provisions of the law that are not contrary to the provisions written in this second chapter also apply in the proceedings based on the verdict.

THIRD CHAPTER

Unlawful pursuit

1. VARIOUS TYPES OF MONITORING:

Pursuit for money debt and collateral:

Article 42 – Compulsory enforcement regarding the payment of money or the provision of a guarantee begins with a request for enforcement and takes place through seizure, conversion of a pledge into cash or bankruptcy.

(Additional paragraph: 2/7/2012-6352/8 art.) Non-judicial enforcement proceedings cannot be resorted to against a foreign state.

(Additional paragraph: 15/8/2017-KHK-694/8 art.; Accepted as is: 1/2/2018-7078/8 art.) Non-judicial enforcement proceedings cannot be resorted to in matters falling within the jurisdiction of the administrative judiciary.

Pursuit of persons subject to bankruptcy:

Article 43 – (Amended 18/2/1965-538/21 art.)

Bankruptcy proceedings can only be carried out on persons who are considered merchants or subject to the provisions regarding merchants in accordance with the Commercial Code, and on real or legal persons who are declared subject to bankruptcy even though they are not merchants according to their special laws. However, the creditor can also take proceedings on these persons through seizure.

The creditor who chooses one of these methods may abandon that method only once and apply for the other method from the beginning without paying any fee.

Those who left the trade:

Article 44 – (Amended: 18/2/1965-538/22 art.)

A merchant who abandons trade is obliged to notify the trade registry where he is registered within 15 days and to make a declaration of property showing all his assets and liabilities and the names and addresses of his creditors. The declaration is announced by the trade registry office in the newspaper where the trade registry announcements are published and in the places where the creditors are located, through the usual and appropriate means. A merchant who does not pay the advertisement expenses is deemed not to have made a declaration.

Within one year from the date of this announcement, a merchant who has abandoned the trade may be pursued through bankruptcy proceedings.

A merchant who abandons trade cannot dispose of his seizable goods for a period of two months from the date of deposit of the declaration of goods.

The rights acquired by third parties in good faith based on the provisions of possession and land registry are reserved. However, in acquisitions between husband and wife, lineage and lineage, relatives up to the second degree (inclusive) by lineage or affinity, and between the adopter and the adopted child, good faith cannot be claimed.

(Amended fifth paragraph: 17/7/2003-4949/11 art.) The authority receiving the declaration of assets shall notify the land registry or ship registry offices and the Turkish Patent Institute of the situation. Upon this notification, a note stating that the right of assignment has been limited for a period of two months shall be submitted to the registry. The situation shall also be notified to the Turkish Banking Association.

Regarding the goods that are subject to deterioration or are burdensome to preserve or whose value is likely to decrease within the determined legal period, upon the request of the merchant, the court may decide to sell these goods through the enforcement officer and in accordance with the provisions of this law and to deposit the price in a bank specified in Article 9.

Receivables secured by pledges and mortgages:

Article 45 – Even if the debtor of a receivable secured by a pledge is a person subject to bankruptcy, the creditor can only pursue the pledge by converting it into cash. However, if the amount of the pledge is not sufficient to pay the debt, the creditor can pursue the remaining receivable through bankruptcy or seizure.

(Additional Paragraph: 21/2/2007-5582/1 art.) In the pursuit of the receivables secured by pledge arising from housing financing defined in the first paragraph of Article 38/A of the Capital Markets Law No. 2499 and the receivables secured by pledge of the Housing Development Administration, pursuit may be carried out by converting the pledge into cash or by resorting to seizure.

The provisions of Article 167 regarding police and warrant bills and cheques are reserved.

In the interest and annual installment receivables secured by mortgage, the mortgage can be converted into cash, or sequestration or bankruptcy procedures can be applied, depending on the creditor’s choice and the debtor’s status.

(Additional paragraph: 27/5/1933-2228/1 art.; Repealed: 29/6/1956-6763/42 art.)

Pursuit through seizure:

1 – In general:

Article 46 – In all other cases, enforcement is carried out by way of seizure. If the debtor has just acquired the title of merchant, seizures previously claimed against him shall be enforced as before, unless his bankruptcy is ruled.

2 – Public legal debts:

Article 47 – The provisions of the laws concerning the pursuit of fines and other public debts are reserved. However, the provisions of this law shall apply to the receivables of the State arising from a contract or a tort.

Conversion of seized and confiscated goods into cash:

Article 48 – The conversion into cash of the seized and confiscated items in accordance with the criminal and financial laws of the state is carried out in accordance with the provisions of those laws.

Those who lend against collateral:

Article 49 – (Amended: 18/2/1965-538/23 art.)

In lending transactions against collateral, the provisions of the Civil Code and the special laws of the Turkish Republic Ziraat Bank and the Turkish Real Estate Credit Bank regarding conversion into cash are reserved.

1. AUTHORITY

Authority and objections:

Article 50 – (Amended: 3/7/1940-3890/1 art.)

In the case of pursuit for money or security debt, the provisions of the Code of Civil Procedure regarding jurisdiction shall be applied by analogy. However, the enforcement office where the contract underlying the pursuit was made is also authorized to pursue.

The jurisdictional objection is made together with the objection on the merits. The jurisdictional issue is first examined by the enforcement court and is finally recorded in the decision.

If a dispute arises between two enforcement courts regarding jurisdiction, the provision of Article 25 of the Code of Civil Procedure shall apply.

III. HOLIDAYS AND TAILS

Holidays:

1 – About all debtors:

Article 51 – (Amended: 18/2/1965-538/24 art.)

In the period between one hour after sunset and one hour before sunrise (night time) and on holidays, no follow-up procedures can be carried out. However, in places where work is done at night, it is possible to seize revenue at night. Seizures and notifications can be made on holidays, as well as precautions for protection. If it is understood that the debtor has smuggled goods, it is permissible to seize at night.

If enforcement proceedings have been postponed or a period of time has been granted for composition against a debtor due to reasons specified in the law, no enforcement proceedings can be initiated against that debtor.

2 – In case of death of a member of the debtor’s family:

Article 52 – The legal proceedings against a debtor whose wife or husband or one of his blood relatives or descendants has died shall be postponed for three days, starting from the day of death.

3 – In the debts of the estate:

Article 53 – The proceedings for the debts of the estate shall be suspended within three days from the day of death. If the heir has not accepted or rejected the inheritance, the proceedings shall be suspended until the expiration of certain periods in the Civil Code.

If the debtor dies during the enforcement proceedings and the estate has not yet been divided or subject to official liquidation or a family company has not been established among the heirs, the enforcement proceedings continue against the estate according to the procedure that would have been applied if the debtor had been alive.

This pursuit can only be continued against the heir by converting the lien into cash or by means of seizure.

4 – In case of arrest and conviction:

Article 54 – (Amended: 18/2/1965-538/25 art.)

In the case of a proceeding against a detainee or convict who does not have a representative, unless the appointment of a representative is a matter for the guardianship authority, the enforcement officer shall give him a suitable period to appoint a representative and shall postpone the proceeding until the expiration of this period. The proceeding shall continue against the detainee or convict who does not appoint a representative and notify the enforcement office within this period.

In cases where there is a possibility of theft of goods, seizure may be made within this period.

5 – In case of military service:

Article 54/a – (Added – 18/2/1965-538/26 art.)

In the pursuit against privates, corporals and staff sergeants (excluding sergeants and corporals with extended military service) during the continuation of their military service, the enforcement officer gives them a suitable period to appoint a representative and leaves the pursuit to the end of this period. Those who do not appoint a representative and report to the enforcement office within this period will continue to be pursued.

In cases where there is a possibility of theft of goods, seizure may be made within this period.

6 – In case of serious illness of the debtor:

Article 55 – (Amended: 18/2/1965-538/27 art.)

In case the debtor is seriously ill enough to prevent him from appointing a representative, the enforcement proceedings may be postponed for a certain period of time by the enforcement office. Serious illness must be proven with an official document.

In cases where there is a possibility of theft of property, seizure may be made during the continuation of the illness.

The effect of Talik on the flow of periods:

Article 56 – (Amended: 18/2/1965-538/28 art.)

The flow of the periods does not stop during the follow-up postponement. If the end of the period falls on a postponement day, the period is extended by one more day after the end of the postponement.

1. ENFORCEMENT NOTIFICATIONS

Enforcement notifications:

Article 57 – (Amended: 18/2/1965-538/29 art.)

The provisions of the Notification Law shall apply to enforcement notifications. However, if the debtor is one of those who are required by law to have a representative appointed, the enforcement officer shall request the appointment of a representative from the relevant authority within a short period of time.

If the notification is about a debt arising from transactions related to the profession or art of the graduates in accordance with Articles 159 and 396 of the Civil Code, it is made to them.

1. REQUEST FOR FOLLOW-UP

Follow-up request and its content:

Article 58 – (Amended: 18/2/1965-538/30 art.)

(Amended first paragraph: 2/7/2012-6352/9 art.) The request for follow-up is made to the enforcement office in writing, verbally or electronically. 

The request shows:

1. (Amended: 2/7/2012-6352/9 art.) Name and surname of the creditor and, if any, his/her legal representative and attorney; the name of the bank to which the payment will be made on behalf of the creditor or his/her attorney and account information; Republic of Turkey identity number or tax identification number, if any; fame and place of residence; if the creditor lives in a foreign country, the place of residence he/she will indicate in Turkey (If he/she cannot indicate a place of residence, the place where the enforcement office is located shall be deemed the place of residence);
2. (Amended: 2/7/2012-6352/9 art.) Name and surname of the debtor and his/her legal representative, if any, Turkish Republic identity number or tax identification number, reputation and place of residence, if known by the creditor;

In claims against an estate, the name, surname, Turkish Republic identity number or tax identification number, if known, place of fame and residence of the heirs to be notified;

3. (Amended: 17/7/2003-4949/12 art.) The amount of the receivable or the requested security in Turkish currency and, in the case of interest-bearing receivables, the amount and the date on which the interest started to accrue, and if the receivable or security is in foreign currency, the exchange rate on which the receivable was requested and the interest;
4. Promissory note, or if there is no promissory note, the reason for the debt;
5. Which of the following paths is chosen;

If the claim is based on a document, the original of the document or a copy of it, certified by the creditor or his representative and one more than the number of debtors, must be submitted to the enforcement office at the time of the request for enforcement.

The creditor is given a free and stamp duty receipt stating that he/she has requested enforcement, the documents he/she has provided, and the request and enforcement expenses.

Tracking costs:

Article 59 – (Amended: 6/6/1985-3222/4 art.)

The costs of the enforcement proceedings are the responsibility of the debtor. The creditor pays in advance the costs of the procedure requested and also the costs of notifying the debtor of the objection that may be made by the debtor in accordance with Article 62 when requesting enforcement proceedings.

The creditor may recover expenses from the first money paid.

1. PAYMENT ORDER AND OBJECTION

1 – Payment order and its content:

Article 60 – (Amended: 18/2/1965-538/31 art.)

(Amended first paragraph: 2/7/2012-6352/10 art.) If the enforcement director decides that the request for enforcement contains the conditions stipulated in this Law, he/she issues a payment order. If the request is not accepted, the decision is recorded in the minutes.

Order:

1. (Amended: 2/7/2012-6352/10 art.) The records that must be included in the request for enforcement pursuant to Article 58, excluding the bank account number of the creditor or his/her attorney,
2. (Amended: 2/7/2012-6352/10 art.) A warning that the debt and expenses must be paid to the bank account stated in the payment order of the enforcement office within seven days, and if the debt is subject to a guarantee, the guarantee must be provided within this period,
3. If the signature on the document on which the enforcement proceeding is based does not belong to him, this matter must be notified separately and clearly within these seven days; otherwise, the document will be deemed to have emanated from him in the enforcement proceeding.

If he/she refuses to sign the promissory note, he/she must be present at the hearing to be held before the enforcement court; if he/she does not comply, the objection will be temporarily lifted.

If he/she has any objections to the whole or part of the debt or the right of the creditor to initiate legal proceedings, he/she must declare this within the same period,

His warning,

4. If he does not declare his objection to the promissory note or debt, he must declare his assets within the seven-day period specified above, in accordance with Article 74, and if he fails to do so, he will be punished with imprisonment; if he does not declare his assets or makes false statements, he will also be punished with imprisonment,
5. Declaration that if the debt is not paid or there is no objection, the forced execution will continue,

Contains.

The payment order is prepared in two copies. One copy is sent to the debtor, the other is placed in the enforcement file. If the creditor requests, a separate certified copy is given to him. If there is a difference between the copies, the one in the debtor is considered valid.

The copy given to the creditor is not subject to any duties or charges.

2 – Notification of payment order:

Article 61 – (Amended: 18/2/1965-538/32 art.)

The payment order is sent to the debtor for service within 3 days from the request for follow-up. If the follow-up is based on a document, a certified copy of the document is attached to the payment order.

If joint debtors are being pursued at the same time, a payment order must be served to each of them separately, except when all or some of them are represented by a representative.

If there is more than one enforcement request regarding a debtor on the same day, the enforcement office sends their payment orders for service at the same time.

The periods required to be added by law are reserved.

If more than one enforcement request has been made against the debtor in an enforcement office on separate days, in none of them can the payment order be sent for service before the older request.

OBJECTION

1 – Duration and form:

Article 62 – (Amended: 18/2/1965-538/33 art.)

The debtor who wishes to object must notify the enforcement office of his/her objection by petition or verbally within seven days from the date of notification of the payment order. (Amended second sentence: 17/7/2003-4949/13 art.) If the objection is made to an enforcement office other than the enforcement office that carries out the proceedings, this office shall immediately send the objection to the authorized enforcement office, taking the necessary expense together with the objection; the officer shall be personally responsible for the expense not collected.

(Amended paragraph: 17/7/2003-4949/13 art.) The objection to the enforcement proceedings shall be notified to the creditor within three days with a memorandum, to be covered from the advance payment made by the creditor in accordance with Article 59.

(Additional paragraph: 17/7/2003-4949/13 art.) The debtor or his/her attorney must notify an address belonging to the debtor within the country, together with the objection, as the basis for the lawsuit and follow-up proceedings. If the debtor who changes his/her address does not notify a new address within the country and the new address within the country cannot be determined by the notification officer, the notification sent to the address indicated in the follow-up request shall be deemed to have been made to the debtor.

The debtor who objects to a part of the debt must clearly indicate the direction and amount of that part. Otherwise, it is deemed that there is no objection.

(Repealed fourth paragraph: 17/7/2003-4949/103 art.)

If the debtor rejects the signature on the promissory note that is the basis of the enforcement proceeding, he must declare this separately and clearly in his objection. Otherwise, he is deemed to have accepted the signature on the promissory note for the purposes of enforcement proceedings.

The debtor is given a free and chargeable document stating that he/she has objected.

2 – Reasons for objection:

Article 63 – (Amended: 17/7/2003-4949/14 art.)

The objecting debtor cannot change or expand the grounds for objection at the hearing for removal of objection, other than those evident from the text of the promissory note on which the creditor relies.

3 – Copy to be given to the creditor:

Article 64 – (Amended: 3/7/1940-3890/1 art.)

The objection is recorded in the copy of the payment order reserved for the creditor. If there is no objection, this matter is also indicated.

This copy is given to the creditor after the objection or upon the expiry of the objection period.

4 – Delayed objection:

Article 65 – (Amended: 18/2/1965-538/35 art.)

If the debtor is unable to object within the time limit due to an obstacle without his fault, he may object until the completion of the conversion process.

However, the debtor is obliged to submit his objection, reasons and supporting documents together with evidence of his excuse within three days from the day the obstacle is lifted, and to pay the fees and expenses related to the hearing to be held for the following paragraph.

Enforcement court upon objection However, it may decide to suspend the proceedings depending on the nature of the reason for the delay and the characteristics of the incident. The enforcement court conducts its examination on the documents. If necessary, it immediately calls both parties and decides whether the excuse is acceptable. If a hearing is not decided, the expenses collected from the debtor are returned to him/her.

If the excuse is accepted, the enforcement proceedings will be stopped. In the same hearing, the creditor may also verbally request the removal of the objection. In this case, the investigation will continue and the necessary decision will be made.

If the debtor’s property has been seized before, the seizure will be lifted if the creditor does not request the enforcement court to lift the objection within seven days from the date of the decision to accept the excuse or if he does not apply to the court within the same period in accordance with Article 67.

5 – Ruling on the objection:

Article 66 – (Amended: 18/2/1965-538/36 art.)

An objection made within the period stops the pursuit. If the objection is not within the period, the enforcement officer continues the pursuit for the entire receivable upon the request of the creditor. If the debtor objects to only a part of the debt, the pursuit continues for the amount he/she accepts.

If the debtor has refused to sign in his objection, the creditor may immediately request the enforcement office to summon the signatures for execution.

6 – Dismissal of the objection:

1. a) Cancellation of objection:

Article 67 – (Amended: 18/2/1965-538/37 art.)

(Amended first paragraph: 17/7/2003-4949/15 art.) The creditor whose demand for enforcement is objected to may apply to the court within one year from the date of notification of the objection and file a lawsuit to have the objection annulled by proving the existence of the receivable within the framework of general provisions.

(Amended: 9/11/1988-3494/1 art.) If the debtor’s objection is decided to be unfair in this case, the debtor; if the pursuit is found to be unfair and malicious, the creditor; upon the request of the other party, depending on the situation of the two parties, the tolerance of the case and the thing decided, is sentenced to an appropriate compensation not less than twenty percent of the amount rejected or decided.

If the objector is a parent, guardian or heir, the award of compensation to the debtor depends on proof of bad faith.

(Repealed fourth paragraph: 17/7/2003-4949/103 art.)

The creditor who has exceeded the period for cancellation of objection stated in the first paragraph reserves the right to sue his receivables within the framework of general provisions.

(Additional paragraph: 2/7/2012-6352/11 art.) In determining the enforcement denial compensation, bad faith compensation and similar compensations stipulated in this Law, the request for enforcement or the demand in the lawsuit shall be taken as basis.

1. b) Final removal of the objection:

Article 68 – (Amended: 18/2/1965-538/38 art.)

(Amended first paragraph: 17/7/2003-4949/16 art.) If the pursuit of the creditor whose claim is objected to is based on a document containing a signature confession or a debt confession certified by a notary public or a receipt or document issued by official institutions or authorized bodies within their authority and in accordance with the procedure, the creditor may request the removal of the objection within six months from the date of notification to him. If the removal of the objection is not requested within this period, no further pursuit without a judgment may be initiated.

If the debtor cannot submit any document to support his objection, the enforcement court decides to withdraw the objection.

If the objection is based on the promissory note, receipt or document indicated in the first paragraph, the request to remove the objection is rejected.

If the debtor is being pursued for a receivable belonging to his deceased and claims that the estate is insolvent, he is given a suitable period of time to bring a judgment in this regard. Apart from this, the claims and defenses put forward for the acceptance or rejection of the request for the removal of objection cannot be made a pending issue.

(Amended: 9/11/1988-3494/2 art.) If the signature under the document shown by the debtor is denied by the creditor, the judge, after examining it in accordance with the procedure set forth in article 68/a, decides that the signature belongs to the creditor, rejects the creditor’s request to lift the objection and sentences the creditor to a fine of ten percent of the value or amount to which the document in question relates. If the creditor files a lawsuit in the general court, the execution of this fine is postponed until the end of the lawsuit and if the creditor proves in this lawsuit that he will receive the debt and that the signature does not belong to him, this fine is lifted.

If the creditor does not appear in person at the hearing and is refused by the signature attorney, the attorney is obliged to have his client present at the subsequent session for the signature exercise or to have the invitation served by paying the expenses. The creditor who does not appear without an acceptable excuse is deemed to have given up the request to remove the objection regarding the amount stated in the document on which the debtor relies.

(Additional paragraph: 6/6/1985-3222/6 art.; Amended: 9/11/1988-3494/2 art.) (Amended first sentence: 17/7/2003-4949/16 art.) If the request for the removal of the objection is accepted for reasons related to the merits, the debtor, if the request is rejected for the same reasons, the creditor, upon the request of the other party, shall be sentenced to pay compensation of not less than twenty percent. If the debtor files a negative determination and recovery action, or if the creditor files a lawsuit in the general court, the collection of the compensation awarded shall be postponed until the end of the case, and the compensation previously awarded shall be waived for the party in whose favor the case is concluded.

1. c) Temporary removal of the objection:

Article 68/a – (Added: 18/2/1965-538/39 art.)

(Amended first paragraph: 17/7/2003-4949/17 art.) If the promissory note on which the enforcement is based is private and the signature is rejected by the debtor during the objection, the creditor may request the temporary removal of the objection within six months from the date of notification of the objection. In this case, the enforcement judge shall receive explanations from both parties.

If the debtor who rejects the signature under the promissory note is within the jurisdiction of the enforcement office that carries out the follow-up, he/she is obliged to appear in person at the hearing to be held before the enforcement court for the removal of the objection, unless he/she has previously stated and documented his/her excuse. The debtor to whom a payment order has been served outside the jurisdiction of the enforcement office is subject to the same obligation if a decision is made to appeal by way of letter rogatory.

If the signature in question is available, if it is not available, if it is …

In the application of signature, the provisions of the Code of Civil Procedure regarding experts, the provisions of paragraphs 2, 3 and 4 of Article 309 and Articles 310, 311 and 312 shall apply.

(Amended: 9/11/1988-3494/3 art.) In the hearing to be held, if the debtor does not attend, without relying on the excuse written above, the enforcement court shall decide to temporarily lift the objection without examining any other aspect and to sentence the debtor to a fine of ten percent of the receivable subject to pursuit based on the said document. In order for the debtor who does not attend the hearing to temporarily lift his objection and to impose a fine on him, the circumstances must be written on the invitation.

(Amended: 9/11/1988-3494/3 art.) If the enforcement judge decides that the signature belongs to the debtor, he/she shall sentence the debtor to a fine of ten percent of the debt in question based on the said document. If the debtor files a lawsuit for discharge from debt, negative determination or restitution, the execution of this fine shall be postponed until the end of the lawsuit and if the debtor wins the lawsuit, this penalty shall be lifted.

If the debtor accepts the signature he denied at the hearing for the removal of objection and at the latest at the hearing where the creditor presents the original document, no fine will be imposed on him and no litigation expenses will be charged. However, the debtor who caused the enforcement proceedings in bad faith will be liable for litigation expenses. If the original document was delivered to the enforcement office at the time of the enforcement request, the provision of this paragraph will not apply to the debtor who was served with a payment order within the jurisdiction of the enforcement office.

(Added: 6/6/1985-3222/7 art.; Amended: 9/11/1988-3494/3 art.) If the request for temporary removal of objection is accepted, the debtor, if this request is rejected, the creditor, shall be sentenced to pay compensation of not less than twenty percent upon the request of the other party. If the debtor files an action for discharge from debt, negative determination or restitution, or if the creditor files an action in the general court, the collection of the compensation awarded shall be postponed until the end of the case and the compensation previously awarded shall be waived for the party in whose favor the case is concluded.

Absolute removal of objections in loans operating as current accounts or short, medium or long-term loans:

Article 68/b – (Added: 9/11/1988-3494/4 art.)

In loans operating as a current account with a debt or a short, medium or long term loan, the party providing the loan must send an account statement to the address of the party using the loan, via a notary, within fifteen days following the periods specified in the current account with a debt or the interest accrual periods specified in the short, medium or long term loan agreements. (Amended last sentence: 17/7/2003-4949/18 art.) Changing the address indicated in the agreement will have consequences if an address within the country is notified to the party providing the loan via a notary; if the new address is not notified in this manner, the date the account statement reaches the old address shall be deemed the date of notification.

The party using the loan who does not object to the content of the account statement sent on time within one month from the date of receipt may only sue the account statement for being untrue after paying the debt.

Credit agreements and the account statements and warnings related to them that have not been objected to in due time and other documents and receipts duly prepared by the person providing the credit shall be deemed to be among the documents specified in the first paragraph of Article 68 of this Law. The party using the credit shall be deemed to have accepted the signature attributed to him in the documents on which the account statement that he has not objected to is based. This provision shall also apply in the cases where Article 150/a of this Law is applicable.

(Additional paragraph: 17/7/2003-4949/18 art.) The fact that the party using the credit objected to the content of the notice regarding the termination of the credit account or the payment of the debt does not eliminate the consequences of not objecting to the content of the account statements regarding the interest accrual periods that were notified before the notice regarding the termination of the credit account and the payment of the debt and that became final without any objection. In this case, the provisions of the second paragraph shall apply to the finalized account statements regarding the previous periods.

Provisions for the temporary removal of the objection:

Article 69 – (Amended: 18/2/1965-538/40 art.)

If it is decided to temporarily lift the objection and the period specified in the payment order has passed, a temporary seizure is placed on the debtor’s goods upon the creditor’s request.

Within seven days from the date of the decision to temporarily remove the objection, the debtor may file a debt relief lawsuit in the court of the place where the enforcement proceedings are carried out or the place where the creditor resides. In order for this lawsuit to be heard, the debtor must deposit 15 percent of the receivable in question in cash in the court treasury until the first hearing date or deposit a bond, bill of exchange or bank guarantee letter of the same value as the court will accept. Otherwise, the lawsuit will be dismissed.

If the debtor does not file a lawsuit within the above-mentioned period or if his lawsuit is rejected, the decision to remove the objection and the temporary seizure, if any, become final.

The debtor who appeals against the decision to reject the case may also request a time period from the enforcement office, provided that the provisions of Article 36 are fulfilled.

(Amended: 9/11/1988-3494/5 art.) The party who is proven wrong in a lawsuit to get rid of debt shall be sentenced to pay an appropriate compensation not less than twenty percent of the amount of the lawsuit or judgment.

Decision and term

Article 70 – (Amended: 18/2/1965-538/41 art.)

The enforcement court invites the two parties to the request for the removal of the objection and makes its decision in accordance with the provision of Article 18.

Postponement or cancellation of the pursuit by the decision of the enforcement court:

Article 71 – (Amended: 18/2/1965-538/42 art.)

If the debtor proves that the debt and its accessories have been redeemed or that the creditor has given him a grace period after the enforcement proceedings have become final, with a document approved by a notary or with an acknowledged signature, he may always request the enforcement court to cancel or postpone the enforcement proceedings.

If the debtor claims that the debt has become time-barred after the enforcement proceedings have been finalised, the provision of Article 33 a. shall apply by analogy.

Negative determination and recovery cases:

Article 72 – (Amended: 18/2/1965-538/43 art.)

The debtor may file a negative declaratory action to prove that he/she is not a debtor before or during the enforcement proceedings.

The court that hears the negative determination lawsuit filed before the enforcement proceedings may, upon request, issue an interim injunction to halt the enforcement proceedings in return for a security deposit of not less than fifteen percent of the receivable.

In a negative determination case filed after the enforcement proceedings, a decision to stop the proceedings through provisional injunctions cannot be made. However, the debtor may request the court not to give the money in the enforcement treasury to the creditor through provisional injunctions in return for the damages arising from the delay and a guarantee of not less than fifteen percent of the receivable.

(Amended: 9/11/1988-3494/6 art.) If the case is concluded in favor of the creditor, the provisional injunction decision is lifted. If the decision on this issue becomes final, the creditor shall recover the damages arising from the late receipt of his receivables due to the provisional injunction from the security provided. The damages suffered by the creditor shall be assessed and decided in the same case. This damage cannot be determined less than twenty percent.

(Amended: 9/11/1988-3494/6 art.) If the lawsuit is decided in favor of the debtor, the enforcement proceedings shall immediately cease. Upon the finalization of the judgment, the enforcement proceedings shall be partially or completely restored to their previous state, according to its content and without the need for a separate judgment. If it is understood that the enforcement proceedings which forced the debtor to file a negative declaratory action were unjust and in bad faith, upon request, the debtor shall also be ordered to collect from the creditor the damages he suffered as a result of the lawsuit. The damages to be assessed shall not be less than twenty percent of the receivable which is the subject of the enforcement proceedings which is found to be unjust.

If the debtor has not obtained a precautionary measure pursuant to the negative determination lawsuit and the debt has been paid, the lawsuit continues as a recovery lawsuit.

A person who has not objected to the enforcement proceedings or who is obliged to pay a money that he/she does not owe because his/her objection has been lifted, may apply to the court within one year from the date of payment and request the money to be taken back within the scope of general provisions.

Negative determination and recovery actions can be filed in the court of the place where the enforcement office that initiated the proceedings is located, as well as in the court of the place where the defendant resides. In the recovery action, the plaintiff is obliged to prove that only the money is not required to be paid.

Special provisions:

Article 73 – (Amended: 18/2/1965-538/44 art.)

The special provisions of articles 146, 147, 149 b, 150, 150 a shall apply to payment orders in execution by way of conversion of mortgage into cash; articles 155 and 156 shall apply to payment orders in ordinary execution by way of bankruptcy; and articles 168 to 170 and 171 and 172 shall apply to payment orders in special execution procedures on bills of exchange.

FOURTH CHAPTER

Pursuit through seizure

1. DECLARATION OF PROPERTY

Contents of the declaration:

Article 74 – Declaration of property is the declaration by the debtor, in writing or verbally, to the enforcement office of the type, nature and characteristics of the property and receivables and rights of the debtor, whether in his possession or in the possession of third parties, and of the amount sufficient to cover his debt, and of all kinds of earnings and income, and sources of income according to his lifestyle, and how he can pay his debt accordingly.

Period of obligation to declare, beginning:

Article 75 – (Amended: 6/6/1985-3222/8 art.)

The debtor, whose objection has been decided to be cancelled or to be lifted definitively or temporarily, is obliged to make a statement as indicated in the above article within three days from the notification of this decision.

If the decision to cancel or abolish is made by the debtor, this period starts from the date of the decision.

Pressure through imprisonment:

Article 76 – (Amended: 24/5/1962-51/ 1md.)

A debtor who does not declare his assets may be subject to imprisonment by the enforcement court judge only once until he makes a declaration upon the request of the creditor. However, this imprisonment cannot exceed three months.

Declaration of subsequently acquired or increased assets:

Article 77 – The debtor who declared to the enforcement office that he has no property or did not show property sufficient to cover his debt or abstained from declaring, is obliged to notify the said office verbally or by registered mail, within seven days, of the property he acquired later and the increases in his earnings and income.

1. SEIZURE

Attachment:

1 – Request Period

Article 78 – (Amended: 3/7/1940-3890/1 art.)

(Amended first paragraph: 22/7/2020-7251/49 art.) After the period in the payment order has passed and if the debtor has objected, his objection has been lifted, the creditor may request a seizure without waiting for the declaration of property. However, if the creditor wishes, he may query the debtor’s property, rights or receivables through the National Judiciary Network Information System, through information systems integrated into this system, without requesting a seizure. At the end of the query, the National Judiciary Network Information System provides information about the nature and details of the debtor’s property, rights or receivables, if any, and in this case, seizure may also be requested through the system. In this case, the enforcement office will seize the detected property, right or receivables electronically. The information obtained as a result of the query cannot be shared unlawfully. In order to carry out inquiry and seizure transactions, public institutions or organizations and credit institutions and financial institutions defined in Article 3 of the Banking Law No. 5411 dated 19/10/2005 shall ensure integration between their own systems and the National Judiciary Network Information System. The type, scope and limit of inquiry and other issues are determined by the regulation put into effect by the Ministry of Justice.

(Amended: 6/6/1985-3222/9 art.) The right to request seizure shall expire after one year has passed from the date of notification of the payment order. In the event of an objection or lawsuit, the time elapsed from the occurrence of these until the judgment becomes final or, if the creditor and the debtor have made an installment agreement in the enforcement office, until the breach of the installment agreement shall not be taken into account.

If the creditor requests, a document stating that the seizure request has occurred will be provided. This document is not subject to any fees or charges.

If the seizure request is not made within the legal period or is not renewed within this period after being withdrawn, the file is removed from processing.

Requesting a new seizure is dependent on the notification of the renewal request made by the creditor to the debtor. In cases not based on a judgment, a new fee is charged upon the renewal request. Renewal costs and fees are not charged to the debtor.

2 – Period for starting the seizure:

Article 79 – The enforcement office shall seize the property within three days from the request.

(Amended paragraph: 6/6/1985-3222/10 art.) If the goods to be seized are in another place, the person shall immediately write to the enforcement office of the place where the goods are located requesting the seizure. In this case, complaints regarding seizure shall be resolved by the enforcement court to which the enforcement office to which the rogatory is directed is subject. (Additional sentence: 17/7/2003-4949/19 art.) Seizure of goods registered in the official registry may also be carried out directly by the enforcement office where the pursuit is carried out, by entering it in its record.

Foreclosure on housing:

Article 79/a – (Added: 28/3/2023-7445/1 art.)

If the enforcement officer determines that the place where seizure is requested is a residence, he/she decides to perform seizure at that place and immediately submits this decision to the enforcement court for approval.

If the court examines the file within three days from the date of submission and determines that the place requested to be seized is a residence, it will make a final decision to approve the decision. Seizure procedures will be carried out upon notification of this decision to the enforcement office. If it is understood that the place requested to be seized is not a residence, the court will definitely lift the decision to seize the residence. Upon notification of this decision to the enforcement office, the enforcement director will make a new decision on the current seize request.

If, upon the approval of the court’s decision, it is understood that the place seized is not a residence, the seizure shall continue. However, if, during the seizure process carried out upon the seizure decision given regarding a place that is accepted as not a residence, it is understood that this place is a residence and the debtor does not consent to the seizure, the seizure process shall be terminated and the provisions of the first and second paragraphs shall be applied to the subsequent transactions.

The provisions of this article shall not apply to provisional seizure.

Authority of the seizure officer:

Article 80 – (Amended: 3/7/1940-3890/1 art.)

The enforcement officer may carry out the seizure himself or have one of his assistants or clerks do the same.

If the debtor is not present at the place where the goods are located during the seizure and it is not possible to find them immediately, the seizure is made in absentia.

In case of a demand, the debtor is obliged to open locked places and cabinets and show other belongings. If necessary, these places can be opened by force.

(Amended: 18/2/1965-538/45 art.) If the officer carrying out the seizure realizes that the debtor has hidden money, valuable documents, gold or silver or other valuables on his person and the debtor refuses to give them, force may be used against the debtor.

Duties of police officers and mukhtars:

Article 81 – In the matter of using force, all law enforcement officers are obliged to assist the enforcement officer upon his written application and to carry out his orders.

In villages, the headmen are also obliged to carry out the orders of the seizure officer.

Properties and rights that are not permissible to be seized:

Article 82 – (Amended: 18/2/1965-538/46 art.)

The following things cannot be seized:

1. State property and property for which seizure is not permissible in special laws,
2. (Amended: 2/7/2012-6352/16 art.) All kinds of goods necessary for the debtor, whose economic activity is based on physical work rather than capital, to continue his profession,
3. (Amended: 2/7/2012-6352/16 art.) Personal belongings of the debtor and family members living under the same roof, excluding valuables such as money, valuable documents, gold, silver, precious stones, antiques or ornaments, and all household goods for the common use of the family,
4. If the debtor is a farmer, the land, farm animals, means of transport and other agricultural equipment necessary for his and his family’s livelihood; if not, the tools, equipment and books necessary for his art and profession, and the means of transport that provide for the livelihood of small transport workers such as coachmen, boatmen and porters.
5. If necessary for the management of the debtor and his family, a milk-producing buffalo or cow or three goats or sheep of the debtor’s choice and their feed and bedding for three months,
6. Food and fuel for the debtor and his family for two months and, if the debtor is a farmer, the seeds needed for the next crop.
7. If the debtor is a vineyard, garden or fruit or vegetable grower, the vineyard and garden necessary for his and his family’s livelihood and the tools and equipment necessary for this art,

The amount necessary for the livelihood of the debtor and his family who make their living solely from raising animals, and three months’ feed and bedding for these animals,

8. Recorded life annuities established not to be seized in accordance with Article 510 of the Code of Obligations,
9. Retirement pensions granted to those who become disabled in the country’s army and police services, and pensions granted to their families due to the performance of one of these services, and flight and diving compensations and bonuses granted to air force and submarine members of the army,

Promotion increases given to military disabled people, martyrs’ orphans and monopoly shares given according to law no. 1485,

10. Salaries paid by an aid fund or society in cases of illness, necessity and death,
11. The money that is given or should be given to the defendant or his/her family as compensation for the damages caused to the body or health, either as a lump sum or as an annuity.
12. (Amended: 2/7/2012-6352/16 art.) A house suitable for the debtor’s condition,
13. (Added: 2/7/2012-6352/16 art.) Student scholarships.

The provision of Article 807 of the Civil Code is reserved. The exceptions in subparagraphs 2, 4, 5, 7 and 12 are exclusive to the case where the debt does not arise from the price of this item.

(Additional paragraph: 2/7/2012-6352/16 art.) If the value of the goods listed in subparagraphs (2), (4), (7) and (12) of the first paragraph is high, a portion of the price appropriate to their condition shall be seized and sold to be left to the debtor in order to meet his needs.

(Additional paragraph: 2/7/2012-6352/16 art.) The enforcement officer evaluates whether the seizure of the requested property or rights is permissible and decides to accept or reject the request.

Things that can be partially seized:

Article 83 – (Amended: 3/7/1940-3890/1 art.)

Salaries, allowances and all kinds of wages, usufruct rights and revenues, alimony not based on a court order, retirement salaries, insurances or income allocated by retirement funds may be seized after the amount deemed necessary by the enforcement officer for the maintenance of the debtor and his family has been deducted.

(Amended: 12/4/1968 – 1045/1 art.) However, the amount to be seized cannot be less than one fourth of these. If there is more than one seizure, they are placed in order. Deductions cannot be made for the next seizure until the deduction for the seizure ahead in the order is completed.

Prior agreements:

Article 83/a – (Added: 18/2/1965-538/47 art.)

Any prior agreements regarding the seizure of the goods and rights listed in Articles 82 and 83 are not valid.

Seizure of animals with offspring:

Article 83/b – (Added: 18/2/1965-538/47 art.)

In animal seizures, children that need to be fed and cared for by their mothers cannot be seized separately from their mothers, and their mothers cannot be seized separately from their children.

Seizure of the Addition within the Scope of Real Estate Mortgage:

Article 83/c – (Added: 9/11/1988-3494/7 art.)

The real estate mortgage cannot be seized separately from the additional real estate listed in the mortgage contract table.

The provisions of Article 777 of the Turkish Civil Code are reserved.

Seizure of uncultivated crops:

Article 84 – Any kind of land and tree crops that have not yet matured may be seized a maximum of two months before they mature. The transfer of the crops seized in this manner by the debtor to another person is null and void against the creditor who seized the property and does not prevent the continuation of the enforcement.

The rights of the creditor whose claim is secured by a real estate mortgage on the deceased’s crops that have not yet matured are not affected, except that the deceased must have requested enforcement proceedings before the crops mature in order for the mortgage to be converted into cash.

Seizure of movable and immovable properties:

Article 85 – (Amended: 3/7/1940-3890/1 art.)

The amount of the debtor’s movable and immovable properties, receivables and rights in his possession or in the possession of a third party, sufficient to cover all receivables of the creditor, including principal, interest and expenses, can be seized; however, no seizure can exceed this amount.

(Amended paragraph: 9/11/1988-3494/8 art.) If the debtor or the persons who hold the property together with the debtor have a limited real right such as ownership or lien on the movable property or if the movable property has been seized by a third party, they must declare this to the officer who makes the seizure and request that their declaration be recorded in the seizure report, and the officer who makes the seizure must invite the debtor or the persons who hold the property together with the debtor to make this declaration. The seizure of such property and the property for which a third party has claimed a precautionary seizure or right of entitlement shall be postponed until later.

However, if the debtor shows movable property or a good receivable that is due and sufficient to pay off the debt before the seized real estate is put up for auction, the movable property or receivable shown first will also be seized, with the lien remaining on the real estate.

However, the enforcement office does not intervene in the management and operation of the real estate thus confiscated and in its revenues and interests.

Things that are certain to not exceed the costs of converting the revenue into cash and, if necessary, the costs of preservation and administration cannot be seized.

The officer who places the seizure is obliged to reconcile the interests of the debtor and the creditor as much as possible.

Consequences of seizure of movable property:

Article 86 – (Amended: 18/2/1965-538/48 art.)

The debtor cannot dispose of the seized movable property without the consent of the creditor and the permission of the enforcement officer. The officer who places the seizure shall warn the debtor that any act contrary to this will entail criminal liability.

The rights acquired by a third party in good faith on seized movable property based on the provisions on possession are reserved.

The rights acquired by a third party on the seized movable property contrary to the rules of good faith are void to the extent that the rights of the creditor related to that property are violated by the seizure.

Valuation:

Article 87 – (Amended: 24/11/2021-7343/6 art.)

The officer who carries out the seizure shall assess the value of the seized property, excluding the property registered in the registry. If necessary, he may consult an expert.

It is mandatory to have the valuation of the registered property done by experts registered in the regional expert board list and authorized by the Ministry of Justice in this regard, or in their absence, by other experts registered in the list.

The procedures and principles regarding the implementation of this article are determined by the regulation put into effect by the Ministry of Justice.

Preservation measures for seized goods:

1 – About movables:

Article 88 – (Amended: 2/7/2012-6352/17 art.)

The enforcement office preserves the seized money, banknotes, bearer bonds, bills of exchange and other negotiable instruments, as well as gold, silver and other valuables.

Other movable properties are kept under custody by collecting the expenses from the creditor in advance. If the creditor consents, it can be temporarily left with the debtor or a third party, provided that it is given at any time. When movable properties in the possession of a third party are seized, they are left to the third party as a trustee if the third party accepts. (Amended sentence: 24/11/2021-7343/7 art.) Seized but not kept goods are kept under custody upon the request for sale or made ready for delivery to the tender buyer, otherwise the sale cannot be made. (Additional sentence: 24/11/2021-7343/7 art.) The provision of Article 106 is reserved for motor land vehicles registered in the registry.

Without prejudice to the provisions of international agreements to which Türkiye is a party, the transportation vehicles carrying foreign heads of state, heads of parliament, heads of government or members of government cannot be taken into custody or left in trusteeship while these persons are in Türkiye.

The enforcement office may also take custody of the goods that have been pledged to a third party. The movables within the scope of the commercial enterprise pledge may be taken into custody after the enforcement office decides to sell them. If these goods are not converted into cash, they are returned.

The seized goods are stored in licensed trustee warehouses belonging to real or legal persons authorized by the Ministry of Justice. Authorized real or legal persons may transfer these authorities to sub-operators with the approval of the Ministry of Justice, provided that they meet the same standards. This transfer does not eliminate the responsibilities of the authorized real or legal persons. The operating certificate is issued by the Ministry of Justice after determining that these warehouses comply with the qualifications and conditions specified in the regulation. The storage procedures of seized goods; the establishment of licensed trustee warehouses, the minimum qualifications that must be present in these warehouses, the collateral to be obtained for the warehouse, the insurance to be made against possible risks for the goods; the qualifications to be an operator, the operator license, the granting of this license by the Ministry of Justice; the duties and authorities of the Ministry of Justice regarding licensed businesses; administrative measures and dispositions such as the suspension or cancellation of activity; the inspection of these warehouses and other issues are regulated in the regulation issued by the Ministry of Justice. The fees during the storage phase of seized goods are determined by the tariff to be prepared by the Ministry of Justice.

(Repealed paragraph: 28/3/2023-7445/42 art.) 

Vehicles seized by law enforcement officers upon the request of the enforcement offices are delivered to the nearest enforcement office within three business days at the latest. The enforcement office that receives the vehicle notifies the enforcement office requesting the capture of the vehicle.

Liquidation of goods that no longer require preservation:

Article 88/a- (Added: 28/3/2023-7445/4 art.) 

The assets that are in the custody of the custody and whose seizure is lifted are liquidated ex officio by the enforcement office where the pursuit is carried out, in accordance with this article.

Information regarding the assets to be liquidated is announced by the enforcement office in the National Judiciary Network Information System.

The enforcement office issues a notice to the debtor, warning that the debtor may take delivery of the goods by paying the receivership fee determined according to the tariff within ten days from the date of notification, otherwise the goods will be liquidated in accordance with the following paragraphs.

If the debtor does not receive the goods, the enforcement office shall notify the lien holder that he/she can exercise his/her rights arising from the lien within ten days from the date of notification and that he/she must notify the enforcement office of this situation, otherwise the goods will be liquidated in accordance with the following paragraphs.

In the case of goods registered in the registry, if the debtor does not receive the goods or does not exercise the right arising from the lien, the enforcement office will sell the goods ex officio in accordance with the provisions of the law regarding sales by electronic auction, provided that the goods have not been put up for sale before.

If the property cannot be liquidated in accordance with the above paragraphs, the enforcement office shall immediately issue a notice to the trustee, warning that if the property owner pays the remaining amount within ten days from the date of notification, after deducting the trustee fee determined according to the tariff, based on forty percent of the value of the property, if any, made within the last two years, or otherwise assessed by the enforcement office, the ownership of the property shall be decided to be transferred to him, otherwise the procedures shall be carried out in accordance with the following paragraphs. If it is determined that the conditions specified in this paragraph are met and the remaining amount, if any, is paid by the trustee, the enforcement office shall send the file to the enforcement court for the decision to transfer the property owner to the trustee.

In case the trustee does not accept the transfer of the ownership of the goods registered in the registry, the enforcement office shall issue a notification to the Machinery and Chemical Industry Joint Stock Company, and shall warn that the property of the goods shall be transferred to the Company, provided that the company notifies that it will pay the scrap price determined in accordance with the fourth paragraph of Article 4 of the Law No. 7330 on Machinery and Chemical Industry Joint Stock Company dated 30/6/2021 within one month from the date of notification, and that the property of the goods shall be transferred to the Company, provided that the company pays the scrap price within three months from the date of notification. If it is determined that the conditions specified in this paragraph are met and the scrap price is paid, the enforcement office shall complete the scrapping procedures and send the file to the enforcement court for the decision to transfer the property of the goods to the Company.

If the property cannot be liquidated in accordance with the above paragraphs, the enforcement office sends the file to the enforcement court for the decision to transfer the property ownership to the Turkish Red Crescent Society free of charge.

In the files sent for the transfer of ownership, the enforcement court makes a final decision on the acceptance or rejection of the request after examining the file within ten days at the latest. With the acceptance decision, the ownership of the property is transferred to the relevant party; all seizures and liens are removed and the transfer and delivery transactions are carried out.

The debts such as taxes, fines, and premiums of the liquidated property belong to the debtor, and the ownership passes to the relevant party free from all debts and burdens. Transfer and registration procedures are exempt from all taxes, duties, and charges.

The right of lien cannot be exercised based on the receivership receivable against transfer transactions. The existence of the receivership fee does not prevent the transfer of ownership and the transactions related to it.

If there is a seizure on the property subject to liquidation pursuant to Law No. 6183, the enforcement office shall, before issuing a notice to the debtor, notify the collection office that the debtor must take delivery of the property for safekeeping and/or sale within one month from the date of notification, otherwise the property will be liquidated in accordance with this article.

If the goods subject to liquidation are not in free circulation within the scope of the Customs Law No. 4458 dated 27/10/1999, the enforcement office shall notify the customs administration before issuing a notice to the debtor, informing them that they must take delivery of the goods within one month in order to carry out customs procedures, otherwise the goods will be liquidated in accordance with this article.

Liquidation expenses are covered primarily from the advance payment in the file, or if no advance payment is available, from the budget of the Ministry of Justice.

From the amount paid to the file within the scope of liquidation; expenses covered by the advance, expenses covered by the budget of the Ministry of Justice and public receivables arising from the goods in kind such as taxes, duties, charges are paid respectively. The remaining amount is kept in accordance with Article 9, accrued in banks and paid to the rightful owners together with their interests upon request.

If the amount paid for the file does not cover the expenses incurred from the Ministry of Justice budget, the enforcement office notifies the collection office to collect the remaining expense from the debtor in accordance with Law No. 6183.

The procedures and principles regarding the implementation of this article are determined by the regulation put into effect by the Ministry of Justice.

2 – Regarding receivables and goods seized by third parties:

Article 89 – (Amended: 18/2/1965-538/49 art.)

If a receivable or other claim right that does not belong to the bearer or is not supported by a negotiable instrument or a movable property of the debtor in the possession of a third party is seized, the enforcement officer shall notify the real or legal person who is the debtor that from now on he can only pay his debt to the enforcement office and that the payment made to the enforcement debtor is not valid or the third person who holds the property that from now on he can only deliver the movable property to the enforcement office and that he should not give the property to the enforcement debtor, otherwise he will have to pay the price of the property to the enforcement office (Notification of seizure). In this notification of seizure, the provisions of paragraphs 2, 3 and 4 shall also be notified to the third party.

If the third party claims that he/she does not have a debt or that he/she is not in possession of the property, or that the debt was paid before the notification of the seizure notice, or that the property was consumed or was destroyed without his/her fault, or that the property does not belong to the debtor, or that the property was mortgaged to him/her, or that the debt was given to the debtor or to a place he/she ordered, he/she is obliged to notify the enforcement office of the situation verbally or in writing within seven days from the notification of the seizure notice.

(Amended third paragraph: 17/7/2003-4949/22 art.) If the third party does not object within seven days from the date of notification of the seizure notice, the property is considered to be in his possession or the debt is in his possession and he is notified by a second notification that he did not object to the seizure notice sent to him in due time and therefore he is considered to be in his possession or the debt is in his possession. In this second notification, the third party is also requested to object within seven days from the date of notification for the reasons specified in the second paragraph and if he does not object, to pay the debt considered to be in his possession to the enforcement office or to deliver the property considered to be in his possession to the enforcement office. The third party who does not object to the second notification within the time limit and does not pay the debt listed in his possession to the enforcement office or does not deliver the property listed in the seventh to the enforcement office shall be notified that he shall pay the money to the enforcement office within fifteen days or deliver the property listed in the seventh or file a negative determination lawsuit within this period, otherwise he shall be forced to pay the debt listed in his possession or deliver the property listed in the seventh. If the third party who receives this notification delivers the document stating that he has filed a negative determination lawsuit in the court where the enforcement proceedings are carried out or where his place of residence is located within the time limit to the relevant enforcement office within twenty days from the date of notification, the compulsory enforcement proceedings against him shall be suspended until the decision given at the end of the negative determination lawsuit becomes final. The periods specified in Article 106 shall not apply during this period. In this lawsuit, the third party is obliged to prove that he is not indebted to the enforcement debtor or that the property does not belong to the enforcement debtor. If the third party loses this lawsuit, the court shall sentence him to pay compensation not less than twenty percent of the subject matter of the lawsuit. Negative declaratory lawsuits filed in accordance with this paragraph are subject to a fixed fee.

If the third party objects to the seizure notice within the time limit, the creditor may prove the contrary of the response given by the third party in the enforcement court and request that the third party be punished in accordance with the provision of paragraph 1 of Article 338 and also be sentenced to pay compensation. The enforcement court shall resolve the lawsuit regarding compensation in accordance with general provisions.

If the third party does not object to the seizure notice within the time limit due to an obstacle without his fault, the provision of Article 65 shall apply. (Amended last sentence: 17/7/2003-4949/22 art.) In any case, the third party may file a lawsuit against the debtor and the bad faith creditor and request the return of the money he was obliged to pay or the goods he delivered.

If the delivery of the goods is not possible, the creditor has the right to apply to the enforcement court and have its value paid by a third party.

(Amended seventh paragraph: 2/7/2012-6352/18 art.) The seizure notice is served to the branch of a legal entity or institution where the debtor may have rights and receivables or to its headquarters in a way that covers all its branches. The headquarters where the seizure notice is served is obliged to make a declaration in a way that covers all its branches or units.

The declaration of a third party is not subject to any fees or charges.

The provision of this article also applies to civil servants who make statements that contradict the truth due to their official duties.

(Additional paragraph: 6/12/2018-7155/12 art.) Notification of seizure notices and responses to these notices pursuant to this article may also be made through the National Judiciary Network Information System and information systems integrated into this system by using secure electronic signatures. Notification made by this method shall replace service.

3 – For other rights:

Article 90 – The enforcement office tries to preserve the seized rights and collect the receivables that are due and may request the advance payment of necessary expenses.

4 – About real estate:

Article 91 – (Amended: 18/2/1965-538/50 art.)

(Amended: 9/11/1988-3494/10 art.) The right to dispose of real estate through seizure is restricted within the meaning of Article 920 of the Civil Code. The nature of the seizure, the amount for which it was made, the name of the creditor and the address for notification are notified to the land registry by the enforcement office in order to be recorded in the registry. The creditor whose address has changed is obliged to request the notification of his new address to the land registry by paying the fee.

If new creditors participate in the seizure or if the seizure is lifted, these matters are also notified to the land registry.

(Additional paragraph: 17/7/2003-4949/23 art.) In case of a change of hands of the seized real estate, article 148/a shall be applied.

I – Scope of immovable seizure,

II – Reserved rights of creditors whose receivables are secured by pledges,

III – Administration and operation.

Article 92 – (Amended: 18/2/1965-538/51 art.)

The seizure of an immovable property also includes its income and interests. Seizure does not prejudice the rights of creditors to whom the immovable property has been mortgaged.

The enforcement office notifies the creditors and tenants to whom the real estate has been mortgaged of the seizure.

(Amended third paragraph: 17/7/2003-4949/24 art.) The department shall take the necessary measures for the management and operation of the real estate and the protection of the annex. Among these measures, the enforcement office shall order the tenant, if there is a tenant in the real estate, to pay the rents to the enforcement office. The annex, which is likely to be damaged, shall be taken under protection in a manner that will not hinder the activities of the business upon the request of the lien creditor. The administration and preservation expenses shall be paid first from the sales price.

(Repealed fourth paragraph: 14/1/2011-6103/41 art.)

Harvesting of crops, the debtor’s right:

Article 93 – The enforcement office takes the necessary measures for the collection of crops.

If the debtor has no means of subsistence, a sufficient amount of the crop or an appropriate amount of its price when sold is left to him for the subsistence of himself and his family.

Goods saved in case of participation:

Article 94 – (Amended: 18/2/1965-538/52 art.)

If a usufruct or an undivided inheritance or a share of property disposed in a company or partnership is seized, the enforcement office notifies the relevant third parties whose places of residence are known. If the debtor’s share in a certain real estate as a result of the liquidation is seized in this way, the enforcement officer notifies the land registry office to have the seizure entry entered into the real estate record. (Additional sentences: 17/7/2003-4949/25 art.) If no share certificate or share certificate has been issued for the shares in joint-stock companies, the debtor’s share in the company is seized by the enforcement office by notifying the company. This seizure must be recorded in the company’s share ledger; however, even if the seizure is not recorded in the company’s share ledger, it is deemed to have been made on the date of notification to the company. The seizure is notified to the Trade Registry by the enforcement office for registration. In this case, the transfer of the seized shares is void to the extent that it violates the rights of the creditor. The sale of the seized shares is subject to the procedure of the sale of movable properties. For other movable properties, the enforcement office takes measures to prevent transfer to someone else. (Repealed third sentence: 17/7/2003-4949/25 art.)

The creditor may request the registration in the name of the debtor of property or other similar rights that the debtor has acquired due to an inheritance or other reason that he has not rejected and has not yet registered in the land registry or ship registry. Upon this request, the enforcement office notifies the land registry or ship registry office and, if necessary, the court that the creditor may pursue this transaction.

In case the right to request the acquisition of an immovable property that the debtor possesses is seized through extraordinary prescription, the enforcement office takes measures to prevent the transfer of possession to someone else and authorizes the creditor to file a lawsuit for the registration of the immovable property in the name of the debtor within one month. The immovable property is deemed to be seized in favor of this creditor by the court’s registration decision.

The provision of the second paragraph shall be applied to those who fail to complete the required roll call procedure for resignation in order to receive the retirement or orphan pension they are entitled to or are receiving, by reporting it to the competent authority.

The legal expenses incurred by the creditor for this reason are collected from the debtor by the department without the need for further follow-up or judgment.

Expenses for preserving seized goods:

Article 95 – The creditor is obliged to pay the costs of preserving, managing and operating the seized goods in advance, if requested.

Objection to the entitlement claim:

A – Possession of the debtor:

1 – Preparation phase:

Article 96 – (Amended: 18/2/1965-538/53 art.)

If the debtor presents a property in his possession as someone else’s property or mortgage, or if a third party claims ownership or mortgage rights over that property, the enforcement office records this in the seizure and execution minutes and notifies both parties of the situation.

The enforcement office also gives the creditor and the debtor a three-day period to notify whether they have any objections to the entitlement claim. If they remain silent, they are deemed to have accepted the entitlement claim.

If the debtor or third party who is aware of the seizure of the property does not make a claim of entitlement within seven days from the date of the discovery, he loses the right to make this claim in the same proceeding. The persons who were living together with the claimant on the date of the claim of entitlement or on the date of the filing of the action for entitlement, or the business partners of these persons, are deemed to have acquired possession of the property on the date of the claim or on the date of the filing of the action if the action for entitlement was filed in accordance with paragraph 9 of Article 97.

2 – Third party’s claim of entitlement:

Article 97 – (Amended: 18/2/1965-538/54 art.)

If the creditor or debtor objects to the claim of entitlement, the enforcement officer immediately submits the file to the enforcement court. The enforcement court decides to continue or postpone the pursuit based on the opinion it reaches as a result of the examination it conducts on the file or, if deemed necessary, by inviting the relevant parties and making a petition.

If there are serious reasons to accept that the entitlement lawsuit is being misused solely for the purpose of postponing the sale, the enforcement court rejects the request for postponement of the proceeding.

If a decision is made to postpone the pursuit, the guarantee specified in Article 36 is taken from the plaintiff against the possible damages of the creditor in case he is proven wrong.

The type and amount of collateral is determined according to the nature of the available evidence.

(Amended fifth paragraph: 2/3/2005-5311/9 art.) The enforcement court decision regarding the continuation of the pursuit is final.

The third party is obliged to file a lawsuit for recovery in the enforcement court within seven days from the date of notification or proclamation of the enforcement court decision. If the lawsuit is not filed within this period, the third party is deemed to have waived his claim against the creditor.

Unless the lawsuits for entitlement regarding leased real estate or items subject to lien rights on ships are in compliance with the provisions of the first paragraph of Article 268 of the Code of Obligations, no postponement order can be issued.

The periods in article 106 do not apply during the lawsuit.

A third party who has not been given the opportunity to claim for the seizure within the framework of the above provisions may file a lawsuit for the seizure of the seized property or the price if it has been sold and not yet given to the creditor, within seven days from the date of seizure in the enforcement court. Otherwise, he loses the right to assert this claim in the same proceeding. In this case, upon the request of the plaintiff, the enforcement judge is obliged to make an urgent decision on whether or not the pursuit should be adjourned within the framework of the above provisions. This decision may be made without hearing the other party.

If the seized property is found to have been converted into money before the entitlement lawsuit is concluded, the enforcement judge shall decide that the amount shall not be paid until the conclusion of the trial or shall be given to the creditor immediately in return for security or, as the case may be, without security.

The entitlement case is handled within the framework of general provisions and in accordance with the simple trial procedure.

The third party and the debtor’s joint claim regarding the seized property submitted to the enforcement officer is not effective against the creditor. The third party must prove this claim. However, the debtor’s acceptance of the third party’s claim that the seized property is his property or that it was passed down to him constitutes evidence against him and he cannot make any claim contrary to this admission in the future.

(Amended: 9/11/1988-3494/11 art.) If a decision is made to postpone the enforcement proceedings on the entitlement lawsuit and the lawsuit is eventually rejected, the plaintiff is ordered to receive compensation from the creditor, not less than twenty percent of the amount of the delayed resignation due to this lawsuit.

(Amended fourteenth paragraph: 2/3/2005-5311/9 art.) The claimant who appeals or appeals against the decision to reject the case may request a period of time from the enforcement office in accordance with article 36.

If the entitlement claim is established and the bad faith of the creditor or debtor who objects to the entitlement claim in accordance with the first paragraph is proven, a decision is made together with the main claim to receive compensation from the objector, not less than fifteen percent of the value of the seized property.

In the event of a seizure made against the husband, the wife may pursue her rights over her personal property without being subject to the provisions of Article 160 of the Civil Code.

The creditor who has the seizure made against the entitlement lawsuit may file a reciprocal annulment lawsuit based on the provisions of the 11th chapter of this law and without being required to present a temporary or final insolvency certificate. The judge freely evaluates all the evidence to be presented by the parties in the lawsuit and the reciprocal lawsuit.

Entitlement cases are heard and decided quickly and before other cases.

Presumption of ownership in entitlement cases:

Article 97/a – (Added: 18/2/1965-538/55 Art.)

A person who holds a movable property is deemed to be its owner. Even if the debtor and third parties hold the movable property together, the property is deemed to be in the debtor’s possession. (Additional third and fourth sentence: 24/11/2021-7343/8 art.) In this case, if the third party accepts the trusteeship, this property will not be taken into custody. However, if a decision is made to continue the pursuit in accordance with the first paragraph of Article 97, the property may be taken into custody. Among the properties in places where people live together, those that are clearly understood to belong to women, men and children or those that are required by custom and tradition, art, profession or occupation are deemed to be the property. The burden of proving the contrary of this presumption falls on the person who claims it.

The claimant is obliged to show and prove how he acquired the property and the legal and actual reasons and events that require the debtor to have it.

3 – Stolen and lost things:

Article 98 – The provisions of articles 902, 903 and 904 of the Civil Code regarding stolen and lost items are reserved.

The sale made by the enforcement office through negotiation is subject to the mentioned official increase in Article 902 of the Civil Code.

B – Third party possession:

Article 99 – (Amended: 2/7/2012-6352/20 art.)

If the seized thing is not in the possession of the debtor but is in the possession of a third person who claims ownership or other real rights over it, this property shall not be taken into custody if this person accepts the trusteeship. The enforcement officer shall give the creditor a period of seven days to file a claim for recovery against the third person in the enforcement court. If the claim for recovery is not filed with the enforcement court within this period, the claim of the third person shall be deemed to have been accepted. The sale of the seized thing shall not be made until the lawsuit filed by the creditor in due time is concluded. The provision of this paragraph shall also apply if the seizure is made in the absence of the third person and a claim for recovery is made in favor of the third person.

Formation of the levels of participation in seizure:

Article 100 – Creditors who can participate in the seizure at the same level until the amount of the goods sold upon the first seizure is received by the cashier:

1 – If the first seizure is based on a non-judicial proceeding, the insolvency certificate obtained on a proceeding made prior to the request for proceeding and if it is based on a judgment, the filing of a lawsuit.

2 – A judgment issued on a lawsuit filed before the dates stated in the above paragraph,

3 – In an official document dated before the same dates or in a document with a certified signature and date,

4 – Creditors who rely on receipts or documents issued by official departments or competent authorities within their authority and in accordance with the procedure, dated before the same date.

In this way, in case of participation, the enforcement office, upon application, makes additional seizures in an amount sufficient for all the receivables of the creditors at the same level.

Creditors other than these may participate in the seizure only for amounts that will increase from the previous level.

Participating in a ceremony that must be performed first without being necessary:

Article 101 – (Amended: 3/7/1940-3890/1 art.)

The spouse and children of the debtor and the persons for whom he is a guardian or trustee may participate in the seizure at the same level until the amount of the property sold upon the first seizure is entered into the treasury without the need for the follow-up ceremony that must be carried out first for the receivables arising from marriage, guardianship or trusteeship. However, this right may only be exercised if the seizure is made during the continuation of the guardianship or custody or marriage or within the year following its termination. The period during which a lawsuit or pursuit is ongoing is not taken into account. The children of the debtor who are adults may participate in the seizure at the same level at any time without the need for the follow-up ceremony that must be carried out first for the receivables based on Article 321 of the Civil Code. The court of peace may also participate in the seizure in the same way on behalf of minors, those under guardianship or those to whom a trustee has been appointed.

(Amended: 18/2/1965-538/56 art.) The enforcement office notifies the debtor and creditors of the requests for participation. It gives them a seven-day period to object. In case of objection, the participation of the person who requests participation in the seizure is temporarily accepted and he/she is informed that he/she must file a lawsuit within seven days. If he/she does not file a lawsuit within this period, the right to participate is void. The lawsuit to be filed is heard according to the simple trial procedure.

The creditor relying on the alimony judgment may participate in the seizure at any time without the need to first carry out the follow-up ceremony. The case of fraud is an exception.

Preparation of seizure report:

Article 102 – A report shall be kept on site for the seizure of movable property. The report shall include the names and reputations of the creditor and debtor, the amount of the claim, the day and time of the seizure, the seized property and its appraised value, and any claims of third parties, if any, and shall be signed by the officer executing the seizure.

If the property requested to be seized is immovable, the enforcement office notifies the department to which the seizure is requested, in accordance with Article 91, and the type and nature of the immovable, its boundaries and necessary characteristics are stated in the report to be kept on site.

If an enforcement lien is imposed on the things that have been previously seized as a precautionary measure, the right of the lien holder to participate in the proceedings is also indicated in the minutes.

If the seizable goods are not sufficient or not available at all, this situation is recorded in the minutes.

Invitation:

Article 103 – (Amended: 9/11/1988-3494/12 art.)

If the creditor, debtor or someone authorized to receive the report on their behalf according to the provisions of the Notification Law is not present while the report is being prepared, the absent creditor or debtor is invited to the enforcement office within three days to examine the report and to state anything they have to say. The periods required to be added by law are reserved. If there is someone authorized to receive the report on behalf of the debtor or creditor according to the provisions of the Notification Law during the seizure, a copy of the seizure report is given to the person who has it. The debtor or creditor is not notified separately.

Invitation in case of participation in seizure:

Article 104 – The participation of new creditors and therefore the new seizures made by addition are noted at the bottom of the minutes.

Each new creditor participating in the seizure may obtain a full copy of the minutes if they wish.

Those who have previously filed a lien and the debtors are also invited to be notified of new participations and additions in accordance with Article 103.

Document of inability to pay debt:

Article 105 – If there is no seizable property, the seizure report has the force of the insolvency certificate in Article 143.

Even if it is understood that the seizable goods are insufficient according to the value assessed by the executioner, the report replaces the temporary insolvency certificate and gives the creditor the rights stated in Article 277.

III. CONVERSION INTO MONEY

1 – Sales Request

Deadlines for the request and payment of expenses:

Article 106 – (Amended with its Title: 24/11/2021-7343/9 art.)

The creditor or debtor may request the sale of the seized property within one year from the date of the seizure. The debtor’s receivables from third parties are also subject to this provision.

The period for requesting the sale of a foreclosed asset, which was requested to be sold within one year but could not be sold as a result of the auction, is extended for one more year from the expiry of the period specified in the first paragraph, in terms of the creditor requesting the sale.

It is mandatory to pay the entire valuation and sales expenses in advance along with the sales request.

For motor land vehicles registered in the registry, the request for preservation, valuation and sale must be made together and all expenses related to these must be paid together and in advance.

If the valuation and sales expenses, as well as the maintenance expenses for registered motor land vehicles, are not paid in full in advance along with the sales request, the sales request is deemed not to have occurred.

If it is understood that the amount deposited in advance together with the sale request in accordance with the above paragraphs is insufficient during the sale process, the enforcement officer gives the person requesting the sale a period of fifteen days and if the missing amount is not completed within this period, the sale request is deemed not to have occurred.

The expenses specified in this article are determined in the tariff put into effect every year by the Ministry of Justice.

Right to request:

Article 107 – Every creditor may request a sale on behalf of the degree to which they are affiliated. In accordance with the last paragraph of Article 100, each of the creditors whose seizures are valid for amounts that will increase from the previous degree may also request a sale on behalf of the degree to which they are affiliated.

In case of temporary seizure:

Article 108 – A creditor whose seizure is temporary cannot request a sale and the periods in Article 106 do not apply to him.

(Added: 6/6/1985-3222/12 art.) Goods temporarily or precautionarily seized may only be sold in the cases stated in the last paragraph of Article 113.

Holiday of sale:

Article 109 – (Amended: 3/7/1940-3890/1 art.)

If the sales price reaches the total amount of the receivables on which the seizure has been made, the sales are suspended.

(Second paragraph repealed: 6/6/1985-3222/47 art.)

Lifting of seizure:

Article 110 – (Amended: 2/7/2012-6352/22 art.)

The sale of a good is not requested within the legal period or (…) If the demand is withdrawn and not renewed within the legal period, the lien on that property is lifted. A demand to sell a seized property can be withdrawn once.

If it is determined that the seizure of the seized goods registered in the official registry has been lifted as a result of correspondence with the enforcement office, the seizure entry is cancelled by the administration keeping the registry and the transaction is notified to the relevant enforcement office.

In accordance with the first paragraph, the creditor who caused the seizure to be lifted shall be responsible for all expenses related to the seizure and preservation of that property.

Payment in installments:

Article 111 – If the debtor undertakes to pay his debt in regular installments before the creditor’s request for sale and pays the first installment immediately, the enforcement proceedings will be suspended.

However, it is conditional that the debtor has a sufficient amount of property seized, that each installment is not less than one-fourth of the debt, and that it is paid from month to month and that the period does not exceed three months.

(Additional paragraph: 9/11/1988-3494/13 art.; Amended third paragraph: 17/7/2003-4949/26 art.) The periods in articles 106 and 150/e shall not run during the continuation of the agreement or agreements to be made by the debtor and the creditor in the enforcement office for the installment of the debt. However, if the total duration of these agreements or agreements exceeds ten years, the periods shall start to run from where they left off as of the date of exceedance.

(Amended paragraph: 9/11/1988-3494/13 art.) If one of the installments is not paid on time, the enforcement proceedings and periods continue from where they left off.

(Additional paragraph: 24/11/2021-7343/11 art.) The minutes or papers to be prepared in the enforcement office due to the debtor’s commitment to pay the debt in regular installments or the agreement to be made between the creditor and the debtor for the installment of the debt before or after the seizure are exempt from stamp duty.

Granting sales authority to the debtor:

ARTICLE 111/a- (Added: 24/11/2021-7343/12 art.)

The debtor may request authorization to sell the seized property by consent within seven days from the notification of the valuation. In cases where a valuation has not been made, the debtor may also request that a valuation be made. After the valuation becomes final, the enforcement officer stops the forced sale procedures and grants the debtor a period of fifteen days. The period for requesting a sale shall not run for the creditor during the period from the beginning of the period granted to the debtor until the decision of the enforcement court given in accordance with the third paragraph.

In a consensual sale, the price cannot be less than the amount corresponding to ninety percent of the estimated value of the goods, the total of the receivables secured by that goods and having priority over the receivables of the person requesting the sale, whichever is higher, and in addition to this amount, the total of the follow-up expenses incurred for this lien up to this stage.

If the buyer who has agreed with the debtor pays the determined amount to the file within the fifteen-day period given to the debtor in accordance with the first paragraph, the enforcement officer, after obtaining the necessary information and documents, determines that the above-mentioned conditions are met, immediately sends the file to the enforcement court for approval of the sale and the decision to transfer and deliver the goods. The court, after examining the file within ten days at the latest, makes a final decision on the acceptance or rejection of the request. With the acceptance decision, the ownership of the goods passes to the buyer and all seizures are lifted and the transfer and delivery transactions are carried out. In the event of a rejection decision, the amount deposited is returned to the buyer.

Other provisions of this Law shall apply to sales to be made pursuant to this article to the extent that they are appropriate to their nature.

The procedures and principles regarding the implementation of this article are determined by the regulation put into effect by the Ministry of Justice.

Sales by auction in electronic environment:

ARTICLE 111/b- (Added: 24/11/2021-7343/13 art.) 

The sale of seized property is carried out by auction on the electronic sales portal integrated with the National Judiciary Network Information System.

The bidding period for the auction is seven days.

The auction is held on the day and time specified in the announcement and by bidding. The personal information of the bidders cannot be seen by anyone other than the public officials operating the information system during the auction period and cannot be displayed in the information system.

The difference between the bids cannot be less than five per thousand of the estimated value of the goods offered for sale and in any case, less than one thousand Turkish liras.

The highest bidder in an auction cannot withdraw his bid or receive his security deposit unless a higher bid is made within the auction period.

(Amended sixth paragraph: 7/11/2024-7531/1 art.) If a new bid is submitted within the last ten minutes of the auction, the auction will be extended by three minutes. If a new bid is submitted during the extension period, the auction will be extended by three minutes from the date of each new bid. If no new bid is submitted within the last extension period, the property will be tendered to the highest bidder. The total extension period cannot exceed one hour. The one-hour period may be shortened, extended or cancelled by the decision of the Ministry of Justice and these decisions will be announced on the official website of the Ministry.

The provisions of Article 8/A of the Law No. 5651 on Regulation of Publications Made on the Internet and Combating Crimes Committed through Such Publications dated 4/5/2007 shall apply to websites that prevent the safe execution of sales transactions on the electronic sales portal or harm the rights and interests of tender buyers through the electronic sales system.

The Ministry of Justice will block the entry to the sales portal of real and legal persons who endanger the operation or security of the electronic sales portal or who prevent or complicate access to the sales portal for a period of three months. The blocking process will be implemented immediately and will be announced in a section of the sales portal that the relevant persons can see. An application may be made to the criminal court of peace against this process within fifteen days from the date of announcement in accordance with the provisions of the Law on Violations No. 5326 dated 30/3/2005. The judge will decide on the application urgently. The fact that the application has been made will not prevent the completion of the tender.

During the bidding period, necessary procedures for the maintenance or improvement of the information system may be carried out. These procedures do not affect the validity of the tender.

The procedures and principles regarding the implementation of this article and the sale of confiscated property through electronic auction are determined by the regulation put into effect by the Ministry of Justice.

2 – Sale of movables:

Periods:

Article 112 – Movable properties shall be sold within two months from the date of the request for sale.

Unripe crops cannot be sold without the consent of the debtor.

Premature sale:

Article 113 – A sale can be made upon the request of the debtor without the request of the creditor.

The enforcement officer may at any time decide to sell goods whose value is rapidly decreasing or whose preservation is costly.

Preparatory measures for the increase:

Article 114 – (Amended: 24/11/2021-7343/14 art.)

The sale is made by auction.

The date and time range of the first and second auctions shall be announced at least fifteen days before the auction start date. The advertisement to be made on the electronic sales portal and the Press Advertisement Institution Advertisement Portal shall be kept open to access until the end of the auction. The start date of the second auction shall be determined not to exceed one month from the end date of the first auction.

(Amended paragraph: 13/10/2022 – 7418/25 art.) Newspaper and internet news site announcements are made through the Press-Advertisement Institution in the manner specified below.

(Additional paragraph: 13/10/2022 -7418/25 art.) For sales with a total reserve price of up to five hundred thousand Turkish liras, the enforcement office decides whether an announcement will be made in a newspaper or an internet news site, taking into account the interests of the parties concerned. However;

1. The total appraised value of the properties is over five hundred thousand Turkish lira and under two million Turkish lira and shall be announced in a local newspaper or an internet news site that has the right to publish an official announcement published in the place where the sale will be made. If there is no local newspaper or internet news site management that has the right to publish an official announcement in the place where the sale will be made, the announcement shall be announced through a local newspaper or an internet news site that has the right to publish an official announcement in another publication place within the administrative borders of the same province to be determined by the enforcement office.
2. Those with a total reserve value of two million Turkish liras or more are published on an internet news site or in a newspaper that has the right to publish official advertisements and is distributed and offered for sale nationwide and whose actual daily sales exceed fifty thousand on the date of the advertisement request.
3. Advertisements to be published in newspapers or internet news sites are simultaneously announced on the Press Advertisement Institution Advertisement Portal.
4. Within the scope of this article, no fee will be charged for the advertisements to be published on the Press Advertisement Institution Advertisement Portal.
5. The monetary limits in this paragraph shall be updated by the Ministry of Justice based on the annual Producer Price Index of December of the previous year and shall be announced in the Official Gazette by the same day, effective as of February 1st of each year. In cases of emergency, the monetary limits may be updated by the Presidential Decree upon the proposal of the Ministry of Justice.

It is sufficient to write the type, nature, important characteristics, estimated value and location of the thing to be sold, the date and time range of the first and second auctions and the information about the auction on the electronic sales portal, instead of adding the sales specifications to the advertisements to be made in newspapers or internet news sites. Except for the announcements that are mandatory to be made by the enforcement office, the parties may publish the advertisement text in the electronic sales portal by any means they wish, at their own expense. However, this announcement of a special nature does not affect the official transaction.

In case of any differences between the announced texts, the text announced on the electronic sales portal shall prevail. (Amended second sentence: 13/10/2022 -7418/25 art.) However, any errors in the text announced in the newspaper, internet news site, electronic sales portal or Press Advertisement Institution Advertisement Portal shall be corrected only by announcement on the electronic sales portal without changing the tender date. This correction announcement shall not be notified to the relevant parties separately.

The following points shall be included in the announcement to be made on the electronic sales portal:

1. Type, nature, important characteristics, estimated value, location and visuals, if any, of the thing to be sold and other information included in the auction specifications.
2. In order to participate in the auction, it is mandatory to deposit a security in an amount equal to ten percent of the value of the asset into the bank account of the enforcement office making the sale. If the security is in cash, it must be deposited by 23:30 on the day before the end of the auction period at the latest.
3. If the collateral to be provided is a letter of guarantee, those who will participate in the auction are required to submit a definite and unlimited bank letter of guarantee, in an amount that covers ten percent of the value of the asset to be sold, to the enforcement office that makes the sale, by the end of business hours on the business day before the end of the auction period at the latest.
4. Those who will participate in the auction through a representative are required to apply to the enforcement office that conducted the sale by the end of business hours on the business day before the end of the auction period at the latest.
5. In cases where a shared sale is possible, joint buyers who want to purchase the auctioned goods in certain shares are required to apply to the enforcement office that made the sale by the end of the business day before the end of the auction period at the latest.
6. If the creditor who requests the sale and wants to participate in the auction and the shareholder who wants to participate in the auction in the liquidation of the partnership through sale apply to the enforcement office that made the sale no later than the end of the business day before the end of the auction period, no security will be taken from them in the amount that the receivable or the partnership share covers the security.
7. If the conditions are met, the goods will be tendered to the highest bidder.
8. The bids to be given on the electronic sales portal must exceed fifty percent of the appraised value of the seized property and the total of the receivables secured by that property and having priority over the receivables of the person requesting the sale, whichever is higher, and also the costs of conversion into cash and distribution in addition to this amount.
9. If the tender buyer submits the highest bid and does not pay the tender price within the deadline, the security deposit received will not be returned but will be paid to the rightful owners as an offset against their receivables, to be deducted from the sales expenses first.
10. In cases where the tender cannot be held due to the minimum tender price not being offered or the tender is cancelled due to the highest bidder not paying the tender price, the second auction will be held again under the same conditions as the first auction.
11. The tender buyer must pay the entire sales price to the enforcement office account within seven days at the latest from the date on which the report of the tender is announced on the electronic sales portal.
12. Participants in the sale will be deemed to have seen the specifications with all their annexes and accepted their content.
13. The registration and delivery of the goods will be carried out upon the finalization of the tender.

Upon the finalization of the tender, the delivery of the movable property to the tender buyer or the registration of the registered property in the name of the tender buyer is carried out after the stamp duty and value added tax are paid.

Conducting the tender:

Article 115 – (Amended: 24/11/2021-7343/17 art.)

The first and second tenders are initiated by the enforcement officer on the day and time specified in the announcement, at fifty percent of the appraised value of the seized property. If the conditions are met, the property is tendered to the highest bidder. However, the auction price must exceed fifty percent of the appraised value of the seized property and the total of the receivables secured by that property and having priority over the receivables of the person requesting the sale, whichever is higher, and in addition to this amount, the costs of conversion into cash and distribution.

If the conditions are met on the day and time the auction ends, the goods will be tendered to the highest bidder and the ownership of the goods will pass to the tender buyer.

If the tender buyer submits the highest bid and does not pay the tender price within the deadline, the security deposit received will not be returned but will be paid to the rightful owners as an offset against their receivables, with the sale expenses being deducted first.

The enforcement officer shall prepare an auction result report regarding the results of the auction on the first business day after the auction ends on the electronic sales portal and shall announce the information in this report on the sales portal on the same day. The report shall state the day and time the auction was completed, if the conditions are met, the goods were tendered to the highest bidder, the tender price must be deposited into the enforcement office account within seven days from the announcement of the report, and the reason why the auction could not be held if the conditions are not met.

The sale request cannot be withdrawn after the bidding has started. If the debt is paid in full by the end of the bidding period, the sale will be stopped.

In cases where the minimum tender price is not offered, the highest bidder does not deposit the tender price or the debt is paid before the end of the bidding period, the enforcement officer shall record in a report that the tender could not be held or was cancelled. In cases where the minimum tender price is not offered or the highest bidder does not deposit the tender price, the second auction shall start on the previously announced date within the framework of the conditions of the first auction.

If there is no buyer in the auction or if the conditions stated in this article are not met, the creditor may request that a sale date be given within the remaining sales request period from the previous sales request. The sales request period stops with the sales request and this suspended period starts from where it left off as of the date of the report stating that the tender could not be held or was cancelled.

If the executive director determines from the sales portal records that no bids could be placed within the last ten minutes of the auction due to technical reasons originating from the electronic sales portal on the first business day after the auction ends, he/she decides to extend the auction period by one day; he/she indicates the dates and times when the auction will start and end in the decision and immediately announces all these matters on the sales portal. In this case, the start date of the auction cannot exceed three days from the date when the decision to extend the auction period was made. During this period, the highest bidder will be bound by his/her bid, and new bidders can also participate in the auction by depositing the security.

Second auction:

Article 116 – (Repealed: 2/7/2012-6352/105 art.)

Gold and silver items:

Article 117 – Gold and silver items cannot be sold for less than their value in mineral form.

Payment of the tender price and delivery of the goods:

Article 118 – (Amended with its Title: 24/11/2021-7343/18 art.)

The tender buyer must pay the sales price in cash within seven days from the announcement of the auction result report, even if the tender is requested to be terminated.

The sold goods are not delivered before the tender is finalized and are not registered in the name of the buyer in the official registry.

Sale by negotiation:

Article 119 – In the following cases, sales can be made through negotiation:

1 – If all interested parties wish,

2 – If a fixed price is offered in the market on that day for securities or other goods that have a price on the stock exchange or in the market,

3 – If gold and silver items that have not reached their mineral value are given this value during the auction,

4 – If the situations specified in the second paragraph of Article 113 are found,

5 – (Amended: 17/7/2003-4949/31 art.) If the estimated value of the seized property does not exceed one billion lira.

Transfer of receivables in lieu of payment:

Article 120 – If all creditors participating in the seizure consent, the debtor’s receivables that do not have a price in the stock exchange or the market are transferred to them or to one of them for their account at their nominal value in lieu of payment. In this case, the creditors succeed to the debtor’s rights in proportion to their receivables.

Similarly, all or any of the parties participating in the seizure may undertake to collect the debtor’s receivables from a third party or to exercise the right of action against such a person, provided that the expenses are borne by them and that their rights are not prejudiced.

The money thus obtained is first kept for the payment of the receivables and expenses of those who borrowed money.

Another way of converting into money. Ownership shares in the form of participation:

Article 121 – If it is necessary to sell other types of property not specified in the above articles, such as a usufruct right, an undivided inheritance, or a share of property in a company or partnership, the enforcement officer shall ask the enforcement court how the sale will be made.

After inviting the interested parties whose places of residence are known and hearing their attendance, the enforcement court may hold an auction, appoint an officer for the sale, or take any other necessary measure.

Family property partnership:

Article 122 – The sale of a share in a family property partnership is made in accordance with Article 121. The provisions of Article 331 of the Civil Code are reserved.

3 – Sale of real estate:

Sale period:

Article 123 – Real estates are sold by auction by the enforcement office within three months from the request for sale.

Bidding conditions:

1 – Specification:

Article 124 – The enforcement office determines the auction conditions in the most favourable manner according to the customs of the place where the real estate is located.

(Repealed second paragraph: 24/11/2021-7343/19 art.)

(Repealed third paragraph: 24/11/2021-7343/19 art.)

(Repealed fourth paragraph: 24/11/2021-7343/19 art.)

2 – Contents:

Article 125 – It is clarified in the tender specifications that the real estate is sold together with the rights of easement, real estate encumbrances, mortgages, mortgaged debt notes, revenue notes and that the personal debts of the debtor secured with this real estate will also be transferred to the buyer.

The principal debtor’s release from the debt secured by a mortgage or mortgaged debt note and transferred to the customer in this way depends on the creditor not notifying him within one year from the tender that his right to appeal is reserved. (KM 803)

Due debts secured by real estate mortgage are not transferred to the customer but are preferably paid from the sales price.

The auction specifications specify which costs will be borne by the customer.

Preparatory measures for the increase:

Article 126 – (Amended with its Title: 24/11/2021-7343/20 art.)

The provision of Article 114 also applies to the preparation measures for the auction of real estate.

In the sale announcement to be made on the electronic sales portal, it shall be stated that, together with the matters specified in Article 114, the mortgage holder creditors and other interested parties must notify the enforcement office of their rights on the real estate, especially their claims regarding interest and expenses, with supporting documents, within fifteen days, otherwise, unless their rights are confirmed by the land registry, they will be excluded from the sharing of the sale price, and these matters shall also apply to the easement right holders.

Also notices:

Article 127 – (Amended: 2/7/2012-6352/30 art.)

A copy of the announcement is served to the debtor and the creditor, and to the addresses of the relevant parties registered in the land registry of the real estate, if any, at the addresses registered in the land registry. If the address is not registered in the land registry, the addresses in the address registration system, if any, are accepted as notification addresses. Apart from these, no additional address verification is made, and the sales announcement made in the newspaper or on the electronic sales portal replaces the notification.

List of obligations:

Article 128 – Before starting the sale, the enforcement officer shall make a list of all the liabilities registered in the land registry or based on the official document on the immovable property and shall notify this list to the seizers and the debtor and give them a period of three days to notify their objections. The provisions of Articles 96 and 97 are also valid here.

(Amended: 9/11/1988-3494/19 art.) The enforcement office shall have the value of the real estate appraised, and in the appraisal of the real estate, the effect of the liabilities on the real estate on the value shall also be taken into consideration. (Additional sentence: 17/7/2003-4949/33 art.) In the event that liabilities affecting the previously appraised value of the real estate arise, the enforcement office shall have the value of the real estate re-appraised as a basis for sale. The report regarding the appraisal shall be notified to the debtor, the creditors who have imposed the seizure and other mortgaged creditors, based on their current addresses in the land registry, except in cases where the notification is made in the enforcement file where the notification is made. (Repealed last sentence: 17/7/2003-4949/103 art.)

(Additional paragraph: 21/2/2007-5582/2 art.) In the pursuit of the receivables arising from housing financing defined in the first paragraph of Article 38/A of the Capital Markets Law No. 2499 and the receivables of the Housing Development Administration secured by collateral, the enforcement office shall have the valuation of the real estate requested to be sold carried out by persons or institutions authorized in accordance with subparagraph (r) of the first paragraph of Article 22 of the same Law.

(Additional paragraph: 17/7/2003-4949/33 art.) If there are incentive goods as an accessory to the real estate put up for sale, the enforcement office shall have the value of these goods assessed separately. Before the sale, the relevant institutions shall be asked about the liabilities such as taxes, duties, and charges on these goods. Upon the request of the creditor who wants to sell, these goods may be excluded from the sale or they may be put out to tender together with the real estate in accordance with the provisions of article 129, taking into account the public receivables arising from the same goods such as taxes, duties, and charges on them.

(Additional paragraph: 28/2/2018-7101/1 art.) Goods and rights that constitute a commercial and economic integrity or that are understood to yield higher income if sold as a whole are converted into cash as a whole.

Complaint regarding valuation:

Article 128/a – (Added: 17/7/2003-4949/34 art.)

The relevant parties to whom the valuation was notified may file a complaint with the enforcement court at the location of the enforcement office that prepared the report within seven days from the date of notification. If the necessary expenses and fees are deposited into the court treasury within seven days from the date of the complaint, a new expert examination may be conducted; otherwise, the complaint is definitely rejected without the need for any further action.

(Amended first sentence: 12/2/2004-5092/2 art.) A new valuation cannot be requested until two years have passed from the date of the final valuation. However, in cases of natural disasters and similar situations that cause very significant changes in the zoning status, a new valuation may be requested.

(Additional paragraph: 21/2/2007-5582/3 art.) In the follow-up of receivables arising from housing finance defined in the first paragraph of Article 38/A of the Capital Markets Law No. 2499 and the receivables of the Housing Development Administration secured by collateral, the expert examination decided to be conducted in accordance with the first paragraph shall be conducted by persons or institutions authorized in accordance with subparagraph (r) of the first paragraph of Article 22 of the same Law.

If the complaint regarding the valuation is made to an enforcement court without jurisdiction, the enforcement court examines the documents and decides on lack of jurisdiction within ten days from the date of application at the latest and sends the file to the competent enforcement court ex officio by covering the expenses from the expense advance.

Pursuant to this article, the decisions of the enforcement court are final.

Tender:

Article 129 – (Amended: 24/11/2021-7343/23 art.)

The provision of Article 115 also applies to the tendering of real estate.

Payment of tender price:

Article 130 – (Amended with its Title: 24/11/2021-7343/24 art.)

The tender buyer must pay the sales price in cash within seven days from the announcement of the auction result report, even if the tender is requested to be terminated.

Management of the real estate during the payment period:

Article 131 – If a period of time is given for the payment of the sales price, the real estate shall be managed by the enforcement office until the payment is made, with the damage and expenses being borne by the customer. During this period, no registration may be made to the land registry without the permission of the enforcement office. The enforcement office may also request that a security be provided to secure the sales price.

Provision regarding the real estate obligations established subsequently and the rental of mortgaged and seized real estates:

Article 132 – If the debtor establishes a right of easement or an immovable encumbrance on the immovable without the consent of the creditor after the receivable has been secured by an immovable property, this establishment does not affect the right of the creditor and the creditor may request that the immovable property be auctioned with or without that right.

If the real estate is sold free of rights and its price is higher than the creditor’s receivable, the excess price is allocated to the rightful owner to pay the appraised value of that right.

If the debtor rents the mortgaged real estate to someone else without the consent of the creditor and registers the situation in the land registry, this registration does not affect the rights of the mortgaged creditor.

This provision is also valid for seized real estate.

Termination of the tender and collection of the difference:

Article 133 – (Amended: 6/6/1985-3222/16 art.) (Repealed: 24/11/2021-7343/32 art.)

Result and termination of the tender:

Article 134 – (Amended: 18/2/1965-538/63 art.)

The buyer to whom the real estate is tendered by the enforcement office acquires the ownership of that real estate. (Additional sentence: 17/7/2003-4949/38 art.) The manner in which the real estate will be stored and managed until the tender is finalized shall be decided by the enforcement office. (Additional sentences: 24/11/2021-7343/27 art.) Upon the request of the tender buyer, the enforcement office orders the person living in the real estate sold under a lease agreement to deposit the rental fee, and in other cases, the person using the real estate to deposit the monthly usage fee determined by an expert to the enforcement office. If the person concerned fails to deposit the rent or the determined amount to the enforcement office despite the warning, the provision of Article 356 shall be applied to him/her by analogy. The amount deposited in this manner shall be paid to the rightful owner according to the result of the tender.

(Amended second paragraph: 24/11/2021-7343/27 art.) Only the creditor, debtor, the person registered in the official registry of the detained party requesting the sale, limited real rights holders and those participating in the tender by bidding may request the termination of the tender by filing a complaint with the enforcement court within seven days from the date of the tender, provided that they indicate an address within the country, including the reasons stated in Article 281 of the Turkish Code of Obligations No. 6098 dated 11/1/2011. It is accepted that the persons concerned become aware of the irregularities in the transactions that took place up until the time the tender was made, at the latest on the day of the tender.

(Additional paragraph: 24/11/2021-7343/27 art.) Requests for the termination of a tender made by persons other than creditors, debtors, persons registered in the official registry and limited real rights holders who want to sell are subject to a proportional fee on the tender price. Half of this fee must be paid in advance when making the request. In case the request is accepted, this fee is not charged to anyone else and is refunded upon request. In case the request is rejected, this fee is not refunded and the remaining part of the fee is collected from the person who requested the termination of the tender.

(Additional paragraph: 24/11/2021-7343/27 art.) In the request for the termination of a tender made by persons other than the creditor, debtor, persons registered in the official registry and limited real rights holders, when making the request, it is required to provide a security of five percent of the tender price in return for the possible damages of the persons concerned. If a compensation lawsuit is not filed within one month from the finalization of the decision to reject the request in accordance with the general provisions, the situation shall be notified to the collection office by the court for the collection of the fine imposed in accordance with the provisions of the Law No. 6183 on the Procedure for Collection of Public Receivables dated 21/7/1953. If the collection office does not collect the fine from the received security within three months from the date of notification, the security shall be returned to the relevant party upon request.

(Additional paragraph: 24/11/2021-7343/27 art.) Upon the request for the termination of the tender, the enforcement court shall hold a hearing within twenty days from the date of the request and shall make the necessary decision even if the parties do not attend. However, in cases where the request for the termination of the tender must be rejected on procedural grounds, a decision may be made without holding a hearing. The enforcement court;

1. Because the sale is requested by persons other than the creditor, debtor, the person registered in the official registry of the person who wants to sell, the limited real rights holders and the persons participating in the tender by bidding,
2. Due to waiver for persons other than the creditor, debtor, persons registered in the official registry of the detained person and limited real rights holders who request the sale,
3. Getting to the heart of the matter,

If it decides to reject the request, it sentences the person requesting the termination of the tender to a fine of up to ten percent of the price of the tender requested to be terminated.

(Additional paragraph: 21/2/2007-5582/4 art.) In the follow-up of receivables arising from housing finance as defined in the first paragraph of Article 38/A of the Capital Markets Law No. 2499 and the receivables of the Housing Development Administration secured by collateral, the rate in the fifth paragraph shall be applied as twenty percent.

(Additional paragraph: 17/7/2003-4949/38 art.) If the complaint regarding the termination of the tender is made to an enforcement court or court without jurisdiction or authority, the enforcement court or court will examine the documents and make a decision on lack of jurisdiction or authority within ten days at the latest from the date of application. and sends the file to the competent or authorized enforcement court ex officio by covering its expenses from the expense advance. These decisions are final.

(Additional paragraph: 17/7/2003-4949/38 art.) Those who purchased the real estate, provided that they did not participate in the tender to offset their receivables, must pay the sales price immediately or in cash within the period granted in accordance with article 130, even if the tender is requested to be terminated. The enforcement officer shall deposit interest in the banks until the decision to be given as a result of the complaint regarding the termination of the tender regarding the tender price paid becomes final. Upon the finalization of the decision regarding the acceptance or rejection of the complaint regarding the termination of the tender, the tender price shall be paid to the rightful owners together with the interest.

(Amended paragraph: 24/11/2021-7343/27 art.) The tender price shall not be paid to the creditors unless the tender is finalized and the goods subject to the tender are delivered to the buyer or made ready for delivery. In cases where the goods subject to the tender cannot be delivered or made ready for delivery, the tender shall be cancelled by the enforcement director and the tender price shall be paid to the buyer.

If the sale announcement has not been notified or if the error in the essential characteristics of the goods sold or the tender fraud is discovered later, the complaint period starts from the date of discovery. However, this period cannot exceed one year from the date of announcement of the decision regarding the tender on the electronic sales portal.

The person requesting the termination of the tender by way of a complaint must prove that his/her own interests are compromised as a result of the actual corruption.

Notification to the land registry office for registration is made after the specified period for the complaint has passed or, if a complaint has been made, after the decision finalizing the complaint has become final.

(Repealed last paragraph: 17/7/2003-4949/103 art.)

Notification to the land registry for registration and forced removal:

Article 135 – After the real estate is tendered to the buyer and the price is received, a certificate is written to the land registry office in order to register it in the name of the buyer, in accordance with the period stated in Article (134).

(Amended 6/6/1985-3222/17 art.) If the real estate is occupied by the debtor or by others without an official document documenting the fact that it was made before the seizure, an eviction order is served on the debtor or the occupier to vacate within fifteen days. If the person is not evicted within this period, the person is forcibly removed and the real estate is delivered to the buyer. (Additional sentence: 24/11/2021-7343/28 art.) The person who purchased the real estate from the buyer of the tender after the registration of the real estate in the name of the buyer of the tender and before the eviction is made, also has the right to request eviction in accordance with this paragraph.

Application of provisions regarding the sale of real estate to ships:

Article 136 – (Amended: 14/1/2011-6103/41 art.)

The provisions regarding the sale of immovable property also apply to all ships registered in the ship registry, regardless of their flag. In these provisions, the term “land registry” refers to the ship registry, the term “mortgage” refers to ship mortgages, and the term “right of easement” refers to the right of usufruct over ships registered in the registry.

Family dormitories:

Article 137 – The Civil provisions of the Law on family dormitories are reserved.

4 – Sharing of money:

Time for dividing the money, expenses and attorney fees:

Article 138 – When the seized goods are sold in their entirety, their price is distributed to the interested parties in proportion to their shares, and when a part of them is sold, the price is distributed to the interested parties as an advance payment in proportion to their shares, as required.

Expenses that concern all creditors, such as seizure, liquidation and distribution, are first deducted from the sales amount and the remaining money is shared in proportion to their receivables, including follow-up expenses and accrued interest.

(Amended: 18/2/1965-538/64 art.) In the proceedings carried out through an attorney, the amount of the attorney’s fee is calculated by the enforcement officer according to the attorney’s fee schedule, regardless of the agreement made between the creditor and the debtor. The attorney’s fee determined in this way is also included in the pursuit expenses.

Shares reserved for temporary seizures are deposited in a reliable bank, or in court or enforcement funds where there is no bank, until the situation is clarified.

Completion seizures of the enforcement office:

Article 139 – If the sale price is not sufficient to pay all receivables, the enforcement officer completes the seizure by making new seizures on his own; however, if there are seizures previously imposed by the subsequent degrees on the seized goods, the rights arising from these seizures shall not be affected. The seized goods shall be sold as soon as possible without the need for a separate sale request.

Order of the order:

Article 140 – If the sale amount is not enough to fully pay the receivables of all creditors, the enforcement office will make a list of the creditors.

Creditors are accepted in the order they should be in in the event of bankruptcy, in accordance with Article 206.

However, the valid date for recording in the first three rows is the seizure request date.

Notification of copies of the schedule:

Article 141 – A copy of the order list shall be notified to the relevant parties by the enforcement office.

Objection to the table:

Article 142 – (Amended: 3/7/1940-3890/1 art.)

Within seven days from the notification of the copy of the schedule, any creditor may object to the contents of the schedule by filing a lawsuit against the parties in the local court where the enforcement proceedings are carried out.

The case is heard by simple trial procedure.

If the objection is not related to the essence and amount of the receivable but only to the order, it is submitted to the enforcement court by way of a complaint.

Payment against collateral:

Article 142/a- (Added: 17/7/2003-4949/39 art.)

Upon the preparation of the order table, any creditor who receives the notification and is shown as a rightful owner in the order table may collect the amount that falls to his share by presenting a definite and unlimited letter of guarantee of a bank to the file. The second paragraph of Article 36 also applies here.

In the letter of guarantee, it must be undertaken that the amount collected by the creditor from the file and the interest for the period until the return date, in case this amount is required to be returned partially or completely to the enforcement file, will be paid to the file upon the first written request of the enforcement office. Within the scope of these principles, the amount to be guaranteed by the letter of guarantee is determined by the enforcement office.

Document of inability to pay debt:

Article 143 – (Amended: 3/7/1940-3890/1 art.)

(Amended first paragraph: 17/7/2003-4949/40 art.) If the creditor has not received the entire amount of his/her receivable and the conditions required for the issuance of a certificate of insolvency are met, the enforcement office shall immediately issue a certificate of insolvency for the remaining amount and deliver it to the creditor and a copy to the debtor; these documents are not subject to any fees or taxes. A copy of the certificate of insolvency shall also be sent to the enforcement office to be recorded in the special registry kept by the enforcement office determined by the Ministry of Justice in each city center. The insolvency certificate registry is public and the manner in which it shall be kept and the matters it shall contain shall be determined by the regulation prepared by the Ministry of Justice. 

This document and the document in article 105 are in the nature of a document that fully acknowledges the debt and gives the creditor the rights stated in article 277.

If the creditor attempts to initiate enforcement proceedings within one year from the date of receipt of the insolvency certificate, there is no need to serve a new payment order.

Interest cannot be claimed for the amount of receivable written in the insolvency document.

Guarantors, co-debtors and those who guarantee the debt cannot have recourse against the debtor for the interest they are obliged to pay for this amount.

(Amended sixth paragraph: 17/7/2003-4949/40 art.) This debt becomes time-barred against the debtor after twenty years have passed from the date of the issuance of the insolvency certificate. If the debtor’s heirs have not sought their rights within one year from the opening of the inheritance, they may claim that the debt is time-barred.

(Additional paragraph: 17/7/2003-4949/40 art.) The debtor may pay his debt to the enforcement office that issued the insolvency certificate at any time, together with the accrued interests. The enforcement office shall return the paid money to the creditor or, if necessary, deposit it in a bank within the provisions of Article 9. After the debt is paid in full in this manner, the insolvency certificate shall be deleted from the registry and a document shall be given to the debtor stating that he has paid his debt and deleted the insolvency certificate from the registry. Similarly, if the enforcement proceedings are void or cancelled or if it is determined by a court decision that the debtor is not a debtor or if the creditor withdraws the enforcement proceedings, the insolvency certificate shall be deleted from the registry and a document shall be given to the debtor in this regard.

Document for the return of the document and execution of the verdict:

Article 144 – The promissory note of the creditor whose receivables have been fully paid is given to the debtor by the enforcement office.

A creditor whose receivable has been paid only partially may take back his promissory note. However, the enforcement office shall write on the promissory note the amount of money it will be valid for from now on, or, depending on the nature of the promissory note, have it written by the relevant offices.

In the execution of judgments, if the debtor so requests, he will be given a free and fee-free document stating that the judgment has been fully or partially executed.

The enforcement office that converts a real estate into cash also has the records regarding the easement rights, real estate encumbrances and real estate mortgage rights on that real estate deleted and transferred from the land registry.

(Added: 29/6/1956-6763/42 art.; Repealed fifth paragraph: 14/1/2011-6103/41 art.)

Application of the provisions regarding the distribution of money to ships:

Article 144/a – (Added: 14/1/2011-6103/41 art.)

The provisions regarding the distribution of money shall also apply in the event of the sale of ships. However, the order of the ships to be drawn up in accordance with Article 140 shall be subject to the provisions of Articles 1389 to 1397 of the Turkish Commercial Code for all ships, regardless of their flag and whether they are registered or not.

The enforcement office that converts a ship registered in the Turkish ship registry into cash shall have the records of mortgages and usufruct rights registered in the registry cancelled or transferred; in the case of ships registered in a foreign registry, it shall notify the nearest consulate of the state whose flag the ship flies for this transaction to be carried out.

FIFTH CHAPTER

I – CONVERSION OF MOVABLE PLEDGE INTO CASH

Follow request:

Article 145 – (Amended: 18/2/1965-538/65 art.)

The creditor whose claim is secured by a movable mortgage shall, in addition to the matters stated in Article 58, state in his request for enforcement the name of the deceased and, if the deceased was given by a third party or if the ownership of the deceased has passed to a third party, the name of the person who has a subsequent mortgage right on the deceased, and if there is one, the name of the person who has this right.

Payment order:

Article 146 – (Amended: 18/2/1965-538/66 art.) 

Upon the request for enforcement, the enforcement office notifies the subsequent lien holder of the deceased with a notice and sends a payment order to the debtor and the third party lien holder in accordance with the following records:

1. The payment period is fifteen days.
2. If no objection is made within seven days and the debt is not paid within the period specified in paragraph 1, it is notified that the mortgage will be sold.

Objection to payment order:

Article 147 – (Amended: 18/2/1965-538/67 art.)

The provisions of Articles 62 to 72 apply to objections to payment orders. However;

1. If the lien is not explicitly objected to, the creditor’s lien can no longer be a subject of dispute during the enforcement phase.
2. If the lien is objected to solely, the creditor may waive the enforcement proceedings by converting the lien into cash and request the continuation of the enforcement proceedings by way of seizure. In this case, the debtor is given a period of seven days to declare his assets.

II – CONVERSION OF MORTGAGE INTO MONEY

Follow request:

Article 148 – (Amended: 18/2/1965-538/68 art.)

The real estate mortgagee shall notify the enforcement office of the place where the real estate is located, of the amount of the receivable by presenting an official copy of the contract table of the mortgage document in his possession, issued by the land registry office, and shall request enforcement in accordance with Article 58.

Obligation to show address:

Article 148/a- (Added: 17/7/2003-4949/41 art.)

The parties to the mortgage agreement or those who subsequently purchase the mortgaged real estate or their successors are required to notify the land registry directorate of a notification address within the country. Otherwise, the registration request of the relevant parties will be rejected by the land registry directorate.

Changing the address will have consequences if it is notified to the land registry office. If the new address is not notified, the date on which the notifications reach the old address will be considered the notification date.

1 – Execution order:

Article 149 – (Amended: 18/2/1965-538/69 art.)

If the enforcement officer understands that the presented contract statement contains an unconditional acknowledgement of a monetary debt and that the receivable is due, he sends an enforcement order to the debtor and, if the real estate is pledged by a third party or the ownership of the real estate has passed to a third party, to them as well.

In this enforcement order, it is stated that the debt must be paid within thirty days and if the debt is not paid within this period and a decision is not brought from the enforcement court to postpone the enforcement, the creditor may request the sale of the real estate.

Suspension of execution:

Article 149/a – (Added: 18/2/1965-538/70 art.)

Paragraphs 1, 2 and 4 of Article 33 shall apply to the suspension of execution.

(Amended second paragraph: 2/3/2005-5311/10 art.) If the debtor or third party who appeals against the decision of the enforcement court to reject the request for postponement does not deposit a security of fifteen percent of the receivable that is the subject of the pursuit, the sale will not be stopped. In the event that the request is rejected by the regional court of justice, this security will be paid to the creditor as compensation without the need for a separate judgment.

(Additional paragraph: 21/2/2007-5582/5 art.) In the pursuit of receivables arising from housing finance defined in the first paragraph of Article 38/A of the Capital Markets Law No. 2499 and the receivables of the Housing Development Administration secured by collateral, the rate in the second paragraph shall be applied as thirty percent. In the event of rejection of the appeal request, half of the amount received as collateral shall be paid to the creditor as compensation. If it is understood that the deceased will not be able to meet the receivable according to the value determined and finalized after the creditor’s request for sale, the remaining amount shall be covered from the remaining part of the collateral, and the remaining part of the collateral, if any, shall be returned to the person who deposited the collateral.

2 – Payment order:

Article 149/b – (Added: 18/2/1965-538/70 art.)

For overdue receivables other than those stated in Article 149, the enforcement officer sends a payment to the debtor and, if any, to the third party owner of the real estate, in accordance with Article 60, in accordance with the following records.

1. The payment period is thirty days.
2. If no objection is made within seven days and the debt is not paid within the period specified in paragraph 1, it is notified that the creditor may request the sale of the real estate.

Objection to payment order:

Article 150 – (Amended: 18/2/1965-538/71 art.) 

The debtor or a third party may object within seven days from the notification of the payment order. However, the lien right cannot be the subject of objection. In case of a lawsuit for the cancellation of the mortgage, the provisions of Article 72 shall be applied by analogy.

Procedure and provisions for examining the objection:

Article 150/a – (Added: 18/2/1965-538/72 art.)

The provisions of Articles 62 to 72 apply to objections to payment orders. However;

1. If the mortgage is given as security for a contract such as a current account or a loan to be processed, etc., the enforcement court has the authority to examine this contract and other documents and receipts related to it in accordance with the principles of Article 68.
2. (Amended: 2/3/2005-5311/11 art.) In case of an appeal against the decision to remove the objection, the provision of the second paragraph of article 149/a shall be applied by analogy.

Notifying tenants:

Article 150/b – Addition: 18/2/1965-538/72 art.; Amendment: 6/6/1985-3222/18 art.)

If the lien is a rented real estate, the enforcement officer shall, upon the request of the creditor, notify the tenants of the enforcement without waiting for the enforcement proceedings to be finalized and order the payment of the rents to be accrued to the enforcement office. (Additional sentence: 17/7/2003-4949/42 art.) However, such a transaction shall not eliminate the rights in articles 132 and 135. If the tenant does not deposit the rents to the enforcement office despite the warning, the provision of article 356 shall be applied to him/her by analogy.

Notification to the Land Registry Office:

Article 150/c – (Added: 18/2/1965-538/72 art.)

The enforcement officer is obliged to notify the land registry office that the mortgage conversion proceedings have started. The land registry officer shall annotate the property in the registry. No enforcement or payment order shall be served to those who acquire the property after the date of this annotation.

Preparations for sale:

Article 150/d – (Added: 18/2/1965-538/72 art.; Amended: 9/11/1988-3494/23 art.)

The enforcement office starts preparations for the sale upon the request for follow-up. For this purpose, it obtains the registration copies from the land registry and the zoning status from the municipality, and has the value appraised without waiting for the follow-up to be finalized.

III – JOINT PROVISIONS

Cash conversion period:

Article 150/e – (Added: 18/2/1965-538/72 art.)

(Amended first paragraph: 2/7/2012-6352/32 art.) The creditor may request the sale of a movable mortgage within six months from the notification of the payment or enforcement order, and the sale of an immovable mortgage within one year from the same date.

If the sale is not requested within the periods specified in the above paragraph or if the request is withdrawn and not renewed within these periods, the pursuit is terminated.

The provision of the second paragraph of Article 78 shall also be applied by analogy in the pursuit of the conversion of the mortgage into cash.

Temporary lien deficit document:

Article 150/f – (Added: 18/2/1965-538/72 art.)

If it is understood that the deceased will not be able to meet the debt according to the estimated and final value after the creditor’s request for sale, a temporary lien deficiency certificate is given to the creditor for the remaining amount upon his request.

Based on this document, the creditor may request the seizure of other assets of the debtor from the enforcement officer and participate in the seizure of other creditors within the framework of the principles in Article 100. In this case, the creditor shall receive the uncollected part of his receivable as a result of the sale of the lien without any prejudice to the other seized assets of the debtor.

Cash conversion method:

Article 150/g – (Added: 18/2/1965-538/72 art.; Amended 9/11/1988-3494/24 art.)

The provisions of the third paragraph of Article 92, Articles 93, 96, 97, 97/a, 98 and 99 and Articles 112 to 137 shall be applied by analogy to the mortgage requested to be sold.

The receivable or mortgage has been determined by a judgment:

Article 150/h – (Added: 18/2/1965-538/72 art.)

If the claim or lien or both are determined in a judgment or in documents having the nature of a judgment, the provisions regarding the enforcement of the judgments are applied by analogy.

Mortgages taken to secure cash loans and non-cash loans operating as current accounts or short, medium and long-term loans:

Article 150/ı – (Added: 9/11/1988-3494/25 art.; Amended: 17/7/2003-4949/43 art.)

Even if the mortgage contract table presented by the party providing a cash or non-cash loan operating as a current account or short, medium or long-term loan does not contain an unconditional and unconditional acknowledgement of a monetary debt, if the party providing the loan presents to the enforcement officer a copy certified by a notary public showing that the account statement regarding the termination of the current account of the party using the loan or the accrual of the short, medium or long-term loan account or the demand for compensation due to the payment of the non-cash loan or the notice regarding the payment of the debt has been notified to the party using the loan through a notary public by sending it to the address written in the loan agreement or specified in the mortgage contract table or has been deemed to have been notified in accordance with Article 68/b, the enforcement officer shall take action in accordance with Article 149. However, the party using the credit reserves the right to file a complaint with the enforcement court by proving that they have objected to the account statement and the notice regarding the payment of the debt or the compensation request for non-cash credit through a notary within eight days from the date they were notified or deemed to have been notified pursuant to Article 68/b. In this case, if the party using the credit can prove their receivable with other documents within the framework of Article 68/b, the complaint of the party using the credit shall be rejected. During the examination conducted by the enforcement court, a decision to stop the proceedings cannot be made unless the debtor presents an official document or a document with an acknowledged signature indicating that the debt has been terminated or postponed. The notification of the account statement, compensation request or warning to the third party who is the owner of the mortgaged real estate or the notification shall be deemed to have been notified, which shall replace the payment request stipulated in Article 887 of the Turkish Civil Code.

Allocation:

Article 151 – The provision of Article 138 shall be applied in deducting the expenses from the mortgage amount and distributing the surplus among the creditors.

If the sale amount is not sufficient to pay the creditors’ receivables, the enforcement officer determines the order and shares of each creditor in accordance with the second and third paragraphs of Article 206.

The provisions of articles 141, 142 and 144 are also valid here.

Pledge deficit document:

Article 152 – (Amended: 18/2/1965-538/73 art.)

If the mortgage cannot be sold because there are no buyers for a price greater than the amount of other mortgaged receivables that have priority over the receivable of the seller, or if it is sold but the amount is not sufficient to cover the receivable that is being pursued, the creditor is given a document for the entirety or the remaining receivable.

A creditor whose receivable does not arise from a promissory note or an immovable property encumbrance may resort to bankruptcy or seizure, depending on the status of the debtor, for a receivable that he cannot collect in this way.

If the creditor requests enforcement through seizure within one year from the auction date if no sale has been made, or from the finalization date of the sale if a sale has been made, there is no need to serve a new enforcement or payment order.

The mortgage deficiency document is a promissory note that includes an acknowledgement of debt.

In the case of a mortgaged debt, the creditor is absent or refuses to collect the debt:

Article 153 – If the debtor of a debt secured by a mortgage and due date applies to the enforcement office and declares that the creditor is absent and the place of residence is unknown or that he/she refuses to collect the debt and to resolve the mortgage, the enforcement office shall come to the office within fifteen days and duly notify the creditor to collect the money and resolve the mortgage. If the creditor does not come within this period or comes and refuses to collect the money and resolve the mortgage without stating a legally acceptable reason, if the debtor deposits his/her debt in full to the enforcement office, the enforcement court shall decide to keep the money given in the name of the creditor and to cancel the mortgage record. This decision shall be notified to the land registry office and entered in the registry of the mortgaged real estate.

The above provision also applies to the debtor who undertakes to pay the outstanding debt together with all accrued and future interests pursuant to the mortgage note.

(Added: 29/6/1956-6763/42 art.; Repealed third paragraph: 14/1/2011-6103/41 art.)

Application of the provisions regarding the conversion of mortgage into cash to ships:

Article 153/a – (Added: 14/1/2011-6103/41 art.)

The provisions regarding the conversion of movable mortgages into cash also apply to the conversion of the lien on a ship and the lien on a ship’s receivables into cash, regardless of its flag and whether it is registered or not.

The provisions regarding the conversion of mortgages into cash also apply to the conversion of ship mortgages into cash. The term “real estate” in these provisions refers to ships registered in Türkiye or abroad; the term “land registry” refers to ship registry and the term “mortgage” refers to ship mortgages. The enforcement office where the ship is provisionally seized or registered in the registry is authorized to convert ship mortgages into cash.

The common provisions regarding the conversion of movable mortgages and mortgages into cash shall also apply to the conversion of mortgage rights on ships into cash, provided that:

1. The period stipulated in the first paragraph of Article 150/e is three months for all ships, regardless of their flag and whether they are registered or not.
2. Article 1377 of the Turkish Commercial Code shall be applied instead of article 150/h.
3. The order of ships to be drawn up in accordance with the second paragraph of Article 151 shall be drawn up in accordance with the provisions of Articles 1389 to 1397 of the Turkish Commercial Code for all ships, regardless of their flag and whether they are registered or not.
4. Articles 1052 and 1053 of the Turkish Commercial Code shall be applied instead of Article 153.

SIXTH CHAPTER

Pursuit through bankruptcy

I – AUTHORITY:

Competent authority in bankruptcy proceedings:

Article 154 – (Amended: 18/2/1965-538/74 art.)

The competent authority for bankruptcy proceedings is the enforcement office in the locality where the debtor’s transaction centre is located.

The competent authority for commercial enterprises headquartered abroad is the enforcement office where the branch in Türkiye is located, or the head office if there is more than one branch.

If the debtor and the creditor have determined the authorized enforcement office by written agreement, the enforcement office of that place is also deemed to have jurisdiction for bankruptcy proceedings. However, an authority agreement cannot be made for bankruptcy cases and the bankruptcy case must be filed in the commercial court of the place where the debtor’s transaction center is located.

II – ORDINARY PROCEEDINGS THROUGH BANKRUPTCY:

Payment order and its contents:

Article 155 – (Amended: 3/7/1940-3890/1 art.)

It is added that if the debtor is a person subject to bankruptcy proceedings and the debt is not paid within seven days of the payment order, the creditor may apply to the court and file a bankruptcy request, and if the debtor has an objection that he has no debt and that he is not a person subject to bankruptcy, he must notify the enforcement office with a petition within this period and may propose a composition.

Bankruptcy request and duration:

Article 156 – (Amended: 3/7/1940-3890/1 art.)

If the debtor does not object within the period specified in the payment order, the creditor may request a bankruptcy decision from the Commercial Court with a petition.

A copy of the payment order must be attached to this petition, indicating that the debtor does not object to the payment order.

If the debtor objects to the payment order, the enforcement proceedings are stopped and the creditor may request the Commercial Court to remove this objection and declare the debtor bankrupt with a petition.

The right to request bankruptcy expires one year after the date of notification of the payment order.

Withdrawal and renewal of the request:

Article 157 – A creditor who withdraws his bankruptcy request cannot renew this request until one month has passed.

Trial procedure:

Article 158 – (Amended: 9/11/1988-3494/26 art.)

When the bankruptcy proceedings of the creditor are finalized, it is declared in accordance with the procedure in the second paragraph of Article 166. Within fifteen days from the declaration of the bankruptcy request, other creditors may intervene in the case or object and request the court to reject the request, claiming that there is no situation requiring bankruptcy.

The court summons the enforcement file and holds a hearing in accordance with the simple trial procedure, and examines and concludes both the bankruptcy request and the objections and defenses within the framework of general provisions. However, if the debtor has not objected to the enforcement proceedings within the framework of the procedure or if the objections and defenses are not found to have been filed, the court orders the debtor or the attorney who represented him in the bankruptcy case to pay the debt together with interest and enforcement expenses within seven days or to deposit that amount in the court treasury, if the case is ongoing in court, during the hearing, otherwise by notification to be made within the framework of the provisions of the Notification Law. If the debtor refuses, his bankruptcy is decided in the first session.

Preservation measures:

Article 159 – (Amended: 18/2/1965-538/76 art.)

In the event of a bankruptcy claim, the court may first order all protective measures deemed necessary for the benefit of the creditors. If the debtor has not objected to the payment order, the court is obliged to decide on these measures upon the request of the creditor. These orders are carried out by the bankruptcy office.

The court may request a creditor who requests a preservation measure other than bookkeeping to provide a security as stated in Article 96 of the Code of Civil Procedure in order to cover any damages that the debtor and third parties may suffer in the future if they are proven wrong. If the debtor has not objected to the payment order or if the receivable is subject to a judgment, no security is required. The state and those who are entitled to legal aid are also not obliged to provide security.

Preservation measures taken in accordance with this article do not affect enforcement proceedings against the debtor.

Payment of expenses in advance:

Article 160 – (Amended: 18/2/1965-538/77 art.)

The creditor who requests bankruptcy is responsible for the expenses up to the first creditors’ meeting.

(Amended: 9/11/1988-3494/27 art.) The court requests that these expenses and all the notification expenses necessary for the legal remedies of the bankruptcy decision be paid in advance.

Bookkeeping:

1 – Procedure:

Article 161 – If the creditor who has filed for bankruptcy requests, the court may decide to keep a ledger of the debtor’s assets. This ledger is kept by the bankruptcy office.

In cases where the debtor does not show his goods or does not open locked places, the provisions of Articles 80 and 81 shall apply.

2 – Consequences:

Article 162 – (Amended: 6/6/1985-3222/19 art.)

Except for the property left by the bankruptcy officer for the administration of the debtor and his family, the debtor is obliged to return the property registered in the ledger as is or at the value at the time requested.

3 – Duration of continuation:

Article 163 – If all creditors in pursuit consent, the book is cancelled by the bankruptcy officer.

If the judgment of the book has not been extended by the court, it automatically expires four months after the date it was made.

Taking legal action

Article 164- (Amended: 2/3/2005-5311/12 art.)

The final decisions given by the commercial court are notified to the parties by the court ex officio, with the expenses being covered by the last paragraph of Article 160.

An appeal may be filed against these decisions within two weeks from the date of notification. An appeal may also be filed against a regional court of justice decision within two weeks from the date of notification. Appeals and appeal reviews are conducted in accordance with the provisions of the Code of Civil Procedure.

Taking legal action against the bankruptcy decision does not prevent the declaration of bankruptcy and the formation of the table. However, the second creditors’ meeting cannot be held until the bankruptcy decision is finalized.

If the bankruptcy decision is lifted by the regional court of justice, the measures on the debtor’s property continue. However, the commercial court is authorized to change or lift these measures depending on the course of the case.

Bankruptcy date:

Article 165 – Bankruptcy is opened by a judgment and the moment of opening is indicated in this judgment.

(Added: 9/11/1988-3494/29 art.) Waiver of the bankruptcy case after the bankruptcy decision is made is invalid.

Notification and announcement of the bankruptcy decision:

Article 166 – (Amended: 18/2/1965-538/79 art.)

The bankruptcy decision is notified to the bankruptcy office.

(Amended: 9/11/1988-3494/30 art.) The department shall immediately and automatically notify the land registry, trade registry office, customs and postal administrations, Turkish Banking Association, local chambers of commerce, chambers of industry, movable asset exchanges, Capital Markets Board and other necessary parties. The department shall also announce the decision on an internet news site or on the date of the announcement request, in one of the newspapers with a circulation of over fifty thousand (50,000) and distributed domestically, together with a newspaper in the place where the bankrupt’s transaction center is located and in the Trade Registry Gazette. If the place where the newspaper with a circulation of over fifty thousand (50,000) and distributed domestically is published is also the transaction center, no announcement shall be made in the local newspaper.

The closure or removal of bankruptcy is also notified and announced in the same manner.

III – SPECIAL PROCEDURES FOR PROCEEDINGS ON BILLS OF EXCHANGE (CHECKS, POLICY AND BILLS OF EXCHANGE):

Conditions for acceptance of tracking:

Article 167 – (Amended: 18/2/1965-538/80 art.)

A creditor whose receivable is based on a check, bill of exchange or promissory note may pursue the debt through seizure in accordance with the special procedures in this section, even if the receivable is secured through a pledge, or through bankruptcy if the debtor is a person subject to bankruptcy.

The creditor is obliged to state in his request for enforcement which of the following methods, other than those in Article 58, he wants to use against his debtor subject to bankruptcy, such as seizure or bankruptcy, and to attach to his request for enforcement the original bill of exchange and as many certified copies as the number of debtors.

1. A) Pursuit through seizure:

Payment order:

Article 168 – (Amended: 18/2/1965-538/81 art.)

If the enforcement officer sees that the bill is a bill of exchange and that the due date has come, he immediately sends a payment order to the debtor along with a copy of the bill. The following shall be written on this payment order:

1. (Amended: 2/7/2012-6352/33 art.) Records that must be included in the follow-up request, except for the bank account number of the creditor or his/her attorney,
2. (Amended: 2/7/2012-6352/33 art.) Warning to pay the debt and enforcement expenses to the bank account of the enforcement office stated in the payment order within ten days,
3. If the bill of exchange on which the enforcement is based does not qualify as a bill of exchange, the complaint must be filed with the enforcement court within five days.
4. (Amended: 9/11/1988-3494/31 art.) If the person supporting the enforcement claiming that the signature on the bill of exchange does not belong to him, he shall notify the enforcement court of this within five days with a clear petition; otherwise, the signature on the bill of exchange shall be deemed to have originated from him in the enforcement proceedings to be carried out pursuant to this chapter and if he unjustly denies his signature, he shall be sentenced to a fine of ten percent of the receivable subject to the pursuit based on the said bill of exchange and if he does not bring a decision from the enforcement court to accept his objection, the forced enforcement shall continue.
5. (Amended: 6/6/1985-3222/21 art.) Warning that if there is no debtor, or the debt has been redeemed, or a grace period has been granted, or the receivable has become time-barred, or if the person does not submit a petition to the enforcement court within five days stating his/her objection to jurisdiction, and if the enforcement court does not issue a decision accepting the objection, the forced enforcement will continue.
6. (Amended: 17/7/2003-4949/45 art.) Warning that if no objection is made and the debt is not paid, he/she must declare his/her assets within ten days in accordance with article 74, and if an objection is made and rejected, he/she must declare his/her assets within three days in accordance with article 75, and if he/she fails to declare his/her assets, he/she will be punished with imprisonment. If he/she fails to declare his/her assets or makes a false statement, he/she will also be punished with imprisonment.

The last two paragraphs of Article 60 apply here as well.

1. a) Objection to the debt:

Article 169 – (Amended: 18/2/1965-538/82 art.)

The debtor shall notify the enforcement court of his/her objection to the debt with a petition in accordance with Article 168, Clause 5. This objection shall not stop the enforcement proceedings other than the sale.

Examination of the objection:

Article 169/a – (Added: 18/2/1965-538/83 art.)

(Amended first paragraph: 17/7/2003-4949/46 art.) The enforcement court judge shall summon the two parties to a hearing within thirty days at the latest to investigate the grounds for objection. The judge shall accept the objection if, as a result of the hearing, it is proven with an official document or a document with an acknowledged signature that the debt does not exist or has been redeemed or eliminated. The enforcement court judge shall make the necessary decision in examining the jurisdiction objection even if the parties do not attend.

(Amended second paragraph: 17/7/2003-4949/46 art.) If the enforcement court judge concludes from the documents submitted by the debtor as annexes to the objection petition that the debt has been redeemed or eliminated, or from the text of the promissory note that the statute of limitations has expired, or the debtor is not a debtor, or the enforcement office does not have jurisdiction, he may decide to temporarily suspend the enforcement proceedings until his decision on the merits of the objection is made.

(Amended: 9/11/1988-3494/32 art.) If the signature under the document presented by the debtor is denied by the creditor, the enforcement court judge, after examining in accordance with the procedure in article 68/a, decides to accept the debtor’s objection and sentences the creditor to a fine of ten percent of the value or amount related to the document in question. If the creditor fails to attend the hearing to which he/she is summoned in accordance with the first paragraph, the enforcement court judge decides to temporarily suspend enforcement for the objected part of the receivable. Thereupon, the creditor may request a hearing before the enforcement court within six months at the latest and prove that the signature under the receipt does not belong to him/her and may decide to continue the pursuit. If the enforcement court decides that the signature does not belong to the creditor, it sentences the debtor to a fine of ten percent of the value or amount related to the document in question.

The enforcement judge shall consider the debtor’s objection to the statute of limitations as valid according to the date on the bill of exchange presented by the creditor, and if the creditor cannot prove that the statute of limitations has been interrupted or suspended with an official document or a document whose signature has been acknowledged, he shall accept the objection; otherwise, he shall reject it.

The proceeding is stopped with the decision to accept the objection. The creditor’s right to file a lawsuit in accordance with general provisions is reserved. If the creditor files a lawsuit in the general court, the collection of the denial compensation and fine is postponed until the end of the case and if the creditor wins the case, the denial compensation and fine given to him are lifted.

(Additional paragraph: 9/11/1988-3494/32 art.) (Amended first sentence: 17/7/2003-4949/46 art.) If the debtor’s objection is accepted by the enforcement court for reasons related to the merits, the creditor with bad faith or gross negligence shall be sentenced to pay compensation of not less than twenty percent of the receivable that is the subject of the pursuit; if the pursuit has been temporarily suspended, if this objection is rejected, the debtor shall be sentenced to pay compensation of not less than twenty percent of the receivable that is the subject of the pursuit upon the request of the other party. If the debtor files a negative declaratory and recovery action or if the creditor files a lawsuit in the general court, the collection of the compensation awarded shall be postponed until the end of the lawsuit and the compensation previously awarded shall be waived for the party in whose favor the lawsuit is concluded.

(Amended last paragraph: 2/3/2005-5311/13 art.) The appeal against the decision to reject the objection does not stop any enforcement proceedings. However, if the debtor provides security in accordance with the third paragraph of Article 33, the enforcement will be stopped.

1. b) Objection to signature:

Article 170 – (Amended: 9/11/1988-3494/33 art.)

The debtor shall notify the enforcement court with a petition that the signature on the bill of exchange does not belong to him, in accordance with Article 168, paragraph 4. This objection does not stop the enforcement proceedings other than the sale.

If the enforcement court, in its examination before the hearing, deems the objection serious based on the opinion it has obtained from the debtor’s objection petition or the documents it has attached, it may decide on the document to temporarily suspend the enforcement proceedings until its decision on the objection without finding it necessary to notify the creditor.

(Amended third paragraph: 17/7/2003-4949/47 art.) If the enforcement court, as a result of the examination to be conducted in accordance with the fourth paragraph of Article 68/a, is convinced that the denied signature does not belong to the debtor, it decides to accept the objection. The enforcement proceedings are stopped with the decision to accept the objection. The creditor reserves the right to file a lawsuit in accordance with general provisions. If it is understood that the denied signature belongs to the debtor and if the enforcement proceedings are stopped in accordance with the second paragraph together with the objection, the debtor is sentenced to denial compensation of not less than twenty percent of the receivable subject to the pursuit based on the said document and to a fine of ten percent of the receivable subject to the pursuit and the objection is rejected. If the debtor files a negative determination or recovery action, the collection of the compensation and fine awarded is postponed until the end of the case and if the case is concluded in favor of the debtor, the compensation and fine previously awarded are waived. 

(Amended first sentence: 17/7/2003-4949/47 art.) If the enforcement court decides to accept the objection, if there is bad faith or gross negligence in pursuing the promissory note, it sentences the creditor to pay compensation of not less than twenty percent of the receivable subject to pursuit based on the promissory note and to a fine of ten percent of the receivable. If the creditor files a lawsuit in the general court, the collection of the fine is postponed until the end of the case and if the creditor wins the case, the fine imposed on him is lifted.

Debtor’s complaint in terms of foreign exchange law:

Article 170/a – (Added: 18/2/1965-538/85 art.)

The debtor may claim that the creditor does not have the right to pursue the case under the provisions of this chapter by filing a complaint in accordance with the third paragraph of Article 168.

Due to a complaint or objection made during the execution process, the enforcement court may cancel the enforcement proceedings carried out in accordance with this chapter, taking into consideration, on its own initiative, that the bill of exchange on which the enforcement proceeding is based does not have this characteristic or that the creditor does not have the right to pursue in accordance with the foreign exchange law.

(Added: 9/11/1988-3494/34 art.) If, in any way, the objection to the denial of signature is withdrawn or the debt is partially or fully accepted, the provision of this article shall not apply.

Other provisions applicable:

Article 170/b – (Added: 18/2/1965-538/85 art.; Amended: 17/7/2003-4949/48 art.)

The second, third, fourth and fifth paragraphs of Article 61 and Articles 62 to 72 shall also apply to the right of seizure specific to bills of exchange, unless they are contrary to the provisions of this chapter.

1. B) PROCEEDINGS THROUGH BANKRUPTCY:

Payment order:

Article 171 – (Amended: 18/2/1965-538/86 art.)

If the enforcement officer sees that the bill of exchange is a bill of exchange and that its maturity date has come, he immediately sends a payment order to the debtor along with a copy of the bill of exchange.

The following shall be written on the payment order:

1. (Amended: 2/7/2012-6352/36 art.) Records that must be included in the follow-up request, except for the bank account number of the creditor or his/her attorney,
2. (Amended: 2/7/2012-6352/36 art.) Warning to pay the debt and enforcement expenses to the bank account of the enforcement office stated in the payment order within five days,
3. Warning to notify the enforcement office of any objections and complaints regarding the bill of exchange and the debt within five days, with one more petition than the number of copies to be served to the other party, together with the reasons thereof.
4. Warning that if the debt is not paid within five days and no objection or complaint is made, the creditor may request the bankruptcy of the debtor from the commercial court.

The last two paragraphs of Article 60 apply here as well.

Objection or complaint:

Article 172 – (Amended: 18/2/1965-538/87 art.)

The debtor who wishes to object or complain to the payment order is obliged to notify the enforcement office of any objection or complaint, together with the reasons, within five days from the notification of the payment order, with one more petition than the number of copies to be served on the other party. A copy of this petition is immediately served on the creditor.

Bankruptcy case:

1. a) No objection or complaint:

Article 173 – (Amended: 18/2/1965-538/88 art.)

If the debtor does not pay the debt within five days and does not file an objection or complaint, the creditor may request the commercial court to declare the debtor bankrupt, with a copy of the payment order documenting this situation.

(Added: 9/11/1988-3494/35 art.) When the bankruptcy proceedings are finalized, they are declared in accordance with the procedure in the second paragraph of Article 166. Within fifteen days from the declaration of the bankruptcy request, other creditors may intervene in the case or object, and claim that there is no situation requiring bankruptcy and request the court to reject the request.

The court brings the follow-up file and, after examining it through the simple trial procedure, if it determines that the debt has not been paid and that no objection or complaint has been made, it orders the payment of the debt within seven days, together with interest and enforcement expenses, or the deposit of that amount in the court treasury, in accordance with article 158. If this order is not fulfilled, the debtor is declared bankrupt. However, if the debtor presents an official document indicating that he has paid the debt after the period stated in the payment order, the request for follow-up through bankruptcy and the bankruptcy case are dismissed.

The debtor may file a delayed objection with the commercial court in accordance with Article 65. If the court finds the excuse justified, it will decide on the bankruptcy case in accordance with Article 174.

1. b) Objection or complaint:

Article 174 – (Amended: 18/2/1965-538/89 art.)

The creditor may request the commercial court to remove the debtor’s objection and complaint and to decide on his bankruptcy. The court decides on the bankruptcy case in accordance with Article 158.

1. c) Restitution case:

Article 175 – (Amended: 18/2/1965-538/90 art.)

A person who pays money that he does not owe because he did not object to the bankruptcy proceedings has the right to get it back in accordance with Article 72.

1. d) Provisions to be applied:

Article 176 – (Amended: 18/2/1965-538/91 art.)

The provisions of the last paragraph of Article 156 and Articles 157 to 166 apply here as well.

1. C) JOINT PROVISIONS

Documents to be given to the creditor and debtor:

Article 176/a – (Added: 18/2/1965-538/92 art.)

The enforcement office gives a copy of the payment order to the creditor in accordance with articles 60 and 64.

The debtor is given a free and chargeable document stating that he/she has objected.

Having more than one debtor:

Article 176/b – (Added: 18/2/1965-538/92 art.)

If there is more than one debtor of a check, bill of exchange or promissory note that is being pursued and all of them are persons subject to bankruptcy, the creditor must make the same request (seizure or bankruptcy) regarding them. In this case, in the event of an objection by the debtor, the provisions of articles 169, 169 a. and 170 or 174 shall apply depending on the nature of the request.

If there is a person who is not subject to bankruptcy among the debtors pursued by a promissory note and the creditor wishes to apply for bankruptcy against those subject to bankruptcy and foreclosure against those not subject to bankruptcy, he must file two separate requests for enforcement, specific to these methods. In this case, a copy of the bill of exchange, certified by the enforcement officer, is attached to one of the requests for enforcement. The enforcement officer writes on this copy of the bill of exchange that he has the original of the bill of exchange.

1. DIRECT BANKRUPTCY CASES

Bankruptcy without the need for prior legal proceedings:

A – Creditor’s request:

Article 177 – In the following cases, the creditor may request the bankruptcy of the debtor subject to bankruptcy without the need for prior legal proceedings.

1 – If the debtor does not have a known place of residence, escapes in order to avoid his commitments, engages in fraudulent transactions that violate the rights of creditors or attempts to do so, or hides his property during the enforcement proceedings by way of seizure;

2 – If the debtor suspends his payments;

3 – If the situation in article 308 exists;

4 – If the debt based on the judgment has not been paid despite being requested by the enforcement order, the debtor who has a place of residence or a representative in Türkiye is summoned to the court for a hearing within a short period of time.

(Added: 9/11/1988-3494/36 art.) The second paragraph of Article 178 of this Law also applies here.

B – Upon the application of the debtor:

Article 178 – (Amended: 18/2/1965-538/93 art.)

(Amended: 9/11/1988-3494/37 art.) A debtor subject to bankruptcy may request bankruptcy from the competent court by declaring that he is insolvent. In this case, the debtor must attach a declaration of property showing all his assets and liabilities and the names and addresses of his creditors to the bankruptcy request. Bankruptcy cannot be decided unless this document is submitted to the court.

(Added: 9/11/1988-3494/37 art.) The bankruptcy request is declared by the procedure in the second paragraph of article 166. Creditors may intervene in the case or object within fifteen days from the declaration of the bankruptcy request and request the court to reject the request, claiming that the debtor filed the bankruptcy request in order to postpone the proceedings against him and to delay the payment of his debts.

If the seizure made against a debtor subject to bankruptcy as a result of a seizure by one of the creditors results in the debtor losing half of his assets and the remaining amount is not sufficient to pay his other debts that are due and payable within one year, the debtor is obliged to immediately declare his insolvency and request bankruptcy.

Bankruptcy of capital companies and cooperatives:

Article 179- (Amended: 28/2/2018-7101/3 art.)

If the persons responsible for the administration and representation of capital companies and cooperatives, or if the company or cooperative is in liquidation, by the liquidators or a creditor, or if it is determined by the court that they are insolvent according to the interim balance sheet prepared based on the probable sales prices of the assets, their bankruptcy is declared without the need for prior legal proceedings. The provisions of Articles 377 and 634 of the Turkish Commercial Code and Article 63 of the Cooperatives Law No. 1163 dated 24/4/1969 are reserved.

Adjournment of trial:

Article 179/a- (Added: 17/7/2003-4949/50 art.; Repealed: 28/2/2018-7101/65 art.)

Postponement decision and its consequences:

Article 179/b- (Added: 17/7/2003-4949/50 art.; Repealed: 28/2/2018-7101/65 art.)

Legal remedies:

Article 179/c- (Added: 15/7/2016-6728/4 art., Repealed: 28/2/2018-7101/65 art.)

Rejected legacies:

Article 180 – The liquidation of rejected inheritances shall be carried out by the court to which they belong in accordance with the provisions of the eighth chapter. The provisions of the Civil Code regarding the official liquidation of the estate are reserved.

Method:

Article 181 – Articles 159, 160, 164, 165 and 166 shall also apply to bankruptcies occurring in accordance with the provisions of this chapter.

1. REMOVAL OF BANKRUPTCY

Removal of bankruptcy:

Article 182 – If the debtor shows a declaration that all the creditors’ claims have been withdrawn or a document that all the receivables have been redeemed, or if the composition agreement is confirmed, the court decides to lift the bankruptcy and return the debtor’s assets for his free disposal.

(Amended second paragraph: 2/3/2005-5311/14 art.) The decision to lift bankruptcy is made from the expiration of the specified period for the registration of claims regarding receivables until the closure of bankruptcy. An appeal may be filed against the decision given regarding the lifting of bankruptcy within two weeks from the date of notification. An appeal may be filed against the decision of the regional court of justice within two weeks from the date of notification. Appeal and appeal examinations are conducted in accordance with the provisions of the Code of Civil Procedure.

The bankruptcy is declared lifted.

Stopping the liquidation of a rejected inheritance:

Article 183 – If an estate is in liquidation in accordance with Article 180 and one of the heirs accepts the inheritance before the liquidation is closed, the court stops the liquidation in return for the heir providing security for the payment of the debts.

SEVENTH CHAPTER

Legal consequences of bankruptcy

I – CONSEQUENCES OF BANKRUPTCY REGARDING THE DEBTOR’S PROPERTIES:

Bankruptcy estate:

Article 184 – At the time of opening of bankruptcy, all seizable assets of the bankrupt, wherever they may be, constitute a table and are allocated to the payment of receivables. The assets that pass into the possession of the bankrupt until the closing of the bankruptcy are included in the table.

Letters sent in the name of the bankrupt are opened by the bankruptcy administration and the postal administration is notified that other documents are sent to the desk.

Pledged goods and production premises:

Article 185 – The goods on which the lien is placed are transferred to the table, with the priority right of the lien holder being reserved, and are converted into cash by the bankruptcy administration at the earliest and most appropriate time, and after the costs of storage and sale are deducted, they are returned to the lien holder. the right is given . (Additional sentence: 17/7/2003-4949/51 art.) However, the creditor who owns the lien may, if he wishes, pursue the conversion of the lien into cash against the table even after the bankruptcy.

If it is determined by the stock market value that the value of the pledge is not sufficient for the receivable secured by the pledge and the debtor does not want the pledge to be sold, the pledge is temporarily removed from the table.

The owner of the mortgaged debt has the right to complain to the enforcement court regarding the transactions related to these transactions.

(Additional paragraph: 9/11/1988-3494/38 art.; Amended paragraph: 28/2/2018-7101/4 art.) In accordance with the first paragraph of Article 210, the places that are closed and sealed because it is understood that they will not be beneficial for the table, shall be sold immediately by the bankruptcy administration, even if there is no lien on them, if it is approved by the first creditors’ meeting.

(Additional paragraph: 9/11/1988-3494/38 art.) Sales to be made according to this article shall be announced in accordance with the procedure in the second paragraph of article 166.

Things seized for precautionary or executive purposes:

Article 186 – (Amended: 18/2/1965-538/94 art.)

When bankruptcy is filed with seized assets, the seized assets that have not been converted into cash are included in the table.

The value of the seized assets converted into cash before the bankruptcy was filed is distributed among the creditors who seized the assets in accordance with the provisions of Articles 138 to 144. The remaining portion is transferred to the bankruptcy estate.

Rights subject to annulment action:

Article 187 – The bankruptcy administration shall file the necessary lawsuits to ensure that all matters that may be subject to an annulment lawsuit are brought before the table in accordance with Article 201 and Articles 277 to 284.

Bills of exchange issued to order or bearer for the collection of the price:

Article 188 – Those who transferred bearer or order bonds that were transferred to the bankrupt in order to collect the price or as consideration for a future payment may request their return.

Sale price of someone else’s property:

Article 189 – If the bankrupt person sells a property belonging to someone else and does not receive the money before the bankruptcy is opened, the owner of the property may request the assignment of the receivables from the buyer to him in return for the expenses incurred for the property being settled on the table or, if the price of the sold thing has been paid to the table, the payment of this price to him.

Seller’s right of withdrawal:

Article 190 – The seller may claim recovery for the goods that were sold and sent but were not received by the bankrupt before he was declared bankrupt, unless the price was paid by the table.

(Amended: 29/6/1956-6763/42 art.) If these goods are sold or pledged to a third party in good faith with a document representing the goods, such as a transport document, bill of lading, receipt document, warrant, before the declaration of bankruptcy, they can no longer be taken back.

Provisions on incapacity of the bankrupt to dispose and payment of the bill:

Article 191 – Any disposition of the debtor over the assets of the estate after the bankruptcy is filed is null and void against creditors.

If a promissory note signed by the debtor before the bankruptcy was filed or a bill of exchange drawn on it was paid by the bankrupt on its due date before the declaration of bankruptcy, the amount paid cannot be recovered from the holder who was not aware of the bankruptcy and who is in a position to exercise his right of recourse to a third party in case of refusal of payment.

Bankrupt payment:

Article 192 – After the declaration of bankruptcy, the bankrupt cannot accept any payment. The person who makes a payment to the bankrupt can only be relieved of his debt to the creditors of the bankrupt to the extent of the money or value entered into the account. However, if the debtor who makes a payment to the bankrupt before the declaration of bankruptcy is not aware of the bankruptcy, he can be relieved of his debt.

Stopping and dropping tracking:

Article 193 – (Amended: 18/2/1965-538/95 art.)

(Amended: 9/11/1988-3494/39 art.) Opening of bankruptcy stops the proceedings against the debtor through seizure and the proceedings regarding the provision of security.

These proceedings are terminated when the bankruptcy decision becomes final.

During the liquidation of the bankruptcy, none of the proceedings in the first paragraph can be initiated against the bankrupt.

(Added: 9/11/1988-3494/39 art.) The proceedings carried out by means of conversion of the pledge into cash shall continue after the bankruptcy by the creditors of the proceedings against the bankruptcy estate and the sale price shall be distributed among the secured creditors in accordance with article 151. The remaining portion shall pass to the bankruptcy estate. However, the creditor of the proceedings may waive the proceedings by means of conversion of the pledge into cash which he had started before the bankruptcy and request the sale of the pledge in accordance with article 185.

Vacation of civil cases:

Article 194 – (Amended first paragraph: 9/11/1988-3494/40 art.) Except for urgent cases, the civil lawsuits in which the bankrupt is the plaintiff and defendant shall be suspended and may only be continued ten days after the second meeting of creditors. This provision shall not apply to lawsuits for compensation arising from violation of honor and dignity, damages inflicted on the body, disputes concerning marriage, personal status or alimony, and lawsuits filed in relation to the conversion of mortgage into cash.

As long as the lawsuit is pending, the statute of limitations and the periods that extinguish rights do not apply.

1. EFFECTS OF BANKRUPTCY ON CREDITORS’ RIGHTS

The bankrupt person’s debts become due:

Article 195 – With the exception of receivables secured by way of a lien on the debtor’s immovable property, the opening of bankruptcy brings the debts of the bankrupt into due date. The interest accrued up until the date of the opening of bankruptcy and the costs of the follow-up are added to the principal.

(Amended: 9/11/1988-3494/41 art.) The interest-free debts of the bankrupt person that are not yet due are discounted using the annual legal interest calculation.

Interest:

Article 196 – (Amended: 9/11/1988-3494/42 art.)

Once bankruptcy is filed, interest continues to accrue on receivables included in the bankruptcy estate.

Interest rates for non-commercial transactions are applied to receivables that are not secured by collateral.

However, interest payments to be accrued to creditors according to this article are made on the balance after the principal amounts calculated according to article 195 are paid.

Outstanding receivables:

Article 197 – The creditor may also register his receivable which is subject to a condition or an unspecified term. However, he shall receive his share when the condition is realised or the term becomes due.

The provision of the third paragraph of Article 509 of the Code of Obligations is valid for claims arising from the contract of income for a living.

Conversion of receivables whose subject matter is not money into money:

Article 198 – A non-monetary receivable shall be converted into a monetary receivable of equivalent value. However, the bankruptcy administration may undertake to perform the obligation in its entirety. In this case, if the creditor requests, the bankruptcy administration shall provide security.

The provisions of Article 290 of the Code of Obligations are reserved.

Execution of completed sales:

Article 199 – The seller who sold and delivered a good to the debtor before the bankruptcy was opened cannot terminate the contract and cannot take back what he sold, even if he has expressly reserved his right to terminate and take back.

Swap:

Article 200 – The creditor may exchange his receivables with the receivables of the bankrupt. Exchange cannot be made in the following cases:

1 – If the debtor of the bankrupt becomes the creditor of the bankrupt after the bankruptcy is opened;

2 – If the creditor of the bankrupt person becomes the debtor of the bankrupt person or the estate after the bankruptcy is opened;

3 – If the creditor’s receivable is based on a promissory note.

(Amended: 29/6/1956-6763/42 art.) In case of bankruptcy of joint stock, limited and cooperative companies, the unpaid parts of the share prices that should be paid in accordance with the articles of association or the capital that was promised to be contributed but was not contributed cannot be exchanged for the debts of these companies.

Objection to the exchange:

Article 201 – If the debtor of the bankrupt, knowing that his creditor was insolvent before the bankruptcy was opened, creates a claim against the bankrupt in order to obtain a benefit by way of exchange for himself or a third person at the expense of the estate, this exchange may be objected to in court.

Debts for which the bankrupt person is a guarantor:

Article 202 – Debts for which the bankrupt person is a guarantor are recorded as embezzlement on the table even if they are not yet due.

The estate takes the place of the creditors of the principal and joint debtors in proportion to the money it has paid (Code of Obligations, Article 496). In the event of bankruptcy of the principal debtor or one of the joint debtors, articles 203 and 204 shall apply.

Bankruptcy of joint debtors at the same time:

Article 203 – If the bankruptcy proceedings of those who jointly undertake a debt coincide at the same time, the creditor may demand the entirety of his receivable from the estate of each of the bankrupts.

If the shares collected are more than the total receivable, this surplus is transferred to the tables that have made the payment rather than the share to which they are liable towards the joint debtor.

The tables have no right of recourse against each other unless the total amount of the shares they have paid exceeds the amount of the receivables.

Partial payment of the debt by the debtor together with the bankrupt:

Article 204 – If the creditor has received a part of his receivable from the co-debtor and the bankrupt, the entire debt is recorded in the table, regardless of whether the co-debtor has the right to recourse against the bankrupt.

The right to be registered in the bankruptcy estate belongs to the creditor and the joint debtor.

In the distribution made by the table, the creditor receives from the share that corresponds to the entirety of his claim, an amount that will complete his claim; from the remaining money, the co-debtor is given a share corresponding to the amount he has the right of recourse. The remaining money is left on the table.

Bankruptcy of the general partnership and partners with unlimited liability:

Article 205 – If the bankruptcy proceedings of a general partnership and one of the partners coincide at the same time, the creditors of the company shall register all their receivables in the partner’s estate; however, they may demand from the bankrupt partner’s estate the amount they cannot collect from the company’s estate. If this amount is paid by several partners, articles 203 and 204 shall apply. If one of the partners goes bankrupt without the company going bankrupt, the creditors of the company shall be accepted to the estate with all their receivables. The bankrupt partner’s estate shall replace the company’s creditors as stated in article 202.

Order of ordinary and pledged receivables:

Article 206 – (Amended: 3/7/1940-3890/1 art.)

(Amended first paragraph: 28/2/2018-7101/5 art.) Creditors whose receivables are pledged have priority rights on the sales amount. Duties and taxes that must be collected from certain goods and properties from state proposals, such as customs duty and property tax, come after the pledged receivables.

If a receivable is secured with more than one pledge, the sales amount is offset against the debt, while the administration and sales expenses of each pledge and, if there are other receivables secured with a portion of these pledges, these are taken into consideration and the necessary proportionality is observed in the distribution.

The order of creditors whose receivables are secured by a real estate mortgage and the scope of interest and additional collateral on this security are determined in accordance with the provisions of the Civil Code regarding real estate mortgages. (Additional sentence: 29/6/1956-6763/42 art.; Repealed sentence: 14/1/2011-6103/41 art.) (…)

(Amended fourth paragraph: 17/7/2003-4949/52 art.) Receivables that are secured but not covered by a pledge or are unsecured are recorded from the sales amount of the table goods to be paid in the following order:

First row:

1. A) The receivables of the workers, including the severance and notice payments accrued within one year before the opening of bankruptcy and the severance and notice payments they are entitled to upon the termination of the employment relationship due to bankruptcy,
2. B) Employers’ debts to facilities or associations that have been established and have acquired legal personality for the purpose of establishing or maintaining aid funds or other aid organizations for workers,
3. C) All kinds of alimony receivables arising from family law that have accrued within the last year before the bankruptcy was opened and that must be paid in cash.

Second row:

All receivables of persons whose property is left to the debtor’s administration due to guardianship and trusteeship, arising from this relationship;

However, if these receivables are opened during the period of bankruptcy, guardianship or custody or within the year following their termination, they are considered privileged receivables. The period during which a lawsuit or pursuit is ongoing is not taken into account.

Third row:

Receivables that are stated to be privileged in special laws.

Fourth row:

All other non-privileged receivables.

(Additional paragraph: 17/7/2003-4949/52 art.) The following periods are not taken into account in calculating the first and second periods:

1. The period of the composition, including the period before the bankruptcy was opened.
2. The period of postponement of bankruptcy.
3. The period during which the lawsuit filed regarding the receivable continues.
4. In the liquidation of the estate according to the bankruptcy provisions, the period from the date of death until the liquidation decision is made.

(Additional paragraph: 14/1/2011-6103/41 art.) In case of conversion of ships into cash, the order of priority to be made is drawn up in accordance with the provisions of Articles 1389 to 1397 of the Turkish Commercial Code for all ships, regardless of their flag and whether they are registered or not.

Relationship between rows:

Article 207 – The creditors of each row have equal rights among themselves.

Unless the previous creditors receive their receivables in full, the next ones in line cannot receive anything.

EIGHTH CHAPTER

Liquidation of bankruptcy

I – ORGANIZATION OF THE TABLE:

Book preparation:

Article 208 – As soon as the opening of bankruptcy is notified, the bankruptcy office starts keeping a ledger of the bankrupt’s assets and takes the necessary measures for their preservation.

This procedure for goods located in another district is carried out under the auspices of the bankruptcy office there.

(Added: 9/11/1988-3494/43 art.) The bankruptcy office must decide whether the liquidation will be carried out in an ordinary or simple manner within two months at the latest from the date of notification of the bankruptcy decision.

Duties of the bankrupt:

Article 209 – The bankrupt is obliged to show his/her assets to the bankruptcy office and keep them at his/her disposal while the bankruptcy book is being kept.

If it is not possible to keep the bankrupt person present, this obligation falls on the adults of the people living with him.

The bankruptcy office warns those who resort to these obligations of the law.

Collateral measures:

Article 210 – (Amended first paragraph: 28/2/2018-7101/7 art.) The bankruptcy office shall manage the stores, warehouses, factories, workshops and other places of production, retail stores and similar places of the bankrupt person under its control until the first creditors’ meeting, if it is understood that it will be beneficial for the estate; otherwise, it shall close and seal these places.

(Repealed second paragraph: 28/2/2018-7101/7 art.)

The department keeps cash, valuable papers, commercial and household management books and any other documents of any importance.

It seals other goods until the book is kept. If the office deems it necessary, it seals them again after the book is kept.

The department also preserves the belongings located outside the places used by the bankrupt.

Regarding the goods that are not permissible to be seized:

Article 211 – The department records the assets listed in Article 82 in the ledger but leaves them in the hands of the bankrupt.

Third party goods:

Article 212 – Properties shown as the property of third parties or claimed to be owned by them are recorded in the book by adding annotations in these respects.

Rights of third parties on real estate:

Article 213 – The rights of third parties on the immovable properties of the bankrupt person, as determined from the registry, are entered in the book ex officio.

Valuation:

Article 214 – The value of every property recorded in the ledger is assessed.

Recognition of the ledger by the bankrupt:

Article 215 – The department shall show the bankrupt the ledger kept to declare its accuracy and completeness.

The bankrupt’s answer is written in the book and signed by him.

Obligations of the bankrupt:

Article 216 – A bankrupt who is not granted separate permission is obliged to remain under the command of the bankruptcy administration for the duration of the liquidation and, if necessary, is brought in by law enforcement forces. The bankruptcy administration may provide appropriate assistance as long as it keeps the bankrupt under its command.

Vacation of the liquidation:

Article 217 – If no property belonging to the estate is found, the bankruptcy office decides and announces the suspension of the liquidation. In this announcement, it is stated that if the creditors request the continuation of the bankruptcy procedures within thirty days and the expenses are not paid in advance, the bankruptcy will be closed.

1. INVITATION OF CREDITORS

Simple liquidation:

Article 218 – If it is understood that the value of the goods kept in the bankruptcy office will not cover the liquidation expenses, the simple liquidation procedure will be applied.

In this case, the bankruptcy office invites the creditors to notify their receivables and claims within a period of not less than twenty days and not more than two months. During this period, one of the creditors may request that the liquidation be carried out in an ordinary manner by paying the expenses in advance.

In simple liquidation, the bankruptcy office converts the assets into cash in a manner that is in the interest of the creditors and distributes the amounts by determining the investigation and order of the receivables without the need for any other ceremony.

It is declared that the liquidation is closed.

Announcement of ordinary liquidation and opening of bankruptcy:

Article 219 – (Amended first paragraph: 9/11/1988-3494/44 art.) If the liquidation will be carried out in an ordinary manner, the bankruptcy office shall announce the situation within ten days at the latest from the date of the decision to be given in accordance with Article 208, in accordance with the procedure in the second paragraph of Article 166. The last announcement date shall be taken as basis in the calculation of the periods in this article.

In the ad:

1 – The identity of the bankrupt, his place of residence and the date on which the bankruptcy was opened;

2 – Creditors and those who claim entitlement must register their receivables and entitlements within one month of the announcement and submit the original or certified copies of their evidence (promissory notes, summaries of books, etc.) (The period may be extended for creditors residing in very distant places or foreign countries).

3 – The debtors of the bankrupt person must report themselves and their debts within the same period, with the penalty of any act contrary to this being liable;

4 – Those who hold the bankrupt’s property in whatever capacity must entrust it to the department within the same period, on condition that their rights over the property are preserved, and if they do not do so, they will be subject to criminal liability and will be deprived of their right of priority unless they have a valid excuse;

5 – It is stated that the first meeting of the creditors shall be held within ten days from the announcement and that the bankrupt and the joint debtors, their guarantors and other persons who guarantee the debt have the right to attend the meeting.

Inviting creditors in rejected inheritances:

Article 220 – (Amended: 3/7/1940-3890/1 art.)

If the liquidation of a rejected inheritance is necessary and the creditors have been invited in advance in accordance with the provisions of inheritance, the registration period is reduced to ten days in accordance with the above article. There is no need for a new application for those who have previously registered their receivables.

III. MANAGEMENT OF THE TABLE

First meeting of creditors:

Article 221 – (Amended: 6/6/1985-3222/25 art.)

(Amended: 9/11/1988-3494/45 art.) The first creditors’ meeting is chaired by the bankruptcy manager or one of his assistants. The manager shall form an office with one or two creditors or representatives, preferably from among those whose creditors are proven by official documents such as notary or mortgage deeds or by the documents specified in articles 68/b and 150/ı.

A quorum is reached if the creditors themselves or their representatives represent at least one-fourth of the known receivables. If there are less than five people present at the meeting, they must have half of the receivables.

Decisions are made by majority of the receivable amount.

The Bureau will resolve any disputes about whether the votes are valid or not. The interested parties may file a complaint with the enforcement court against the Bureau’s actions within seven days from the meeting date. The complaint will only be taken into consideration if the majority of the decision is overturned. Otherwise, the complaint will be rejected.

Failure to meet or meet a quorum:

Article 222- (Amended: 17/7/2003-3939/53 art.)

If it is not possible to meet the creditors or if a quorum is not reached, the situation is determined. In this case, the department manages the table until the second meeting of creditors and begins the liquidation.

Duties of the bankruptcy administration and the bankruptcy office:

Article 223 – (Amended: 6/6/1985-3222/26 art.)

The bankruptcy administration consists of three persons. In the election to be held by the assembled creditors, twice this number of persons with sufficient knowledge and experience on the subject are nominated as candidates. Four of these candidates are elected by the majority in terms of the amount of the receivable, and two by the majority in terms of the number of creditors and are reported to the enforcement court. The enforcement court selects two of the three persons who will constitute the bankruptcy administration from among the four candidates nominated by the majority of the receivables, and one from among the two candidates nominated by the majority of the creditors.

The liquidation is referred by the bankruptcy office to the bankruptcy administration established in accordance with the above paragraph.

(Amended third paragraph: 17/7/2003-4949/54 art.) Bankruptcy administration meetings are held upon a request by the administrative officers or any creditor to determine the agenda, and upon a call sent by the bankruptcy office director at least seven days before the meeting date. The bankruptcy administration takes its decisions by majority vote; however, if all three bankruptcy administration officers fail to attend the meeting, the bankruptcy office director assumes the duties of the bankruptcy administration and makes decisions on behalf of the bankruptcy administration alone. If one or two of the bankruptcy administration officers attend the meeting, the bankruptcy office director also attends the meeting. If no decision is reached, the action is taken in accordance with the vote of the bankruptcy office director. Creditors who apply to the bankruptcy estate as creditors may request that the decisions to be taken by the bankruptcy administration be notified to them by indicating an address suitable for notification and by making an advance payment for the writing and notification expenses to be shown in the tariff to be issued by the Ministry of Justice. Legal remedies against the decisions of the bankruptcy administrator regarding creditors who have had this action taken shall commence as of the date of notification to them.

Fees are paid to the bankruptcy administration according to the fee schedule prepared by the Ministry of Justice and renewed every two years.

The bankruptcy administration is under the supervision of the bankruptcy office. In this case, the bankruptcy office performs the following duties:

1. To object to the decisions of the creditors’ meeting, all measures deemed inappropriate to the interests of the creditors, and decisions regarding the acceptance of receivables and entitlement claims accepted by the administration, which are deemed inappropriate to the law and the situation, by applying to the enforcement court within seven days.
2. To submit the account slips, including the fees and expenses of the bankruptcy administrators, to the enforcement court for approval.

(Additional paragraph: 9/6/2021-7327/1 art.) Bankruptcy administrators are selected from the list of bankruptcy administrators created by the regional expert witness boards. One of the bankruptcy administrators selected in this way must be a certified public accountant or an independent accountant and one must be a lawyer. In order to register on the list, it is necessary to complete the training to be received from institutions authorized by the Ministry of Justice. If there is no officer to be assigned on the list, an assignment is made from outside the list and this situation is notified to the regional board. A bankruptcy administrator cannot work on more than five files simultaneously. The qualifications, supervision, training of bankruptcy administrators, institutions that will provide training and those who will be exempted from training and other issues regarding the implementation of this article are determined in the regulation put into effect by the Ministry of Justice.

Decisions made at the meeting:

Article 224 – (Amended first paragraph: 28/2/2018-7101/8 art.) The creditors’ meeting may give immediate decisions, especially regarding the continuation of the bankrupt’s trade or business, whether their factories, workshops and other places of production, stores, warehouses, retail shops should continue their activities, and regarding pending lawsuits and sales by negotiation.

If the bankrupt proposes a composition, the creditors may suspend the liquidation.

Appeal against decisions:

Article 225 – (Amended: 3/7/1940-3890/1 art.)

Any creditor may complain to the enforcement court about the decisions of the creditors’ meeting within seven days. The enforcement court shall give its decision within a short period of time after receiving the opinion of the Bankruptcy Office and, if necessary, after hearing the complainant and the creditors who have requested to be heard.

The duties of the bankruptcy administration:

Article 226 – The legal representative of the table is the bankruptcy administration. The administration is responsible for looking after the interests of the table and carrying out the liquidation.

(Amended: 6/6/1985-3222/27 art.) The administration may directly reach a settlement and conduct arbitration for receivables up to two billion liras, or with the authority granted by the collection of creditors for receivables greater than that.

Duties and responsibilities of the bankruptcy administration:

Article 227 – (Amended: 6/6/1985-3222/28 art.)

The provisions of the first and second paragraphs of Article 8 and Articles 9, 11, 16 and 359 regarding enforcement offices also apply to the bankruptcy administration. (Additional sentence: 28/2/2018-7101/9 art.) The bankruptcy administration is obliged to inform the creditors accepted to the bankruptcy estate about the progress of the bankruptcy liquidation and the plan and calendar of the subsequent procedures upon their request.

(Additional second paragraph: 9/11/1988-3494/46 art.; Repealed: 2/3/2005-5311/28 art.)

The enforcement court has the authority to supervise the bankruptcy administration and may, if necessary, terminate the duties of those constituting the bankruptcy administration. The enforcement court elects a new person from among the previous candidates in place of the person whose duty has been terminated or who has resigned, in accordance with the principles in Article 223.

Those who constitute the bankruptcy administration are liable for the damages resulting from their negligence. These cases are heard in the courts of justice.

Those who constitute the bankruptcy administration are considered civil servants in the implementation of the Turkish Penal Code.

Third party claims of entitlement:

Article 228 – (Amended: 18/2/1965-538/96 art.)

The bankruptcy administration decides whether the goods claimed by third parties will be given to them or not.

If the bankruptcy administration rejects the entitlement claim, it assigns and notifies the third party a seven-day period to file a claim for entitlement with the enforcement court. The third party who has passed this period is deemed to have given up his claim for entitlement against the estate.

The entitlement case is handled within the framework of general provisions and in accordance with the simple trial procedure.

If necessary, the enforcement court may request a guarantee from the claimant against possible damage to the table.

Collection of table receivables, urgent sales:

Article 229 – The bankruptcy administration shall collect the due receivables of the estate and, if necessary, pursue or sue them.

Things that will lose value or are expensive to keep are sold without delay. Items and goods that have a price on the stock exchange or market can be converted into cash immediately. Other goods are sold only after the second collection of creditors.

Goods on which there is a lien are subject to the provision of Article 185.

1. INVESTIGATION OF RECEIVABLES AND DETERMINATION OF RANK

Investigation of the claimed receivables:

Article 230 – After the period determined for the registration of claims for receivables and entitlements has expired, the administration shall investigate and examine the claims. If it is possible to keep the bankrupt, it shall ask what he has to say about each claim and shall decide to accept or reject it as necessary.

Receivables recorded in the land registry:

Article 231 – Receivables recorded in the land registry are accepted with accrued interest even if no application for registration has been made.

Duration and form of the creditors’ order table:

Article 232 – (Amended: 28/2/2018-7101/10 art.)

After the specified application period for the registration of receivables has elapsed and within two months at the latest from the election of the bankruptcy administration, a list showing the order of creditors shall be prepared by the bankruptcy administration in accordance with the provisions of Articles 206 and 207 and shall be submitted to the bankruptcy office. In cases of necessity, if the bankruptcy administration applies to the enforcement court before the expiry of the two months, the enforcement court may extend this period for a maximum of two months, once only. If the order list is not submitted within the period, the members of the bankruptcy administration shall be dismissed upon the bankruptcy office’s submission of the case to the enforcement court, and no fee shall be charged for their interrupted services. The court may also prohibit these members from serving in any bankruptcy administration for a period of not less than one year and not exceeding three years, and this decision shall be final.

Rejected receivables:

Article 233 – (Amended: 9/11/1988-3494/48 art.)

The receivables that are not accepted in the order table are shown together with the reasons for rejection. However, the bankruptcy administration does not decide to reject the receivable secured by mortgage in terms of the reason that gave rise to it or the amount of the mortgage limit, and notifies the second creditors’ meeting that it does not accept it. The right to pursue the claim for cancellation of the mortgage or reduction of its amount is transferred to the creditor who requests it within the framework of the provision of Article 245.

Creditors’ order list, announcement and notice:

Article 234 – (Amended first paragraph: 6/6/1985-3222/29 art.) The bankruptcy administration submits the order list to the bankruptcy office and notifies the creditors through announcement in accordance with the procedure in the second paragraph of Article 166.

Creditors whose claims are rejected in whole or in part or whose claims are not accepted in the order they are claimed are notified directly.

Objection to the order table and its consequences:

Article 235 – (Amended: 18/2/1965-538/97 art.)

(Amended: 9/11/1988-3494/49 art.) Those who object to the list of succession are obliged to file a lawsuit with the commercial court in the place where the bankruptcy decision was made within fifteen days from the announcement of the list. The provision of the third paragraph of Article 223 is reserved. The court hearing this case shall decide, in accordance with the sixth paragraph of Article 302, within fifteen days on whether the plaintiff should attend the second creditors’ meeting and to what extent he/she should attend.

If the objector claims that his claim was unfairly rejected or reduced, the case is filed against the table. If the objector objects to someone else’s accepted claim or the order given to him, he files his case against that creditor.

If a lawsuit filed for the cancellation of a receivable is won, the share allocated to this receivable is given to the objector in proportion to his receivable, regardless of the order, including the litigation expenses, and the remaining amount is distributed to the other creditors in accordance with the order of the order. The lawsuit is heard by simple trial procedure.

However, if the objection is not related to the substance or amount of the receivable but only to the order, it is submitted to the enforcement court by way of a complaint.

Late applications:

Article 236 – Receivables that are not recorded in the books on time are accepted until the bankruptcy is closed.

Expenses incurred without delay are the responsibility of the creditor. The creditor may be forced to pay these expenses in advance.

The creditor has no right to participate in the sharing agreed upon before the application.

If the bankruptcy administration accepts the receivable, it corrects the creditors’ order and notifies the creditors by announcement.

The provision of Article 235 is also valid here.

1. LIQUIDATION OF THE TABLE

Second collection of creditors:

Article 237 – (Amended first paragraph: 9/11/1988-3494/50 art.) After determining the receivables, the bankruptcy administration shall invite the creditors whose receivables have been accepted in whole or in part by the administration at the end of the period specified in Article 232 and the creditors who have filed a lawsuit for registration in the order table and whose participation has been decided in accordance with Article 235, to the second meeting by announcement.

The announcement is made at least twenty days in advance and a copy of the announcement is sent to the creditors.

If negotiations will take place regarding the concordat proposal, this aspect should also be stated in the invitation.

The bankruptcy officer or his assistant presides over the meeting. The second and third paragraphs of Article 221 are also valid here.

Authority of the second meeting of creditors:

Article 238 – The bankruptcy administration shall submit a detailed report to the creditors’ meeting regarding the progress of the liquidation and the status of receivables and debts.

If the creditors’ meeting wishes to leave the bankruptcy administration in its duties, it makes the necessary decisions on this matter and on other matters that it deems necessary for the interests of the estate.

Lack of meeting and decision quorum:

Article 239- (Amended: 17/7/2003-4949/56 art.)

If it is not possible for the creditors to meet or if a quorum is not reached, the situation is determined. In this case, the bankruptcy administration continues its work until the liquidation is closed.

Re-assembly of creditors:

Article 240 – (Amended: 6/6/1985-3222/30 art.)

If the majority of creditors so desire or the bankruptcy administration is convinced that it is necessary, a new creditors’ meeting may be invited. The creditors’ vote on the issues on the agenda of the new creditors’ meeting may be obtained by an invitation sent to their known address by registered letter and a response letter with a signature certified by a notary public.

The provisions of Article 221 shall apply regarding the quorum.

Method of converting goods into cash:

Article 241 – The assets belonging to the table are sold by auction through the bankruptcy administration or, if the creditors decide, by bargaining.

Goods on which there is a lien may only be sold through negotiation with the consent of the lien-holding creditors.

(Additional third paragraph: 28/2/2018-7101/12 art.) (Amended third paragraph: 9/6/2021-7327/2 art.) Properties and rights that constitute a commercial and economic integrity or that are understood to yield higher income if sold as a whole, and businesses that include these properties and rights, shall be sold as a whole. The continuity of the business and its contribution to the economy shall be taken into consideration in the sale. In this case, the provisions for converting the real estate into cash shall be applied. If the sale is not realized as a whole, the properties and rights shall be sold separately. The procedures and principles regarding the implementation of this paragraph shall be regulated in the regulation issued by the Ministry of Justice.

Announcement of the increase:

Article 242 – (Amended first paragraph: 24/11/2021-7343/30 art.) The increase announcement and preparatory measures are made in accordance with the provision of Article 126.

A copy of the announcement is given to the mortgagee and the estimated price is notified to him.

Bidding and Tendering:

Article 243 – The tender of movable and immovable properties to be sold by the bankruptcy administration shall be made in accordance with the provisions of Articles 115 and 129 that are not contrary to Article 185.

The provisions of Article 242 shall apply to the sale of movable property.

Conditions of sale by auction:

Article 244 – (Amended: 18/2/1965-538/98 art.)

111/b, 117, 118, 124, 125, 130, 131, (…)78 Articles 134 and 135 also apply here. The duties of the enforcement office are carried out by the bankruptcy administration.

Assignment of disputed rights to claiming creditors:

Article 245 – The right to pursue a claim that the creditors do not deem necessary to be concluded by the table is transferred to the creditor who requests it. After the expenses are deducted from the result, the claim of the transferee is given and the remaining amount is deposited on the table.

Family dormitories:

Article 246 – The Civil provisions of the Law on Family Dormitories are reserved.

1. SHARING OF MONEY

Share table and final account:

Article 247 – When the price of the goods sold is collected and the creditors’ list is finalized, the bankruptcy administration makes a distribution table and final calculation of the money.

Bankruptcy expenses and debts of the estate:

Article 248 – Expenses arising from the opening of bankruptcy and liquidation shall be deducted first. Only the costs of maintaining and converting the pledge into cash shall be deducted from the value of the pledges.

Leaving the share table to the bankruptcy office:

Article 249 – The share list and final account are left to the bankruptcy office and remain there for ten days.

The bankruptcy administration notifies each creditor of the nature of the release and the amount of his/her share.

Distributing:

Article 250– (Amended: 17/7/2003-4949/57 art.)

The distribution starts after the postponement period specified in the above article has expired. If there is a complaint, the distribution may be postponed to the extent that the decision to be made on this complaint may affect the distribution. The provisions of Article 144 apply here as well. The provisions of Article 9 apply to shares allocated for receivables subject to a condition or an indefinite term.

Document of inability to pay debt:

Article 251 – (Amended: 18/2/1965-538/99 art.)

The administration shall issue a certificate of insolvency to each creditor who has not received the full amount of his/her receivables while distributing the money. The document shall state whether the bankrupt accepts or rejects the receivables. In case of acceptance, the document shall be in the nature of a promissory note as stated in the first paragraph of Article 68.

(Amended first sentence: 17/7/2003-4949/58 art.) Subject to the provisions of article 196, the insolvency certificate shall have the legal consequences specified in article 143. However, a new request for enforcement cannot be made against the bankrupt unless he acquires new property. If the bankrupt objects to the payment order sent to him upon this new enforcement, stating that he has not acquired new property, the dispute shall be decided in the enforcement court in accordance with general provisions and simple trial procedure. (Additional sentence: 17/7/2003-4949/58 art.) The properties to which a third party has been made the rightful owner with the intention of providing the bankrupt with the opportunity to object that he has not acquired new property, but which the bankrupt has actually disposed of, shall be deemed new property if the third party knows or should know this situation.

Temporary distributions:

Article 252 – Temporary distributions may be made after the objection period has expired.

Upon objection, a share is allocated for disputed receivables that have not yet been finalized by the court and is kept in accordance with the provisions of Article 250.

Unrecorded receivables:

Article 253 – The provisions regarding receivables for which a certificate of insolvency is issued shall apply to receivables that have not been previously recorded and therefore have not been liquidated.

VII. CLOSING OF BANKRUPTCY

Final report and closure decision:

Article 254 – After the money is distributed, the administration submits a final report to the court that declared bankruptcy.

If the court finds any errors or omissions in the administration of the bankruptcy, it notifies the enforcement court.

The court decides on closure after it finds that the liquidation is complete.

(Additional paragraph: 2/3/2005-5311/15 art.) An appeal may be filed against the decision given regarding the closure of bankruptcy within two weeks from the date of notification. An appeal may be filed against the decision of the regional court of justice within two weeks from the date of notification. Appeals and appeal reviews are conducted in accordance with the provisions of the Code of Civil Procedure .

The bankruptcy office declares closure.

After the bankruptcy is closed:

Article 255 – If it is learned that there is a property that is excluded from liquidation after the bankruptcy is closed, the bankruptcy office shall place the property in its possession and sell it, and then distribute the amount to the creditors who received the missing amount in their order, without the need for any other ceremony.

The same applies to money that has been previously deposited in a bank and has become available for saving.

When a questionable right is in question, the bankruptcy office announces the situation to the creditors or notifies them by letter and the proceedings are carried out in accordance with Article 245.

Bankruptcy liquidation period:

Article 256 – Bankruptcy must be liquidated within six months after it is opened. If the liquidation process is not completed within this period, the creditors may gather and decide to apply the simple liquidation procedure. This decision requires the receipt of the majority of the amount. If such a decision is not made, the examination enforcement court may extend the period as necessary.

NINTH CHAPTER

Lien

Conditions for provisional lien:

Article 257 – The creditor of a monetary debt that is not secured by a pledge and has matured may seize the movable and immovable properties, receivables and other rights of the debtor in his possession or in the possession of a third party.

A provisional lien may be requested for a debt that is not due only in the following cases:

1 – If the debtor does not have a certain place of residence;

2 – If the debtor prepares to hide or hide his goods or to escape in order to avoid his commitments, or if he escapes or commits fraudulent acts that violate the rights of the creditor for this purpose;

If a provisional lien is imposed in this way, the debt becomes due only against the debtor.

(Additional paragraph: 29/6/1956-6763/42 art.; Repealed fourth paragraph: 14/1/2011-6103/41 art.) (Additional paragraph: 29/6/1956-6763/42 art.; Repealed fifth paragraph: 14/1/2011-6103/41 art.)

Precautionary seizure decision:

Article 258 – Precautionary seizure is decided by the competent court in accordance with Article 50. The creditor is obliged to present evidence that will enable the court to be convinced about the receivable and, if necessary, the reasons for seizure.

The court is free to hear or not to hear both sides.

(Additional paragraph: 17/7/2003-4949/60 art.) (Amended third paragraph: 22/7/2020-7251/50 art.) The decision to reject the provisional attachment request is given with reasons and an appeal may be filed against this decision. The party against whom the provisional attachment decision was issued may also file an appeal. The regional court of justice examines these applications first and its decision is final.

Security in provisional lien:

Article 259 – (Amended: 3/7/1940-3890/1 art.)

If the creditor requesting provisional seizure proves to be unjust in the seizure, he is liable for all damages that the debtor and third parties may suffer and is obliged to provide the security specified in Article 96 of the Code of Civil Procedure.

However, if the receivable is based on a judgment, no security is required.

If the claim is based on a document in the nature of a judgment, the court will assess whether security is necessary.

The compensation case is heard even in the court that imposed the provisional seizure.

Contents of provisional attachment decision:

Article 260 – (Amended: 18/2/1965-538/100 art.)

In the provisional attachment decision:

1. Name, surname and place of residence of the creditor and, if applicable, his/her representative and the debtor,
2. What kind of documents are used to establish the seizure and for what amount of receivable?
3. Reason for the seizure,
4. Things to be seized,
5. The creditor is liable to compensate for the damage and what the security provided consists of,

It is written.

Enforcement of provisional attachment decision:

Article 261 – (Amended: 18/2/1965-538/101 art.)

The creditor is obliged to request the enforcement of the decision from the enforcement office within the jurisdiction of the court that gave the decision within ten days from the date of the provisional attachment decision. Otherwise, the provisional attachment decision is automatically lifted.

Provisional seizure decisions are executed in accordance with the provisions regarding how the seizure will be carried out in articles 79 to 99.

(Additional last paragraph: 17/7/2003-4949/61 art.) Complaints regarding the enforcement of provisional seizure are made to the enforcement court to which the enforcement office that carried out the execution is affiliated.

Keeping records and notifying the seizure report:

Article 262 – (Amended: 18/2/1965-538/102 art.)

The officer who carries out the seizure prepares a report. The seized items and their values are shown in this report and it is immediately submitted to the enforcement office.

The enforcement office shall serve a copy of the provisional seizure report to the creditor and debtor who were not present at the time of seizure, and to a third party if necessary, within three days.

Security to be provided by the debtor:

Article 263 – (Amended: 18/2/1965-538/103 art.)

The seized goods can be given to the debtor at any time in the form of money or in kind, and the value of the goods can be deposited to ensure this, or a security and promissory note accepted by the enforcement officer or a movable and immovable mortgage or a valid bank guarantee can be shown, and if the goods are seized by a third party, a commitment note can be obtained and left to that person. The security to be requested cannot exceed the amount of the debt and expenses in any case.

Ceremony completing the provisional seizure:

Article 264 – (Amended: 18/2/1965-538/104 art.)

The creditor who has had a provisional attachment made before the lawsuit is filed or enforcement proceedings are initiated is obliged to either make a request for enforcement (attachment or bankruptcy) or file a lawsuit within seven days from the enforcement of the attachment or, if the attachment was made in absentia, from the notification of the attachment report to him.

In enforcement proceedings, if the debtor objects to the payment order, this objection is immediately notified to the creditor. The creditor is obliged to request the enforcement court to lift the objection or file a lawsuit in court within seven days from the date of notification. If the enforcement court rejects the request to lift the objection, the creditor must file a lawsuit within seven days from the date of the decision being pronounced or notified.

(Amended third paragraph: 17/7/2003-4949/62 art.) If the provisional attachment is placed while the debt case is being heard in court or if the creditor has filed a lawsuit in court according to the first paragraph, the creditor is obliged to request enforcement proceedings within one month from the notification of the court’s decision on the merits.

If the creditor exceeds these periods or gives up his lawsuit or demand for enforcement, or if the demand for enforcement is dropped due to the expiration of the legal periods, or if the case file is removed from the proceedings and the lawsuit is not renewed within one month, or if he is found to be unjust in his lawsuit, the provisional attachment becomes void and is notified to the relevant parties if the relevant parties so request.

If the debtor does not object to the payment order within the period or if his objection is definitely lifted or annulled by the enforcement court, the provisional lien is automatically converted into an executive lien.

Objection and appeal against provisional attachment decision:

Article 265 – (Amended: 18/2/1965-538/105 art.)

(Amended first paragraph: 17/7/2003-4949/63 art.) The debtor may object to the grounds on which the provisional seizure was given without being heard, the jurisdiction of the court and the security; the enforcement of the seizure in the presence of the debtor, or otherwise, the enforcement of the seizure report by applying to the court within seven days from the date of notification to him.

(Additional second paragraph: 17/7/2003-4949/63 art.) Third parties whose interests have been violated may also object to the grounds or the security on which the provisional seizure is based within seven days from the date on which they learn of the provisional seizure.

The court accepts or rejects the objection by examining the reasons given.

The objector is obliged to attach all documents on which he bases his petition. After the court invites the two parties to the objection and hears those who come, it may change or revoke its decision if it deems the objection valid. However, if neither party comes, the decision is made after examining the documents.

(Additional paragraph: 17/7/2003-4949/63 art.; Amended: 2/3/2005-5311/17 art.) An appeal may be filed against the decision given upon the objection. The regional court of justice examines this application first and its decision is final. An appeal does not stop the enforcement of the provisional attachment decision.

Removal of provisional lien:

Article 266 – (Amended: 18/2/1965-538/106 art.)

The debtor may request the court to lift the provisional attachment on the condition that he deposits money or a pledge or security acceptable to the court or shows an immovable pledge or a valid bank guarantee. Once the enforcement proceedings are initiated, this authority passes to the enforcement court.

Pursuing provisional seizure through bankruptcy:

Article 267 – (Amended: 18/2/1965-538/107 art.)

If the creditor has initiated bankruptcy proceedings against the debtor subject to bankruptcy in accordance with the first paragraph of Article 264 or has seized the debtor’s property as a precautionary measure after initiating bankruptcy proceedings, the following provisions shall apply.

If the debtor objects to the payment order, this objection is immediately notified to the creditor. The creditor is obliged to apply to the commercial court within seven days from the date of notification and request that the objection be lifted and the debtor’s bankruptcy be decided.

If the debtor does not object to the payment order, this situation is immediately notified to the creditor. The creditor is obliged to apply to the commercial court within seven days from the date of notification and request a decision on the debtor’s bankruptcy.

The provision of the fourth paragraph of Article 264 shall be applied by analogy.

Participation in enforcement seizures:

Article 268 – (Amended: 18/2/1965-538/108 art.)

(Amended first paragraph: 17/7/2003-4949/64 art.) If the goods seized as a precautionary lien according to article 261 are seized by another creditor in accordance with this Law or other laws before the precautionary lien becomes a final lien, the creditor who has the precautionary lien participates in this lien on his own and temporarily within the conditions set forth in article 100. If there is a precautionary or executive lien before the lien, no lien, including a public receivable, can participate in the lien before the lien.

The provisional lien costs are taken from the sales amount.

The provisional lien does not give any other priority rights.

CHAPTER TEN

Special provisions on rents and eviction of rented real estate

Payment order and objection period for ordinary rents and revenue rents:

Article 269 – (Amended: 18/2/1965-538/109 art.)

If the enforcement proceeding concerns ordinary rents or revenue rents and the creditor requests it, the payment order includes the warning stated in Articles 260 and 288 of the Code of Obligations and a notification that the enforcement court may request the debtor to be removed from the leased property after the legal period has elapsed.

Following this notification, the debtor is obliged to notify the enforcement office of the reasons for objection within seven days, in accordance with the provisions of Article 62. If the debtor does not openly and definitely reject the lease contract and his signature on the contract, if any, in his objection, he is deemed to have accepted the contract.

Objection stops the proceeding. The creditor who does not request the objection to be lifted within six months from the date of notification of the objection cannot pursue the same debt again through non-judgmental enforcement.

In cases where Article 260 of the Code of Obligations allows the lessor to terminate the contract at the end of the six-day period, the objection period is three days.

Consequences of not objecting:

Article 269/a – (Added: 18/2/1965-538/110 art.; Amended: 17/7/2003-4949/65 art.)

If the debtor does not object and does not pay the rent within the notice period, the enforcement court will decide on eviction upon the request of the creditor within six months following the end date of the notice period.

Procedure for objection and removal:

Article 269/b – (Added: 18/2/1965-538/110 art.)

If the debtor rejects the lease contract and the signature attributed to him in the contract, if any, in his objection, the creditor may request the enforcement court to remove the objection and to evacuate the leased property due to non-payment of the money within the notice period, if the creditor relies on a contract drawn up ex officio or whose signature has been certified by a notary public.

The debtor must substantiate his counter-claims and defences regarding the contract and its conditions with documents of the same strength and nature.

The debtor who rejects the contract is bound by this objection. After it is determined that the objection does not exist, he cannot make a payment, exchange or other defense.

If the creditor is forced to file a lawsuit under general provisions because the enforcement proceedings are not based on the documents stated above, the payment order with warning replaces the warning stated in Articles 260 and 288 of the Code of Obligations.

(Amended: 9/11/1988-3494/51 art.) If the creditor is forced to file a lawsuit in the general court due to the denial of the signature on the lease agreement and obtains a decision in his favor, the debtor is also sentenced to a fine from one hundred thousand lira to five hundred thousand lira.

Objections and evictions other than the lease contract:

Article 269/c – (Added: 18/2/1965-538/110 art.)

If the debtor does not reject the contract but objects or requests an exchange by stating that the rent has been paid or that it cannot be requested for another reason, he is obliged to prove his objection reasons and request with a document drawn up ex officio by a notary or whose signature has been certified or acknowledged by the creditor, or with a receipt or document issued by official institutions or authorized authorities within their authority and in accordance with the procedure.

In case of denial of the promissory note or receipt by the creditor, the provision of Article 68 shall be applied by analogy.

The enforcement court’s decision regarding eviction is not expected to become final for its execution. However, for eviction, ten days must pass from the date of notification or service of the decision to the debtor. The debtor may benefit from the provision of Article 36 regarding the eviction decision.

Substances to be applied in comparison:

Article 269/d – (Added: 18/2/1965-538/110 art.)

The provisions of articles 62, 63, 65, 66, 68, 70 and 72 shall apply here by analogy.

Making a book for the right of imprisonment:

Article 270 – The lessor may request the assistance of the enforcement office to temporarily preserve his right of detention without taking the necessary enforcement action beforehand.

(UK 267, 269, 281).

If there is danger in the process, the help of the police or the district manager may be requested.

The enforcement office keeps a register of the goods on which there is a right of lien and gives the lessee a suitable period of time, not exceeding fifteen days, to request enforcement by way of converting the lien into cash.

Right to track the stolen goods:

Article 271 – (Amended: 18/2/1965-538/111 art.)

The items taken secretly or by force may be taken back by the order of the enforcement office and by the police force within ten days after they were taken. The rights of bona fide third parties are reserved.

In case of dispute, the court resolves the issue and decides through simple trial procedure.

Evacuation of real estate leased under contract:

1 – Evacuation order and its contents:

Article 272 – (Amended: 3/7/1940-3890/1 art.)

The evacuation of a real estate leased under a contract may be requested within one month after its expiry by presenting the contract to the enforcement office.

Thereupon, the enforcement officer orders the evacuation and delivery of the real estate within fifteen days by serving an eviction order.

In the evacuation order:

If the lessor and the tenant and their representatives, if any, have any objections regarding their names, reputations, residences, contract dates and whether the lease has been renewed or extended, it is written that they will be evicted by force if they do not apply to the office within seven days and do not object or do not vacate on their own.

2 – Evacuation and delivery:

Article 273 – If no objection is made within the period or if the objection is lifted, the rented property is forcibly evacuated and delivered to the lessor at the end of the period. However, the period specified in the eviction order must have elapsed.

If there are items that do not belong to the tenant in the place to be evacuated, the provision of Article 26 shall be applied by analogy.

Objection:

1 – Duration and form:

Article 274 – (Amended: 3/7/1940-3890/1 art.)

The tenant who wishes to object shall notify the enforcement office of his/her objection verbally or by petition within seven days from the notification of the eviction order.

The objection made in this way stops the eviction proceedings.

The provisions of articles 63, 64 and 65 are also valid in eviction proceedings.

2 – Removal of objection:

Article 275 – (Amended: 18/2/1965-538/112 art.)

In case of an objection, the lessor may request the enforcement court to lift the objection.

If the eviction request is based on a contract drawn up by a notary public or whose date and signature have been certified or acknowledged, and the tenant cannot present a document of the same force and nature showing that the lease has been renewed or extended, the objection is lifted.

Otherwise, the request to remove the objection will be rejected.

After the removal of the objection, the eviction and delivery are carried out or the removal request is rejected, the tenant or the lessee reserves the right to apply to the court in accordance with general provisions.

(Amended: 9/11/1988-3494/52 art.) The tenant or lessor who is found to have the signature denied during the enforcement proceedings in the lawsuit filed in court shall be sentenced to a fine of one hundred thousand to five hundred thousand lira.

If a third party is found in the rented property:

Article 276 – (Amended: 18/2/1965-538/113 art.)

If a person other than the tenant is present in the place where the evacuation is requested and cannot show official documentation proving that he is right to occupy the place, the person will be evicted immediately.

However, if this person cannot show an official document but declares that he has been occupying the place since a time before the contract date presented to the office and if this declaration is confirmed by an on-site investigation by the enforcement officer, the officer shall postpone the eviction and report the situation to the enforcement court within three days.

The enforcement court shall, after hearing the parties, order the eviction as necessary or decide that one of the parties must apply to the court within seven days. If an application is made to the court within this period, action shall be taken according to the outcome of the case. The provisions of Article 36 shall also apply here. The party that does not file a lawsuit shall be deemed to have given up its claim.

The debtor’s lineage and lineal descendants, spouse or husband, blood relatives and in-laws up to the second degree, business partners and other persons who are understood to reside in a place belonging to the debtor are not considered third parties in the application of the provisions of this article.

ELEVENTH CHAPTER

Annulment case

Annulment case and plaintiffs:

Article 277 – (Amended: 3/7/1940-3890/1 art.)

The purpose of the annulment lawsuit is to have the actions stipulated in articles 278, 279 and 280 declared null and void. The following persons may file this lawsuit:

1 – Every creditor who has a temporary or definitive insolvency document,

2 – The bankruptcy administration or, in the cases specified in Article 245 and paragraph 3 of Article 255, the creditors themselves.

Nullity of gratuitous savings:

Article 278 – (Amended: 18/2/1965-538/114 art.)

With the exception of regular gifts, all donations and gratuitous dispositions made from the date of seizure or insolvency due to lack of property to be seized or the opening of bankruptcy to the date of establishment of the oldest of the receivables that are the cause of the seizure or the issuance of the certificate of insolvency or accepted on the table are void.

However, this period cannot exceed two years before the seizure, insolvency or bankruptcy.

The following savings are like donations.

1. (Amended: 9/11/1988-3494/53 art.) (Cancellation clause: By the decision of the Constitutional Court dated 16/12/2021 and numbered E.: 2021/52, K.: 2021/97.) (Cancelled phrase: By the decision of the Constitutional Court dated 26/1/2022 and numbered E.: 2021/9, K.: 2022/4.) subordinate, (Cancelled phrase: By the decision of the Constitutional Court dated 11/7/2018 and numbered E.: 2018/9, K.: 2018/84.)

(Cancelled phrase: By the decision of the Constitutional Court dated 26/1/2022 and numbered E.: 2021/9, K.: 2022/4.) Costly dispositions made between the adopter and the adopted child,

2. Contracts in which the debtor accepts a very low price as consideration in comparison with the value of the thing he has given at the time of the contract,
3. Contracts in which the debtor establishes the right of income and usufruct for himself or for the benefit of a third party, and contracts of maintenance until death,

Nullity due to inability:

Article 279 – The following transactions are also void if they are made by a debtor who has not paid his debts within one year before the seizure or insolvency due to lack of property or the opening of bankruptcy:

1 – Pledges made by the debtor to secure an existing debt, except for cases where the debtor has previously undertaken to provide security;

2 – Payments made in a manner other than money or customary means of payment;

3 – Payments made for undue debt.

4. (Added: 9/11/1988-3494/54 art.) Annotations given to the title deed to strengthen personal rights.

If the person who benefits from these dispositions proves that he/she did not know the status and situation of the debtor, the action for annulment will not be heard.

Cancellation due to intent to harm

Article 280 – (Amended: 18/2/1965-538/115 art.)

(Amended first paragraph: 17/7/2003-4949/66 art.) All transactions made by a debtor whose assets are not sufficient to cover his debts with the intention of harming his creditors may be annulled if the financial situation of the debtor and the intent to harm are known by the other party to the transaction or if there are clear indications that they should be known. However, within five years from the date of the transaction, proceedings must have been initiated against the debtor through seizure or bankruptcy.

(Repealed second paragraph: 17/7/2003-4949/103 art.)

(Amended: 9/11/1988-3494/55 art.) If the third party is the debtor’s wife or husband, lineal descendants, blood or marital relatives up to the third degree (inclusive), adoptive parent or adopted child, it is assumed that the debtor knows the situation stated in the first paragraph. The third party can only prove otherwise in accordance with the last paragraph of Article 279.

It is accepted that the person who transfers or purchases all or a significant part of the commercial property or business or acquires a part of it and subsequently occupies the business, knows that the debtor intends to harm his creditors and that the debtor acts with the intention to harm in such cases. This presumption can only be rebutted by proving that the creditor who files the action for annulment was notified of the situation in writing at least three months before the date of transfer, sale or abandonment or that it was announced in the Trade Registry Gazette by hanging visible signs at the location of the business or, if this is not possible, by appropriate means to ensure that all creditors are informed.

Procedure in annulment cases:

Article 281 – (Amended: 18/2/1965-538/116 art.)

The court hears and decides on annulment cases through a simple trial procedure and freely evaluates and resolves disputes related to these cases, taking into account the circumstances and conditions.

The judge may, upon the request of the creditor, issue a provisional attachment order on the goods subject to cancellation. The necessity and amount of the security shall be determined and assessed by the court. However, if the case concerns the value of the goods that have been disposed of, a provisional attachment order cannot be issued without providing security.

If any of the defendants pays the plaintiff’s debt, the case is dismissed. In this case, the judge will bind each of them with costs or distribute these costs among them in the manner he/she deems appropriate, depending on the situation.

In the annulment case, the defendant:

Article 282 – (Amended: 18/2/1965-538/117 art.)

The annulment lawsuits in the 11th article of the Execution and Bankruptcy Law are filed against the debtor and the persons who have had legal transactions with the debtor or who have been paid by the debtor, and their heirs. In addition to these, annulment lawsuits can also be filed against third parties with bad intentions. The annulment lawsuit does not violate the rights of bona fide third parties.

Scope of return:

Article 283 – (Amended: 18/2/1965-538/118 art.)

If the annulment lawsuit is proven, the plaintiff obtains the authority to obtain his rights on the property that is the subject of this lawsuit through forced execution, and if the subject of the lawsuit is not a real estate, the defendant may request the seizure and sale of that real estate without the need for correction of the record on the third party.

If the action for annulment concerns the value of the goods that the third party has disposed of, the third party is sentenced to pay compensation in cash in proportion to this value (not more than the amount the plaintiff will receive).

Following the annulment lawsuit, the third party may also request the collection of the deficiency in his/her assets from the debtor in the same lawsuit. This request does not prevent the annulment lawsuit from being separated and concluded earlier.

The third party who loses the annulment case may demand the return of the thing or its price from the debtor or the bankruptcy estate.

A creditor who returns the thing paid to him as a result of a wrongful act retains his former rights.

If the person to whom the donation was made is in good faith, he/she is only obliged to return the amount he/she had at the time of the lawsuit.

Limitation period:

Article 284 – (Amended: 18/2/1965-538/119 art.)

The right to file a lawsuit for annulment expires five years after the date of the invalid transaction.

CHAPTER TWELVE

Capital Companies and Cooperatives with Composition

Restructuring through compromise

1. ORDINARY CONCORD

Request for concordat:

Article 285 – (Amended: 28/2/2018-7101/13 art.)

Any debtor who cannot pay his debts when they fall due or who is in danger of not being able to pay them when they fall due may request a composition in order to pay his debts by granting a term or a discount or to avoid a possible bankruptcy.

Any creditor who may file a bankruptcy petition may request that composition proceedings be initiated against the debtor with a reasoned petition.

The competent court is the first instance commercial court in the place specified in the first or second paragraphs of Article 154 for debtors subject to bankruptcy, and in the place of residence for debtors not subject to bankruptcy.

The person applying for concordat is obliged to pay the advance payment for concordat expenses specified in the tariff put into effect by the Ministry of Justice. In this case, Articles 114 and 115 of the Code of Civil Procedure No. 6100 dated 12/1/2011 shall be applied by analogy.

Documents to be attached to the concordat request:

Article 286 – (Amended: 28/2/2018-7101/14 art.)

The debtor shall attach the following documents to the composition request.

1. a) A preliminary project for the concordat, which shows the rate or term in which the debtor will pay its debts, the rate at which the creditors will waive their receivables, whether the debtor will sell its existing assets to make the payments, and whether the financial resources required for the debtor to continue its activities and make payments to creditors will be provided through capital increase or credit provision or another method.
2. b) Documents showing the status of the debtor’s assets; if the debtor is a person who is obliged to keep books, the latest balance sheet, income statement, cash flow statement prepared in accordance with the Turkish Commercial Code, interim balance sheets prepared both on the basis of the continuity of the business and on the basis of the probable sales prices of the assets, opening and closing certifications of commercial books and e-book certificate information regarding books created electronically, other information and documents explaining the debtor’s financial status, lists of tangible and intangible fixed assets containing their book values, lists and documents showing all receivables and payables with their maturities.
3. c) List showing creditors, receivable amounts and privilege status of creditors.
4. d) A table showing the amount that is expected to be received by the creditors according to the proposal in the preliminary project of the concordat, and the possible amount that may be received by the creditors in the event of the debtor’s bankruptcy.
5. e) (Amended: 6/12/2018-7155/13 art.) Audit report and its basis prepared within the scope of the audit to be carried out in accordance with Turkish Auditing Standards by an independent auditing institution authorized by the Public Oversight, Accounting and Auditing Standards Authority and providing reasonable assurance that the proposal in the preliminary project of the concordat will be realized.

(Repealed paragraph: 6/12/2018-7155/13 art.)

The debtor must also submit other documents and records that may be requested by the court or commissioner during the composition process.

(Additional paragraph: 6/12/2018-7155/13 art.) In the reports to be prepared within the scope of subparagraph (e) of the first paragraph and the audits that will form the basis of these reports, the provisions of the Decree Law No. 660 on the Organization and Duties of the Public Oversight, Accounting and Auditing Standards Authority dated 26/9/2011 shall apply to the activities, rights and obligations of the audit institutions, the examination and auditing of the reports, the administrative and legal responsibilities that may arise due to these reports and other matters.

(Additional paragraph: 6/12/2018-7155/13 art.) The procedures and principles regarding the implementation of this article are determined by the regulation put into effect by the Ministry of Justice.

Temporary respite:

ARTICLE 287 – (Amended: 28/2/2018-7101/15 art.)

Upon the request for concordat, when the court determines that the documents specified in Article 286 are fully available, it immediately decides on a temporary respite and takes all measures it deems necessary to preserve the debtor’s assets, including the situations in the second paragraph of Article 297.

If the initiation of the composition proceedings is requested by one of the creditors, a temporary respite decision is made if the debtor submits the documents and records specified in Article 286 within a reasonable period of time and in full as determined by the court. In this case, the cost required for the preparation of the said documents and records is covered by the creditor. If the documents and records are not submitted in a timely and complete manner, a temporary respite decision is not made and the composition request made by the creditor is also decided to be rejected.

The court appoints a temporary concordat commissioner to closely examine whether the concordat is successful or not, together with the temporary respite decision. Three commissioners may be appointed when necessary, taking into account the number of creditors and the amount of receivables. (Additional sentence: 6/12/2018-7155/14 art.) In the event that three commissioners are appointed, one of the commissioners shall be selected from among the independent auditors authorized by the Public Oversight, Accounting and Auditing Standards Authority, provided that they operate in the province where the court is located. Article 290 shall apply analogously to this matter.

The temporary period is three months. The court may extend the temporary period for a maximum of two months upon request by the debtor or the temporary commissioner before the expiration of this three-month period. If the debtor requests an extension, the opinion of the temporary commissioner is also obtained. The total duration of the temporary period cannot exceed five months.

Articles 291 and 292 apply analogously to temporary respite.

No legal action can be taken against the decisions regarding the acceptance of the request for temporary respite, the appointment of a temporary commissioner, the extension of the temporary respite and the measures taken.

Results, announcement and notification of temporary respite:

Article 288- (Amended: 28/2/2018-7101/16 art.)

Temporary respite produces the results of permanent respite.

The court’s temporary respite decision is announced in the trade registry gazette and on the official advertisement portal of the Press Advertisement Institution and immediately notified to the land registry office, trade registry office, tax office, customs and postal administrations, Turkish Banks Association, Turkish Participation Banks Association, local chambers of commerce, chambers of industry, movable asset exchanges, Capital Markets Board and other necessary places. The announcement also states that the creditors may object by petition within a definite period of seven days from the announcement and claim with evidence that there is no situation requiring the granting of a composition period and may request the court to reject the composition request within this framework.

Decisions regarding the extension of the temporary period and the rejection of the request for composition by lifting the temporary period are also announced in accordance with the second paragraph and notified to the relevant authorities.

Exact deadline:

Article 289- (Amended: 28/2/2018-7101/17 art.)

The court makes its decision on the definitive period within the temporary period.

In order to make a decision on the definitive term, the court shall invite the debtor and the creditor requesting the composition, if any, to the hearing. The temporary commissioner shall submit his/her written report before the hearing and, if deemed necessary by the court, shall be present at the hearing to receive his/her statement. In its assessment, the court shall also take into account the objection reasons put forward by the objecting creditors in their petitions.

If it is understood that the concordat is successful, the debtor is given a definite period of one year. With this decision, the court decides that the temporary commissioner or commissioners will continue their duties unless there is a situation requiring a new assignment and entrusts the file to the commissioner.

The court may also form a creditors’ board together with the final term decision or at a time deemed appropriate within the final term, provided that there are no more than seven creditors, no fee is assessed and there is an odd number. In this case, creditor classes whose receivables are different from each other in terms of legal nature and secured creditors, if any, are represented in the creditors’ board in a fair manner. The commissioner’s opinion is also taken when forming the creditors’ board. The creditors’ board meets at least once a month and makes decisions by a majority vote of those present. The commissioner records the decisions taken at this meeting by being present and obtaining the signatures of those present at the meeting. The cases in which the creditors’ board will be formed as a matter of necessity, considering the number of creditors, the amount of receivables and the variety of receivables, and other matters related to the creditors’ board are indicated in the regulation put into effect by the Ministry of Justice.

In special cases that present difficulties, the definitive period may be extended by the court for up to six months upon the request and reasoned report of the commissioner explaining the situation. The debtor may also request an extension in accordance with this paragraph; in this case, the commissioner’s opinion shall also be obtained. In both cases, the request for extension shall be made before the expiration of the definitive period and the opinion of the creditors’ council, if any, shall be obtained before the extension decision is made.

Decisions regarding granting a definite period of time, extending the definite period of time, and rejecting the request for composition by removing the definite period of time are announced in accordance with Article 288 and notified to the relevant authorities.

The concordat commissioner and the board of creditors and their duties:

Article 290- (Amended: 28/2/2018-7101/18 art.)

The commissioner who receives the file completes the procedures for the approval of the composition within the specified period and returns the file to the court with his report.

The duties of the Commissioner are as follows:

1. a) To contribute to the completion of the concordat project.
2. b) To supervise the activities of the debtor.
3. c) To perform the duties assigned in this law.
4. d) To submit interim reports on the issues requested by the court and within the periods it deems appropriate.
5. e) To inform the creditors’ committee about the progress of the composition at regular intervals.
6. f) To inform other creditors who have made a request about the progress of the concordat and the current financial situation of the debtor.
7. g) To carry out other duties assigned by the court.

The provisions of articles 8, 10, 11, 16, 21 and 359 shall apply to commissioners by analogy.

Complaints regarding the Commissioner’s actions regarding the composition are finally decided by the commercial court of first instance.

(Amended paragraph: 6/12/2018-7155/15 art.) Commissioners are selected from the commissioner list created by the regional expert witness boards. In order to register on the list, it is mandatory to complete the training to be received from institutions authorized by the Ministry of Justice. In addition, the Public Oversight, Accounting and Auditing Standards Authority notifies the regional expert witness boards of the authorized independent auditors who can be assigned as commissioners. If there is no commissioner to be assigned on the list, an assignment is made from outside the list and this situation is notified to the regional board. A person cannot serve as a temporary commissioner and commissioner in more than five files simultaneously. The provisions of the fourth and fifth paragraphs of Article 227 apply to the responsibilities of the commissioner.

(Amended paragraph: 6/12/2018-7155/15 art.) The qualifications of the concordat commissioner, his/her training, the institutions that will provide training, those who will be exempted from training and other matters related to the commissionership are determined by the regulation put into effect by the Ministry of Justice.

The creditors’ council supervises the commissioner’s activities; it may make recommendations to the commissioner and, in cases stipulated by law, submit its opinion to the court. If the creditors’ council finds the commissioner’s activities inadequate, it may request the court to change the commissioner with a reasoned report. The court shall make a final decision on this request after hearing the debtor and the commissioner.

Removal of the definitive period due to improvement in the debtor’s financial situation:

Article 291- (Amended: 28/2/2018-7101/19 art.)

Upon notification to the court by the commissioner through a written report that the recovery aimed for by the concordat request has been achieved before the expiration of the definitive period, the court shall decide ex officio to lift the definitive period and reject the concordat request. This decision shall be announced in accordance with Article 288 and notified to the relevant authorities.

Before deciding to lift the definitive period within the scope of this article, the court shall invite the debtor and the creditor requesting the composition, if any, and the creditors’ council to the hearing; and may invite other creditors if deemed necessary.

Opening of bankruptcy by rejecting the concordat request within the definite period:

Article 292- (Amended: 28/2/2018-7101/20 art.)

In the event that the following situations occur after the granting of the definitive period for a debtor subject to bankruptcy, the court, upon the written report of the commissioner, shall lift the definitive period, reject the request for composition and declare the debtor bankrupt ex officio:

1. a) If bankruptcy needs to be filed to protect the debtor’s assets.
2. b) If it is understood that the concordat will not be successful.
3. c) If the debtor acts contrary to Article 297 or does not comply with the instructions of the commissioner, or if it is understood that the debtor acts with the aim of causing damage to creditors.
4. d) If a capital company or cooperative that is found to be insolvent waives its request for composition.

For a debtor who is not subject to bankruptcy, if the situations in subparagraphs (b) and (c) of the first paragraph occur after the definitive period has been granted, the court, upon the written report of the commissioner, shall decide ex officio to lift the definitive period and reject the concordat request.

Before making a decision in accordance with this article, the court invites the debtor and the creditor requesting the composition, if any, and the creditors’ council to the hearing; and if deemed necessary, it invites other creditors.

Legal remedies:

Article 293- (Amended: 28/2/2018-7101/21 art.)

No legal action can be taken against the decisions regarding the acceptance of the request for a definite period or the rejection of the request for the removal of the period.

If, as a result of the evaluation of the final respite request, it is decided that the concordat request of the debtor for whom no bankruptcy decision has been made is rejected, the debtor or, if any, the creditor requesting the concordat may appeal within two weeks from the notification of this decision. The decision of the regional court of justice is final. In cases where the regional court of justice overturns the first instance court decision and issues a respite decision, the file is sent to the first instance court for the execution of subsequent procedures, including the assignment of the commissioner.

In cases where the court or regional court of justice rejects the concordat request and also decides on the bankruptcy of the debtor, the provision of Article 164 shall apply.

Consequences of the definite deadline for creditors:

Article 294- (Amended: 28/2/2018-7101/22 art.)

During the period, no legal proceedings can be initiated against the debtor, including those initiated pursuant to the Law on the Procedure for Collection of Public Receivables No. 6183, dated 21/7/1953, and legal proceedings that have already been initiated are suspended, provisional injunctions and provisional attachment decisions are not implemented, and the statute of limitations and periods that foreclose rights, which can be interrupted by a legal proceeding, do not run.

The privileged receivables listed in the first paragraph of Article 206 may be pursued through seizure.

Unless the approved concordat project contains a provision to the contrary, interest on all receivables not secured by a pledge shall cease to accrue as of the definitive deadline.

The exchange is subject to Articles 200 and 201 of this Law. In the implementation of these articles, the date of the announcement of the temporary respite shall be taken as basis.

The provisions of Article 186 shall apply to seized goods to the extent that it is appropriate to their nature.

If a contract for the transfer of a future receivable is made before the granting of the concordat period and the transferred receivable arises after the granting of the concordat period, this transfer is void.

Receivables that are not in money are converted into receivables of equal value by the creditor and reported to the commissioner. However, the debtor is free to undertake the exact performance of the commitment with the approval of the commissioner.

Consequences of the definitive period for secured creditors: 

Article 295- (Amended: 28/2/2018-7101/23 art.)

During the period, due to the receivables secured by the pledge, enforcement proceedings may be initiated by converting the pledge into cash or the enforcement proceedings that have been initiated may be continued, however, due to this enforcement, preservation measures cannot be taken and the pledged property cannot be sold.

(Additional paragraph: 9/6/2021-7327/3 art.) However, if the mortgaged property is not foreseen to be used by the enterprise according to the concordat project or if its value will decrease or its preservation will be costly, its sale may be permitted in accordance with the procedure in the second paragraph of Article 297. A payment equal to the mortgage amount is made to the mortgaged creditor from the sales revenue.

Consequences of the definite period in terms of contracts:

Article 296- (Amended: 28/2/2018-7101/24 art.)

Regardless of whether the other party to the contract is affected by the composition project, the continuation of contracts to which the debtor is a party and which are important for the continuation of the business’s activities is essential. The provisions in these contracts that the debtor’s request for composition will constitute a breach of the contract, will be considered a justified reason for termination or will make the debt due shall not be applied if the debtor applies for composition. Even if there is no such provision in the contract, the contract cannot be terminated on the grounds that the debtor applies for composition. (Additional sentence: 9/6/2021-7327/4 art.) The obligations incurred due to contracts continuing for the temporary and definitive periods within the scope of this paragraph shall be performed mutually.

The debtor may terminate, at any time, with the approval of the commissioner and the permission of the court, the excessively burdensome continuous debt relations to which it is a party and which prevent the achievement of the purpose of the composition. The compensation to be paid within this framework shall be subject to the composition project. Special provisions regarding the termination of service contracts are reserved. 

Consequences of the definite period for the debtor:

Article 297- (Amended: 28/2/2018-7101/25 art.)

The debtor may continue his/her business under the supervision of the commissioner. However, when deciding on a time limit or during the time limit, the court may decide that certain transactions may only be carried out with the permission of the commissioner or that the commissioner may continue the business in place of the debtor.

(Amended second paragraph: 9/6/2021-7327/5 art.) The debtor cannot establish a lien, be a guarantor or make gratuitous dispositions, except with the permission of the court, as of the respite decision; cannot transfer or restrict its immovable property, movable property that is important for the continuation of the business’s activities and the permanent installation of the business. Otherwise, the transactions made are null and void. The court must obtain the opinion of the commissioner (…) before making a decision on these transactions.

If the debtor acts contrary to this provision or the commissioner’s warnings, the court may revoke the authority to dispose of the debtor’s property or make a decision within the framework of Article 292.

The decisions taken within the scope of the first and third paragraphs are announced in accordance with Article 288 and notified to the relevant authorities.

Keeping books and estimating the value of mortgaged goods:

Article 298- (Amended: 28/2/2018-7101/26 art.)

Following his assignment, the commissioner prepares a ledger of the debtor’s assets and assesses the value of the goods. If the debtor has goods elsewhere, this process can be carried out through the enforcement office of that location.

The Commissioner keeps his decision regarding the valuation of the pledged goods ready for review by the creditors; the valuation decision is notified to the pledged creditors and the debtor in writing before the creditors’ meeting.

The interested parties may request the court to re-evaluate the value of the mortgaged goods within seven days and on condition that they pay the costs in advance. If the new valuation is requested by a creditor and the value assessed has changed significantly, the creditor may request the debtor to pay its costs.

The valuation of mortgaged real estate within the scope of this article can be carried out by persons authorized with a real estate appraisal expert license pursuant to the Capital Markets Law No. 6362 dated 6/12/2012.

Postponement of the conversion of mortgaged movable or immovable property into cash:

Article 298/a- (Added: 17/7/2003-4949/78 art.; Repealed: 28/2/2018-7101/65 art.)

Invitation to creditors to notify their receivables:

Article 299- (Amended: 28/2/2018-7101/27 art.)

Creditors are invited to notify their receivables within fifteen days from the date of the announcement, through an announcement to be made by the commissioner in accordance with Article 288. In addition, a copy of the announcement is sent by post to creditors with known addresses. The announcement also warns that creditors who do not notify their receivables will not be accepted to the negotiations of the composition project unless they are recorded in the balance sheet.

Invitation to the debtor to make a statement regarding receivables:

Article 300- (Amended with its title: 28/2/2018-7101/28 art.)

The Commissioner invites the debtor to make a statement regarding the alleged receivables. The Commissioner will conduct the necessary examinations on the debtor’s books and documents to determine whether the receivables exist or not, and will state the results in the report to be prepared in accordance with Article 302.

Invitation to the creditors’ meeting:

Article 301- (Amended with its title: 28/2/2018-7101/29 art.)

After the preparation of the composition project, notification of receivables and investigation are completed, the commissioner invites the creditors to meet to discuss the composition project with a new announcement to be made in accordance with Article 288. The meeting date must be at least fifteen days after the announcement. The announcement also states that the creditors can examine the documents within seven days before the meeting. In addition, a copy of the announcement is sent by post to the creditors with known addresses.

The majority required for the creditors’ meeting and approval of the project:

Article 302- (Amended with its title: 28/2/2018-7101/30 art.)

The Commissioner presides over the meeting of creditors and gives a report on the debtor’s situation.

The debtor is obliged to attend the meeting to make the necessary explanations.

Concordat project;

1. a) Half of the recorded creditors and receivables, or
2. b) One-fourth of the recorded creditors and two-thirds of the receivables,

It is deemed to have been accepted if it has been signed by a majority of more than 100,000 people.

Only creditors affected by the composition project can vote. The creditors of privileged receivables listed in the first row of Article 206, the debtor’s spouse and child, and the mother, father and sibling of the debtor and his/her spouse, even if the marriage bond has been terminated, are not taken into account in the calculation of the receivables and the majority of creditors.

Receivables secured by pledges are taken into account for the part for which they remain unsecured as a result of the value assessed in accordance with Article 298.

The court decides whether and to what extent claims subject to dispute, delaying conditions or an indefinite term will be included in the calculation. However, any future rulings to be made by the court on these claims are reserved.

The minutes of the concordat prepared as a result of the negotiations of the concordat project are signed immediately, including the votes for and against. The accessions made within seven days following the end of the meeting are also accepted.

The Commissioner shall, within seven days at the latest from the end of the accession period, submit to the court all documents related to the concordat, a reasoned report on whether the concordat project has been accepted or not, and whether its approval is appropriate.

Rights against those who are jointly liable for the debt:

Article 303- (Amended with its title: 28/2/2018-7101/31 art.)

A creditor who does not consent to the composition retains all of his rights against those who are jointly liable for the debt.

The creditor who consents to the composition also benefits from this provision, provided that he/she offers to transfer his/her rights to the persons who are jointly liable for the debt in return for payment and notifies them of the date and place of the meetings at least ten days in advance.

Without prejudice to the right of recourse, the creditor may authorize the persons who are jointly liable for the debt to participate in the composition negotiations and undertake to accept their decision.

Examination of the concordat in court:

Article 304- (Amended with its title: 28/2/2018-7101/32 art.)

The court, which receives the reasoned report of the commissioner and the file, begins the trial to decide on the composition. After hearing the commissioner, the court must make its decision in a short time and in any case within the definite period. The hearing date determined for the decision is announced in accordance with Article 288. It is also stated in the announcement that those who object may attend the hearing provided that they notify their reasons for objection in writing at least three days before the hearing date.

If it is understood that a decision cannot be made within the definitive period during the proceedings regarding the composition; the court may decide to continue the time period provisions until the decision is made, if deemed necessary by obtaining a reasoned report from the commissioner. This period cannot exceed six months.

Conditions for confirmation of the concordat:

Article 305- (Amended with its title: 28/2/2018-7101/33 art.)

The approval of the concordat project, which is accepted by the votes cast at the meeting held in accordance with Article 302 and within the accession period, is subject to the fulfillment of the following conditions:

1. a) It is understood that the amount offered in the ordinary composition will be more than the possible amount that the creditors can receive in the event of the debtor’s bankruptcy; it is understood that the proceeds obtained in the event of conversion into cash in the composition by abandonment of assets or the amount offered by a third party will be more than the amount that can be obtained in the event of liquidation through bankruptcy.
2. b) The amount offered must be proportionate to the debtor’s resources (in this context, the court also evaluates whether the debtor’s expected rights will be taken into account and, if so, to what extent).
3. c) The concordat project must be accepted by the majority stipulated in Article 302.
4. d) The full payment of the receivables of the privileged creditors in the first rank of Article 206 and the performance of the debts contracted with the permission of the commissioner within the period of time must be secured with sufficient security, unless the creditor expressly waives this (the sixth paragraph of Article 302 shall apply by analogy).
5. e) The litigation expenses required for the confirmation of the composition and the fee to be collected on the money decided to be paid to the creditors in case of confirmation of the composition must be deposited in the court treasury by the debtor before the confirmation decision.

If the court finds the concordat project inadequate, it may request that the necessary corrections be made, either on its own or upon request.

Decision to approve the concordat, its scope and announcement:

Article 306- (Amended with its title: 28/2/2018-7101/34 art.)

The decision to confirm the concordat specifies the extent to which the creditors have waived their receivables and the timeframe in which the debtor will pay his debts.

The decision may appoint a trustee who is responsible for taking the necessary supervision, management and liquidation measures to ensure the implementation of the confirmed composition. In this case, the trustee shall report to the court that issued the confirmation decision every two months on the status of the debtor’s business and whether it maintains its ability to pay its debts in accordance with the project; creditors may examine this report.

The approval decision is announced by the court in accordance with Article 288 and notified to the relevant authorities.

Preservation and sale of mortgaged goods and postponement of return of goods subject to financial leasing:

Article 307- (Amended with its title: 28/2/2018-7101/35 art.)

Upon the request of the debtor, the safekeeping and sale of the mortgaged property in the confirmation decision may be postponed for a period not exceeding one year from the decision, under the following conditions.

1. a) The receivable secured by the pledge must have arisen before the request for concordat.
2. b) The receivable secured by the pledge must not have any unpaid interest until the date of the composition request.
3. c) The debtor must have proven that the pledged property is essential for the operation of the enterprise and that its economic existence would be endangered if it were converted into cash.

If the preservation of the mortgaged property and its conversion into cash is postponed, the period for requesting the sale shall not run.

Upon the request of the debtor, the return of the goods subject to financial leasing in the confirmation decision may be postponed for a period not exceeding one year from the date of the decision, under the following conditions.

294. a) The debtor must have undertaken to perform the financial leasing contract in accordance with the seventh paragraph of Article 294.
295. b) The rent receivable arising from the financial lease must have arisen before the concordat request.
296. c) Unpaid rent must not exceed three months’ amount.
297. d) The damage that may arise from the loss of value of the leased goods due to this postponement must be secured.
298. e) The debtor must have proven that the leased goods are essential for the business’s operations and that their economic existence would be in danger if they were returned.

The creditors specified in the first and third paragraphs are invited to submit their written comments before the hearing on the confirmation of the composition; these creditors are also invited to the confirmation hearing.

If the debtor transfers the mortgaged or leased property with his/her consent, goes bankrupt or dies, the postponement automatically becomes null and void.

The court that confirms the composition shall lift the postponement decision upon the request of the relevant creditor and by inviting the debtor, provided that the existence of one of the following conditions is approximately proven.

1. a) If the debtor obtained the postponement by providing false information.
2. b) If the debtor’s wealth and income have increased and the debtor has become able to pay the debt without endangering his economic existence.
3. c) If the conversion of the mortgaged property into cash or the return of the leased property will no longer endanger the economic existence of the debtor.

Failure to confirm the composition and bankruptcy of the debtor:

Article 308- (Amended with its title: 28/2/2018-7101/36 art.)

If the composition is not approved, the court decides to reject the composition request and this decision is announced and reported to the relevant authorities in accordance with Article 288. If the debtor is a person subject to bankruptcy and one of the direct reasons for bankruptcy is present, the court decides ex officio on the bankruptcy of the debtor.

(Additional paragraph: 9/6/2021-7327/6 art.) If the concordat process ends in bankruptcy, the court that issued the bankruptcy decision decides that the liquidation will be carried out according to the simple or ordinary liquidation method and that the ordinary liquidation will be carried out by the commissioners when necessary. In this case, the duties and powers of the bankruptcy administration will be used by the commissioners.

Legal remedies:

Article 308/a- (Added: 28/2/2018-7101/37 art.)

The debtor or the creditor requesting the composition may appeal against the decision made regarding the composition within two weeks from the notification of the decision, and the other creditors who object may appeal within two weeks from the announcement of the confirmation decision. An appeal may be filed against the decision of the regional court of justice within two weeks. Appeals and appeal reviews are conducted in accordance with the provisions of the Code of Civil Procedure .

Lawsuit regarding disputed receivables:

Article 308/b – (Added: 28/2/2018-7101/37 art.)

Creditors whose receivables are subject to objection may file a lawsuit within one month from the date of announcement of the confirmation decision.

The court that issued the confirmation decision may decide that the share of the disputed receivables in accordance with the concordat project be deposited by the debtor in a bank determined by the court until the decision becomes final. Creditors who have not filed a lawsuit within the time limit cannot request payment from this share; in this case, the deposited share is returned to the debtor.

Provisions of the concordat:

Article 308/c – (Added: 28/2/2018-7101/37 art.)

The composition becomes binding with the confirmation decision. In the confirmed composition project, it may also be decided that the composition will become binding with the finalization of the confirmation decision; in this case, the effects of the period continue until the date the composition becomes binding, subject to the exceptions provided for in the law.

The composition which becomes binding is mandatory for all receivables arising before the composition request or within the period without the permission of the commissioner.

The provision of the second paragraph of this article shall not apply to the privileged receivables listed in the first paragraph of Article 206, the receivables of secured creditors in an amount equal to the value of the pledge, and public receivables within the scope of Law No. 6183.

(Amended first sentence: 9/6/2021-7327/7 art.) Debts concluded with the permission of the commissioner after the temporary respite decision, including loans granted by credit institutions, are not subject to the terms of the concordat in ordinary composition, may be subject to enforcement proceedings even during the respite in case of default and are paid immediately after the secured receivables within the scope of article 206 and before all other receivables; are considered as a table debt within the scope of article 248 in the composition by abandonment of assets or in a subsequent bankruptcy. The same rule applies to counter obligations in continuous debt relations to which the debtor who accepts the performance of the counter obligation with the permission of the commissioner is a party.

The effect of the concordat on the unsuccessful follow-ups:

Article 308/ç – (Added: 28/2/2018-7101/37 art.)

The concordat becoming binding on the parties renders null and void any seizures that were initiated in the proceedings before the temporary respite decision and that have not yet been converted into cash.

The provision of the first paragraph shall not apply to seizures imposed for receivables within the scope of the third paragraph of article 308/c.

Promises made outside of the concordat:

Article 308/d – (Added: 28/2/2018-7101/37 art.)

Promises made by the debtor to one of the creditors in excess of what is stipulated in the concordat project are null and void.

Partial termination of the concordat:

Article 308/e – (Added: 28/2/2018-7101/37 art.)

Any creditor against whom no performance has been made pursuant to the concordat project may apply to the court that approved the concordat and have the concordat terminated against him, although he retains the new rights he acquired pursuant to the concordat.

An appeal may be filed within two weeks from the date of notification of the decision to be given on the request for termination. An appeal may be filed against the decision of the regional court of justice within two weeks from the date of notification.

Complete termination of the concordat:

Article 308/f – (Added: 28/2/2018-7101/37 art.)

Every creditor may request the termination of a composition that has been damaged in bad faith from the court that has given its approval decision.

When the decision to completely terminate the concordat becomes final, the situation is announced in accordance with Article 288 and notified to the relevant authorities.

The provision of Article 308 shall also apply in this case.

Fees, tax exemptions and incentive documents in the composition:

Article 308/g – (Added: 28/2/2018-7101/37 art.)

Within the scope of the approved concordat project;

1. a) Transactions to be carried out are subject to the fees subject to the Law on Fees No. 492; papers to be prepared due to these transactions are subject to stamp duty,
2. b) Amounts to be collected by creditors under any name whatsoever, from the bank and insurance transaction tax to be paid in accordance with the Expenditure Taxes Law No. 6802,
3. c) Loans to be used by the debtor will be provided from the Resource Utilization Support Fund,

has been excluded.

These exemption provisions are applied specifically to the debtor and the creditors within the scope of the project in terms of the transactions specified in the concordat project. Third parties cannot benefit from these exemption provisions.

The duration of incentive certificates and export commitment periods of debtors whose debts are tied to a new redemption plan according to the composition project shall not apply from the date the temporary respite decision is made until the date the composition becomes binding.

1. NEGOTIATIONS WITH SECURED CREDITORS AND RESTRUCTURING OF DEBTS

Terms of negotiation with secured creditors and provisions of restructuring:

Article 308/h- (Added: 28/2/2018-7101/38 art.)

In ordinary concordat, the debtor requests the restructuring of the debts established as collateral in favor of the creditor, by specifying this in the preliminary project, in accordance with this article.

The Commissioner invites all secured creditors to negotiate the debtor’s principal reduction, interest reduction, installment or other payment proposals at a time he deems appropriate within the definite period by issuing a notice.

If an agreement is reached with a majority of more than two-thirds of the secured creditors in terms of the amount of the receivables during the negotiations and the seven-day accession period following the negotiations, the commissioner records the signed agreements in the minutes and records the fact that an agreement has been reached with the secured creditors under a separate and independent heading in his reasoned report to be submitted to the court in accordance with Article 302.

If the debtor’s proposals are accepted by a majority exceeding two-thirds in terms of the amount of the receivable, the secured creditor who cannot reach an agreement with the debtor shall be subject to the longest term of the agreements made with the other secured creditors, by applying the pre-default interest rate agreed in the contract between the parties, as of the date of the composition request. This matter and the plan regarding the payments to be made by the debtor to the secured creditors with whom an agreement cannot be reached shall be recorded in the minutes by the commissioner and shall also be included in the reasoned report to be submitted to the court by the commissioner in accordance with Article 302.

If an agreement cannot be reached with the secured creditors, this matter is also recorded in the commissioner’s reasoned report.

The court shall check the agreements made with the secured creditors in terms of whether the two-thirds ratio has been reached and whether the payment plan to be applied to the secured creditors with whom an agreement could not be reached complies with the conditions set forth in this article, and shall include the agreements and payment plan in the decision to be given in accordance with articles 305 and 306.

If the creditors’ meeting to be held in accordance with Article 302 does not accept the debtor’s concordat project, the agreements concluded between the secured creditors who have made an agreement with the debtor in accordance with this article and the payment plan prepared for the secured creditors who have not made an agreement shall not become valid.

Any secured creditor against whom performance has not been made in accordance with the agreement made may apply to the court that issued the confirmation decision and have the agreement regarding that secured debt terminated. However, if the two-thirds ratio specified in the third paragraph is dropped as a result of this termination, the secured creditors who did not accept the debtor’s offer and were subject to the payment plan shall cease to be bound by this plan, and the secured creditors who have reached an agreement with the debtor may terminate the agreement.

This article is exclusively applied in the case where the debtor proposes to restructure the debts for which a lien has been established in favour of the creditor in an ordinary composition. Articles 285 to 309/1 do not apply to secured creditors unless expressly stated.

III. CONCORDAT AFTER BANKRUPTCY

Terms and conditions:

Article 309 – (Amended: 28/2/2018-7101/39 art.)

If a debtor who has been declared bankrupt requests a composition or one of the creditors of this debtor requests the initiation of composition proceedings, the bankruptcy administration notifies the creditors of this request, together with its opinion, at the second creditors’ meeting or for later negotiation.

Articles 302 to 307 and articles 308/a to 308/g also apply here. The duties of the commissioner are carried out by the bankruptcy administration.

The conversion of the bankrupt’s assets into cash is suspended from the date of the meeting where the request for concordat is accepted by the creditors until the date the concordat is approved by the court. This period cannot exceed six months.

The decision regarding the concordat is notified to the bankruptcy administration.

Once the decision to approve the composition becomes final, the bankruptcy administration requests the bankruptcy court to lift the bankruptcy.

After bankruptcy, the composition can only be requested once during the bankruptcy liquidation.

1. CONCORDAT BY ABANDONMENT OF ASSETS

Generally:

Article 309/a- (Added: 17/7/2003-4949/84 art.)

With the concordat by abandonment of assets, creditors are given the authority to dispose of the debtor’s assets or to transfer all or part of these assets to a third party.

Creditors exercise their rights through the liquidators of the composition and the creditors’ board. The liquidators of the composition and the creditors’ board are elected by the creditors who decide on the composition request. The liquidator of the composition begins his duty after the decision of the first instance commercial court regarding the election is approved. The liquidator of the composition can also be a liquidator.

Mandatory content:

Article 309/b – (Added: 17/7/2003-4949/84 art.)

The composition by abandonment of assets includes the following matters:

1- Whether the creditors waive their receivables that cannot be met by liquidation of the goods or their transfer to a third party, and if they do not waive, what the debtor’s liability is.

2- Determination of the concordat liquidators and members of the creditors’ committee and their authorities.

3- If not determined by law, the method of liquidation of the goods and, if the goods are to be transferred to a third party, the form and security of this transfer.

4- (Amended: 28/2/2018-7101/41 art.) Announcements to creditors and notifications to relevant places will be made in accordance with article 288.

If there are goods that are not within the scope of the concordat, these are clearly stated.

Results of the verification:

Article 309/c- (Added: 17/7/2003-4949/84 art.) 

Once the decision to confirm the composition by abandoning the assets becomes final, the debtor cannot dispose of his/her assets and the signature authority of the persons authorized to dispose of these assets ends.

If the debtor is registered in the trade registry, the words “in case of liquidation of concordat” are added to the trade name. The concordat desk is followed under this title for debts not included in the scope of the concordat.

The concordat liquidators carry out all the necessary procedures for the preservation of the concordat estate and its conversion into cash or, if necessary, the transfer of the assets.

The concordat liquidators represent the concordat table in the courts. Article 228 is applied by analogy.

Legal status of the concordat liquidators:

Article 309/ç- (Added: 17/7/2003-4949/84 art.)

The liquidators of the composition are subject to the supervision and control of the creditors’ committee. The decisions of the liquidators of the composition regarding the liquidation of the assets can be objected to by the creditors’ committee within seven days of learning of them, and a complaint can be filed against the decisions of this committee.

Articles 8, 9, 10, 11, 21 and 359 are also applied by analogy to the transactions of the composition liquidators.

Determination of creditors who will participate in the distribution:

Article 309/d- (Added: 17/7/2003-4949/84 art.)

In order to determine the creditors and their order of participation in the sharing of the proceeds from the liquidation, the concordat liquidators prepare a list of creditors based solely on the commercial books and the receivable records, without the need to issue a new invitation to the creditors, and keep this list of creditors ready for review.

Articles 230 to 236 are applied by analogy.

Convert to cash:

Article 309/e- (Added: 17/7/2003-4949/84 art.)

The assets constituting the composition estate are converted into cash, either individually or as a whole. If there is a receivable, conversion into cash is carried out by collecting this receivable or selling the right to claim, or by bargaining or auctioning for other assets.

The method and time of conversion into cash are decided by the creditors’ assembly upon the proposal of the composition liquidators.

Mortgaged real estates:

Article 309/f- (Added: 17/7/2003-4949/84 art.)

Except for cases where the goods are transferred to a third party, the sale of mortgaged real estates by the liquidators of the composition through negotiation is only possible with the consent of the mortgaged creditors who cannot collect their receivables from the sale price of the mortgaged real estate. Otherwise, the real estates in question can only be converted into cash through auction. The existence and order of the easements, real estate encumbrances, mortgages and annotated personal rights on the real estate are determined according to the order table.

Movable pledges:

Article 309/g- (Added: 17/7/2003-4949/84 art.) 

Creditors whose receivables are secured by a movable pledge are not obliged to deliver the pledged movables to the liquidators of the composition. Unless another period is stipulated in the composition, the pledged creditors may convert the pledged movables into cash at any time they deem appropriate, by converting the pledge into cash or, if authorized in the pledge agreement, by bargaining or by selling them on the stock exchange.

However, if the conversion of the pledge into cash is in the interest of the concordat estate, the concordat liquidators may authorize the secured creditor to convert the pledged property into cash within six months. The concordat liquidators also remind the secured creditor of the penalty stipulated in Article 289 of the Turkish Penal Code No. 5237, dated 26/9/2004, and warn him that if he does not convert it into cash within this period, he must deliver the pledged property to them, and that if he does not deliver it without a justified reason, he will be deprived of his right of priority.

Transfer of collection difficulties and disputed rights to creditors:

Article 309/ğ- (Added: 17/7/2003-4949/84 art.)

If the creditors’ council, upon the proposal of the composition liquidators, gives up a disputed or difficult to collect receivable, especially a cancellation action, or a liability action against the debtor’s organs or employees, it shall notify the creditors in writing or by means of an announcement and shall offer to transfer the right to pursue these claims in accordance with Article 245.

Division of funds:

Article 309/h – (Added: 17/7/2003-4949/84 art.)

The liquidators of the composition shall prepare a share schedule before each distribution, even temporarily, and shall notify each creditor of the amount of his/her share; the liquidators of the composition shall keep the share schedule ready for the creditors to examine at the bankruptcy office for ten days. A complaint may be filed against the share schedule.

The concordat liquidators submit the final account, including the share schedule and expenses, to the bankruptcy office.

Pledge gap:

Article 309/ı- (Added: 17/7/2003-4949/84 art.)

The secured creditors whose pledges were converted into cash during the deposit of the provisional share schedule participate in the provisional distribution for the remaining part of their receivables. The remaining part is determined by the composition liquidators and a complaint may be filed against this decision.

If the pledge is not converted into cash at the time of deposit of the provisional share schedule, the pledged creditor shall participate in the distribution for the amount foreseen by the commissioner to remain open. The pledged creditor who proves that the proceeds from the conversion of the pledge are below the foreseen amount shall be entitled to the corresponding payments.

If the total of the proceeds from the conversion of the pledge into cash and the temporary payments made up to that time exceed the amount of the receivable, the pledged creditor must return the excess.

Deposit:

Article 309/i- (Added: 17/7/2003-4949/84 art.)

The shares not collected by the rightful owners within the period determined by the concordat liquidators are deposited into the bank in accordance with the provisions of Article 9.

Shares not collected by the rightful owners within five years are distributed by the bankruptcy office; Article 255 is applied by analogy.

Activity report:

Article 309/j- (Added: 17/7/2003-4949/84 art.)

When the liquidation is completed, the liquidators of the composition prepare a final report. This final report is submitted to the approval of the board of creditors. The board sends the final report it approves to the commercial court, which is the approval authority, and the approval authority keeps it ready for the creditors to examine.

If the liquidation lasts longer than one year, the liquidators of the composition shall prepare a schedule indicating the status of the liquidated assets and the assets not yet converted into cash, and a report on their activities, and submit it to the creditors’ council by the end of December each year at the latest. This schedule and report shall be submitted to the certification authority through the creditors’ council to be made available for review by the creditors by the end of February of the following year.

Cancellation of legal transactions:

Article 309/k- (Added: 17/7/2003-4949/84 art.)

Legal transactions made by the debtor before the confirmation of the composition are subject to cancellation in accordance with articles 277 to 284.

(Amended second paragraph: 28/2/2018-7101/43 art.) The date on which the temporary composition period is granted takes the place of the filing of the seizure or bankruptcy in the calculation of the periods for filing an annulment lawsuit.

If it is possible to partially or completely reject the claims submitted to the concordat table by cancelling the disposition, the concordat liquidators are authorized and obliged to request cancellation by way of defense.

Common provisions to be applied:

Article 309/l- (Added: 17/7/2003-4949/84 art.)

Unless it is contrary to its nature, articles 285 to 308/g are also applied in the concordat by abandonment of assets.

1. RESTRUCTURING OF CAPITAL COMPANIES AND COOPERATIVES THROUGH CONCILIATION

Restructuring through compromise:

Article 309/m- (Added: 12/2/2004-5092/8 art.)

A capital company or cooperative that is unable to pay its outstanding debts, or is insufficient to cover its current and receivable debts, or is likely to face the risk of falling into one of these situations, may apply to the first instance commercial court where the transaction center is located for restructuring through conciliation, together with a restructuring project that has been previously negotiated and accepted by the creditors affected by the project by providing the necessary majority.

The term “creditors affected by the project” in articles 309/m to 309/ü refers to creditors whose receivables, rights or interests will be restructured through the restructuring project.

The term “required majority” means the majority required for the acceptance of the project, which exceeds at least half of the creditors affected by the project and participating in the vote, and constitutes at least two-thirds of the receivables of the creditors voting. If the project involves more than one class of creditors, each class of creditors must have accepted the project with the required majority.

Reconstruction project:

Article 309/n- (Added: 12/2/2004-5092/8 art.)

The restructuring project to be submitted to the commercial court of first instance includes the following:

1- The conditions to which creditors affected by the project will be subject and how equality will be ensured among creditors with similar receivables.

2- The impact of the project on the contracts to which the debtor is a party.

3- The impact of the project on the debtor’s power of disposition of assets.

4- Whether the debtor will apply for financing sources such as loans, if deemed necessary for the restructuring of debts.

5- Methods that can ensure the feasibility of the project, such as partial or complete transfer of the debtor’s business, merger with another company or companies, change of capital structure or articles of association, determination of persons to take part in the management of the debtor business, extension of debt maturities, change of interest rates, issuance of securities.

6- By whom and how the implementation of the project will be monitored after the approval decision.

7- The claim of a creditor who rejects the project will be treated equally with claims that are similar in nature, unless the creditor expressly accepts less than the right foreseen for his class in the project.

The project may group creditors into more than one class, provided that the receivables with substantially similar legal characteristics are included in the same class.

Documents to be attached to the application:

Article 309/o- (Added: 12/2/2004-5092/8 art.)

The documents to be attached to the application are as follows:

1- Restructuring project.

2- Documents showing the financial situation of the debtor, a detailed balance sheet, a table showing the status of the books, an income statement and other information and documents explaining the financial situation of the debtor.

3- Documents showing that the project will restore the debtor’s ability to pay, and enable him to pay his outstanding debts according to the payment plan and to realize cash flow.

4- List of creditors affected and unaffected by the project and their receivables.

5- Explanations that describe the pre-application negotiation process and include evidence that the creditors affected by the project have been provided with sufficient information to enable them to make a decision on the project, through appropriate means such as registered mail or notary notice.

6- Notarized minutes containing the statements of the creditors who are affected by the project and give their approval.

7- Document showing the amount that will be received by the creditors according to the project and the possible amount that will be received by the creditors in the event of the debtor’s bankruptcy.

8- Table showing that the majority condition is met in terms of number and amount.

9- Financial analysis reports and their supports prepared by an independent auditing firm with the necessary qualifications, showing that the debtor can achieve payment capacity and comply with the conditions in the project.

Actions to be taken and measures to be taken by the court upon application and in the interim period:

Article 309/ö- 4(Added: 12/2/2004-5092/8 art.)

The court determines the date of the hearing to be held within thirty days from the application; announces the application by public notice in accordance with the procedure provided for in Article 288 and notifies all creditors affected by the project and whose addresses are known. The announcement and notification to be made shall indicate the scope and results of the application, the date from which the application file can be viewed and where, and the day and time of the hearing at which objections can be put forward.

The court shall also, upon the request of the debtor or one of the creditors, immediately take measures deemed necessary to protect the debtor’s assets and the debtor’s activities for the period until the final decision is given on the application. In such a case, the court may also set a hearing date without waiting for the hearing date and may appoint one or more interim auditors, who have the necessary knowledge, experience and qualifications, and who will personally undertake the management of the debtor’s activities from the appointment until the decision on the approval or rejection of the project is made, and who will supervise these activities. In cases where the creditors and the debtor do not select an interim auditor or cannot agree on any auditor, but the circumstances necessitate the appointment of an interim auditor, the court may appoint one or more interim auditors, whose qualifications and powers shall be determined by the regulation.

The court may decide to suspend the proceedings initiated by the creditors affected by the project against the debtor and the lawsuits related to these proceedings, including the proceedings and lawsuits initiated pursuant to Law No. 6183 on the Procedure for Collection of Public Receivables, to prohibit new enforcement proceedings for the affected creditors, and to not implement provisional injunctions and provisional attachment decisions for the interim period. In this case, the statute of limitations and the periods that prevent rights from being applied by a proceeding shall not apply.

In the interim period, the debtor may apply for financing instruments such as loans if it is necessary for the continuation of the business or if it is deemed necessary to protect or increase the value of its assets. If collateral is required for the use of a financing source, this collateral is primarily provided on the debtor’s movable or immovable properties that have not previously been pledged.

The term financing source also includes those who provide the borrower with goods and services necessary for the operation of the business, such as raw materials.

Court examination of the application and legal remedies:

Article 309/p- (Added: 12/2/2004-5092/8 art.)

In the confirmation hearing, the court hears the interim auditor, the authorities of the debtor enterprise and the creditors present at the hearing. If the court determines that the debtor has applied for restructuring in good faith, that the conditions in articles 309/m to 309/o have been met and that the amount that each creditor who rejected the project will receive with the project is at least equal to the amount that they will receive at the end of the bankruptcy liquidation, it decides to confirm the application within thirty days at the latest, otherwise it decides to reject it.

The court, together with the approval decision, may appoint one or more project auditors, whose authority is limited to auditing the principles of the project implementation and regularly reporting the situation to the creditors, taking into account the opinions of the debtor and creditors on this matter. If the debtor and creditors do not choose an auditor or cannot agree on an auditor, the court may appoint an auditor ex officio, whose qualifications and scope of duty will be determined by the regulation.

(Amended third paragraph: 2/3/2024-7499/2 art.) The debtor and the creditors who objected during the confirmation hearing may appeal against the confirmation or rejection decision within two weeks from the date of notification, and may appeal against the decision given upon the appeal examination within two weeks from the date of notification.

Objections of the parties and appeals and appeals are subject to a fixed fee.

Consequences of the decision:

Article 309/r- (Added: 12/2/2004-5092/8 art.)

The restructuring project begins to produce all its provisions and consequences from the moment the decision to approve the application is made. The conditions of the project take precedence over all contractual provisions with the creditors affected by the project.

If the decision is overturned by the Supreme Court at the end of the appeal review, the execution of the project approval decision automatically stops. The transactions made until the overturning decision remain valid.

Regardless of whether the debtor is affected by the project or not, if there are provisions in the contracts to which the debtor is a party that may lead to the modification or termination of the project or that the debtor’s restructuring would constitute a default or a breach of contract, these provisions shall not apply if the debtor resorts to restructuring.

If a court decision is made to reject the request for approval of the application, the measures taken by the court are lifted and the suspended lawsuits and follow-ups continue.

Termination of restructuring by agreement:

Article 309/s- (Added: 12/2/2004-5092/8 art.)

In the restructuring of capital companies and cooperatives through reconciliation, Article 308/e and the first paragraph of Article 308/f shall be applied analogously. If a decision is made to completely terminate the restructuring and this decision becomes final, the situation shall be announced by the court in accordance with the procedure provided for in Article 288. Within ten days from the announcement, the creditors affected by the project may request the court that issued the approval decision to immediately declare the debtor bankrupt.

Amendment of the restructuring project through conciliation:

Article 309/ş- (Added: 12/2/2004-5092/8 art.)

In case of a violation of a part of the project, if this violation affects only some creditors, if these creditors whose rights have been violated agree with the debtor on the modification of the project, the modified project is submitted to the court for approval. If this modification is necessary for the continuation of the project and the modified project does not put the creditors whose rights have been violated in a more favorable position than the other creditors affected by the project, the court approves the modified project. The procedure for the approval of the restructuring project is also applied to the modification of the project.

Violation of the restructuring project through reconciliation and various provisions:

Article 309/t- (Added: 12/2/2004-5092/8 art.)

If the debtor fails to fulfill its obligations arising from the project in full or in part on time, the situation shall be notified to the court that approved the project by the project controller, the debtor or the creditors affected by the project. The same right shall apply to the creditor who has created a financing source such as a loan against collateral or without collateral for the debtor before the approval of the project and who has not been able to obtain the receivables arising from this in part or in whole. Upon this notification, the court shall take the necessary protective measures, including measures to prevent the debtor from disposing of the debtor’s assets, to protect the debtor’s assets and shall set a hearing date and announce it in accordance with the procedure provided for in Article 288. After examining the existing objections of the creditors affected or not affected by the project, the court shall immediately declare the debtor bankrupt if it determines that the debtor has not fulfilled its obligations in part or in whole, that the project has not been implemented and its amendment has not been made or that the financing creditor has not been able to obtain its receivables in part or in whole.

Banks and insurance companies cannot apply as debtors to the restructuring of capital companies and cooperatives through conciliation.

The provisions of article 334/a shall apply to the interim auditor and project auditor.

Duty, tax exemptions and incentive certificates:

Article 309/u- (Added: 12/2/2004-5092/8 art.)

Within the scope of the approved project;

1- The transactions to be carried out and the papers to be prepared are subject to the stamp duty to be paid according to the Stamp Duty Law No. 488 and the fees to be paid according to the Fees Law No. 492.

2- Amounts to be collected by creditors under any name whatsoever, are subject to the bank and insurance transaction tax to be paid in accordance with the Expenditure Taxes Law No. 6802,

3- The loans provided and to be provided to the debtor are from the Resource Utilization Support Fund,

4- Other similar transactions, papers and loans are exempt from taxes, duties, fees and fund obligations (except for the Education Contribution Fee to be paid in accordance with Law No. 4306),

Exception has been made.

The exception also applies in cases where creditors dispose of assets acquired within the scope of the approved project.

The receivable amounts that are waived in accordance with the approved project provisions are considered as worthless receivables for the creditor and waived receivables for the debtor in accordance with the provisions of the Tax Procedure Law No. 213.

Even if the procedures implemented in accordance with the approved project provisions are not carried out, the exceptions applied in accordance with this article cannot be withdrawn.

The duration of incentive certificates and export commitment periods received by debtors whose debts are tied to a new redemption plan according to the restructuring project through reconciliation are deemed to have been extended by the periods determined by the projects.

Notary fees for notarized documents required during the implementation of restructuring of capital companies and cooperatives through reconciliation are collected as a lump sum.

Regulations:

Article 309/ü- (Added: 12/2/2004-5092/8 art.)

Within two months from the date of publication of this Law, the regulation regarding the implementation of restructuring of capital companies and cooperatives through reconciliation shall be put into effect by the Ministry of Justice.

CHAPTER THIRTEEN

Bankruptcy by installments and fraud

I – INSTALLMENT BANKRUPTCY

Bankruptcy cases based on installments:

Article 310 – A person who is found to be bankrupt in one of the following situations is deemed to be in default and is punished according to the Turkish Penal Code:

1 – If he cannot show reasonable reasons for his losses;

2 – If the expenses of your home are more than necessary;

3 – If he has spent a large amount of money in gambling or abstract games of chance or stock market transactions;

4 – If he has bought a significant amount of goods on credit or borrowed money from people who were unaware of his situation, even though he knew that his debt was greater than his assets and receivables;

5 – (Amended: 29/6/1956-6763/42 art.) If the books listed in subparagraphs 1 to 3 of the first paragraph of Article 66 of the Commercial Code have not been kept at all or in the manner prescribed by law;

6 – If he has signed promissory notes for an amount greater than his assets and receivables;

7 – (Amended: 18/2/1965-538/128 art.) If the person fails to appear without a valid excuse, even though he/she was summoned by the court, bankruptcy administration or bankruptcy office during the bankruptcy proceedings;

8 – If he has abandoned his work and escaped;

9 – If the bankruptcy decision is made again without fulfilling the conditions of a previous concordat;

10 – If the bankruptcy occurred within one year by not complying with the provision of the last paragraph of Article 178.

II – FRAUDULENT BANKRUPTCY

Fraudulent bankruptcy cases:

Article 311 – (Amended: 18/2/1965-538/129 art.)

A person who engages in fraudulent transactions with the intention of causing damage to his creditors, especially in the following ways, before or after his bankruptcy, is deemed to be fraudulently bankrupt and is punished according to the Turkish Penal Code:

1. If he completely or partially steals, conceals or destroys the goods of the creditors which are jointly pledged;
2. If he gives false receipts or acknowledges a debt in writing to the detriment of creditors;
3. If he makes fraudulent sales, transactions or donations;
4. If he recognizes a dowry that was not actually brought in the marriage contract as if it was brought, and the wife attempts to use this contract against her husband’s creditors;
5. If he causes damage to his creditors by confessing a debt contrary to the truth or by making fraudulent transactions and agreements;
6. If he squanders his assets by selling his commercial goods or the products of his factory, which have significant value, at a price that is much lower than the market value on the day of sale and the value at which he bought or acquired them, even though he knows that his debts are greater than his assets and receivables;
7. If it provides special benefits to the creditor outside the concordat agreement;
8. If he shows his assets as more or less than they actually are, through false accounting and false balance sheets.

(Amended: 6/6/1985-3222/38 art.) Article 522 of the Turkish Penal Code shall be applied according to the value of the goods written in paragraph one.

If those who commit the crimes listed in the first paragraph are members of the bankrupt’s household, they are punished as if they were the bankrupt.

The same penalties are applied to those who, even if they are outside the participation provisions of the Turkish Penal Code, partially or completely hide or steal movable and immovable properties belonging to the bankrupt person with the aim of reducing his assets, or who collude or abet or mediate in such matters, or who apply to the bankruptcy estate and register partially or completely false receivables, or who engage in commercial activities in their own name or under a pseudonym with the aim of reducing the bankrupt person’s ability to pay.

FOURTEENTH CHAPTER

Restoration of reputation

Restoration of reputation:

A – Fraudulent bankruptcy:

Article 312 – A fraudulent bankrupt may obtain the restoration of his reputation in accordance with the provisions of the section of the Code of Criminal Procedure on the restoration of the prohibited rights. However, in addition to fulfilling the conditions set forth in the said section, he must attach to his petition receipts or other documents from all creditors accepted to the table indicating that their receivables have been fully paid off.

B – Bankrupt with installments:

Article 313 – After a bankrupt by instalments has served the required sentence or after the sentence has been reduced for legal reasons, he may apply to the court that issued the bankruptcy decision with a petition to have his reputation restored. The petition is documented with a ledger obtained from the bankruptcy office showing the receivables of all creditors accepted to the table, and receipts or other supporting documents showing that these debts have been fully paid off.

C – Ordinary bankrupt:

Article 314 – An ordinary bankrupt may request the court that ruled on his bankruptcy to restore his reputation by showing receipts or documents showing that all creditors accepted to the table have paid off their receivables.

Advert:

Article 315 – The decision made upon acceptance of the request in accordance with the above articles shall be announced in the Official Gazette.

Restoration of reputation after death:

Article 316 – The restoration of the reputation of a fraudulent, negligent or ordinary bankrupt person may be decided upon the request of one of his heirs after his death.

CHAPTER FIFTEEN

Respite and vacation in exceptional circumstances

I – EXTRAORDINARY TIME

Conditions for the application of this chapter:

Article 317 – In extraordinary circumstances, especially in cases of continuous economic crises, the President may decide that the provisions of Articles 318 to 329 shall apply to the debtors in the region affected by these circumstances for a certain period of time.

Acceptance of the extraordinary period, the petition of the debtor:

Article 318 – In the areas determined by the President in this manner, the debtor who cannot fulfill his commitments due to the circumstances specified in Article 317 without any fault may request an extraordinary period of time from the enforcement court, not exceeding six months, if the circumstances give hope that he will be able to pay his debts in full at the end of the period.

The debtor is obliged to attach to his petition documents showing his financial situation, a list of creditors, and to provide all information requested by the enforcement court and to show all documents that may be requested from him. If the debtor is subject to bankruptcy proceedings, he shall additionally attach to his petition his balance sheet and books.

(Additional paragraph: 17/7/2003-4949/85 art.) After the petition is submitted, the enforcement court may stop the pending proceedings by way of a measure, except for the receivables stipulated in article 326. The enforcement court determines whether the period for stopping the proceedings will be reduced from the extraordinary period and, if so, to what extent it will be reduced.

Inspections to be conducted by the enforcement court:

Article 319 – If the request for a period of time does not seem to be unfounded at first glance after the enforcement court has made the necessary investigations, it shall determine a day and announce the date for that day, and shall invite all creditors and, if necessary, apply to the person who will grant the grant.

Creditors may examine the file before the appointed date; they also have the authority to raise written objections to the creditors’ request for a period of time.

The enforcement court gives its decision within a short period of time; in addition to granting a period of time, it may also oblige the debtor to pay in one or several installments.

Appeal

Article 320- (Amended: 2/3/2005-5311/20 art.)

Each of the debtor and creditors may appeal within two weeks from the date of notification of the decision.

The extraordinary period of time given by the enforcement court is valid until the final decision of the regional court of justice.

Book preparation, commissioner:

Article 321 – The enforcement court orders the keeping of books before or while giving the time limit decision and takes all other measures to protect the rights of creditors.

The enforcement court may appoint a commissioner to supervise the debtor’s transactions, as well as granting a period of time.

Notification of the decision:

Article 322 – When the deadline decision becomes final, it shall be notified to the enforcement office and announced immediately.

Results, follow-ups and durations:

Article 323 – (Amended: 17/7/2003-4949/86 art.)

During the period, proceedings may be initiated against the debtor and these proceedings may continue until the seizure or storage order is issued. The seized wages are also collected during the period; the same rule applies to rents if they are included in the scope of real security within the framework of a proceeding initiated during or before the period. On the other hand, even if the request for the conversion of the lien into cash, the seizure or storage order occurred before the period was granted, no sale may be made or bankruptcy may be declared.

The periods stipulated in articles 106, 150/e, 156, 206, 278, 279 and 280 are extended for the duration of the period. The same rule applies to the interests of receivables secured by real estate mortgages in real collateral.

Debtor’s disposition rights:

A – In general:

Article 324 – The debtor may continue his business. However, during the term, any transaction that would harm the legal interests of the creditors or would favor some of the creditors to the detriment of others is prohibited.

B – Regarding the special measures taken by the competent authority:

Article 325 – When granting an extraordinary period of time, the enforcement court may decide that the debtor will not assign the real estates or establish real rights on them, create liens, or perform gratuitous dispositions without the consent of the commissioner or the enforcement court itself, and that the debtor will not be able to make payments or provide security for debts that arose before the extraordinary period, and if he does, the debt will be null and void.

However, it is not necessary to obtain consent for the payment of the second and third debts mentioned in Article 206 and the payment of the installments mentioned in the third paragraph of Article 319.

If the above-mentioned entries are included in the extraordinary period decision, they are also written in the announcement and the extraordinary period is recorded in the land registry as a limitation of the right of assignment.

Receivables not subject to extraordinary time limits:

Article 326 – (Amended first paragraph: 17/7/2003-4949/87 art.) The grace period shall not apply to receivables of less than five hundred million liras and to receivables in the first row of Article 206.

Even if the debtor is subject to bankruptcy proceedings, these receivables can only be pursued during the extraordinary period by way of seizure or by converting the lien into cash.

Extension:

Article 327 – The extraordinary period granted by the enforcement court upon the petition of the debtor within the period determined in accordance with the provisions of Article 317 may be extended by a maximum of four months if the reasons necessitating this continue without the fault of the debtor.

The debtor is required to attach to his petition a complete list of creditors and, if he is subject to bankruptcy proceedings, a complete balance sheet.

The enforcement court determines a period for creditors to submit their objections in writing and notifies the extension request by announcement.

If a commissioner has been appointed, he or she is also invited to report.

After the period has expired, the enforcement court will make its decision and this decision will be announced under the same conditions. As with the extraordinary period, an appeal can be filed against this decision.

In this case, the regional court of justice makes its decision on the file.

Refi:

Article 328 – The enforcement court may decide to lift the deadline upon the request of one of the creditors or the commissioner in the following cases:

1 – If the debtor does not pay the assigned installments on time;

2 – If the debtor acts contrary to the instructions of the commissioner and violates the legal interests of the receivables or obliges some of them to the detriment of others;

3 – If one of the creditors proves that the information given by the debtor to the enforcement court is contrary to the truth or that the debtor is capable of fulfilling all of his commitments.

The debtor is invited to be heard or to submit his objections in writing. If necessary, the enforcement court will make its decision on the file after obtaining additional information. In case of an application, the regional court of justice will act in the same manner. The decision of refi is announced within the framework of the conditions to which the time limit decision is subject.

If the refi decision is made according to the second and third numbers, the debtor cannot be given a composition period or a new extraordinary period.

Condordato within the extraordinary period and not granting a new period:

Article 329 – The debtor who wishes to request a concordat during the extraordinary period of time is obliged to submit his documents and the concordat project together with the commissioner’s opinion before the end of the period.

A concordat period cannot be granted within six months after the extraordinary period ends, nor can a new extraordinary period be granted.

Relationship with postponement of bankruptcy:

Article 329/a- (Added: 17/7/2003-4949/88 art.; Repealed: 28/2/2018-7101/65 art.)

II – HOLIDAY IN EXTRAORDINARY CASES

Cases of suspension of enforcement proceedings:

Article 330 – In case of an epidemic, a public calamity or war, enforcement proceedings may be suspended for a certain period of time in a part of the country or in favor of certain economic groups by the decision of the President.

CHAPTER SIXTEEN

1. Penal provisions

Penalty for debtors who reduce their assets with the intention of causing harm to their creditors:

Article 331- (Amended: 31/5/2005-5358/1 art.)

If, after the request for enforcement through seizure or within two years before such request, the debtor removes, destroys or devalues his property or some of it, or transfers it to someone else’s possession by real means or by concealing it through collusion, or artificially reduces his assets by confessing to non-core debts, with the intention of causing damage to his creditor, he shall be punished with imprisonment from six months to three years and a judicial fine of up to one thousand days, provided that he proves that he has obtained a certificate of insolvency against him or that the creditor has not been able to collect his receivables.

These provisions shall also apply to the debtor who commits the acts in the first paragraph before the bankruptcy proceedings or the bankruptcy request in direct bankruptcy cases, even if these acts constitute another crime.

These provisions shall also apply to the debtor who commits the acts in the first paragraph within two years before the request for a concordat period or postponement of bankruptcy, or after the request for a concordat period or postponement of bankruptcy.

If an addition within the scope of a real estate mortgage is removed from the real estate with the intention of harming the mortgagee, the possessor of the addition shall be punished with imprisonment from two to four years and a judicial fine of up to one thousand days.

These crimes are pursued upon the complaint of the creditor.

The penalty for a debtor who causes his insolvency through his own act or who knowingly aggravates the evil of his situation:

Article 332 – (Amended: 31/5/2005-5358/2 art.)

If, after the request for enforcement by way of attachment or within two years before such request, the debtor causes his insolvency by his own act, by acting with a carelessness that cannot be tolerated, or by incurring excessive expenses, or by engaging in daring games of chance or imprudent speculations, or by committing serious negligence in his affairs, or if, despite being aware of the badness of his situation, he aggravates this badness by such acts, he shall be punished with imprisonment from fifteen days to six months, provided that a certificate of insolvency is issued against him or the creditor proves that he was unable to resign his claim.

These provisions also apply to the debtor who committed the acts in the first paragraph within two years before the request for a concordat respite.

This crime is pursued upon the complaint of the creditor. Creditors who have incited the debtor to take on excessive debt or to speculate through a game of chance or who have taken advantage of his weakness by charging him heavy interest have no right to complain.

Penalty for those who gain personal benefit in bankruptcy and composition matters:

Article 333 – (Amended: 31/5/2005-5358/3 art.)

Whoever provides or promises a special benefit to the bankruptcy office or administration or to a creditor or their representative in a creditor’s meeting in order to obtain their vote or consent to the composition shall be punished with imprisonment from six months to two years.

The creditor or representative who provides the benefit shall also be punished with the same penalty.

If the crime is committed by a member of the bankruptcy office or administration, the penalty is increased by half.

Responsibilities of the manager in a commercial enterprise:

Article 333/a- (Added: 17/7/2003-4949/90 art.; Amended: 31/5/2005-5358/4 art.)

If those who have legal or actual management authority in commercial companies cause damage to creditors by not paying the debts of the commercial enterprise partially or completely with the intention of causing damage to creditors, they shall be punished with imprisonment from six months to two years and a judicial fine of up to five thousand days upon the complaint of the creditor, provided that these transactions and actions do not constitute another crime.

If the crime in the first paragraph is committed through negligence, upon the complaint of the creditor, the perpetrator is sentenced to a judicial fine of up to two thousand days, depending on the severity of the damage.

The penalty for the debtor who causes the authorized persons to make a mistake in the composition or restructuring of capital companies and cooperatives through reconciliation or who does not comply with the conditions of the composition or restructuring through reconciliation: 

Article 334- (Amended: 31/5/2005-5358/5 art.)

The debtor who intentionally causes damage by deceiving the creditors, commissioner, interim auditor or authorized officer about his/her financial situation through fraudulent attitude and behavior in order to obtain a term for the composition or to have the composition or restructuring project of capital companies and cooperatives through reconciliation approved, or by not complying with the composition project or restructuring project of capital companies and cooperatives through reconciliation, shall be punished with imprisonment from six months to one year upon the complaint of the person concerned.

Responsibilities of the concordat commissioner:

Article 334/a- (Added: 17/7/2003-4949/92 art.; Repealed: 31/5/2005-5358/23 art.)

Cases in which the tenant will be penalized:

Article 335 – The debtor who steals or hides the goods for which the lessor has been granted the right of imprisonment and whose records have been kept in accordance with Article 270, and the person who occupies the place ordered to be evacuated with the intention of harming the lessor, shall be punished in accordance with Article (276) of the Turkish Penal Code.

Penalties for those who do not return the bankrupt’s assets:

Article 336 – (Amended: 31/5/2005-5358/6 art.)

If third parties who hold the bankrupt’s assets or are indebted to the bankrupt do not submit those assets to the bankruptcy administration or do not report their debts without a valid excuse within one month from the date on which they are informed of the announcement of the opening of bankruptcy, they will be punished with a judicial fine of up to ninety days.

Penalties for those who do not return the goods delivered to them:

Article 336/a- (Added: 17/7/2003-4949/93 art.; Repealed: 31/5/2005-5358/23 art.)

Failure to fulfill obligations:

Article 337 – (Amended: 31/5/2005-5358/7 art.)

(First paragraph annulled: by the Constitutional Court’s decision dated 28/2/2008, numbered E.: 2006/71, K.: 2008/69.)

The same penalty shall be imposed on those who violate the provisions of articles 162, 209 and 216, upon a warrant issued by the bankruptcy administration. If the obligations specified in these articles are fulfilled, the penalty imposed shall be waived.

Punishment for those who abandon trade:

Article 337/a – (Added: 18/2/1965-538/133 art.; Amended: 31/5/2005-5358/8 art.)

According to Article 44, a debtor who does not declare his assets or who understates his assets in his declaration or who does not declare his assets or their substitute value during the seizure or bankruptcy process or who disposes of these assets after making the declaration shall be punished with imprisonment from three months to one year upon the complaint of the creditor who suffered damage.

No penalty shall be imposed on the debtor who proves that the creditor was not harmed by the acts in the first paragraph.

In case of bankruptcy of the debtor, the situation in the first paragraph is also considered as a bankruptcy with indemnity.

Punishment for those who make statements contrary to the truth:

Article 338 – (Amended: 31/5/2005-5358/9 art.)

A person who makes a declaration contrary to the truth as required by this Law shall be punished with imprisonment from three months to one year upon the complaint of the creditor.

If the debtor for whom a certificate of insolvency has been issued is proven to be earning a living above the minimum wage, and the creditor holding the certificate of insolvency applies within five years at the latest from the date of the creditor’s claim being tied to the certificate of insolvency, he/she is obliged to deposit to the enforcement office, within one month at the latest from the date of the finalization of the decision of the enforcement court, not less than one-fourth of his/her income remaining above the minimum wage, every month until the debt in the certificate of insolvency is paid. A decision of compulsory imprisonment for up to one year is made for the debtor who fails to fulfill this obligation. If the debtor pays the entire debt or the amount he/she has to deposit to the enforcement treasury by that date after the application of the imprisonment has started, he/she is released; if he/she stops his/her payments again, a decision of compulsory imprisonment is made again for him/her. However, the period of compulsory imprisonment for a debt cannot exceed one year.

The debtor’s receiving assistance from a third party, including alimony debtors, does not eliminate his obligation to deposit the portion of the money and benefits he receives above the minimum wage, to be determined by the decision of the enforcement court, to the enforcement treasury.

If more than one creditor holding a certificate of insolvency requests the application of the provision in the second paragraph, they have the right of priority in the order of the date of the request.

Penalty for a debtor who does not report an increase in property and income after declaration:

Article 339 – (Amended: 31/5/2005-5358/10 art.)

If the debtor, who is obliged to report his acquired property or the changes in his earnings and income in accordance with this Law, does not report this to the enforcement office by registered letter or verbally within seven days without an acceptable excuse, and if such property or earnings exist in terms of principal or value, he shall be punished with a disciplinary detention of up to ten days; if he disposes of his property or earnings in terms of principal or value without an acceptable reason, he shall be punished with a disciplinary detention of up to one month.

These penalties are decided upon the complaint of the creditor. If the person pays the debt that is the subject of enforcement proceedings in full, this penalty is dropped.

Penalty in case of debtor’s violation of payment terms:

Article 340 – (Amended: 31/5/2005-5358/11 art.)

In the case of a debtor who violates the condition of paying the debt determined by the enforcement office in accordance with Article 111 or with the consent of the creditor without a valid reason, a decision of preventive imprisonment for up to three months is made upon the complaint of the creditor. If the debtor pays the entire debt or the amount he has to deposit in the enforcement treasury by that date after the application of the imprisonment has started, he is released; if he stops his payments again, a decision of preventive imprisonment is made again. However, the period of preventive imprisonment for a debt cannot exceed three months.

Penalty for disobeying the child surrender order:

Article 341 – (Amended: 31/5/2005-5358/12 art.) (Repealed: 24/11/2021-7343/32 art.)

Penalty for those who re-enter the real estate or ship surrendered by the enforcement office:

Article 342 – (Amended: 31/5/2005-5358/13 art.)

A debtor who re-enters a real estate or ship delivered to the creditor or buyer by the enforcement office without a justified reason shall be punished within the framework of general provisions in accordance with Article 290 of the Turkish Penal Code No. 5237.

Penalty for those who violate the provisions of articles 30 and 31:

Article 343 – (Amended: 31/5/2005-5358/14 art.)

Upon the complaint of the person in whose favor the judgment was given, a decision of compulsory imprisonment of up to three months is made for debtors who, without an acceptable excuse, oppose the provisions of a judgment concerning the performance or non-performance of a work that should be performed only by them or the establishment or removal of a right of easement. If the requirements of the judgment are fulfilled after the application of the imprisonment has begun, the debtor is released.

Penalty for those who do not comply with alimony decisions :

Article 344 – (Amended: 31/5/2005-5358/15 art.)

Upon the complaint of the creditor, a decision of preventive imprisonment for up to three months is made against the debtor who does not fulfill the requirements of the decisions regarding alimony. If the requirements of the decision are fulfilled after the implementation of the imprisonment has begun, the debtor is released.

If the debtor has filed a lawsuit requesting the removal or reduction of alimony, the application of preventive detention may be postponed until the end of this lawsuit, taking into account the reasons put forward.

Who will be penalized in the transactions of legal persons:

Article 345 – If the crimes listed in this law are committed during the administration or execution of transactions of a legal entity, the penalty shall be imposed on the person who committed the act among the directors, representatives and deputies, liquidators, chairmen and members of the board of directors or auditors and inspectors of that legal entity.

(Second paragraph repealed: 29/6/1956-6763/42 art.)

The penalty for those who are obliged to request the bankruptcy of capital companies:

Article 345/a – (Added: 18/2/1965-538/137 art.; Amended: 31/5/2005-5358/16 art.)

If the persons or liquidators assigned with the management and representation do not request the bankruptcy of the company by declaring that the company’s assets do not cover its debts in accordance with Article 179, they shall be punished with imprisonment from ten days to three months upon the complaint of one of the creditors.

Withdrawal from the auction:

Article 345/b – (Added: 9/11/1988-3494/59 art.; Amended: 31/5/2005-5358/17 art.)

In tenders held in accordance with this Law, anyone who withdraws from the bid or does not participate in the bid in return for a benefit promised or provided to him or another person shall be sentenced to imprisonment of up to one year and a judicial fine of up to one thousand days.

The same penalty is given to intermediaries.

Prohibition of duties and combinations:

Article 346 – (Amended: 31/5/2005-5358/18 art.)

In accordance with the provisions of this Law, the enforcement court decides on disciplinary or preventive detention.

These cases, which fall within the jurisdiction of the enforcement court, cannot be combined with criminal cases heard in other courts.

Cases related to the crimes included in this Chapter are heard in the enforcement court.

Complaint period:

Article 347 – (Amended: 31/5/2005-5358/19 art.)

The right to complain about the acts listed in this Chapter expires after three months from the date of learning about the act and, in any case, after one year from the date of the act.

Authority:

Article 348 – (Amended: 31/5/2005-5358/20 art.)

The competent enforcement court for the acts included in this Chapter is the court where the enforcement proceedings are carried out.

Trial procedure:

Article 349 – Complaints are made by petition or verbal statement. The enforcement court, which receives the petition or statement of claim, immediately appoints a date for the hearing, obtains the signature of the complainant and sends a summons to the defendant. If a witness is shown, he/she is also summoned.

Both parties are obliged to appear before the enforcement court on the appointed day and time or send a representative.

If necessary, the enforcement court may order the parties to appear in person.

If the defendant resides elsewhere, he is questioned by means of a rogatory.

If the accused does not appear before the enforcement court that received the complaint or the rogatory, or if he does not send a defense counsel, or if his presence in person is deemed necessary, he is brought by the police. If he cannot be present in this way, the trial is held in absentia.

If the complainant does not appear at the specified time and does not send a representative, the right to complain is void.

The provisions of the Code of Criminal Procedure shall apply to the treatment of absent witnesses and the request for reinstatement against the decision given in the debtor’s absence.

Hearing:

Article 350 – The enforcement court hears both parties and their evidence and records the statements of both the parties and the witnesses in the hearing minutes.

The public prosecutor is not present.

Investigations:

Article 351 – The complainant is bound by the evidence presented in his petition or statement.

The accused may request the extension of the investigation only once for his defence.

Decision:

Article 352 – After listening to the statements and all evidence, claims and defenses of both parties, the enforcement court finally gives its decision within five days and notifies the summary to the Public Prosecutor.

(Additional paragraph: 17/7/2003-4949/99 art.) In crimes that are subject to complaint, the case and punishment will be dropped for the reasons stated in article 354.

Penalty decree:

Article 352/a- (Added: 17/7/2003-4949/100 art.; Repealed: 31/5/2005-5358/23 art.)

Article 352/b – (Added: 6/6/1985-3222/44 art.; Repealed: 31/5/2005-5358/23 art.)

Objection:

Article 353 – (Amended: 31/5/2005-5358/21 art.)

(Amended first paragraph: 31/3/2011-6217/5 art.) Against the decisions of the enforcement court regarding pressure and disciplinary detention, (…)132 An objection may be made within two weeks from the date of notification. In case there is more than one department of the enforcement court in that location, the court sends the file for review of the objection to the department following the department numbered next to it; to the first department for the department with the last number; to the criminal court of first instance if there is only one department of the enforcement court in that location; and to the nearest criminal court of first instance if the judge of the enforcement court and the judge of the criminal court of first instance are the same judge. The decision given as a result of the objection review is final .

The provisions of the Criminal Procedure Code No. 5271 dated 4.12.2004 regarding legal remedies shall apply to the decisions given by the enforcement court due to the crimes included in this Chapter.

Cases where the case and sentence cannot be dropped and no punishment can be given

Article 354 – If the complainant of the crimes listed in this section of the law, whose prosecution is subject to complaint, waives the complaint or if it is proven that the debt has been paid off, the case and the penalty together with all its consequences are dropped.

(Repealed second paragraph: 17/7/2003-4949/103 art.)

(Additional paragraph: 31/5/2005-5358/22 art.) The decision of the enforcement court regarding the repression or disciplinary detention given in accordance with the provisions of this Chapter shall not be implemented after two years have passed from the date it becomes final.

(Additional paragraph: 31/3/2011-6217/6 art.) Except for the follow-ups regarding alimony receivables, the disciplinary and coercive detention stipulated in this Law shall not be applied in follow-ups where the amount of receivables is below the highest monthly gross minimum wage determined each year by the Minimum Wage Determination Commission.

SEVENTEENTH CHAPTER

Special provisions

Procedure for deducting salaries and wages:

Article 355 – The legal addressees of the notification to be made by the enforcement offices for the deduction from the salaries and wages of the debtor civil servants or employees working in state affairs or private institutions are obliged to notify that the seizure has been carried out and the amount of the debtor’s salary and wage within one week at the latest, and to withhold the amount seized in accordance with the notification of the enforcement office and send it to the office immediately until the debt is paid off.

In case of any changes in the civil servant’s salary, wage or position that will necessitate receiving a salary from another branch, and if his/her service is terminated, the tax officer or department head or the legal addressees of the private institutions are obliged to immediately notify the enforcement office of this situation and in the second case, to inform that branch or head of the seizure procedure.

Provisions regarding those who do not comply with the above article:

Article 356 – The money not withheld or not sent by the first means by those who have not complied with the provisions of the above article shall be taken from their salaries or other assets by the enforcement office without the need for a separate court order.

They have the right to recourse against the debtor within the framework of the provisions of the law.

It is the duty of the department to which they are affiliated to immediately provide the enforcement office with any information requested about any officer or officer who does not comply with the provisions of the above article.

Follow-up by the public prosecutor’s office:

Article 357 – Those concerned are obliged to immediately carry out the notifications and orders issued by the enforcement office in accordance with the law and to report the results to the enforcement office without delay. Those who fail to carry out the notifications and orders, except for an acceptable reason, are directly prosecuted by the Public Prosecutor’s Office without the need for prior investigation by the relevant department.

Goods left to third parties:

Article 358 – The third party is obliged to return the seized property and left to him in its previous state, as soon as requested from the enforcement office.

In this way, if a third party cannot prove the destruction or loss of the goods left to him/her for a reason that cannot be attributed to him/her, the previously determined values shall be compensated by the enforcement office ex officio, without the need for a judgment, in addition to criminal proceedings.

Those who are obliged to compensate these values may lodge a complaint with the enforcement court against the request and decision of the enforcement office in this regard, within the period specified in Article 16.

Communications of enforcement offices:

Article 359 – Enforcement officers may communicate directly with any department or authority regarding the actions they take.

Sale of seized goods by way of rogatory:

Article 360 – If the seized goods are located elsewhere, the sale shall be made by way of rogatory. Disputes regarding the auction and tender shall be resolved by the enforcement court to which the enforcement office to which the rogatory is directed is subject.

Refund of excess money:

Article 361 – If it is understood as a result of the calculation that the enforcement offices have collected too much money from the debtor and given it to the creditor or that money has been paid to a party by mistake, the money given shall be taken back from that person without the need for a separate judgment.

Statute of limitations on trusts:

Article 362 – If the persons concerned do not apply for the money deposited to the enforcement treasury or collected by the office or the property that is being preserved due to enforcement proceedings within ten years from the date of deposit, collection or preservation, the right to request it shall be waived in favor of the Treasury.

Seizure of movable and immovable properties of private schools, private student dormitories and similar institutions:

ARTICLE 362/a – (Added: 9/5/2018-7141/1 art.)

The movable and immovable properties of schools operating within the scope of the Private Educational Institutions Law No. 5580, dated 8/2/2007, and dormitories and similar institutions providing private student accommodation services operating within the scope of the Law Supplementary to the Law on Higher Education Student Dormitories and Soup Kitchens No. 5661, dated 24/3/1950, are seized at the end of the current academic year, except for the proceedings carried out according to the Law on the Procedure for Collection of Public Receivables No. 6183.

APPLICATION TO LEGAL REMEDIES AND FINAL ARTICLES

Application for appeal and examination

Article 363- (Amended: 2/3/2005-5311/24 art.)

The application method of Article 85 by the enforcement court, the attorney fee calculated by the enforcement office, the application method of Article 103 and the content of the invitation arranged under this article, the trustee fee, the change of the trustee, the storage method of seized movable properties, the complaint regarding the valuation, the deposit of security and the amount of security in order to participate in the tender, the suspension of the sale, the cancellation of the sale announcement, the reduction of the sale due to the failure to request a sale in due time, the application method of Article 263, the establishment of the bankruptcy administration, the decisions of the enforcement court upon the complaint regarding the transactions of the bankruptcy administration, except for the account slip regarding the fees and expenses of the bankruptcy administrator and the decisions regarding the suspension of the execution according to Article 36, may be appealed against, provided that the value or amount of the receivable, right or property to which it belongs exceeds seven thousand Turkish liras. The period for applying to the appeal is two weeks from the date of notification of (…)136.

If it is understood that an appeal was filed in bad faith, such as prolonging the proceedings against the enforcement court decisions, the provision of Article 422 of the Code of Civil Procedure shall be applied.

The provision of the above paragraph shall also apply to those who appeal against a final decision in bad faith.

The appeal does not stop the enforcement proceedings other than the sale. The documents required for the continuation of the enforcement are retained and a copy of them is placed in the file to be sent to the regional court of justice.

Application for appeal and its examination 

Article 364- (Amended: 2/3/2005-5311/25 art.)

An appeal may be filed against the final decisions given by the civil divisions of the regional court of justice, the amount or value of which exceeds fifty-eight thousand eight hundred Turkish lira.

(Amended sentence: 2/3/2024-7499/3 art.) An appeal may be filed against the decisions specified in the first paragraph within two weeks from the date of notification; the appeal and its review shall be made in accordance with the provisions of the Code of Civil Procedure. In this case, the provisions of the second and third paragraphs of Article 363 shall apply.

Applying for an appeal does not stop enforcement proceedings other than the sale.

Rejection of the appeal petition

Article 365 – (Amended: 2/3/2005-5311/26 art.)

If the appeal is made after the legal period has expired or if it concerns a decision on which appeal is not possible or the rejection of an objection or complaint due to waiver or a complaint whose time has expired, the request is rejected by the enforcement court in accordance with the relevant provisions of the Code of Civil Procedure.

If the person who appeals does not accept the rejection decision, the appeal petition is sent to the competent regional court of justice after it is notified to the other party, together with a copy of the decision and, if submitted, a response petition. However, in this case, no enforcement proceedings, including sales, will be suspended.

The regional court of justice shall not reject an application that falls within the scope of the first paragraph but has not been rejected, but shall directly make a final decision.

Regional court of justice and Supreme Court decisions 

Article 366- (Amended: 2/3/2005-5311/27 art.)

Appeal and appeal reviews are conducted in accordance with the Code of Civil Procedure and are concluded within fifteen days.

If the person concerned requests it and pays or sends the fee, the summary of the decision will be notified to the local authority by the fastest means.

A decision to resist the decisions of the Court of Cassation’s civil division dealing with enforcement and bankruptcy matters may be made in accordance with general provisions. Decisions to resist are considered urgent matters in the General Assembly of Civil Law.

The provision of Article 40 shall be applied by analogy in enforcement and bankruptcy proceedings upon the reversal decision of the Supreme Court or the annulment, correction or re-issue of the decisions of the regional court of justice on the merits.

Obligation to provide information about the debtor’s assets:

Article 367 – Every person, real or legal, is obliged to immediately provide all information that the Enforcement or Bankruptcy Offices may request regarding the assets of the debtor and, upon request, to deliver the assets to these offices.

Repealed laws:

Article 368 – Articles 69 and 71 of the Notary Law and the rental real estate regulation and the provisions of the law annexed to it regarding the liquidation of mortgages and the provisions of special laws and regulations other than the matters accepted by Article 49 regarding the conversion of mortgages into cash, the Execution and Bankruptcy Law No. 1424 and the laws and provisions repealed by Article 342 of the said law and Law No. 1425 are repealed.

Additional Article 1- (Added: 17/7/2003-4949/102 art.)

The monetary limits in articles 119, 226, 326, 363 and 364 of this Law shall be applied by increasing the monetary limits applied in the previous year, valid from the beginning of each calendar year, by the revaluation rate determined and announced each year by the Ministry of Finance in accordance with the provisions of article 298 of the Tax Procedure Law No. 213. The parts of the limits determined in this way that do not exceed one thousand Turkish Lira shall not be taken into account.

(Amended paragraph: 20/2/2019-7165/2 art.) In the application of the monetary limits in articles 363 and 364, the amount on the date the lawsuit is filed or the complaint is filed is taken as basis.

(Additional paragraph: 7/11/2024-7531/2 art.) (Repealed third paragraph: 4/6/2025-7550/1 art.) 

Additional Article 2- (Addition: 6/2/2014-6518/2 art.)

Within the framework of the “Convention on International Guarantees on Movable Equipment” and the “Protocol on Matters Specific to Aircraft Equipment Related to the Convention on International Guarantees on Movable Equipment”, signed on behalf of the Republic of Turkey in Cape Town on 16/11/2001 and approved by Law No. 6192 dated 10/3/2011, the guarantor exercising his rights within the scope of subparagraph (a) of the first paragraph of Article 8 and the conditional seller or lessor exercising his rights within the scope of subparagraph (a) of the first paragraph of Article 10 of the “Convention on International Guarantees on Movable Equipment” may, without seeking any court decision, apply to the Ankara Enforcement Office with a registration certificate to be issued by the General Directorate of Civil Aviation, showing that he is the right holder and requesting the implementation of his preferred right.

Upon request, the enforcement officer shall make a decision on the transfer of possession or control of the object on which security is established in favor of the rightful owner without conducting any further investigation and the decision shall be notified to the debtor. If the debtor party fails to comply with this order within three working days from the date of notification, the enforcement officer shall send the decision taken to the General Directorate of Civil Aviation in order for it to comply with the requirements within the framework of the aforementioned articles 8 and 10 of the Convention.

Due to the transactions carried out by the Enforcement Office in accordance with this article, no tax, duty or fee will be collected other than the fixed fee of 10,000 Turkish Lira in accordance with the provisions of the Fees Law No. 492. Fees and expenses belong to the person requesting them.

The procedures and procedures to be carried out by the Enforcement Office within the framework of the Agreement and Protocol, as well as the principles and procedures regarding follow-up, are regulated by the regulation to be issued by the Ministry of Justice and the Ministry of Transport, Maritime Affairs and Communication.

Additional Article 3- (Added: 3/11/2016-6754/19 art.)

The experts to be appointed in accordance with this Law are selected from the lists prepared by the regional expert committees, and the provisions of the Expert Witness Law and other relevant laws apply to them.

Temporary Article 1 – (This is the unnumbered temporary article of Law No. 2004 and is numbered for consecutive purposes.)

1 – The scope of penal provisions is subject to the provisions of Article 2 of the Turkish Penal Code.

2 – The provisions of this law shall not apply to requests for the conversion into cash of a lien or lien established before this law comes into force.

3 – The provisions of the second chapter regarding the execution of judgments also apply to judgments that were handed over for execution before the entry into force of this law.

4 – If no action or follow-up has been taken until 4 September 1932 on provisional or executive seizures imposed on real estate before 4 September 1929, these seizures will automatically be lifted.

Those whose follow-up and treatment are pending but have not yet been concluded will be subject to the provisions of this law after the said date.

5 – If the liquidations concerning the bankruptcy decisions made before 4 September 1929 have not been completed by 4 September 1932, their files will be transferred to the bankruptcy offices. The liquidations will continue by the offices in accordance with the provisions of the eighth chapter of this law.

6 – The provisions regarding the Treasury receivables collected from the land free from ebniye, which was included in the category of national assets with the laws dated 13 September 1331 and 15 April 1339, in accordance with articles 6 and 23 of the General Balance Law of 1341, remain valid.

7 – The right of the owners of the money deposited to the enforcement office or collected by the department and the property that is being preserved due to enforcement proceedings before the publication of this law shall not be waived until three years have passed from the date of deposit, collection or preservation.

Temporary Article 2 – (Added: 9/11/1988-3494/62 art.)

With this Law, the title of enforcement officer in other laws and decrees has been changed to “enforcement manager”, the title of deputy enforcement officer to “deputy enforcement manager”, and the title of bankruptcy officer to “bankruptcy manager”. Due to this change, the relevant persons do not need to be reassigned. They will continue to receive side payments under their old titles until their new titles are included in the side payment decrees.

Temporary Article 3- (Added: 17/7/2003-4949/105 art.)

The phrases “chief executive officer”, “deputy executive judge” and “enforcement judgeship” in the Enforcement and Bankruptcy Law No. 2004 have been changed to “enforcement investigation authority judge”; the phrases “residence”, “movable”, “immovable property” and “detail” have been changed to “settlement place”, “movable property”, “immovable property” and “attachment” respectively.

Temporary Article 4- (Added: 17/7/2003-4949/105 art.) 

Until warehouses and garages are opened by the Ministry of Justice or the Foundation for Strengthening the Justice Organization for the storage of confiscated goods, the relevant regulations and fee schedules issued by the Ministry of Justice shall continue to be applied in private warehouses and garages.

Temporary Article 5- (Added: 17/7/2003-4949/105 art.) Of the Execution and Bankruptcy Law No. 2004 amended by this Law;

1- The provisions amending the articles 4, 13, 26 and 250 and the fourth and fifth paragraphs of article 88 shall come into force three months after the entry into force of the Law,

2- The provision amending Article 14 shall come into force 6 months after the entry into force of the Law,

3- The provision amending Article 18, regarding complaints to be made after the Law enters into force,

4- The provisions amending the articles 24, 79, 85, 92 and 94 and the second and third paragraphs of article 88 shall apply to seizures to be made after the entry into force of the Law,

5- Article 25/b, in cases where the verdict will be enforced after the entry into force of the Law and in personal relations with the child,

6- The provision amending Article 30 shall apply to the actions of the debtor that will annul the judgment after the entry into force of the Law,

7- The provision amending Article 32 shall be included in the enforcement orders to be sent after the Law enters into force,

8- The provision amending Article 44, in the declarations of assets to be submitted after the entry into force of the Law,

9- The provisions amending articles 58 and 269/a shall be followed up after the entry into force of the Law,

10- In case of objections to the provisions amending articles 62, 67, 68/a and 170 of the Law after it comes into force,

11- The provision amending Article 63 shall apply to the hearings for the removal of objections to be held after the entry into force of the Law,

12- The provision amending the first sentence of the last paragraph of Article 68, to the requests for the removal of objections made after the Law enters into force,

13- (Amended: 12/2/2004-5092/10 art.) The provision amending article 68/b shall apply to the account summaries and notices sent after the entry into force of the Law,

14- The provision amending the third paragraph of Article 89 shall apply to seizures where the second notification has not yet been sent according to the old regulation on the date the Law enters into force, or where it has been sent but the period for filing a negative declaratory action has not expired; the provision amending the fifth paragraph shall apply to lawsuits to be filed if the second notification of seizure has been sent according to the old regulation and the period for filing a negative declaratory action has expired.

15- The provision amending Article 91 shall apply to any changes in ownership that occur after the Law enters into force.

16- The provision amending Article 111 shall also apply to contracts made before the entry into force of the Law,

17- The provisions amending articles 114, 115, 116, 126 and 129 shall apply to sales to be made after the entry into force of the Law and for which the text of the announcement has not yet been sent to the Press and Advertisement Institution on the date the Law enters into force.

18- The provisions amending articles 118, 119, 130 and 133 shall apply to sales to be made after the entry into force of the Law,

19- The provisions amending articles 128 and 128/a shall apply to valuations made after the entry into force of the Law,

20- The provision amending Article 134, in requests for the termination of a tender made after the entry into force of the Law,

21- The provision amending Article 142/a shall apply to the order tables prepared after the entry into force of the Law or to the order tables that were the subject of a pending complaint and/or objection at the time the Law entered into force.

22- The provision amending the first paragraph of Article 143 and the seventh paragraph added to Article 143 by this Law shall come into force six months after the entry into force of the Law, and the provision amending the sixth paragraph of Article 143 shall come into force six months after the entry into force of the Law,

23- The provision amending Article 148/a shall apply to the registration in the land registry of mortgage contracts to be concluded after the entry into force of the Law,

24- The provisions amending articles 150/b and 150/ı shall apply to the proceedings initiated after the Law enters into force by way of conversion of the lien into cash.

25- The provision amending Article 166 shall apply to bankruptcy decisions made after the entry into force of the Law,

26- The provisions amending articles 168 and 170/b, in the pursuit of seizure of bills of exchange initiated after the entry into force of the Law,

27- The provision amending Article 169/a, in the objection proceedings pending at the time the Law came into force,

28- The provision amending Article 179, in requests for postponement of bankruptcy to be made after the Law enters into force,

29- Articles 179/a and 179/b, in requests for postponement of bankruptcy pending at the time the Law comes into force,

30- The provision amending Article 185, in bankruptcy liquidations ongoing at the time the Law comes into force,

31- The provision amending Article 206 shall be included in the order tables to be prepared after the entry into force of the Law,

32- The provision amending Article 222, in the first creditors’ meetings to be held after the Law comes into force,

33- The provision amending Article 223 shall be included in the bankruptcy administration meetings to be held after the entry into force of this Law,

34- The provision amending Article 226 shall apply to the conciliation and arbitration proceedings to be held after the entry into force of the Law,

35- The provision amending Article 250 shall apply to share schedules prepared after the entry into force of the Law or to share schedules that were the subject of a pending complaint at the time the Law entered into force.

36- The provision amending the first sentence of the second paragraph of Article 251 shall take effect six months after the entry into force of the Law in terms of the first paragraph and seventh paragraph of Article 143 to which it refers, and as of the entry into force of the Law in terms of the sixth paragraph of Article 143 to which it refers; and as of the entry into force of the Law in terms of the fourth sentence added to the second paragraph of Article 251,

37- The provisions amending articles 257, 258, 261, 264, 265 and 268 shall apply to provisional seizure requests made after the entry into force of the Law,

38- The provision amending Article 280 also applies to annulment lawsuits filed and pending before the entry into force of the Law,

39- The provisions amending articles 285, 286, 287, 288, 289, 290, 291, 292, 296, 297, 298, 300, 301, 302, 303 and 309 and the provisions of articles 298/a and 309/a to 309/l introduced by this Law shall apply to the requests for concordat to be made after the entry into force of the Law,

40- The provisions amending articles 318, 323 and 326 and the provision of article 329/a shall apply to requests for extraordinary respite after the entry into force of the Law,

Applicable.

Temporary Article 6- (Added: 12/2/2004-5092/11 art.)

The phrases “enforcement investigation authority”, “investigation authority” and “authority” in this Law have been changed to “enforcement court”; the phrases “enforcement authority judge” and “judge of the authority” have been changed to “enforcement judge”. References made to the enforcement investigation authority and judge in various legislation shall be deemed to have been made to the enforcement court and judge.

Temporary Article 7- (Added: 2/3/2005-5311/29 art.)

The provisions of the Execution and Bankruptcy Law, which was amended by this Law, regarding appeals and correction of decisions made by regional courts of justice before the date of commencement of duty in accordance with the temporary article 2 of the Law No. 5235 dated 26.9.2004 on the Establishment, Duties and Powers of the First Instance Courts of Judiciary and Regional Courts of Justice shall be applied until they become final.

Temporary Article 8- (Added: 21/2/2007-5582/6 art.) 

Until the end of the third year following the entry into force of the third paragraph of Article 128 and the second paragraph of Article 128/a of this Law, in the pursuit of receivables arising from housing finance defined in the first paragraph of Article 38/A of the Capital Markets Law No. 2499 and the receivables of the Housing Development Administration secured by collateral, the valuation or expert examination of real estate may be carried out by persons or institutions authorized for real estate valuation activities in accordance with subparagraph (r) of the first paragraph of Article 22 of the Capital Markets Law, as well as by other expert experts.

Temporary Article 9- (Added: 2/7/2012-6352/38 art.)

In order to make a payment in accordance with the second paragraph of Article 9, the relevant person must notify the bank account number within six months from the date of entry into force of the said article.

Temporary Article 10- (Added: 2/7/2012-6352/38 art.)

The provisions prior to the amendment shall continue to apply to the follow-up proceedings initiated before the date on which the relevant provisions of this Law entered into force.

Temporary Article 11- (Added: 2/7/2012-6352/38 art.)

The Ministry of Justice shall complete all legal and technical infrastructures within one year from the date of entry into force of the said article, in accordance with the fifth paragraph of Article 88. Until the licensed trustee warehouses become operational, storage operations in the existing warehouses and garages in that location shall continue within the framework of the existing regulations and fee schedules.

The enforcement officer shall notify the relevant person ex officio for the collection of goods that are kept in existing warehouses and garages but do not need to be kept legally, within one month from the date of entry into force of the said article.

If the relevant person cannot be notified or the goods are not taken back within the given period, the sale transaction is carried out within three months in accordance with the provision of the sixth paragraph of Article 88.

However, if the sale cannot be made, the property may be transferred to the trustee for offset against the trustee’s receivables, based on the value determined by the valuation commission, which will be formed under the chairmanship of the enforcement officer to be appointed by the Ministry of Justice and with the participation of one person each to be notified by the district governor’s office, municipality, relevant local bar association and chamber of commerce; if the commission decides that it has no economic value, the property will be destroyed with a report.

The remaining amount, if any, after deducting the storage and other expenses from the price of the goods sold or transferred, is paid to the relevant party upon request.

Temporary Article 12- (Added: 15/7/2016-6728/6 art.)

The provisions amended by the Law establishing this article shall apply to requests for postponement of bankruptcy made after the date of entry into force of this article.

The decision to be given regarding the request for extension based on the decision to postpone bankruptcy made before the effective date of this article is also subject to the legal remedy regarding the decision made regarding the request to postpone bankruptcy.

The persons appointed as trustees in the files pending on the date of entry into force of this article shall be reported to the presidencies of the justice commission of the first instance court of the judiciary within ten days from the date of entry into force of this article. Trustees who continue their duties in more than three files shall not be given new duties.

Temporary Article 13- (Added: 15/8/2017-KHK-694/9 art.; Accepted as is: 1/2/2018-7078/9 art.)

In matters falling within the jurisdiction of the administrative courts, a decision to strike out the case file shall be made by the enforcement director in accordance with the third paragraph of Article 42 upon request, regarding enforcement proceedings without a judgment initiated before the effective date of this article, and the decision shall be notified to the creditor ex officio. The creditor may apply for a complaint within seven days from the notification of the decision to strike out. A lawsuit may be filed with the administrative courts within thirty days from the finalization of the decision to strike out. The pursuit cannot be continued until the decision to reject the request to strike out or to accept the complaint regarding the decision to strike out becomes final.

In the cases of annulment of objection or removal of objection regarding enforcement proceedings without a judgment within the scope of the first paragraph, upon request, it is decided that there is no need to make a decision. The follow-up and trial expenses incurred by the parties and the attorney’s fee are left on them. Upon the finalization of this decision, the follow-up file is returned to the enforcement office and the proceeding is processed in accordance with the first paragraph.

Temporary Article 14- (Added: 28/2/2018-7101/46 art.)

The provisions in force on the date of the request shall continue to be applied to the postponement of bankruptcy and composition requests pending on the date this article comes into force.

The Council of Judges and Prosecutors shall determine the first instance commercial court specialized in bankruptcy and composition within the scope of its determination authority in the fifth paragraph of Article 5 of the Law No. 5235 on the Establishment, Duties and Powers of the Judicial Courts of First Instance and Regional Courts of Justice, dated 26/9/2004, within two weeks from the date of entry into force of this article.

Temporary Article 15- (Added: 6/12/2018-7155/17 art.)

The provisions in force on the date of the request shall continue to be applied to the concordat requests pending on the date this article comes into force.

Until the commissioner list is created in accordance with the fifth paragraph of Article 290, commissioners are assigned from the list without taking into account the assignment method. In order to monitor the prohibition of a person from serving as a commissioner in more than five cases simultaneously, the assigned temporary commissioners or commissioners are reported to the regional board of experts of the regional court of justice to which the court is affiliated.

Temporary Article 16 – (Added: 20/2/2019-7165/3 art.) 

The appeal appeal limit stipulated in the first paragraph of Article 364 for the final decisions given from 2/12/2016 until the date this article enters into force is forty thousand Turkish Lira.

Temporary Article 17- (Added: 9/6/2021-7327/8 art.)

Until the list of bankruptcy administrators is created in accordance with the sixth paragraph of Article 223, the bankruptcy administrator shall be assigned without taking into account the assignment method from the list. In order to monitor the prohibition of a person from working as an officer in more than five files simultaneously, the assigned bankruptcy administrators shall be reported to the regional board of experts of the regional court of justice to which the enforcement court is affiliated.

Temporary Article 18- (Added: 24/11/2021-7343/33 art.)

The regulation regarding the implementation of article 111/b and the tariff to be issued pursuant to article 106 shall be issued within six months from the date of entry into force of the Law establishing this article.

The implementation of the amendments made in Articles 87, 88, 106, 110, 111/b, 114, 115, 118, 124, 126, 127, 129, 130, 133, 242 and 244 and the ninth and tenth paragraphs of Article 134 by the Law that created this article shall begin in the provinces or districts determined by the Ministry of Justice as of the date of entry into force of the regulation on the implementation of Article 111/b, and these amendments shall be implemented throughout the country at the latest by the end of one year. The date and in which the amendments will be implemented shall be announced on the official website of the Ministry of Justice. The following principles shall be taken into consideration in the implementation of these amendments:

1. In the provinces and districts where the application is put into effect, the provisions of Articles 87, 106 and 110, which were amended by the Law establishing this article, shall be applied to the properties seized after the transition date. As for the properties seized before the transition date, the provisions prior to the amendments and the provisions that were repealed shall continue to be applied.
2. In the provinces and districts where the application is implemented, the articles 88, 114, 115, 118, 124, 126, 127, 129 and 130, the ninth and tenth paragraphs of article 134 and the article 111/b, which were amended by the Law establishing this article, shall be applied to the auctions to be announced after the transition date. The provisions prior to the amendments and the repealed provisions shall continue to be applied to the auctions announced before the transition date.
3. In the provinces and districts where the application is implemented, the provisions amended and established by the Law establishing this article shall apply to the auctions to be announced after the transition date, in terms of sales related to the conversion of movable mortgages or mortgages into cash, liquidation of bankruptcy and dissolution of partnership. The provisions prior to the amendments and the repealed provisions shall continue to apply to the auctions announced before the transition date.
4. The provisions amended and established by the Law establishing this article shall also apply to auctions whose tenders could not be held upon the announcement made before the transition date and whose resale is requested.

In cases where a sale request has been made before the effective date of the tariff to be issued in accordance with Article 106, but the entire valuation, storage and sales expenses have not been paid, the expenses specified in the tariff must be paid within one year from the effective date of this tariff. If the expenses are not paid in advance within this period, the request for sale shall be deemed not to have occurred.

The amendments made to Article 134 by the Law that created this article shall not apply to requests for the annulment of tenders that are pending in the courts of first instance, regional courts of justice and the Court of Cassation on the date this article enters into force. However, they shall also apply to requests for the annulment of tenders that are pending a verdict of up to ten percent of the tender price. The amendment made to the rate of the fine cannot be used as a sole ground for reversal in cases that are at the stage of appeal review. The Court of Cassation may correct the verdict by applying the amendment.

Temporary Article 19- (Added: 28/3/2023-7445/5 art.) 

Article 79/a, added to the Law by the Law that established this article, shall not apply to decisions regarding seizure of housing issued before the effective date of this article. The provisions prior to this amendment shall continue to apply to decisions regarding seizure of housing issued before the effective date of this amendment.

The amendments made in the first paragraph (3) and second paragraph of Article 82 of the Law by the Law establishing this article shall not apply to the items seized before the date of entry into force of this article. The provisions prior to these amendments shall continue to apply to the items seized before the date of entry into force of these amendments.

Temporary Article 20- (Added: 28/3/2023-7445/6 art.) (Cancellation: By the Constitutional Court’s decision dated 27/3/2025 and numbered E: 2024/205, K: 2025/88)

Time of Merit:

Article 369 – This law shall enter into force on September 4, 1932.

Law enforcement officers:

Article 370 – The Executive Board is responsible for enforcing the provisions of this law.

TO THE ENFORCEMENT AND BANKRUPTCY LAW DATED 9/6/1932 AND NO. 2004

PROVISIONS THAT CANNOT BE ENFORCEABLE

1 – Temporary articles of Law No. 538 dated 18/2/1965:

Temporary Article 1 – The provisions of the old law shall apply until the completion of the stage of the follow-up at which this law comes into force.

Temporary Article 2 – The first stage is the creditor’s request and the issuance of the payment order, as well as the objection and removal of the objection; the second stage is the seizure and the transactions that complete the seizure; and the final stage is the conversion into money.

In bankruptcy proceedings, the period until the bankruptcy decision becomes final is considered the first stage; the subsequent period is considered the second stage.

Temporary Article 3 – If the concordat period is granted before this law comes into force, the last paragraph of the former article 285 of the law shall apply.

Temporary Article 4 – Claims for entitlement are subject to the provisions of the law in force on the date of enforcement of the seizure, and annulment cases are subject to the provisions of the law in force on the date of the transactions sought to be annulled.

Temporary Article 5 – The provisions of Article 72 shall apply to all proceedings carried out by way of seizure and conversion of lien into cash after this law enters into force.

Temporary Article 6 – The Ministry of Justice shall ensure that the Journal of Official Decisions referred to in the second paragraph of Article 14 is published no later than one year following the publication of this law.

2 – Temporary article of Law No. 3222 dated 6/6/1985:

Temporary Article – The provisions of the Execution and Bankruptcy Law amended by this Law shall also apply to events and transactions prior to the entry into force of the Law.

However, this Law and the Execution and Bankruptcy Law;

1. a) Provisions amending articles 59, 62, 162 and 168, regarding the follow-up to be carried out after the entry into force of the Law,
2. b) The provisions amending articles 68 and 68a, regarding objections to be made after the entry into force of the Law,
3. c) The provision amending Article 78, regarding the installment agreements to be made after the entry into force of the Law,
4. d) The provision amending Article 79, regarding complaints to be made after the entry into force of the Law,
5. e) The provisions amending articles 116, 129 and 133, regarding sales to be made upon request after the entry into force of the Law,
6. f) The provision amending Article 135, regarding sales that became final after the entry into force of the Law,
7. g) The provision amending Article 221, regarding the creditors’ meeting to be held after the entry into force of the Law,
8. h) The provision amending Article 223, regarding the bankruptcy administrator elections to be held after the entry into force of the Law and the fees to be accrued,
9. i) Provisions amending articles 166, 219, 234, 240, 288, 292, 296 and 300, regarding announcements to be made after the entry into force of the Law,
10. j) The provision amending Article 302, regarding the decisions to be made after the entry into force of the Law,
11. k) The provisions amending articles 337, 338, 340, 341 and 343 and the provision of article 352a introduced by this Law, regarding crimes to be committed after the entry into force of the Law,
12. l) The provision amending Article 363, regarding appeal requests against decisions to be made after the entry into force of the Law,

Applicable.

3 – Temporary article of Law No. 3494 dated 9/11/1988:

Temporary Article – The provisions of this Law regarding interest amending Articles 195 and 196 of the Execution and Bankruptcy Law shall be applied as of the effective date of this Law.

Moreover;

1. a) Regarding the provisions amending articles 67, 68, 68/a and 169/a, and the objections and complaints made after the entry into force of the Law,
2. b) Provisions amending articles 69, 72, 89, 97, 158, 160, 164, 165, 173, 177, 178, 269/b, 275 and 345/b, in lawsuits filed after the entry into force of the Law,
3. c) The provisions amending articles 83/c, 85, 91 and 103, regarding the seizure transactions made after the entry into force of the Law,
4. d) The provisions amending articles 150/d and 170/a, regarding the follow-ups carried out before the entry into force of the Law,
5. e) Provisions amending articles 116, 118, 124, 126, 129, 133 and 134, regarding sales made after the entry into force of the Law,
6. f) The provision amending Article 221, at the first creditors’ meeting held after the Law comes into force,
7. g) The provision amending Article 287, regarding the requests for composition made after the entry into force of the Law,
8. h) The provisions amending articles 227, 288 and 363, regarding appeal requests against decisions made after the effective date of the Law,
9. i) The provision amending Article 111, regarding the installment agreements made before the entry into force of the Law,
10. j) The provisions amending Articles 168 and 170, and the follow-ups made after the Law came into force,
11. k) Provisions amending Articles 193 and 194, regarding bankruptcies opened after the entry into force of the Law,
12. l) The provisions amending Articles 208, 219, 232, 233, 235 and 237, regarding bankruptcies opened before the entry into force of this Law,
13. m) The provisions amending articles 278, 279 and 280, regarding the dispositions and annotations made after the entry into force of this Law,
14. n) The provisions amending articles 127, 128, 150/g and 166, regarding events and transactions after the entry into force of the Law,
15. o) Provisions amending articles 68/b and 150/ı, regarding the pursuits carried out after 2 May 1985,

Applicable.

4 – Temporary article of Law No. 4578 dated 8/6/2000:

Temporary Article 1 – The provision of Law No. 2004, amended by this Law, shall be applied to lawsuits and proceedings to be filed after the Law enters into force.

5 – Article 104 of Law No. 4949 dated 17/7/2003:

Article 104 – The procedures and principles regarding the implementation of articles 309/a to 309/l of Law No. 2004 are set out in the regulation to be issued by the Ministry of Justice.

LEGISLATION ADDING AND AMENDING THE LAW NO. 2004 OR

CONSTITUTIONAL COURT DECISIONS

TABLE SHOWING ENFORCEMENT DATES