Enforcement and Bankruptcy Law
What is an Enforcement Proceeding?
An enforcement proceeding means claiming a receivable by means of the force and the means of the state via the enforcement directorate in the event that a debt is not performed. Enforcement proceedings are divided into two; writ of sequestration in an action and proceeding against a debtor on a claim for a debt. Proceeding against a debtor on a claim for a debt is a type of proceeding initiated without any court judgment or order for the collection of money and collateral receivables. Writ of sequestration is a type of proceeding initiated as based on a court judgment or an order. As per article 34 of the Enforcement and Bankruptcy Law, any enforcement directorate can process proceedings based on a writ of sequestration. For instance, even if the writ of sequestration was initiated against a debtor residing in Antalya from an area other than the address of residence; the debtor cannot have the right to object in favor of the jurisdiction of the Antalya Enforcement Directorate.
What are the types of enforcement proceedings?
In accordance with the relevant provisions of the enforcement and bankruptcy law, it is possible to conduct enforcement proceedings for commercial or ordinary money and guarantee receivables arising from civil law relations without a court decision or its equivalent document, and in these proceedings, it is possible to apply for attachment. In the event of attachment, within 7 days from the service of the payment order, the debts must be paid or an objection must be filed to the enforcement proceedings file in the said period. The grounds for objection may be made in three ways such as an objection to the authorization, to the signature and to the debt. The debtor may choose one of these objections or contend several of them in the petition of objection.
Furthermore, in this way of attachment, the debtor can make an objection to the debt and signature not before the relevant enforcement office, but before the enforcement court to which the enforcement office is registered. If this is not done within 5 days within the service of the payment order, the right of objection will be receded.
Antalya Lawyer and Antalya Attorney Barış Erkan Çelebi and his Antalya Law Firm provide legal consultancy and advocacy services such as answering to creditors’ pursuance and encashment, objections, complaint, commitments as well as negative declaratory action or following up request of restitution, abolishment or removal of objection.
In cases where the credit is guaranteed by collateral, enforcement proceedings can be carried out in order to collect the debt by cashing this guarantee. Mortgage, which is the most common type of collateral in Enforcement Law and Civil Law, is a type of immovable pledge that guarantees a receivable that is either present or possible in future. In the event that there is no cash debt acknowledgment in mortgage contract table, the creditor may apply for proceedings without judgement pursuance procedure with converting the mortgage into money.
In the proceedings that liquidate mortgage into currency, due to the reason that the credit is secured by a collateral, the creditor must first convert this collateral into cash. As the credit is going to be collected from the sale price of the mortgaged property, there is no other attachment in this type of proceeding.
Antalya Lawyer Barış Erkan Çelebi provides information service for clients with information on the implementation of court decisions while the procedure is in progress. Not only within the boundaries of Antalya but also proceedings obtained from all courts or judiciary, communication with other enforcement directorates throughout the country via communications, by way of instructions and National Judiciary informatics system are provided when required.
How bankruptcy proceedings can be initiated?
As well as claiming bankruptcy by applying to the commercial court, the bankruptcy procedure may also be initiated by the creditors by iniating the bankruptcy proceedings against the debtors.
In case of bankruptcy proceeding, the relevant enforcement directorate services by regulating a payment order on behalf of the debtor.
Unless payment cannot be made or is rejected by the debtor within 7 days from the service of the payment order, the creditor may demand bankruptcy of the debtor by applying to the Commercial Court.
When the court orders bankruptcy, the bankruptcy is initiated against the debtor and declared by the bankruptcy directorate within the jurisdiction of the court.
After this process, liqudiation procedure against the bankrupted debtor is initiated by setting up the bankruptcy board.