Enforcement & Bankruptcy Law Services

As Viridis Legal Partners, we are here for our clients to recover their claims in the most  immediate, practical and least costly manner, and we provide consultancy and litigation services for the collection of debts of local and foreign companies and natural persons abroad or in Turkey.

Our expert team of attorneys assists our clients in the performance of all kinds of enforcement and bankruptcy transactions such as in the follow-up of enforcement cases, collection of debts, confiscations and foreclosures, provisional remedies, pledges, and negotiations with the debtor and creditor for the debt settlement. Consultancy and legal services are also provided to institutions and individuals for bankruptcy or postponement of bankruptcy and concordat procedures

What is Enforcement and Bankruptcy Law?

Enforcement and bankruptcy law is an area of law which deals with assorted ways and regulations to collect the debt arising from private law, via state organs. The main code regulating this area of law is the Enforcement and Bankruptcy Law No. 2004 in Turkey.

The main difference between enforcement and bankruptcy is that in the enforcement proceedings, not all the assets but enough to pay the debt of the debtor are confiscated, on the other hand, in bankruptcy proceedings the debtor is responsible with all his assets.

Enforcement Proceedings In Turkey

As we mentioned above, enforcement (partial execution) and bankruptcy (full execution) are the main types of debt recovery methods with public force.

In Enforcement Law, there is also a provisional lien institution that is seen together with partial enforcement. This institution, which essentially operates as a specialized type of precautionary measure, is regulated in the 257th and subsequent articles of the Enforcement and Bankruptcy Law. The precautionary lien is a legal institution that aims to secure a credit that is not secured by a hypothec and has not been paid even though it is due. However, unlike other enforcement law procedures, the provisional seizure is requested from the competent and authorized court. Upon acceptance of the request, the debtor’s assets are temporarily seized by the Court.

Execution Proceedings without Judgment

The specific method of pursuit that can only be used for money and guarantee receivables is called pursuit without judgment. Here, there is no need for a court decision proving the receivable, nor is there even a need for the existence of a promissory note as a basis for prosecution. There are four types of pursuit without judgment: pursuit through general foreclosure, pursuit through foreclosure specific to bills of exchange, pursuit through foreclosure specific to the evacuation of rented immovable properties, and pursuit without judgment through the conversion of the lien into cash.

Execution Proceedings with Judgment

The method of enforcement proceedings used to fulfil a court decision is called enforcement proceedings with a judgment. documents in the nature of a judgment, such as settlements made before the Court, acceptances and notary deeds issued ex officio containing the acknowledgement of money debt, bails of appeal and appeal, and sureties in the enforcement office, can also be the basis for enforcement proceedings with a writ

Unlike execution proceedings without judgment, enforcement proceedings with judgment can be applied for the execution of all kinds of performance provisions, except for obtaining money and security receivables. Accordingly, the subject of enforcement proceedings with a judgment may be money receivables, as well as issues such as delivery of movable properties and evacuation of real estate. While until 2021, the fulfilment of court decisions such as the delivery of the child or the establishment of personal relations with the child was regulated within the scope of the Enforcement and Bankruptcy Law, now with the Regulation on The Fulfilment of Decisions and Injunctions Regarding The Delivery of The Child and The Establishment of Personal Relationship With The Child dated 2022, the authority in this regard has been taken from the enforcement offices and given to the Ministry of Family Directorate of Legal Support and Victim Services.

Some other noticeable features which distinguish enforcement proceedings with a judgment from enforcement proceedings without a judgment is that there is no authority rule and no advance fee in enforcement proceedings with a judgment.

International Enforcement of Debts

Many issues play an important role in the compulsory enforcement of the receivable abroad, such as the residences of the creditor and the debtor, whether an authorization agreement has been made between the parties, and whether the enforcement process has been carried out in terms of this decision if the receivable has been determined by a judgment. In every concrete case, it is necessary to focus on various issues such as these in order to collect the receivables in the fastest and least costly way. In addition, it will be important to determine a road map in collaboration with those who know the laws of the relevant country. As Viridis Legal Partners, we are also at your service for the international collection of your receivables.

Coercive enforcement is essentially based on the sovereign right of the country. Here, the creditor collects his receivables through the power and organs of the state. Although the fact that the debtor is located outside the country where the proceedings are initiated does not prevent him from initiating enforcement proceedings and notification of a payment order, it will not be possible to collect the receivable on goods and rights in another country. This makes international commercial activities very difficult in an increasingly global economy.

European Payment Order

In the face of this obstacle, it is necessary to emphasize the European Payment Order Procedure, which allows the international collection of debts.

What Is The European Payment Order?

“European Payment Order” is, in general, a warning containing a payment warning issued by the European Union to provide ease and operability in international receivables pursuit, which can be enforced in all member countries except Denmark without the need for an additional recognition/enforcement procedure.

Bankruptcy Proceedings

As mentioned above, the process in which the debtor is held responsible for the debt with all his assets is called bankruptcy.

In terms of Turkish Law, bankruptcy is divided into two: bankruptcy with follow-up and bankruptcy without follow-up. Follow-up bankruptcy is divided into two: ordinary bankruptcy proceedings and bankruptcy proceedings specific to bills of exchange. Bankruptcy without prosecution can be divided into two: bankruptcy at the request of the debtor or bankruptcy at the request of the creditor. Bankruptcy without prosecution is also called direct bankruptcy.