Execution Proceedings Under Turkish Law October 22, 2018 – Posted in: Blog

EXECUTION PROCEEDINGS UNDER TURKISH LAW

This law field has been settled with the Enforcement and Bankruptcy Law (Law no. 2004)

If you are a creditor, you may choose two methods to collect your receivables from debtors through enforcement proceedings. The methods depends on the cause of the debt.

One of them is execution proceedings and the other one is bankruptcy proceedings.

EXECUTION PROCEEDING

ENFORCEMENT WITHOUT JUDGEMENT

  • Ordinary Execution Proceeding

Creditor can initiate the execution proceedings by submitting an execution form to the competent execution office. After execution request, Execution Office must send a payment order to debtor’s address given by the creditor.  Within 7 days upon receipt of the payment order, debtor has to pay the amount.

Debtor also can proclaim of objection for two reasons below, after receiving the payment order. If the debtor objects to the payment order, the execution proceedings will be suspended automatically. In case of objection, execution proceeding will not proceed until the objection is dismissed by court. In order to dismiss the objection, the creditor has to file a lawsuit within 6 months following the debtor’s objection (removal of objection lawsuit) or within 1 year following the debtor’s objection (annulment of objection lawsuit) The payment order becomes binding if the debtor doesn’t object to the payment order within 7 days or the debtor doesn’t pay the debt or the court cancels the debtors objection.

  • Objection of the authority of the execution Office

Debtor must appeal to the execution office within 7 days upon receipt of the payment order.

  • Objection to Debt

Debtor must appeal to the execution office within 7 days upon receipt of the payment order.

  • Execution Proceedings According to Negotiable Instruments (Bonds, Cheques, Bill of Exchange)

Creditor who has a negotiable instrument can initiate the execution proceedings by submitting an execution form to the competent Office. After execution request, execution office must send a payment order and a copy of the negotiable instrument to debtor’s address given by the creditor. Within 10 days upon receipt of the payment order, debtor has to pay the amount.

Debtor also can proclaim of objection of two reasons below within 5 days to the Enforcement Court, after receiving the payment order. In case of objection, execution proceeding will proceed until the court decides to stay of execution.

  • Objection to Debt

Debtor may object to charge off the debt, object to be time-barred, object to authority of the execution office.  Debtor has to proof the objection with a bond which signature approved by a notary, ordinary bond with acknowledged signature, receipt or voucher issued by a government agency.

  • Objection to Signature

Debtor may object to signature on the negotiable instrument. In this case; the Enforcement Court will decide after expert examining whether the signature on the negotiable instrument belongs to debtor.

  • Proceeding Related To Rental Debts

Time for default is 30 days at proceeding related to rental debts. If the renter does not pay the amount on the enforcement paper or does not object to debt or rental agreement, landlord has to file a lawsuit to the Enforcement Court for eviction. If the renter objects to the debt or rental agreement, landlord has to file a lawsuit to the Enforcement Court for eviction and removal of objection.

ENFORCEMENT WITH JUDGEMENT

Enforcement with judgement proceedings are smiler with proceedings without judgement. If the creditors want to initiate the enforcement proceeding, there must be a prior court decision, compromises made in presence of court, acceptance made in presence of court, notary bonds containing unconditional acknowledgement of a debt, arbitration decisions.

FORESCLOSURE PROCEEDINGS 

If the debt has been guaranteed with a pledge, debtor follows the procedure of proceeding through foreclosure.

  • Foreclosure of a Movable Property

The debtor may object to the payment order within 15 days. If the debtor does not object or he/she does not pay the amount requested under the payment order, then debt is paid by selling movable property. The creditor must demand the sale in 6 months

  • Foreclosure of a Real Estate

In this proceeding, debtor can only object to the debt within 7 days. Debtor cannot object to right of mortgage in real estate pledge. If the debtor does not object within 7 days or he/she does not pay the amount requested under the payment order within 30 days, then debt is paid by selling property. The creditor must demand the sale in 1 years.