Debt Enforcement and Bankruptcy Law

Debt Enforcement and Bankruptcy Law

Bodies might not always be able to pay back their debts. Such situations sometimes arise due to an inability to pay, or sometimes due to the debtor's unwillingness to pay despite being able to. Courts may decide to force those unable to pay up to a certain limit. Creditors wishing to recover their receivables cannot force the debtor directly; therefore they apply to authorised public institutions tasked for such matters to demand repayment of their credit. Subject of Debt Enforcement Law begins at this point. In scope of Prosecution Law, Debt Enforcement means fulfilment of debts originating from Private Law relations and not fulfilled by liable parties with enforcement by government.

On the other hand, Bankruptcy means a decision to liquidate the debtor taken by Trade Court of First Instance. In this case, the sequestrated assets of debtor will be liquefied into cash by government enforcement, providing a collective legal action for repayment of debts for credits of the creditors.

Concordat, a work derived from an Italian root, means composition of debts, or bankruptcy in settlement. However, bodies that are subject to a bankruptcy decision may also request Concordat. In legal terms, Concordat is a legal enforcement facility for satisfaction of creditors in a manner suitable for the debtor, according to the proposal of the debtor as accepted by absolute majority of the creditors and as approved by the Trade Court of First Instance, enabling the debtor to pay their debts and releasing the debtor from potential legal prosecution outside exceptions. Concordat enables the debtor to continue their activities before bankruptcy and liquidation. Concordat can be practiced in two types; common concordat and concordat by cession of assets.

Restructuring by Settlement, a rehabilitation method allowing a stock corporation or cooperative experiencing financial troubles to reach a settlement with their creditors in the framework of a project in order to avoid bankruptcy and continue their activities, not only re-determines the new interest rates and payment maturities for company debts, but also covers structural and financial restructuring of the company or the cooperative.

In addition, Annulment of Disposal Suits, which is a type of lawsuit nullifying the consequences of transactions taken by a debtor vis-à-vis third parties in order to hide assets to detriment of their creditors, are also a part of Debt Enforcement and Bankruptcy Law.

We provide our clients with result oriented legal support at all stages of legal procedures with our attorneys specialising in Debt Enforcement and Bankruptcy Law acting both as attorneys in law and legal counsellors in regard of lawsuits in or against the favour of our clients including Dismissal of Objection Suits, Annulment of Objection Suits, Debt Release Suits, Beneficiary Determination Suits, Restitution Suits, Interest Claim Suits, Order Table Objection Suits, Order Table Placement Objection Suits, Provisional Attachment Petitions and Annulment of Disposal Suits.

Copyright © 2019. All rights reserved by Akkus Attorney & Law Firm