Enforcement and Bankruptcy Law No. 2004

Amended: 2/7/2012, Law No. 6352, Art. 1

There shall be a sufficient number of enforcement offices within the jurisdiction of each court of first instance.

Each enforcement office shall have an enforcement director to be appointed by the Ministry of Justice, a sufficient number of assistant enforcement directors and enforcement clerks, as well as court ushers and attendants to be assigned by the justice commissions of the first instance courts of ordinary jurisdiction.

Added paragraph 3: 24/11/2021, Law No. 7343, Art. 1 In enforcement offices with a heavy workload or a large number of staff, in order to ensure the orderly, harmonious and efficient functioning of the office, a chief enforcement director vested with the powers of an enforcement director may be assigned by the Ministry of Justice from among the enforcement directors and assistant directors. The procedures and principles concerning the implementation of this paragraph shall be laid down by regulation.

Enforcement directors and assistant enforcement directors shall be appointed according to the results of a written examination to be held on behalf of the Ministry of Justice and an oral examination to be conducted by the Ministry of Justice. Appointments to the posts of enforcement director or assistant enforcement director may also be made from among enforcement clerks according to the results of a written examination to be held on behalf of the Ministry of Justice and an oral examination to be conducted by the Ministry of Justice.

Persons to be appointed as enforcement clerks for the first time shall be appointed from among those who are successful in the central examination held for persons to be appointed to public service for the first time, according to the results of a practical and oral examination to be conducted by the Ministry of Justice or by the justice commissions of the first instance courts of ordinary jurisdiction authorised by the Ministry for this purpose; persons to be appointed by way of change of title shall be appointed according to the results of a practical and oral examination. Persons appointed as enforcement clerks by way of change of title may not exceed fifty per cent of the allocated positions.

The written examination, oral examination, assignment, transfer, change of title, promotion in service and other matters relating to enforcement directors, assistant enforcement directors and enforcement clerks shall be regulated by regulation.

Where necessary, court clerks, court ushers and attendants shall be assigned to enforcement offices by the justice commission of the first instance courts of ordinary jurisdiction, within the framework of the principles to be determined by the Ministry of Justice.

In the absence, for any reason whatsoever, of the enforcement director, assistant enforcement director or enforcement clerk, their duties and powers shall be performed by the chief clerk or court clerk to be assigned by the justice commission of the first instance courts of ordinary jurisdiction.

The Ministry of Justice is authorised to house enforcement offices together and to attach them to the same enforcement court.

Bankruptcy offices:

There shall be as many bankruptcy offices as necessary within the jurisdiction of each court of first instance.

Article 1 shall also apply to bankruptcy offices.

Merger of enforcement and bankruptcy offices:

Enforcement and bankruptcy matters may be combined in a single office.

Presidency of enforcement offices:

ARTICLE 3/a Added: 24/11/2021, Law No. 7343, Art. 2

In provinces with a heavy workload or a large number of enforcement offices, one or more presidencies of enforcement offices may be established by the Ministry of Justice, with their territorial jurisdiction also being determined.

A presidency shall consist of a president and a sufficient number of vice-presidents. The president shall be appointed by the Ministry, with his or her consent, from among judges and public prosecutors of ordinary jurisdiction who have attained the first class, and the vice-presidents from among those who have been selected for the first class. In addition, a sufficient number of chief enforcement directors, enforcement directors, assistant enforcement directors, enforcement clerks and officers shall be assigned to the presidency by the Ministry of Justice.

In matters not provided for in this Law, the provisions of the Law on Judges and Prosecutors No. 2802 dated 24/2/1983 concerning judges serving in the central organisation of the Ministry of Justice shall apply to the president and vice-presidents of enforcement offices.

The presidency shall supervise and inspect the enforcement offices and handle their administrative affairs; it shall perform the duties assigned to it by legislation.

The provisions of this Article shall also apply to bankruptcy offices and to the officials working in bankruptcy offices.

The procedures and principles concerning the implementation of this Article shall be determined by a regulation put into force by the Ministry of Justice.

Enforcement court:

Amended: 3/7/1940, Law No. 3890, Art. 1

Amended paragraph 1: 17/7/2003, Law No. 4949, Art. 1 Complaints and objections against the acts of enforcement and bankruptcy offices shall be examined by the judge of the enforcement court or by the judge to whom this duty has been assigned by law. Where the workload so requires, more than one chamber of the enforcement court may be established by the Ministry of Justice upon the favourable opinion of the Council of Judges and Prosecutors. In this case, the chambers of the enforcement court shall be numbered. In places where the enforcement court has more than one chamber, the distribution of work and the principles relating thereto shall be determined by the Council of Judges and Prosecutors. Each enforcement court judge shall examine the complaints and objections concerning the acts of the enforcement and bankruptcy offices attached to him or her on a rotational basis by the Presidency of the Justice Commission of Ordinary Jurisdiction and, in places where no presidency of enforcement offices has been established, shall supervise and inspect these offices and handle their administrative affairs.

The enforcement court for complaints and objections against the acts of courts of peace vested with enforcement powers is the judge of that court.

Liability:

Amended: 6/6/1985, Law No. 3222, Art. 1

Actions for compensation arising from the faults of officials of the Enforcement and Bankruptcy Office may be brought only against the administration. The State's right of recourse against the officials at fault in causing the damage is reserved. These actions shall be heard by the courts of ordinary jurisdiction.

Embezzlement:

Amended: 6/6/1985, Law No. 3222, Art. 2

Where money deposited with the enforcement office, or collected or taken into custody by that office, is embezzled by the relevant officer, the embezzled amount shall be deposited immediately into the enforcement cash office by the Treasury, without awaiting the outcome of criminal proceedings and without the need for a judgment ordering compensation. The State's right of recourse against those primarily liable is reserved.

Limitation of actions for damages:

An action for damages shall become time-barred upon the expiry of one year from the day on which the injured party learned of the damage and, in any event, ten years from the occurrence of the act giving rise to the damage.

However, if the damage results from an act punishable by a penalty and the criminal laws subject that act to a longer limitation period, the criminal limitation period shall also apply to the civil action.

Records:

Amended: 18/2/1965, Law No. 538, Art. 4

Enforcement and bankruptcy offices shall draw up a record of the acts they perform and of the requests and statements made to them. Oral objections, requests and statements shall be signed at the bottom by the persons concerned and by the enforcement officer or his or her assistant or clerk.

Added paragraph: 2/7/2012, Law No. 6352, Art. 2 Decisions rendered by enforcement and bankruptcy offices shall be entered in the records together with their reasons.

The persons concerned may view these records and obtain copies of them.

The records of enforcement and bankruptcy offices shall be valid until the contrary is proven.

Electronic transactions:

Article 8/a Added: 2/7/2012, Law No. 6352, Art. 3

The National Judiciary Informatics System (UYAP) shall be used in all kinds of enforcement and bankruptcy matters and transactions to be carried out by enforcement and bankruptcy offices; all kinds of data, information, documents and decisions shall be processed, recorded and stored by means of the National Judiciary Informatics System.

Electronic data created with a secure electronic signature in accordance with the procedure shall have the force of a deed. A secure electronic signature shall have the same evidentiary force as a handwritten signature. A secure electronic signature may be used in place of a handwritten signature, except for transactions which the laws expressly state cannot be performed with a secure electronic signature. Provisions of laws requiring the drawing up of more than one copy and sealing shall not apply to documents and decisions created with a secure electronic signature.

Documents or decisions drawn up physically owing to compelling reasons shall be signed with a secure electronic signature by the authorised persons and transferred to the National Judiciary Informatics System and, where necessary, transmitted to the relevant units by means of the National Judiciary Informatics System. The originals of documents and decisions transferred to the electronic environment and transmitted to the relevant units in this manner shall be kept at the sending enforcement and bankruptcy office and shall not additionally be sent physically. However, cases where examination of the original of the document or decision is necessary are reserved.

In cases where a physical copy must be produced from the electronic environment, it shall be signed and sealed by the enforcement director or the personnel assigned by him or her, stating that it is identical to the original of the document.

In transactions carried out in the electronic environment, time limits shall expire at the end of the day.

Added paragraph: 6/12/2018, Law No. 7155, Art. 10 The creditor may, through the National Judiciary Informatics System and by means of information systems integrated into this system, make inquiries regarding file progress information and the property, rights or receivables of the debtor in return for fifty kuruş (…). This amount shall be increased each year by the revaluation rate determined and announced for the previous year pursuant to the provisions of repeated Article 298 of the Tax Procedure Law No. 213 dated 4/1/1961. The Ministry of Justice is authorised to increase or decrease the fee increased by the revaluation rate up to five times, and also to exempt a certain number of inquiries from the fee on a per-day and per-file basis. This fee shall not be charged to public administrations within the scope of general government, nor shall a fee be charged for the five inquiries to be made by the creditor on the same file within one day. The fee to be charged within this scope shall be collected in accordance with the procedure to be determined by the Ministry of Justice and may not be imposed on the debtor as an enforcement cost.

The procedures and principles concerning the performance of electronic transactions through the National Judiciary Informatics System shall be regulated by a regulation issued by the Ministry of Justice.

Payment of money and safekeeping of valuables:

Amended: 2/7/2012, Law No. 6352, Art. 4

All cash payments to be made to enforcement and bankruptcy offices shall be made into an account opened in the name of the enforcement and bankruptcy office at banks deemed appropriate by the Ministry of Justice. Money collected during attachment as a result of payment by the debtor or third parties shall be kept in the enforcement or court safes in order to be deposited into the bank account at the latest by the end of working hours on the first working day following the day on which the collection was made.

All cash payments required to be made by enforcement and bankruptcy offices shall be made pursuant to an instruction to be given ex officio to the bank by the enforcement director, for transfer to the bank account indicated by the person concerned. The instruction shall be given at the latest by the end of the third working day following the deposit of the money into the account of the enforcement and bankruptcy office.

Enforcement and bankruptcy offices shall keep the negotiable instruments and valuables they receive in their safes or, in compulsory cases, in bank safe deposit boxes to be rented.

Disqualification from acting:

Amended: 18/2/1965, Law No. 538, Art. 6

Officers and employees handling enforcement and bankruptcy matters may not handle matters in which

1. they themselves,

2. their spouse, their fiancé(e), or their ascendants and descendants by blood or by marriage, or their collateral relatives by blood or by marriage up to and including the third degree,

3. a person whose legal representative, attorney or employee they are,

have an interest, and they shall be obliged to notify the enforcement court immediately. If the enforcement court finds the application justified, it shall assign the matter to another officer or, where there is none, to one of the clerks.

Challenge of the enforcement court judge

Article 10/a Added: 18/2/1965, Law No. 538, Art. 7; Amended: 2/3/2005, Law No. 5311, Art. 1

Where the enforcement court judge is challenged, the provisions of the Code of Civil Procedure shall apply. The person making the challenge request must state the grounds for the challenge together with the evidence in his or her petition.

Applying for appeal (istinaf) against the decision rejecting the challenge request shall not prevent the judge from hearing the matter and rendering a decision. If the decision rejecting the challenge request is set aside, the decision rendered by the challenged judge shall not be executed. In this case, the file shall be sent by the regional court of appeal to another chamber of the enforcement court or, if there is no other chamber of the enforcement court in that place, to the nearest enforcement court. The provisions of Article 40 shall apply by analogy.

Prohibited transactions:

Judges performing the duty of review and officers and employees of enforcement and bankruptcy offices may not conclude, with anyone whomsoever, any contract on their own account or on account of others concerning a receivable being pursued by their office or a thing being sold by it. If they do, the contract shall be null and void.

Payment to the enforcement office:

Repealed: 2/7/2012, Law No. 6352, Art. 105

Supervision and inspection:

Amended: 6/6/1985, Law No. 3222, Art. 3

Amended first sentence: 17/7/2003, Law No. 4949, Art. 2 Enforcement and bankruptcy offices shall be under the permanent supervision and inspection of the presidency of enforcement offices and, in places where such presidency has not been established, of the enforcement court judge, in accordance with the principles set out in Article 4. These offices shall be subject to inspection by public prosecutors and justice inspectors. Public prosecutors shall inspect these offices at least once a year.

For acts and conduct of enforcement and bankruptcy officers and their assistants requiring a disciplinary penalty, the provisions of the Civil Servants Law relating to disciplinary penalties shall apply to them.

First inspection:

Article 13/a Added: 18/2/1965, Law No. 538, Art. 9

The first inspection to be carried out by public prosecutors under Article 13 must be carried out every year in the month of January, covering the transactions of the preceding year, and one copy each of the reports to be drawn up must be kept at the enforcement and bankruptcy office and at the chief public prosecutor's office (…).

The conduct of inspections, by whom this shall be carried out where the prosecutor's offices are vacant, and how the inspection reports shall be drawn up shall be specified in the regulation.

Regulation and Court of Cassation decisions:

Amended: 18/2/1965, Law No. 538, Art. 10

The manner of implementation of this Law (…), and the forms of the registers, files and other printed forms to be kept at enforcement and bankruptcy offices and enforcement courts shall be determined and established by a regulation to be prepared by the Ministry of Justice.

Paragraph 2 repealed: 6/6/1985, Law No. 3222, Art. 47

Added paragraph: 17/7/2003, Law No. 4949, Art. 3 The Court of Cassation shall regularly publish all of its decisions on enforcement and bankruptcy matters. The principles relating thereto shall be regulated by the Court of Cassation by regulation.

Fees:

Amended: 3/7/1940, Law No. 3890, Art. 1

Enforcement and bankruptcy fees shall be determined by law. Unless otherwise provided in the law, all fees and costs shall be borne by the debtor and shall ultimately be collected without the need for a separate judgment and enforcement proceedings.

In enforcement proceedings, decisions on legal aid shall be made by the enforcement court competent for the proceedings in accordance with Article 465 et seq. of the Code of Civil Procedure.

Complaint and its conditions:

Amended: 3/7/1940, Law No. 3890, Art. 1

Except for matters whose resolution the law leaves to the court, a complaint may be filed with the enforcement court against the acts performed by Enforcement and Bankruptcy offices on the ground that they are contrary to law or not appropriate to the circumstances. The complaint shall be filed within seven days from the date on which these acts became known.

A complaint may be filed at any time on account of the non-fulfilment of a right or its being delayed without cause.

Acts to be performed upon complaint:

If the complaint is accepted by the enforcement court, the act complained of shall be either set aside or corrected.

The performance of acts which the officer has failed to perform or has delayed without cause shall be ordered.

Procedures of adjudication:

Amended: 18/2/1965, Law No. 538, Art. 11

Amended paragraph 1: 2/7/2012, Law No. 6352, Art. 6 Matters submitted to the enforcement court shall be deemed urgent matters and the simple adjudication procedure shall apply to them.

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

Amended paragraph 3: 17/7/2003, Law No. 4949, Art. 4 In cases where there is no provision to the contrary, the enforcement court shall assess whether it is necessary for the enforcement office that performed the act complained of to provide an explanation and whether a hearing needs to be held; if it deems it appropriate to hold a hearing, it shall summon the persons concerned to the hearing at the earliest opportunity and shall render the necessary decision even if they do not appear. In matters where no hearing is held, the enforcement court shall render its decision within ten days at the latest from the date on which the matter came before it. Hearings may be adjourned only in cases of necessity and for no more than thirty days.

TIME LIMITS

Commencement and expiry:

Amended: 18/2/1965, Law No. 538, Art. 12

In time limits specified in days, the first day shall not be counted.

Time limits specified in months or years shall expire on the same day of the month or year in which they end as the day of the month or year on which they began to run and, if there is no such day in the month in which the time limit ends, on the last day of that month. Added sentence: 2/3/2024, Law No. 7499, Art. 1 Where the time limit is specified in weeks, it shall expire on the day of the last week corresponding to the day on which it began.

If the last day of a time limit falls on an official holiday, the time limit shall expire on the day following the holiday.

A time limit shall be deemed to expire at the closing hour of the last day.

Time limits not to be altered:

All agreements altering the time limits laid down by this Law shall be null and void. However, the debtor who is entitled to benefit from the expiry of any time limit may waive this right. Such waiver shall not affect third parties.

Enforcement notifications:

Amended: 18/2/1965, Law No. 538, Art. 13

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

Where the creditor or debtor changes the address written in the judgment, in the documents deemed to have the force of a judgment under Article 38, or in the mortgage deed, service shall be made to the same address unless they have notified each other of the matter through a notary public, and if the party is not found at that address, Article 35 of the Law on Notifications shall apply.

A party who, although the change of address has been notified to it by the creditor or debtor pursuant to the preceding paragraph, has caused service to be made to the old address and has thereby benefited from Article 35 of the Law on Notifications shall be obliged to pay all damages thus caused to the other party with an additional 15 per cent, and the penalty in Article 343 shall also be applied to that party.

Stay of enforcement:

A complaint shall not stay enforcement unless the enforcement court so decides.

Terms used in the Law:

Amended: 14/1/2011, Law No. 6103, Art. 41

In the application of this Law;

1. the term “mortgage”: mortgages, mortgage bonds, annuity bonds, immovable pledges established under the provisions of former law, land charges, special privileges over certain immovables and pledge transactions over accessories of immovables,

2. the term “movable pledge”: possessory pledges, the pledges provided for in Article 940 of the Turkish Civil Code, commercial enterprise pledges, the right of retention, and pledges over receivables and other rights,

3. the term “pledge” alone: all movable and immovable pledges falling within the terms “mortgage” and “movable pledge”,

shall be encompassed by the respective terms.

Except for expressly provided exceptions, the provisions of this Law relating to movables shall apply to all ships, irrespective of their flag and of whether or not they are entered in a registry. Annotations to be made in the ship registry pursuant to this Law shall be subject to the provision of Article 977 of the Turkish Commercial Code.

CHAPTER TWO

Enforcement of Judgments

I. Enforcement of Judgments concerning Obligations other than Money and Security:

Delivery of movables:

Amended: 18/2/1965, Law No. 538, Art. 14

When a judgment concerning the delivery of a movable is submitted to the enforcement office, the enforcement officer shall order the debtor, by service of an enforcement order, to deliver that thing within seven days.

The enforcement order shall state the names and surnames as well as the known names and domiciles of the creditor and the debtor and of their representatives, if any, the name of the court that rendered the judgment and what the thing adjudged consists of, the date and number of the judgment, and that compulsory enforcement shall continue unless a decision on the stay of enforcement is obtained from the enforcement court or, by way of appeal (istinaf), appeal on points of law (temyiz) or retrial, from the relevant court.

If the debtor does not comply with this order at all or complies with it incompletely, and the movable adjudged or its equivalent is in his or her possession, it shall be taken from him or her by force and given to the creditor.

If it is not in his or her possession, the value stated in the judgment shall be collected. If he or she does not pay it, it shall be collected by way of attachment without the need for service of a separate enforcement order. Where the value of the movable property is not stated in the judgment or is disputed, it shall be assessed by the enforcement officer according to the market value on the date on which the attachment is made.

The value of the movable adjudged shall be determined according to the answer to be obtained by inquiry from the stock exchange or chambers of commerce or, where there are none, from an expert to be selected by the enforcement officer.

The persons concerned have the right to complain to the enforcement court in this respect.

Repealed paragraph 7: 14/1/2011, Law No. 6103, Art. 41

Delivery of a child:

Repealed: 24/11/2021, Law No. 7343, Art. 32

Enforcement of judgments on establishing personal relations with a child:

Article 25/a: Added: 18/2/1965, Law No. 538, Art. 15 Repealed: 24/11/2021, Law No. 7343, Art. 32

Presence of an expert in the enforcement of judgments on the handover of a child and the establishment of personal relations with a child:

Article 25/b: Added: 17/7/2003, Law No. 4949, Art. 7 Repealed: 24/11/2021, Law No. 7343, Art. 32

Eviction from and delivery of immovable property:

1. Where the property is in the possession of the debtor:

Amended: 14/1/2011, Law No. 6103, Art. 41

When a judgment ordering the eviction from and delivery of an immovable is submitted to the enforcement office, the enforcement director shall, by serving an enforcement order in the manner set out in Article 24, order the debtor to deliver the thing adjudged within seven days.

If the debtor, while occupying the immovable, fails to comply with this order, the judgment shall be enforced by force.

A debtor who, without a justified reason, re-enters an immovable delivered to the creditor shall be removed by force without the need for a further judgment.

Movable items found in the immovable but not covered by the judgment shall be removed and handed over to the debtor or, if the debtor is not present, entrusted to the debtor's attorney or to an adult member of the debtor's household or to the debtor's servants. If none of these persons can be found, the said items shall be kept in a safe place or in the custody of the creditor, the costs being collected in advance from the creditor to be charged to the debtor later; and if, upon service to be made forthwith by the enforcement office, the debtor refuses, within five days if he is in the place where the items are located and otherwise within thirty days, to take the items or to pay the costs, or if deemed necessary, the enforcement director shall, by decision of the enforcement court, sell them and pay the costs out of the proceeds. Any surplus 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. Where the immovable is in the possession of a third party:

If the immovable is occupied by a third party on the basis of an instrument registered in the land register after the action was brought and before the judgment was rendered, the creditor shall have the rights which the debtor holds against that person. If the creditor does not choose this option, he may bring an action for damages against his debtor. However, the general provisions concerning third parties acting in bad faith are reserved.

Added: 29/6/1956, Law No. 6763, Art. 42; Repealed second paragraph: 14/1/2011, Law No. 6103, Art. 41

Notification of judgments in actions concerning immovables to the land registry office:

Amended: 14/1/2011, Law No. 6103, Art. 41

Where judgment is rendered in favour of the claimant in actions concerning immovables, the court shall, without the need for a request by the claimant, notify a summary of the judgment to the land registry office together with its pronouncement. The relevant office shall annotate this fact on the record of the immovable adjudged. This annotation is subject to the provision of the second paragraph of Article 1010 of the Turkish Civil Code.

If the decision rendered on the action concerning the immovable later becomes final against the claimant, the court shall forthwith notify a summary of that judgment as well to the land registry office.

Change of possession after the judgment concerning the immovable:

Amended: 14/1/2011, Law No. 6103, Art. 41

Changes occurring after the notification of the judgment to the land registry office shall have no effect on the enforcement proceedings. The thing specified in the judgment shall be taken from whoever holds it and delivered to the creditor.

However, if the third party found at that place shows a land register entry indicating that he did not receive this property from the debtor but occupies it directly, he shall be granted a period of seven days to apply to the court and bring an action. If an action is brought within this period, enforcement shall be stayed.

Judgments ordering the performance or non-performance of an act:

When a judgment ordering the performance of an act is submitted to the enforcement office, the enforcement officer shall, by serving an enforcement order in the manner set out in Article 24, order the debtor to perform the act within the period specified in the judgment or, if no period has been specified, within start and completion times fixed according to the nature of the act.

If the debtor does not start or complete the act within the specified periods, and the act is one that can be performed by another person, and the creditor so requests, the costs necessary for its performance shall be assessed by experts appointed by the enforcement officer. If the creditor consents to advance these costs, to be collected later from the debtor without the need for a judgment and paid to him, they shall be collected and the adjudged act shall be performed. If he does not consent, sufficient property of the debtor shall be attached and converted into money without the need for a further judgment, and the act shall be performed.

If the judgment concerns the non-performance of an act, the enforcement office shall serve the operative part of the judgment on the debtor by an order with the same time limit. This order shall state that contravention of the judgment entails the penalty provided for in Article 343.

Added last paragraph: 17/7/2003, Law No. 4949, Art. 9 If, after the judgment ordering the performance or non-performance of an act has been executed, the debtor engages in conduct that would nullify the operative part of the judgment, the earlier judgment shall again be enforced by force without the need to obtain a further judgment from the court.

Judgments concerning servitudes:

Amended: 14/1/2012, Law No. 6103, Art. 41

When a judgment concerning the removal of a servitude or the imposition of such a right is submitted to the enforcement office, the enforcement director shall send a seven-day enforcement order in the manner set out in Article 24. If the debtor contravenes it, the judgment shall be enforced by force.

Enforcement of judgments concerning ships and real rights relating to them:

Article 31/a: Added: 14/1/2011, Law No. 6103, Art. 41

Decisions concerning any ship, irrespective of its flag and of whether it is entered in a registry, and real rights relating to it, may not be enforced until they become final.

Where judgment is rendered in favour of the claimant in actions concerning registered Turkish ships and real rights relating to them, the court shall, without the need for a request by the claimant, notify a summary of the judgment to the ship registry directorate together with its pronouncement. The judgment shall be annotated in the ship register. If the decision rendered in the action later becomes final against the claimant, the court shall forthwith notify a summary of that judgment as well to the ship registry directorate. With respect to all foreign-flagged ships, irrespective of whether they are entered in a 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 judgment has been annotated in the ship register, proceedings shall be carried out in accordance with the third paragraph against the person who obtains possession of the ship, without the need to obtain a new judgment against that person.

When a judgment ordering the eviction from and delivery of a ship, irrespective of its flag and of whether it is entered in a registry, is submitted to the enforcement office, the enforcement director shall, by serving an enforcement order, order the debtor to deliver that ship within seven days. The enforcement order shall state: the names, surnames and domiciles of the creditor and the debtor and of their representatives, if any; the name of the court that rendered the judgment and the identity of the ship whose eviction and delivery has been adjudged; the date and number of the judgment; and that compulsory enforcement shall continue unless a decision staying enforcement is obtained from the enforcement court or from the court before which the case is pending by way of appeal (istinaf), appeal on points of law (temyiz) or retrial.

If the debtor, while in possession of the ship, fails to comply with this order, the judgment shall be executed by force. If the debtor is not in possession of the ship, the creditor may exercise one of the following elective rights:

1. The creditor may request payment of the value of the ship stated in the judgment. If the debtor does not pay this value, the said value shall be collected from him by way of attachment without the need to serve a further enforcement order. Where the value of the ship is not stated in the judgment and the parties cannot agree on that value, it shall be determined by a panel of experts to be chosen by the enforcement director. The panel of experts shall take as its basis the value of the ship at the time of the valuation.

2. The creditor may exercise the rights which the debtor has against the third party in possession of the ship. However, if the third party is in possession of the ship on the basis of a contract registered in the ship register after the action was brought and before the judgment was rendered, the provision of subparagraph (1) shall apply.

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

Movable items found on the ship but not covered by the judgment shall be removed and handed over to the debtor or, if that person is not present, entrusted to the debtor's attorney. If neither of them can be found, the said items shall be kept in a safe place or in the custody of the creditor, the costs being collected in advance from the creditor to be charged to the debtor later; and if, upon service to be made forthwith by the enforcement office, the debtor refrains, within five days if he is in the place where the items are located and otherwise within thirty days, from taking the items or paying the costs, or if deemed necessary, the enforcement director shall, by decision of the enforcement court, sell them and pay the costs out of the proceeds; any surplus 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.

When a judgment concerning the creation or removal of a mortgage or usufruct on registered Turkish ships is submitted to the enforcement office, the enforcement director shall send a seven-day enforcement order in the manner set out in the third paragraph. If the debtor fails to comply with the order, the judgment shall be enforced by force.

Article 30 shall apply to the enforcement of judgments ordering the performance or non-performance of an act relating to a ship which do not fall within the provisions of the preceding paragraphs.

II. Enforcement of Judgments Concerning Payment of Money and Provision of Security:

Enforcement order and its content:

Amended: 18/2/1965, Law No. 538, Art. 16

When a judgment concerning a money debt or the provision of security is submitted to the enforcement office, the enforcement officer shall serve an enforcement order on the debtor. In addition to the matters set out in Article 24, this order shall specify the type and amount of the thing adjudged, and shall finally warn the debtor that it is to be paid within seven days; that if the debt is not paid or the adjudged security is not provided within this period, compulsory enforcement shall be carried out unless a decision staying enforcement is obtained from the enforcement court or, by way of appeal (istinaf), appeal on points of law (temyiz) or retrial, from the competent court; that he must make a declaration of assets within this period pursuant to Article 74, and that if he fails to do so he shall be compelled by imprisonment; and that if he fails to make a declaration of assets or makes a declaration contrary to the truth, he shall be punished with imprisonment.

Added paragraph: 2/7/2012, Law No. 6352, Art. 7 In the enforcement order relating to enforcement proceedings based on a judgment initiated against a foreign State, it shall additionally be stated as a warning that, subject to international treaties, compulsory enforcement may be carried out on property belonging to the debtor State.

Stay of enforcement:

Amended: 18/2/1965, Law No. 538, Art. 17

Upon service of the enforcement order, the debtor may, within seven days, apply to the enforcement court by petition and object that the debt has become time-barred, or that time for payment has been granted or that the debt has been extinguished. If the claim of extinguishment or grant of time is substantiated by an instrument drawn up ex officio or duly certified by the competent authorities, or acknowledged before the enforcement office, the enforcement court or a court, enforcement shall be stayed.

Requests for a stay based on extinguishment, grant of time or limitation that arose in the period after service of the enforcement order may be made at any time. Of these, requests based on extinguishment or grant of time must necessarily be based on documents drawn up ex officio or certified by a notary, or on an enforcement record.

If the enforcement court rejects the request for a stay, the debtor may resort to appeal (istinaf) or appeal on points of law (temyiz) only on condition that, within the time limit for such application, he provides cash covering the claim, or a pledge of movables, shares or bonds or a mortgage of immovables acceptable to the enforcement court, or a reliable bank guarantee. If sufficient property of the debtor has been attached, or if sufficient property has been attached upon the debtor's request within the time limit for resorting to appeal (istinaf) or appeal on points of law (temyiz), it is not necessary to provide the security set out in this paragraph.

The right of a debtor who has been compelled to pay money he did not owe to request the return of the money by bringing an action for restitution pursuant to Article 72 is reserved.

Claim that the judgment has become time-barred:

Article 33/a: Added: 18/2/1965, Law No. 538, Art. 18

Claims that the judgment has become time-barred, or that the limitation period has been interrupted or suspended, shall be examined by the enforcement court on the basis of official documents, and it shall decide either to stay or to continue enforcement.

The creditor may, after service on him of the finality of the decision to stay enforcement, bring an action before the courts of general jurisdiction within 7 days for the purpose of proving that limitation has not occurred. Otherwise, the fact that the judgment whose enforcement is requested has become time-barred shall constitute res judicata.

Where a decision is rendered to continue enforcement, the last paragraph of Article 33 shall also apply here.

III. Common Provisions:

Where enforcement is to be requested:

Enforcement of judgments may be requested from any enforcement office. If the creditor changes his domicile, he may request that the proceedings be transferred to the enforcement office of his new domicile.

Commencement of proceedings:

Proceedings shall commence upon the deposit of the judgment with the enforcement office. A receipt indicating the registration number shall be issued free of charge and without stamp duty to the creditor upon request.

Amended: 2/3/2005, Law No. 5311, Art. 5

Where the debtor who has resorted to appeal (istinaf) or appeal on points of law (temyiz) against the judgment proves that the adjudged money or goods have been deposited with an official authority, or provides, in the amount of the value of the adjudged money or goods, a pledge of movables, shares or bonds, a mortgage of immovables or a reliable bank guarantee acceptable to the enforcement court, or if property of the debtor sufficient to cover the adjudged money and goods has been attached, the enforcement director shall grant him an appropriate period to obtain a decision staying enforcement from the enforcement court of the place where the proceedings are conducted. This period may be extended only in case of necessity.

If the debtor is the State or a person benefiting from legal aid, there is no obligation to provide security.

Amended third paragraph: 24/11/2021, Law No. 7343, Art. 5 If the fee is paid by the parties concerned, the decision of the enforcement court on the stay of enforcement shall be notified to the court that rendered the judgment and to the enforcement office by the most appropriate means.

No such period may be granted in respect of judgments on maintenance.

If the regional court of appeal finds the application justified, it shall decide whether or not the security is to be returned. If the judgment is reversed by the Court of Cassation, the court that will examine the merits after the reversal shall decide definitively, upon the debtor's application and according to the nature of the reversal, whether or not the security is to be returned.

If the regional court of appeal decides to reject the application definitively on the merits, or if the judgment is upheld by the Court of Cassation, the money subject to the security shall be paid to the creditor upon his request without the need for any further proceedings. Property and rights shall be converted into money by the enforcement office according to the type of property. Added sentence: 24/11/2021, Law No. 7343, Art. 5 Where the decision of the regional court of appeal rejecting the application on the merits is open to appeal on points of law (temyiz), the effect of the decision staying enforcement shall continue until the expiry of the time limit for resorting to appeal on points of law. The judgment creditor has a right of priority over the security.

Authority to request attachment or bankruptcy:

The property of those who fail to pay their debt despite the expiry of the period stated in the enforcement order shall be attached, or, if the debtor is among the persons subject to bankruptcy and the creditor so requests, the competent commercial court shall adjudge him bankrupt.

Documents having the nature of a judgment:

Amended: 18/2/1965, Law No. 538, Art. 20

Settlements and acceptances made before the court, notarial instruments drawn up ex officio containing an acknowledgment of a money debt, appeal (istinaf) and appeal on points of law (temyiz) guarantee bonds and guarantees given at the enforcement office are subject to the provisions on the enforcement of judgments. The enforcement guarantees under this Article have the effect of joint and several suretyship.

Limitation:

Proceedings based on a judgment become time-barred upon the lapse of ten years from the last procedural act.

Proceedings based on a notarial instrument are subject, depending on the nature of the instrument, to the limitation periods specified in the codes of obligations or commerce.

Restitution of enforcement:

Amended first paragraph: 2/3/2005, Law No. 5311, Art. 7 The setting aside of a judgment by the regional court of appeal or its reversal on appeal on points of law shall halt the enforcement proceedings at the stage they have reached.

Amended second paragraph: 2/3/2005, Law No. 5311, Art. 7 If, after a judgment has been enforced, it is set aside by the regional court of appeal or a new decision on the merits is rendered, or it is reversed by the Court of Cassation, and it is established by a final judgment that the person against whom enforcement proceedings were conducted owed no debt or not that much debt, the enforcement shall be restored to its former state in whole or in part without the need for a further judgment.

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

General provisions:

The other provisions of this Law which are not contrary to the provisions set out in this second Chapter shall also apply to proceedings based on a judgment.

CHAPTER THREE

Enforcement Proceedings without a Judgment

I. VARIOUS FORMS OF PROCEEDINGS:

Proceedings for a money debt and security:

Compulsory enforcement concerning the payment of money or the provision of security shall commence with a request for proceedings and shall be conducted by way of attachment, realisation of a pledge or bankruptcy.

Added paragraph: 2/7/2012, Law No. 6352, Art. 8 Enforcement proceedings without a judgment may not be initiated against a foreign State.

Added paragraph: 15/8/2017, Decree Law No. 694, Art. 8; Adopted without amendment: 1/2/2018, Law No. 7078, Art. 8 Enforcement proceedings without a judgment may not be initiated in matters falling within the jurisdiction of the administrative courts.

Proceedings against persons subject to bankruptcy:

Amended: 18/2/1965, Law No. 538, Art. 21

Proceedings by way of bankruptcy may be conducted only against natural or legal persons who are deemed merchants under the Commercial Code or are subject to the provisions concerning merchants, and against those who, although not merchants, are declared by their special laws to be subject to bankruptcy. However, the creditor may also conduct proceedings against such persons by way of attachment.

A creditor who has chosen one of these ways may, once only, abandon that way and apply afresh to the other without paying a fee.

Those who abandon trade:

Amended: 18/2/1965, Law No. 538, Art. 22

A merchant who abandons trade is obliged, within 15 days, to notify this fact to the trade registry in which he is registered and to make a declaration of assets showing all his assets and liabilities and the names and addresses of his creditors. The matter shall be announced by the trade registry office in the gazette in which trade registry announcements are published and, in the places where the creditors are located, by customary and appropriate means. A merchant who does not pay the announcement costs shall be deemed not to have made the declaration.

Within one year from the date of this announcement, proceedings by way of bankruptcy may be conducted against the merchant who abandoned trade.

The merchant who abandons trade may not dispose of his attachable property for a period of two months from the date of submission of the declaration of assets.

Rights acquired in good faith by third parties on the basis of the provisions on possession and the land register are reserved. However, a claim of good faith may not be raised in acquisitions between husband and wife, between ascendants and descendants, between relatives by blood or by marriage up to the second degree (this degree included), or between an adopter and an adopted child.

Amended fifth paragraph: 17/7/2003, Law No. 4949, Art. 11 The authority receiving the declaration of assets shall notify the matter to the land or ship registry offices and to the Turkish Patent Institute. Upon this notification, an annotation that the right of disposal has been restricted for a period of two months shall be entered in the register. The matter shall also be notified to the Banks Association of Türkiye.

With respect to property which is perishable or costly to preserve, or whose value is highly likely to decline within the statutory period, the court may, upon the merchant's request, decide that such property be sold through the enforcement officer in accordance with the provisions of this Law and that the proceeds be deposited in a bank referred to in Article 9.

Claims secured by pledge and mortgage:

Even if the debtor of a claim secured by a pledge is among the persons subject to bankruptcy, the creditor may conduct proceedings only by way of realisation of the pledge. However, if the proceeds of the pledge are insufficient to pay the debt, the creditor may pursue the remaining claim by way of bankruptcy or attachment.

Added paragraph: 21/2/2007, Law No. 5582, Art. 1 In proceedings for claims secured by pledge arising from housing finance as defined in the first paragraph of Article 38/A of the Capital Markets Law No. 2499 and for claims of the Housing Development Administration secured by pledge, proceedings may be conducted by way of realisation of the pledge or recourse may be had to attachment.

The provision of Article 167 concerning bills of exchange, promissory notes and cheques is reserved.

For interest and annual instalment claims secured by mortgage, recourse may be had, according to the creditor's choice and the status of the debtor, to realisation of the pledge, attachment or bankruptcy.

Added paragraph: 27/5/1933, Law No. 2228, Art. 1; Repealed: 29/6/1956, Law No. 6763, Art. 42

Proceedings by way of attachment:

1. In general:

In all other cases, proceedings shall be conducted by way of attachment. If the debtor has newly acquired the status of merchant, attachments requested against him before that shall be enforced as before unless he is adjudged bankrupt.

2. Public law debts:

The provisions of the laws on the collection of fines and other public law debts are reserved. However, the provisions of this Law shall apply to claims of the State arising from a contract or a tort.

Realisation of seized and confiscated goods:

The conversion into money of things seized and confiscated pursuant to the criminal and fiscal laws of the State shall be carried out in accordance with the provisions of those laws.

Lenders against pledge:

Amended: 18/2/1965, Law No. 538, Art. 23

In lending transactions made against pledge, the provisions on conversion into money contained in the Civil Code and in the special laws of the Agricultural Bank of the Republic of Türkiye (Türkiye Cumhuriyeti Ziraat Bankası) and the Real Estate Credit Bank of Türkiye (Türkiye Emlak Kredi Bankası) are reserved.

II. JURISDICTION

Jurisdiction and objections thereto:

Amended: 3/7/1940, Law No. 3890, Art. 1

The provisions of the Code of Civil Procedure concerning jurisdiction shall apply by analogy to proceedings for a debt of money or of security. However, the enforcement office of the place where the contract on which the proceedings are based was concluded shall also have jurisdiction over the proceedings.

An objection to jurisdiction shall be raised together with the objection on the merits. The enforcement court shall first examine the question of jurisdiction and decide on it definitively.

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

III. HOLIDAYS AND STAYS

Holidays:

1 – Concerning all debtors:

Amended: 18/2/1965, Law No. 538, Art. 24

No acts of enforcement proceedings may be carried out during the period from one hour after sunset until one hour before sunrise (night time) or on holidays. However, at places where business is conducted at night, attachment of takings is possible at night time. On holidays, attachment and service may be carried out, and protective measures may also be taken. If it is established that the debtor is spiriting away his assets, attachment may be carried out even at night time.

If enforcement against a debtor has been stayed for reasons specified in the law, or a respite has been granted to him for a composition with creditors (konkordato), no acts of enforcement proceedings may be carried out against that debtor.

2 – In the event of the death of a member of the debtor's family:

Proceedings against a debtor whose wife or husband, or one of whose ascendants or descendants by blood or by marriage, has died shall be stayed for three days, including the day of death.

3 – Concerning debts of the estate:

Proceedings for debts of the estate shall be postponed for three days, including the day of death. If the heir has not accepted or renounced the inheritance, the proceedings shall remain postponed until the periods prescribed for this purpose in the Civil Code have expired.

Where the debtor dies during the enforcement proceedings, if the estate has not yet been partitioned or subjected to official liquidation, or a family company has not been established among the heirs, the proceedings shall continue against the estate according to whichever procedure would have applied had the debtor been alive.

The continuation of such proceedings against the heir is possible only by way of realisation of pledge or by way of attachment.

4 – In the event of pre-trial detention or conviction:

Amended: 18/2/1965, Law No. 538, Art. 25

In proceedings against a detainee or convict who has no representative, unless the appointment of a representative falls within the competence of the guardianship authority, the enforcement officer shall grant him an appropriate period to appoint a representative and shall stay the proceedings until the expiry of that period. Proceedings shall be continued against a detainee or convict who fails to appoint a representative and notify the enforcement office thereof within this period.

In cases where there is a likelihood of assets being spirited away, attachment may be carried out even within this period.

5 – In the event of military service:

Article 54/a Added: 18/2/1965, Law No. 538, Art. 26

In proceedings against privates, corporals and unit sergeants (excluding specialist or re-enlisted sergeants and corporals) for the duration of their military service, the enforcement officer shall grant the person concerned an appropriate period to appoint a representative and shall stay the proceedings until the expiry of that period. Proceedings shall be continued against those who fail to appoint a representative and notify the enforcement office thereof within this period.

In cases where there is a likelihood of assets being spirited away, attachment may be carried out even within this period.

6 – In the event of serious illness of the debtor:

Amended: 18/2/1965, Law No. 538, Art. 27

In the event of an illness of the debtor so serious that he is unable to appoint a representative, the proceedings may be stayed by the enforcement office for a specified period. The serious illness must be established by an official document.

In cases where there is a likelihood of assets being spirited away, attachment may be carried out even while the illness continues.

Effect of the stay on the running of time limits:

Amended: 18/2/1965, Law No. 538, Art. 28

Time limits shall not cease to run during stays of proceedings. If the end of a time limit falls on a day of stay, the time limit shall be extended by one more day after the end of the stay.

IV. SERVICE IN ENFORCEMENT

Service in enforcement:

Amended: 18/2/1965, Law No. 538, Art. 29

The provisions of the Law on Service (Tebligat Kanunu) shall apply to service relating to enforcement. However, if the debtor is one of the persons for whom a representative must by law be appointed, the enforcement officer shall request the competent authority to appoint a representative within a short time.

If the service concerns a debt arising from transactions relating to the profession or trade of persons authorised under Articles 159 and 396 of the Civil Code, it shall be made on those persons themselves.

V. REQUEST FOR PROCEEDINGS

Request for proceedings and its contents:

Amended: 18/2/1965, Law No. 538, Art. 30

Amended paragraph one: 2/7/2012, Law No. 6352, Art. 9 The request for proceedings shall be made to the enforcement office in writing or orally, or by electronic means.

The request shall state the following:

1. Amended: 2/7/2012, Law No. 6352, Art. 9 The name and surname of the creditor and, if any, of his legal representative and his attorney; the name of the bank and the account details to which payment is to be made in the name of the creditor or his attorney; if any, the Turkish Republic identity number or tax identification number; the known name (şöhret) and domicile; if the creditor resides in a foreign country, the domicile he designates in Türkiye (if he fails to designate a domicile, the place where the enforcement office is located shall be deemed his domicile);

2. Amended: 2/7/2012, Law No. 6352, Art. 9 The name and surname of the debtor and, if any, of his legal representative, the Turkish Republic identity number or tax identification number if known to the creditor, and the known name and domicile;

In requests made against an estate, the names, surnames, Turkish Republic identity numbers or tax identification numbers if known, known names and domiciles of the heirs on whom service is to be made;

3. Amended: 17/7/2003, Law No. 4949, Art. 12 The amount in Turkish currency of the claim or of the security requested and, for interest-bearing claims, the amount of interest and the date from which it began to accrue; if the claim or security is in foreign currency, the date of the exchange rate on the basis of which the claim is requested, and the interest;

4. The instrument or, if there is no instrument, the cause of the debt;

5. Which of the methods of proceedings has been chosen;

If the claim is based on a document, it is mandatory to deposit with the enforcement office, at the time of the request for proceedings, the original of the document or copies thereof certified by the creditor or his representative, numbering one more than the number of debtors.

The creditor shall be given a receipt, free of charge and without stamp duty, confirming that he has made a request for proceedings and concerning the documents he has submitted and the costs of the request and of the proceedings.

Costs of proceedings:

Amended: 6/6/1985, Law No. 3222, Art. 4

The costs of proceedings shall be borne by the debtor. The creditor shall pay in advance, by way of an advance, the cost of the act he requests to be performed and, in addition, when submitting the request for proceedings, the cost of service on him of the objection which the debtor may raise under Article 62.

The creditor may take his costs from the first money paid.

VI. PAYMENT ORDER AND OBJECTION

1 – Payment order and its contents:

Amended: 18/2/1965, Law No. 538, Art. 31

Amended paragraph one: 2/7/2012, Law No. 6352, Art. 10 If the enforcement director decides that the request for proceedings contains the conditions provided for in this Law, he shall issue a payment order. If the request is not accepted, the decision rendered shall be recorded in the minutes.

The order shall contain:

1. Amended: 2/7/2012, Law No. 6352, Art. 10 The entries which must be included in the request for proceedings under Article 58, except for the bank account number of the creditor or his attorney,

2. Amended: 2/7/2012, Law No. 6352, Art. 10 A warning that the debt and costs must be paid within seven days into the bank account belonging to the enforcement office stated in the payment order or, if the debt is an obligation to provide security, that the security must be furnished within this period,

3. That, if the signature on the instrument on which the proceedings are based is not his, he must declare this separately and explicitly, again within these seven days, failing which the instrument shall be deemed to have been issued by him for the purposes of the enforcement proceedings;

That, if he denies the signature on the instrument, he must be present at the hearing to be held before the enforcement court, failing which it shall be decided that the objection raised be provisionally removed;

That, if he has an objection to the whole or part of the debt or to the creditor's right to conduct the proceedings, he must also declare it within the same period;

A warning to that effect,

4. A warning that, if he does not raise an objection to the instrument or to the debt, he must make a declaration of assets under Article 74 within the above-mentioned seven-day period and that, if he fails to do so, he shall be compelled by imprisonment; and that, if he fails to make a declaration of assets or makes a declaration contrary to the truth, he shall additionally be punished with imprisonment,

5. A statement that, if the debt is not paid or no objection is raised, compulsory enforcement shall proceed.

The foregoing shall be contained in the order.

The payment order shall be drawn up in two copies. One copy shall be sent to the debtor and the other shall be placed in the enforcement file. If the creditor so requests, a certified copy shall additionally be given to him. In the event of a discrepancy between the copies, the copy held by the debtor shall be deemed valid.

The copy given to the creditor shall not be subject to any duty or fee.

2 – Service of the payment order:

Amended: 18/2/1965, Law No. 538, Art. 32

The payment order shall be dispatched for service on the debtor within 3 days at the latest from the request for proceedings. If the proceedings are based on a document, a certified copy of the document shall be attached to the payment order.

If joint debtors are proceeded against at the same time, a payment order must be served on each of them separately, except where all or some of them are represented by a single representative.

If there is more than one request for proceedings against a debtor on the same day, the enforcement office shall dispatch the payment orders relating to them for service at the same time.

Time limits which must be added by law are reserved.

If more than one request for proceedings has been made against the debtor at an enforcement office on different days, the payment order in none of them may be dispatched for service before that of an earlier request.

OBJECTION

1 – Time limit and form:

Amended: 18/2/1965, Law No. 538, Art. 33

A debtor who wishes to object shall notify his objection to the enforcement office by petition or orally within seven days from the date of service of the payment order. Amended second sentence: 17/7/2003, Law No. 4949, Art. 13 If the objection is made to an enforcement office other than the enforcement office conducting the proceedings, that office shall collect the necessary costs together with the objection and shall immediately forward the objection to the competent enforcement office; the officer shall be personally liable for costs not collected.

Amended paragraph: 17/7/2003, Law No. 4949, Art. 13 The fact that an objection has been raised to the proceedings shall be served on the creditor by a memorandum within three days, the costs being covered from the advance deposited by the creditor under Article 59.

Added paragraph: 17/7/2003, Law No. 4949, Art. 13 The debtor or his attorney shall, together with the objection, notify an address of the debtor within the country, to serve as the basis for proceedings in the action and in enforcement. If a debtor who has changed his address does not notify a new address within the country and his new address within the country cannot be established by the process server, service made to the address indicated in the request for proceedings shall be deemed to have been made on the debtor himself.

A debtor who objects to part of the debt must clearly indicate the respect and the amount of that part. Otherwise, no objection shall be deemed to have been raised.

Repealed paragraph four: 17/7/2003, Law No. 4949, Art. 103

If the debtor denies the signature on the instrument on which the proceedings are based, he must state this separately and explicitly in his objection. Otherwise, he shall be deemed to have accepted the signature on the instrument for the purposes of the enforcement proceedings.

The debtor shall be given a document, free of charge and without stamp duty, confirming that he has raised an objection.

2 – Grounds of objection:

Amended: 17/7/2003, Law No. 4949, Art. 14

A debtor who has objected may not, at the hearing on the removal of the objection, change or extend his grounds of objection, except as regards what is apparent from the text of the instrument on which the creditor relies.

3 – Copy to be given to the creditor:

Amended: 3/7/1940, Law No. 3890, Art. 1

The objection shall be recorded on the copy of the payment order intended for the creditor. If no objection has been raised, this fact shall also be noted.

This copy shall be given to the creditor after the objection or upon the expiry of the time limit for objection.

4 – Late objection:

Amended: 18/2/1965, Law No. 538, Art. 35

If the debtor, without fault on his part, was unable to object within the time limit because of an impediment, he may object until the conversion into money has been completed.

However, the debtor shall, within three days from the day on which the impediment ceased, notify his objection, its grounds and supporting documents, together with evidence showing his excuse, and shall pay the fees and costs relating to the hearing to be held under the following paragraph.

Upon the objection, the enforcement court may order the suspension of the proceedings only according to the nature of the cause of the delay and the particular features of the case. The enforcement court shall carry out its examination on the documents. If necessary, it shall immediately summon both parties and decide whether the excuse is acceptable. If no hearing is ordered, the costs collected from the debtor shall be returned to him.

If the excuse is accepted, the enforcement proceedings shall stop. At the same session the creditor may also request orally the removal of the objection. In that case, the inquiry shall be continued and the necessary decision shall be rendered.

If an attachment was previously placed on the debtor's assets, the attachment shall be lifted unless, within seven days from the date of pronouncement or service of the decision accepting the excuse, the creditor requests the enforcement court to remove the objection or, within the same period, applies to the court under Article 67.

5 – Effect of the objection:

Amended: 18/2/1965, Law No. 538, Art. 36

An objection made within the time limit shall stop the proceedings. If the objection was not made within the time limit, the enforcement officer shall, upon the request of the creditor, continue the acts of proceedings for the entire claim. If the debtor has objected to only part of the debt, the proceedings shall be continued for the amount he has accepted.

If the debtor has denied the signature in his objection, the creditor may immediately request the enforcement office to obtain signatures suitable for comparison.

6 – Setting aside of the objection:

a) Annulment of the objection:

Amended: 18/2/1965, Law No. 538, Art. 37

Amended paragraph one: 17/7/2003, Law No. 4949, Art. 15 A creditor whose request for proceedings has been objected to may, within one year from the date of service of the objection, apply to the court and bring an action for annulment of the objection by proving the existence of his claim under the general provisions.

Amended: 9/11/1988, Law No. 3494, Art. 1 In this action, if it is decided that the debtor's objection was unjustified, the debtor; and if the creditor is found to have been unjustified and in bad faith in his proceedings, the creditor; shall, upon the request of the other party, be ordered to pay appropriate compensation, of not less than twenty per cent of the amount rejected or awarded, having regard to the situation of the two parties and to the scope of the action and of the matter adjudicated.

If the person objecting is a parent, guardian or heir, an award of compensation against the debtor shall depend on bad faith being established.

Repealed paragraph four: 17/7/2003, Law No. 4949, Art. 103

The right of a creditor who has allowed the time limit for annulment of the objection specified in the first paragraph to lapse to bring an action for his claim under the general provisions is reserved.

Added paragraph: 2/7/2012, Law No. 6352, Art. 11 In determining the compensation for denial of enforcement, compensation for bad faith and similar compensation provided for in this Law, the claim in the request for proceedings or in the action shall be taken as the basis.

b) Final removal of the objection:

Amended: 18/2/1965, Law No. 538, Art. 38

Amended first paragraph: 17/7/2003, Law No. 4949, Art. 16 If the enforcement proceedings of the creditor whose request has been objected to are based on an instrument containing an acknowledgment of debt the signature of which has been acknowledged or certified by a notary, or on a receipt or document issued by official departments or competent authorities within the scope of their powers and in due form, the creditor may request the removal of the objection within six months from the date on which the objection was served on him. If removal of the objection is not requested within this period, new enforcement proceedings without a judgment may not be initiated.

If the debtor cannot produce any document substantiating his objection, the enforcement court shall decide to remove the objection.

If the objection is based on an instrument, receipt or document of the kind specified in the first paragraph, the request for removal of the objection shall be rejected.

Where the debtor is being pursued for a claim belonging to his deceased predecessor and asserts that the estate is insolvent, he shall be granted an appropriate period to produce a judgment on this matter. Apart from this, the claims and defences put forward for the acceptance or rejection of the request for removal of the objection may not be treated as a preliminary question.

Amended: 9/11/1988, Law No. 3494, Art. 2 If the signature on the document produced by the debtor is denied by the creditor and the judge, as a result of the examination carried out in accordance with the procedure set out in Article 68/a, is satisfied that the signature belongs to the creditor, the judge shall reject the creditor's request for removal of the objection and shall order the creditor to pay a fine at the rate of ten percent of the value or amount to which the said document relates. If the creditor brings an action before the court of general jurisdiction, the execution of this fine shall be postponed until the end of the action, and if the creditor proves in that action his claim and that the signature does not belong to him, this fine shall be lifted.

Where the creditor is not personally present at the hearing and the signature is denied by his attorney, the attorney shall be obliged to ensure that his client is present at the subsequent session for signature comparison, or to have a summons served by advancing its costs. A creditor who fails to appear without an acceptable excuse shall be deemed to have waived the request for removal of the objection concerning the amount written in the document on which the debtor relies.

Added paragraph: 6/6/1985, Law No. 3222, Art. 6; Amended: 9/11/1988, Law No. 3494, Art. 2 Amended first sentence: 17/7/2003, Law No. 4949, Art. 16 Where the request for removal of the objection is accepted on grounds relating to the merits, the debtor, and where the request is rejected on the same grounds, the creditor, shall, upon the request of the other party, be ordered to pay compensation of not less than twenty percent. If the debtor brings an action for negative declaration or restitution, or if the creditor brings an action before the court of general jurisdiction, the collection of the compensation awarded shall be postponed until the end of the action, and the compensation previously awarded against the party in whose favour the action is concluded shall be lifted.

c) Provisional removal of the objection:

Article 68/a: Added: 18/2/1965, Law No. 538, Art. 39

Amended first paragraph: 17/7/2003, Law No. 4949, Art. 17 If the instrument on which the enforcement proceedings are based is a private instrument and the signature has been denied by the debtor at the time of the objection, the creditor may request the provisional removal of the objection within six months from the date on which the objection was served on him. In this case, the enforcement judge shall obtain explanations from both parties.

If the debtor who denies the signature on the instrument is within the territorial jurisdiction of the enforcement office conducting the proceedings, he shall be obliged to be personally present at the hearing to be held before the enforcement court for removal of the objection, unless he has notified and substantiated his excuse in advance. A debtor on whom the payment order has been served outside the territorial jurisdiction of the enforcement office shall be subject to the same obligation if it is decided that he be questioned by way of letters rogatory.

If the enforcement court is satisfied, through comparison with a signature suitable for comparison where one exists or, failing that, through comparisons and examinations made with writing and a signature which it has the debtor produce, or from other evidence and presumptions, that the denied signature belongs to the debtor, it shall decide on the provisional removal of the objection. If the judge deems it necessary, he may also have an expert examination carried out, in such a manner as not to give rise to the adjournment of the session more than once.

In the comparison of signatures, the provisions of the Code of Civil Procedure concerning experts, as well as paragraphs 2, 3 and 4 of Article 309 and Articles 310, 311 and 312 thereof, shall apply.

Amended: 9/11/1988, Law No. 3494, Art. 3 If, at the hearing to be held, the debtor is not present without relying on the excuse mentioned above, the enforcement court shall, without examining any other matter, decide on the provisional removal of the objection and order the debtor to pay a fine at the rate of ten percent of the claim subject to the enforcement proceedings based on the said instrument. In order for the objection of a debtor who fails to appear at the hearing to be provisionally removed and for a fine to be imposed on him, this circumstance must be stated in the summons.

Amended: 9/11/1988, Law No. 3494, Art. 3 Where the enforcement judge decides that the signature belongs to the debtor, he shall order the debtor to pay a fine at the rate of ten percent of the claim subject to the enforcement proceedings based on the said instrument. If the debtor brings an action for release from debt, negative declaration or restitution, the execution of this fine shall be postponed until the end of the action, and if the debtor wins the action he has brought, this fine shall be lifted.

If the debtor accepts the signature he has denied at the hearing for removal of the objection, and at the latest at the session in which the creditor produces the original of the instrument, no fine shall be imposed on him and the costs of proceedings shall not be charged to him. However, a debtor who in bad faith has given cause for the enforcement proceedings shall be liable for the costs of proceedings. If the original of the instrument was deposited with the enforcement office at the time of the request for enforcement, the provision of this paragraph shall not apply to a debtor on whom the payment order was served within the territorial jurisdiction of the enforcement office.

Added: 6/6/1985, Law No. 3222, Art. 7; Amended: 9/11/1988, Law No. 3494, Art. 3 Where the request for provisional removal of the objection is accepted, the debtor, and where this request is rejected, the creditor, shall, upon the request of the other party, be ordered to pay compensation of not less than twenty percent. If the debtor brings an action for release from debt, negative declaration or restitution, or if the creditor brings an action before the court of general jurisdiction, the collection of the compensation awarded shall be postponed until the end of the action, and the compensation previously awarded against the party in whose favour the action is concluded shall be lifted.

Final removal of the objection in loans operating as debit current accounts or as short, medium or long term loans:

Article 68/b: Added: 9/11/1988, Law No. 3494, Art. 4

In loans operating as debit current accounts or as short, medium or long term loans, the party extending the loan shall be obliged to send, through a notary, an account statement to the address of the party using the loan specified in the loan agreement, within fifteen days following the periods specified in the debit current account agreement or the interest accrual periods written in the short, medium or long term loan agreements. Amended last sentence: 17/7/2003, Law No. 4949, Art. 18 A change of the address indicated in the agreement shall take effect if an address within the country is notified to the party extending the loan through a notary; if the new address is not notified in this manner, the date on which the account statement reaches the old address shall be deemed the date of service.

The party using the loan who does not object to the contents of an account statement sent within the time limit within one month from its receipt may bring an action alleging that the account statement is contrary to the truth only after paying the debt.

Loan agreements and the account statements relating thereto which have not been objected to within the time limit, as well as notices and other documents and receipts duly issued by the party extending the loan, shall be deemed to be among the documents specified in the first paragraph of Article 68 of this Law. The party using the loan shall be deemed to have accepted the signature attributed to him in the documents on which an account statement he has not objected to is based. This provision shall also apply in the same manner in cases where Article 150/a of this Law is concerned.

Added paragraph: 17/7/2003, Law No. 4949, Art. 18 The fact that the party using the loan has objected to the content of the notice concerning the closure of the loan account or the payment of the debt shall not eliminate the consequences of not having objected to the contents of the account statements relating to interest accrual periods which were served before the notice concerning the closure of the loan account and the payment of the debt and which have become final by not being objected to. In this case, the provisions of the second paragraph shall apply to the finalised account statements relating to previous periods.

Effects of the provisional removal of the objection:

Amended: 18/2/1965, Law No. 538, Art. 40

Where the provisional removal of the objection is decided and the period in the payment order has expired, a provisional attachment shall be placed on the debtor's assets upon the creditor's request.

Within seven days from the pronouncement or service of the decision on the provisional removal of the objection, the debtor may bring an action for release from debt before the court of the place where the enforcement proceedings are conducted or of the creditor's domicile. For this action to be heard, the debtor must deposit in cash fifteen percent of the claim in dispute with the court's cashier by the date of the first hearing, or deposit shares and bonds or a bank letter of guarantee of the same value acceptable to the court. Otherwise, the action shall be dismissed.

If the debtor does not bring an action within the period stated above or if his action is dismissed, the decision on removal of the objection and the provisional attachment, if any, shall become final.

A debtor who applies for appeal (istinaf) against the decision dismissing the action may additionally request a period of grace from the enforcement office, provided that he complies with the provisions of Article 36.

Amended: 9/11/1988, Law No. 3494, Art. 5 The party found to be unjustified in the action for release from debt shall be ordered to pay appropriate compensation of not less than twenty percent of the subject matter of the action or of the amount awarded.

Amended: 18/2/1965, Law No. 538, Art. 41

Upon a request for removal of the objection, the enforcement court shall summon both parties and render its decision in accordance with the provision of Article 18.

Suspension or annulment of the enforcement proceedings by decision of the enforcement court:

Amended: 18/2/1965, Law No. 538, Art. 42

If the debtor proves, by a document certified by a notary or the signature of which has been acknowledged, that in the period after the enforcement proceedings became final the debt and its accessories were extinguished or the creditor granted him a period of grace, he may at any time request the enforcement court to annul or suspend the enforcement proceedings.

If the debtor asserts that the debt became time barred in the period after the enforcement proceedings became final, the provision of Article 33/a shall apply by analogy.

Actions for negative declaration and restitution:

Amended: 18/2/1965, Law No. 538, Art. 43

The debtor may, before or during the enforcement proceedings, bring an action for negative declaration to prove that he is not indebted.

The court hearing an action for negative declaration brought before the enforcement proceedings may, upon request, issue an interim injunction staying the enforcement proceedings in return for security to be provided of not less than fifteen percent of the claim.

In an action for negative declaration brought after the enforcement proceedings, a stay of the proceedings may not be ordered by way of interim injunction. However, the debtor may, in return for security which he shall provide to cover the damage arising from delay and of not less than fifteen percent of the claim, request the court, by way of interim injunction, that the money in the cash desk of the enforcement office not be paid to the creditor.

Amended: 9/11/1988, Law No. 3494, Art. 6 If the action concludes in favour of the creditor, the interim injunction shall be lifted. Upon the judgment to that effect becoming final, the creditor shall recover from the security provided the damage arising from having received his claim late because of the interim injunction. The damage suffered by the creditor shall be assessed and decided in the same action. This damage may in no case be set at less than twenty percent.

Amended: 9/11/1988, Law No. 3494, Art. 6 If the action is decided in favour of the debtor, the enforcement proceedings shall stop immediately. Upon the judgment becoming final, the enforcement shall be restored to its former state, in whole or in part, in accordance with its contents and without need for a separate judgment. If it is established that the enforcement proceedings which compelled the debtor to bring the action for negative declaration were unjustified and in bad faith, it shall be decided, upon the debtor's request, that the damage suffered by the debtor because of the action also be collected from the creditor. The damage to be assessed may not be less than twenty percent of the claim subject to the enforcement proceedings found to be unjustified.

If the debtor has not obtained an injunction in connection with the action for negative declaration and the debt has also been paid, the action shall continue as an action for restitution.

A person who has been compelled to pay in full a sum which he did not owe, because he did not object to the enforcement proceedings or because his objection was removed, may, within one year from the date of payment, apply to the court in accordance with the general provisions and request the recovery of the money.

Actions for negative declaration and restitution may be brought before the court of the place where the enforcement office conducting the proceedings is located, or before the court of the defendant's domicile. In an action for restitution, the claimant is obliged to prove only that the money was not owed.

Special provisions:

Amended: 18/2/1965, Law No. 538, Art. 44

The special provisions in Articles 146, 147, 149/b, 150 and 150/a shall apply to payment orders in enforcement proceedings by way of realisation of a pledge; those in Articles 155 and 156 to payment orders in ordinary enforcement proceedings by way of bankruptcy; and those in Articles 168 to 170, 171 and 172 to payment orders in the special enforcement procedures concerning negotiable instruments.

CHAPTER FOUR

Enforcement proceedings by way of attachment

I. DECLARATION OF ASSETS

Content of the declaration:

The declaration of assets is the notification by the debtor to the enforcement office, in writing or orally, of the type, nature and characteristics of such of his assets, receivables and rights, whether held by himself or in the possession of third parties, as are sufficient to cover his debt, of all kinds of his earnings and income, of his sources of livelihood according to his manner of living, and accordingly of the manner in which he can pay his debt.

Duty to declare, time limit and its commencement:

Amended: 6/6/1985, Law No. 3222, Art. 8

A debtor whose objection has been annulled or finally or provisionally removed shall be obliged to make a declaration as indicated in the preceding article within three days from the service of this decision on him.

If the decision of annulment or removal was rendered in the presence of the debtor, this period shall begin from the pronouncement of the decision.

Coercive imprisonment:

Amended: 24/5/1962, Law No. 51, Art. 1

A debtor who does not make a declaration of assets shall, upon the creditor's request, be subjected to coercive imprisonment by the judge of the enforcement court, once only, until he makes the declaration. However, this imprisonment may not exceed three months.

Declaration of subsequently acquired or increased assets:

A debtor who, in the declaration made to the enforcement office, has stated that he has no assets or has not shown assets sufficient for his debt, or has refrained from making a declaration, shall be obliged to notify the said office, by registered letter or orally, within seven days, of the assets he subsequently acquires and of the increases occurring in his earnings and income.

II. ATTACHMENT

Attachment:

Amended: 3/7/1940, Law No. 3890, Art. 1

Amended first paragraph: 22/7/2020, Law No. 7251, Art. 49 After the period in the payment order has expired and, if the debtor has objected, after the objection has been removed, the creditor may request that an attachment be placed without waiting for the declaration of assets. However, the creditor may, if he so wishes, without making a request for attachment, inquire into the debtor's assets, rights or receivables through the National Judiciary Network Informatics System (UYAP), by means of the informatics systems integrated with this system. At the end of the inquiry, the National Judiciary Network Informatics System shall provide information on the nature and details of the debtor's assets, rights or receivables, if any, and in this case attachment may also be requested through the system. In this case, the enforcement office shall attach the identified assets, rights or receivables electronically. Information obtained as a result of the inquiry may not be shared unlawfully. In order for the inquiry and attachment procedures to be carried out, public institutions or organisations, as well as the credit institutions and financial institutions defined in Article 3 of the Banking Law No. 5411 dated 19/10/2005, shall ensure integration between the National Judiciary Network Informatics System and their own systems. The type, scope and limits of the inquiry and other matters shall be determined by a regulation put into force by the Ministry of Justice.

Amended: 6/6/1985, Law No. 3222, Art. 9 The right to request attachment shall lapse upon the expiry of one year from the date of service of the payment order. In the event of an objection or action, the time elapsing from their occurrence until the judgment becomes final, or, where the creditor and the debtor conclude instalment agreements at the enforcement office, the time elapsing until the breach of the instalment agreement, shall not be taken into account.

If the creditor so wishes, a document evidencing that the request for attachment has been made shall be issued to him. This document shall not be subject to any fee or duty.

If the request for attachment is not made within the statutory period, or is not renewed within this period after being withdrawn, the file shall be removed from processing.

Requesting attachment anew depends on the service on the debtor of the request for renewal made by the creditor. In enforcement proceedings not based on a judgment, a fee shall be collected anew upon the request for renewal. The costs and fees of renewal shall not be charged to the debtor.

2. Time limit for commencing the attachment:

The enforcement office shall carry out the attachment within three days at the latest from the request.

Amended paragraph: 6/6/1985, Law No. 3222, Art. 10 If the assets to be attached are located elsewhere, it shall immediately write to the enforcement office of the place where the assets are located for the attachment to be carried out. In this case, complaints concerning the attachment shall be resolved by the enforcement court to which the requested enforcement office is attached. Added sentence: 17/7/2003, Law No. 4949, Art. 19 The attachment of assets recorded in an official register may also be carried out directly by the enforcement office conducting the proceedings, by having it entered in their records.

Attachment at a dwelling:

Article 79/a: Added: 28/3/2023, Law No. 7445, Art. 1

If the enforcement director determines that the place where attachment is requested is a dwelling, he shall decide that attachment be carried out at this place and shall immediately submit this decision for the approval of the enforcement court.

The court shall, as a result of the examination it makes on the file within three days at the latest from the date on which the file is submitted, decide with finality to approve the decision if it is established that the place where attachment is requested is a dwelling. Upon notification of this decision to the enforcement office, the attachment procedures shall be carried out. If it is established that the place where attachment is requested is not a dwelling, the court shall set aside with finality the decision on carrying out attachment at a dwelling. Upon notification of this decision to the enforcement office, the enforcement director shall decide anew on the existing request for attachment.

If, following the court's approval decision, it is established that the place visited for attachment is not a dwelling, the attachment shall continue. However, if, during an attachment procedure carried out upon an attachment decision issued concerning a place accepted as not being a dwelling, it is established that this place is a dwelling and the debtor does not consent to the attachment, the attachment procedure shall be terminated and the provisions of the first and second paragraphs shall apply to subsequent procedures.

The provision of this article shall not apply to precautionary attachment.

Powers of the officer carrying out the attachment:

Amended: 3/7/1940, Law No. 3890, Art. 1

The enforcement officer may carry out the attachment himself or have it carried out by one of his assistants or clerks.

If the debtor is not present at the place where the assets are located at the time of the attachment and it is not possible to have him present immediately, the attachment shall be carried out in his absence.

Upon request, the debtor shall be obliged to open locked premises and cabinets and to show other items. Where necessary, these places shall be opened by force.

Amended: 18/2/1965, Law No. 538, Art. 45 If the officer carrying out the attachment finds that the debtor is concealing money, securities, gold or silver or other valuables on his person and the debtor refuses to hand them over, force may be used against the person of the debtor.

Duties of law enforcement officers and village heads (muhtar):

With regard to the use of force, all law enforcement officers shall be obliged, upon the written application of the enforcement officer, to assist him and to carry out his orders.

In villages, village heads (muhtar) shall also be obliged to carry out the orders of the officer carrying out the attachment.

Assets and rights not subject to attachment:

Amended: 18/2/1965, Law No. 538, Art. 46

The following shall not be subject to attachment:

1. State property and property declared non-attachable by their special laws,

2. Amended: 2/7/2012, Law No. 6352, Art. 16 All kinds of items necessary for a debtor whose economic activity is based on physical labour rather than on capital to be able to continue his or her profession,

3. Amended: 2/7/2012, Law No. 6352, Art. 16 Excluding valuables such as money, securities, gold, silver, precious stones, antiques or ornaments, the personal effects belonging to the debtor and to the family members living under the same roof, and all household goods serving the common use of the family,

4. If the debtor is a farmer, the land, draught animals, means of transport and other accessories and agricultural implements indispensable for the subsistence of himself or herself and his or her family; if not, the tools, equipment and books necessary for his or her trade and profession, and the means of transport that secure the livelihood of small-scale carriers such as carters, boatmen and porters,

5. If necessary for the maintenance of the debtor and his or her family, one milk-giving water buffalo or cow, or three goats or sheep, as chosen by the debtor, together with three months' fodder and bedding for them,

6. Two months' food and fuel for the debtor and his or her family and, if the debtor is a farmer, the seed required for the next crop,

7. If the debtor is a grower of vineyards, orchards, fruit or vegetables, the vineyard and orchard indispensable for the subsistence of himself or herself and his or her family and the tools and equipment necessary for this occupation,

For a debtor whose livelihood consists exclusively of raising animals, the quantity of animals indispensable for the subsistence of himself or herself and his or her family, and three months' fodder and bedding for those animals,

8. Life annuities established as non-attachable pursuant to Article 510 of the Code of Obligations,

9. Retirement pensions granted to persons disabled in the military and police services of the country, pensions granted to their families by reason of the performance of one of these services, and the flight and diving allowances and bonuses paid to the air and submarine personnel of the armed forces,

The promotion increments given to disabled military persons and to the orphans of martyrs, and the monopoly sales shares granted under Law No. 1485,

10. Allowances granted by a mutual aid fund or association in cases such as illness, hardship and death,

11. Sums paid or payable, in a lump sum or in the form of an annuity, to the injured person or to his or her family as compensation for damage caused to body or health,

12. Amended: 2/7/2012, Law No. 6352, Art. 16 A house befitting the debtor's circumstances,

13. Added: 2/7/2012, Law No. 6352, Art. 16 Student scholarships.

The provision of Article 807 of the Civil Code is reserved. The exemption in subparagraphs 2, 4, 5, 7 and 12 is limited to cases where the debt does not arise from the price of such items.

Added paragraph: 2/7/2012, Law No. 6352, Art. 16 Where the value of the property listed in subparagraphs (2), (4), (7) and (12) of the first paragraph is high, such property shall be attached and sold, a portion of its price befitting the debtor's circumstances being left to the debtor so that he or she can meet his or her needs.

Added paragraph: 2/7/2012, Law No. 6352, Art. 16 The enforcement officer shall assess whether the attachment of the property or rights whose attachment is requested is permissible and shall decide to accept or reject the request.

Items that are partially attachable:

Amended: 3/7/1940, Law No. 3890, Art. 1

Salaries, allowances and wages of all kinds, usufruct rights and their proceeds, maintenance payments not based on a judgment, retirement pensions, and annuities granted by insurers or pension funds may be attached after deduction of the amount assessed by the enforcement officer as necessary for the subsistence of the debtor and his or her family.

Amended: 12/4/1968, Law No. 1045, Art. 1 However, the amount to be attached may not be less than one quarter of these. If there is more than one attachment, they shall be ranked in order. Deductions for a subsequent attachment may not begin until the deductions for the attachment ranking ahead of it have been completed.

Prior agreements:

Article 83/a: Added: 18/2/1965, Law No. 538, Art. 47

Agreements made in advance providing that the property and rights listed in Articles 82 and 83 may be attached shall not be valid.

Attachment of animals with young:

Article 83/b: Added: 18/2/1965, Law No. 538, Art. 47

In attachments of animals, young that need to be fed and cared for by their mothers may not be attached separately from their mothers, nor may their mothers be attached separately from their young.

Attachment of Accessories Covered by an Immovable Pledge:

Article 83/c: Added: 9/11/1988, Law No. 3494, Art. 7

Accessories listed in the mortgage deed schedule of an immovable pledge may not be attached separately from the immovable.

The provision of Article 777 of the Turkish Civil Code is reserved.

Attachment of unripe crops:

Unripe crops of all kinds, whether of the soil or of trees, may be attached at the earliest two months before their time of ripening. A transfer by the debtor to another person of crops attached in this manner shall be void as against the attaching creditor and shall not prevent the continuation of enforcement.

The right held over the unripe crops of the pledged property, as its integral parts, by a creditor whose claim is secured by an immovable pledge shall not be prejudiced. However, the pledgee must have made a request for proceedings for the realisation of the pledge through enforcement before the crops ripen.

Attachment of movable and immovable property:

Amended: 3/7/1940, Law No. 3890, Art. 1

From the debtor's movable property and immovables, and from his or her receivables and rights, whether in the debtor's own possession or held by a third party, an amount sufficient to cover all of the creditor's claims, including principal, interest and costs, shall be attached; however, attachment may not be made in excess of this amount.

Amended paragraph: 9/11/1988, Law No. 3494, Art. 8 Where a third party holds a right of ownership or a limited real right, such as a pledge right, over movable property, or where the movable property has been attached by a third party, the debtor or the persons holding the property together with the debtor are obliged to declare this to the officer carrying out the attachment and to request that the declaration be entered in the attachment report, and the officer carrying out the attachment is obliged to invite the debtor or the persons holding the property together with the debtor to make such a declaration. Such property, and property in respect of which a precautionary attachment or a claim of ownership has been asserted by a third party, shall be attached last.

However, if, before the attached immovable is put up for auction, the debtor indicates movable property or a sound receivable that has fallen due, sufficient to discharge the debt, the indicated movable property or receivable shall also be attached first, the attachment on the immovable remaining in force.

Provided that the enforcement office shall not interfere with the administration and operation, or with the proceeds and benefits, of an immovable remaining attached in this manner.

Items whose proceeds will certainly not exceed the costs of realisation and, where applicable, the costs of preservation and administration shall not be attached.

The officer imposing the attachment is obliged to reconcile the interests of the debtor and of the creditor as far as possible.

Effects of attachment on movable property:

Amended: 18/2/1965, Law No. 538, Art. 48

The debtor may not dispose of attached movable property without obtaining the consent of the creditor and the permission of the enforcement officer. The officer imposing the attachment shall warn the debtor that acting to the contrary entails criminal liability.

Rights acquired in good faith by a third party over attached movable property on the basis of the provisions on possession are reserved.

Rights acquired by a third party over attached movable property contrary to the rules of good faith shall be void to the extent that they infringe the rights of the creditor relating to that property arising from the attachment.

Valuation:

Amended: 24/11/2021, Law No. 7343, Art. 6

The officer carrying out the attachment shall assess the value of the property attached, except for registered property. Where necessary, he or she may consult an expert.

The valuation of registered property must be carried out by experts who are registered in the list of the regional expert board and authorised in this field by the Ministry of Justice or, in their absence, by other experts registered in the list.

The procedures and principles for the implementation of this Article shall be determined by a regulation put into force by the Ministry of Justice.

Measures for the safekeeping of attached property:

1. Concerning movables:

Amended: 2/7/2012, Law No. 6352, Art. 17

Attached money, banknotes, bearer instruments, bills of exchange and other instruments transferable by endorsement, as well as gold, silver and other valuables, shall be kept by the enforcement office.

Other movable property shall be taken into safekeeping, the costs being collected in advance from the creditor. If the creditor consents, it may be left provisionally in the possession of the debtor or with a third party, on condition that it be handed over whenever requested. Where movable property in the hands of a third party is attached, it shall be left with the third party as custodian (yediemin) if the third party accepts. Amended sentence: 24/11/2021, Law No. 7343, Art. 7 Property that has been attached but not taken into safekeeping shall, upon a request for sale, be taken into safekeeping or made ready for delivery to the successful bidder; otherwise, the sale may not be carried out. Added sentence: 24/11/2021, Law No. 7343, Art. 7 The provision of Article 106 is reserved with respect to registered motor land vehicles.

Without prejudice to the provisions of international treaties to which Türkiye is a party, means of transport carrying a foreign head of state, speaker of parliament, head of government or members of government may not be taken into safekeeping or left with a custodian for as long as these persons are in Türkiye.

The enforcement office may also take into safekeeping property pledged to a third party. Movables covered by a commercial enterprise pledge, however, may be taken into safekeeping only after the enforcement office has decided that they be sold. If such property is not realised, it shall be returned.

Attached property shall be kept in licensed custodian warehouses belonging to natural or legal persons authorised by the Ministry of Justice. Authorised natural or legal persons may, with the approval of the Ministry of Justice, transfer this authority to sub-operators, provided that the same standards are maintained. Such transfer shall not relieve the authorised natural or legal persons of their responsibilities. The operating certificate shall be issued by the Ministry of Justice upon a finding that these warehouses comply with the qualifications and conditions laid down in the regulation. The procedures and principles concerning the safekeeping of attached property; the establishment of licensed custodian warehouses, the minimum qualifications these warehouses must have, the security to be furnished for the warehouse, the insurance to be taken out against possible risks to the property; the qualifications for being an operator, the operator licence, the granting of this licence by the Ministry of Justice; the duties and powers of the Ministry of Justice in relation to licensed operations; administrative measures and actions such as the suspension or cancellation of activity; the supervision of these warehouses and other matters shall be regulated in a regulation issued by the Ministry of Justice. The fees at the stage of safekeeping of attached property shall be determined by a tariff to be issued by the Ministry of Justice.

Repealed paragraph: 28/3/2023, Law No. 7445, Art. 42

Vehicles seized by law enforcement forces upon the request of enforcement directorates shall be delivered to the nearest enforcement directorate within three working days at the latest. The enforcement directorate receiving the vehicle shall notify the enforcement directorate that requested the seizure of the vehicle.

Disposal of property whose safekeeping is no longer necessary:

Article 88/a: Added: 28/3/2023, Law No. 7445, Art. 4

Where the attachment on which the safekeeping was based has been lifted and the property remains with the custodian, the property shall be disposed of ex officio, pursuant to this Article, by the enforcement office of the place where the proceedings were conducted.

Information on the property to be disposed of shall be announced by the enforcement office on the National Judiciary Informatics System (UYAP).

The enforcement office shall serve notice on the debtor warning him or her that he or she may take delivery of the property by paying, within ten days from the date of service, the custodian fee determined according to the tariff, and that otherwise the property shall be disposed of pursuant to the following paragraphs.

If the debtor does not take delivery of the property, the enforcement office shall serve notice on the holder of the pledge right warning him or her that he or she may exercise the rights arising from the pledge within ten days from the date of service and must notify the enforcement office thereof, and that otherwise the property shall be disposed of pursuant to the following paragraphs.

With respect to registered property, if the property is not taken over by the debtor or the right arising from the pledge is not exercised, the enforcement office shall, provided that the property has not previously been put up for sale, sell it ex officio in accordance with the provisions of the Law on sale by public auction in electronic form.

If the property cannot be disposed of pursuant to the preceding paragraphs, the enforcement office shall immediately serve notice on the custodian warning him or her that, if within ten days from the date of service he or she pays the balance remaining after deducting the custodian fee determined according to the tariff from forty percent of the value of the property established within the last two years, if any, or otherwise of the value assessed by the enforcement office, a decision shall be made to transfer ownership of the property to him or her, and that otherwise action shall be taken in accordance with the following paragraphs. Upon establishing that the conditions specified in this paragraph have been met and that the balance, if any, has been paid by the custodian, the enforcement office shall send the file to the enforcement court for a decision on the transfer of ownership of the property to the custodian.

With respect to registered property, if the custodian does not accept the transfer of ownership of the property, the enforcement office shall serve notice on the Machinery and Chemical Industry Joint-Stock Company warning it that a decision shall be made to transfer ownership of the property to the Company provided that, within one month from the date of service, it notifies that it will pay the scrap value determined pursuant to the fourth paragraph of Article 4 of Law No. 7330 on the Machinery and Chemical Industry Joint-Stock Company dated 30/6/2021, and pays the scrap value within three months from the date of its notification. Upon establishing that the conditions specified in this paragraph have been met and that the scrap value has been paid, the enforcement office shall complete the scrapping procedures and send the file to the enforcement court for a decision on the transfer of ownership of the property to the Company.

If the property cannot be disposed of pursuant to the preceding paragraphs, the enforcement office shall send the file to the enforcement court for a decision on the transfer of ownership of the property free of charge to the Turkish Red Crescent Society.

In files sent for the transfer of ownership, the enforcement court shall, at the end of an examination on the file to be conducted within ten days at the latest, decide with finality to accept or reject the request. Upon a decision of acceptance, ownership of the property shall pass to the person concerned; all attachments and pledges shall be lifted and the transfer and delivery procedures shall be carried out.

Debts of the property subject to disposal, such as taxes, fines and premiums, shall be borne by the debtor, and ownership shall pass to the person concerned free of all debts and encumbrances. Transfer and registration procedures shall be exempt from all taxes, duties and fees.

A right of retention may not be exercised against the transfer procedures on the basis of a claim for custodian fees. The existence of a custodian fee shall not constitute an obstacle to the transfer of ownership and to the carrying out of the related procedures.

Where there is an attachment on the property subject to disposal pursuant to Law No. 6183, the enforcement office shall, before serving notice on the debtor, serve notice on the collection office informing it that it must take delivery of the property within one month from the date of service in order to carry out the safekeeping and/or sale procedures, and that otherwise the property shall be disposed of pursuant to this Article.

Where the property subject to disposal is not in free circulation within the scope of Customs Law No. 4458 dated 27/10/1999, the enforcement office shall, before serving notice on the debtor, serve notice on the customs administration informing it that it must take delivery of the property within one month in order to carry out the customs procedures, and that otherwise the property shall be disposed of pursuant to this Article.

The costs of disposal shall be met primarily from the advance in the file and, in the absence of an advance, from the budget of the Ministry of Justice.

From the amount paid into the file within the scope of the disposal, the following shall be paid in order: the costs met from the advance, the costs met from the budget of the Ministry of Justice, and public receivables arising from the property itself, such as taxes, duties and fees. The remaining amount shall be kept pursuant to Article 9, shall earn interest in banks and shall be paid, upon request, to the right holders together with the interest earned.

Where the amount paid into the file does not cover the costs met from the budget of the Ministry of Justice, the enforcement office shall notify the collection office for the recovery of the remaining costs from the debtor pursuant to Law No. 6183.

The procedures and principles for the implementation of this Article shall be determined by a regulation put into force by the Ministry of Justice.

2. Concerning receivables and property attached in the hands of third parties:

Amended: 18/2/1965, Law No. 538, Art. 49

Where a receivable or other right of claim that is not based on an instrument payable to bearer or transferable by endorsement, or a movable property of the debtor in the hands of a third person, is attached, the enforcement officer shall notify the natural or legal person who is the debtor that from then on it may pay its debt only to the enforcement office and that payment made to the judgment debtor shall not be valid, or shall notify the third person holding the property that from then on it may deliver the movable property only to the enforcement office, that it shall not give the property to the judgment debtor, and that otherwise it will be obliged to pay the value of the property to the enforcement office (garnishment notice). In this garnishment notice, the provisions of paragraphs 2, 3 and 4 shall also be notified to the third person.

Where the third person claims that it has no debt, or that the property is not in its possession, or that the debt was paid or the property was consumed or perished without its fault before service of the garnishment notice, or that the property does not belong to the debtor, or that the property has been pledged to it, or that the receivable has been paid to the debtor or to the place the debtor directed, or makes any similar claim, it shall be obliged to notify the enforcement office of the matter in writing or orally within seven days from service of the garnishment notice on it.

Amended paragraph three: 17/7/2003, Law No. 4949, Art. 22 If the third person does not object within seven days from service of the garnishment notice on it, the property shall be deemed to be in its possession or the debt to be owed by it, and it shall be notified by a second notice that it has not objected in time to the garnishment notice sent to it and that, for this reason, the property is deemed to be in its possession or the debt to be owed by it. In this second notice, the third person shall also be requested, within seven days from service of the notice on it, to object on the grounds specified in the second paragraph and, if it does not object, to pay the debt deemed to be owed by it to the enforcement office or to deliver the property deemed to be in its possession to the enforcement office. A third person who does not object to the second notice in time and does not pay the debt deemed to be owed by it to the enforcement office or does not deliver the property deemed to be in its possession to the enforcement office shall be notified that it must, within fifteen days, pay the money to the enforcement office or deliver the property deemed to be in its possession, or within this period file an action for negative declaration, failing which it will be compelled to pay the debt deemed to be owed by it or to deliver the property deemed to be in its possession. If the third person receiving this notification submits to the relevant enforcement office, within twenty days from the date of the notification, a document showing that it has filed in time an action for negative declaration in the court of the place where the enforcement proceedings are conducted or where its domicile is located, the compulsory enforcement proceedings conducted against it shall be stayed until the judgment rendered at the end of the action for negative declaration becomes final. During this period, the time limits specified in Article 106 shall not run. In this action, the third person shall be obliged to prove that it is not indebted to the judgment debtor or that the property does not belong to the judgment debtor. If the third person loses the action it has filed, the court shall order it to pay compensation of not less than twenty percent of the subject matter of the action. Actions for negative declaration to be filed under this paragraph shall be subject to a fixed fee.

If the third person objects to the garnishment notice in time, the creditor may, by proving before the enforcement court the contrary of the answer given by the third person, request that the third person be punished in accordance with paragraph 1 of Article 338 and also be ordered to pay compensation. The enforcement court shall decide the action concerning compensation in accordance with the general provisions.

If the third person fails to object to the garnishment notice in time because of an impediment for which it is not at fault, the provision of Article 65 shall apply. Amended last sentence: 17/7/2003, Law No. 4949, Art. 22 In any case, the third person may, by filing an action against the debtor and the creditor acting in bad faith, request the return of the money it was compelled to pay or of the property it delivered.

If delivery of the property is not possible, the creditor shall be entitled, by applying to the enforcement court, to have its value paid by the third person.

Amended paragraph seven: 2/7/2012, Law No. 6352, Art. 18 The garnishment notice shall be served on the branch of a legal person or establishment where the debtor's rights and receivables may be found, or on its head office so as to cover all of its branches. The head office on which the garnishment notice is served shall be obliged to make a declaration covering all of its branches or units.

The declaration of the third person shall not be subject to any fee or duty.

The provision of this Article shall also apply to officials who make declarations contrary to the truth in connection with their office.

Added paragraph: 6/12/2018, Law No. 7155, Art. 12 The notification of garnishment notices under this Article and the answers to be given to these notices may also be made through the National Judiciary Network Informatics System (UYAP) and the information systems integrated with this system, by using a secure electronic signature. Notification made by this method shall have the effect of service.

3 – For other rights:

The enforcement office shall endeavour to preserve the attached rights and to collect those receivables that have fallen due, and may request that the necessary expenses be paid in advance.

4 – Concerning immovable property:

Amended: 18/2/1965, Law No. 538, Art. 50

Amended: 9/11/1988, Law No. 3494, Art. 10 Upon attachment of an immovable, the right of disposal over it shall be restricted within the meaning of Article 920 of the Civil Code. The fact of attachment, the amount for which it was made, and the name and address for service of the creditor shall be notified by the enforcement office to the land register for registration. A creditor whose address changes shall be obliged to request the enforcement office, by paying the expenses thereof, to notify its new address to the land registry.

If new creditors participate in the attachment or the attachment is lifted, these matters shall also be notified to the land register.

Added paragraph: 17/7/2003, Law No. 4949, Art. 23 Where an attached immovable changes hands, Article 148/a shall apply.

I – Scope of attachment of immovables,

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

III – Administration and operation.

Amended: 18/2/1965, Law No. 538, Art. 51

The attachment of an immovable shall also extend to its proceeds and benefits. The attachment shall not prejudice the rights of creditors to whom the immovable has been pledged.

The enforcement office shall notify the creditors to whom the immovable has been pledged and the tenants of the attachment.

Amended paragraph three: 17/7/2003, Law No. 4949, Art. 24 The office shall take the measures necessary for the administration and operation of the immovable and for the preservation of its accessories. Among these measures, if there is a tenant in the immovable, the enforcement office shall order this tenant to pay the rents falling due to the enforcement office. Accessories likely to suffer damage shall, upon the request of the pledgee creditor, be placed under safekeeping in a manner that does not obstruct the activity of the business. Administration and safekeeping expenses shall be paid in priority out of the sale proceeds.

Repealed paragraph four: 14/1/2011, Law No. 6103, Art. 41

Gathering of crops, right of the debtor:

The enforcement office shall take the measures necessary for gathering the crops.

If the debtor has no means of subsistence, a sufficient amount of the crops, or, as they are sold, an appropriate amount of their proceeds, shall be left to the debtor for the subsistence of the debtor and the debtor's family.

Property held in joint ownership:

Amended: 18/2/1965, Law No. 538, Art. 52

If a usufruct right, or an undivided inheritance, or a share in a partnership or in property held in joint ownership is attached, the enforcement office shall notify the matter to the third persons concerned whose domiciles are known. If, in this way, the debtor's share upon liquidation in a specific immovable has been attached, the enforcement officer shall serve notice on the land registry directorate so that an annotation of attachment is entered in the register of the immovable. Added sentences: 17/7/2003, Law No. 4949, Art. 25 In joint-stock companies, if share certificates or interim share certificates have not been issued for the shares, the debtor's share in the company shall be attached by the enforcement office through service of notice on the company. It is mandatory to enter this attachment in the company's share register; however, the attachment shall be deemed to have been made on the date of service on the company even if it has not been entered in the company's share register. The attachment shall be notified by the enforcement office to the trade registry for registration. In this case, the transfer of the attached shares shall be null and void to the extent that it infringes the rights of the creditor. The sale of the attached shares shall be subject to the procedure for the sale of movable property. In respect of other movables, the enforcement office shall take measures preventing their transfer to another person. Repealed third sentence: 17/7/2003, Law No. 4949, Art. 25

The registration in the name of the debtor of ownership or other rights in rem which the debtor has acquired through an inheritance not renounced by the debtor or for another reason, and has not yet had registered in the land register or the ship register, may be requested by the creditor. Upon this request, the enforcement office shall notify the land registry or ship registry office and, where necessary, the court that the creditor may pursue this transaction.

In the event of attachment of the debtor's right to claim acquisition by extraordinary prescription of an immovable of which the debtor is in possession, the enforcement office shall take measures to prevent the transfer of possession to another person and shall authorise the creditor to file, within one month, an action for registration of the immovable in the name of its debtor. Upon the court's decision of registration, the immovable shall be deemed attached in favour of this creditor.

The provision of the second paragraph shall apply, by way of notification to the competent authority, in respect of persons who have not had carried out the verification procedure required for drawing the retirement or orphan's pension they have become entitled to receive or are receiving.

The statutory expenses incurred by the creditor for this reason shall be collected from the debtor by the office without the need for separate proceedings and judgment.

Expenses of safekeeping of attached property:

The creditor shall be obliged, if so requested, to pay in advance the expenses of safekeeping, administration and operation of the attached property.

Objection to a claim of ownership (third party claim):

A – Possession by the debtor:

1 – Preliminary stage:

Amended: 18/2/1965, Law No. 538, Art. 53

Where the debtor indicates a property in the debtor's hands as the property of another person or as pledged to another person, or where a third person claims a right of ownership or pledge over that property, the enforcement office shall enter this in the attachment and enforcement records and shall notify both parties of the matter.

At the same time, the enforcement office shall give the creditor and the debtor a period of three days to state whether they have objections to the claim of ownership. If they remain silent, they shall be deemed to have accepted the claim of ownership.

If the debtor or the third person who has become aware of the attachment of the property does not assert a claim of ownership within seven days from the date of becoming aware, it shall lose the right to assert this claim in the same proceedings. Persons living together with the claimant of ownership on the date the claim of ownership is made or the action for ownership is filed, or the business partners of these persons, shall be deemed to have become aware of the attachment of the property on the date the claim is made or, if the action for ownership has been filed pursuant to paragraph 9 of Article 97, on the date the action is filed.

2 – Claim of ownership by a third person:

Amended: 18/2/1965, Law No. 538, Art. 54

If an objection is made by the creditor or the debtor against the claim of ownership, the enforcement officer shall immediately submit the file to the enforcement court. The enforcement court shall decide on the continuation or suspension of the proceedings according to the conviction it reaches as a result of the examination it carries out on the file or, if it deems necessary, by summoning the persons concerned to a hearing.

Where there are serious reasons to accept that the action for ownership is being abused solely for the purpose of delaying the sale, the enforcement court shall reject the request for suspension of the proceedings.

If the suspension of the proceedings is decided, the security indicated in Article 36 shall be taken from the claimant against the possible loss of the creditor in case the claimant is found to be unjustified.

The type and amount of the security shall be determined according to the nature of the available evidence.

Amended paragraph five: 2/3/2005, Law No. 5311, Art. 9 The decision of the enforcement court on the continuation of the proceedings shall be final.

The third person shall be obliged to file an action for ownership in the enforcement court within seven days from the pronouncement or service of the decision of the enforcement court. If no action is filed within this period, the third person shall be deemed to have waived its claim against the creditor.

In actions for ownership concerning goods subject to the right of retention in leased immovables or ships, no order of suspension may be issued unless the provisions set out in paragraph 1 of Article 268 of the Code of Obligations are complied with.

During the action, the time limits in Article 106 shall not run.

A third person who has not been given the opportunity to make a claim of ownership in accordance with the above provisions may file an action for ownership in the enforcement court, within seven days from the date of becoming aware of the attachment, concerning the attached item or, if it has been sold but its proceeds have not yet been paid to the creditor, concerning the proceeds. Otherwise, it shall lose the right to assert this claim in the same proceedings. In this case, upon the request of the claimant, the enforcement judge shall be obliged to decide urgently, in accordance with the above provisions, whether or not the proceedings shall be suspended. This decision may also be given without hearing the other party.

If the attached property has been converted into money before the action for ownership is concluded, the enforcement judge shall decide separately whether these proceeds shall not be paid until the outcome of the trial, or shall be paid to the creditor immediately against security or, depending on the circumstances, without security.

The action for ownership shall be heard in accordance with the general provisions and the simple trial procedure.

An agreement between the third person and the debtor on a claim asserted before the enforcement officer concerning the attached goods shall have no effect against the creditor. The third person must prove this claim. However, the acceptance by the debtor of the claim of the third person that the attached goods are its property or are pledged to it shall constitute evidence against the debtor, and the debtor may not subsequently make any claim contrary to this admission.

Amended: 9/11/1988, Law No. 3494, Art. 11 If suspension of the proceedings is decided upon the action for ownership and the action is ultimately dismissed, the claimant shall be ordered to pay compensation of not less than twenty percent of the amount of the creditor's receivable whose collection was delayed because of this action.

Amended paragraph fourteen: 2/3/2005, Law No. 5311, Art. 9 The claimant in the action for ownership who applies for appeal (istinaf) or appeal on points of law (temyiz) against the decision dismissing the action may request a period from the enforcement office under Article 36.

If the action for ownership is upheld and the bad faith of the creditor or debtor who objected to the claim of ownership pursuant to the first paragraph is established, the objecting party shall be ordered, together with the main action, to pay compensation of not less than fifteen percent of the value of the attached property.

In an attachment made against the husband, the wife may herself pursue her rights over her personal property without being subject to the provision of Article 160 of the Civil Code.

In response to the action for ownership, the creditor who caused the attachment may, relying on the provisions of Chapter 11 of this Law and without being obliged to submit a provisional or final certificate of insolvency, file a counter action for annulment. The judge shall freely assess all the evidence presented by the parties in the action and the counter action.

Actions for ownership shall be heard and decided swiftly and before other actions.

Presumption of ownership in actions for ownership:

Article 97/a – Added: 18/2/1965, Law No. 538, Art. 55

A person who holds a movable property shall be deemed its owner. Even where the debtor and third persons hold a movable property together, the property shall be deemed to be in the hands of the debtor. Added third and fourth sentences: 24/11/2021, Law No. 7343, Art. 8 In this case, if the third person accepts custodianship, this property shall not be placed under safekeeping. However, if continuation of the proceedings is decided pursuant to the first paragraph of Article 97, the property may be placed under safekeeping. Among the goods in premises lived in jointly, those which, by their nature, clearly belong to women, men or children, or which are required by custom and usage, art, profession or occupation, shall be presumed to belong to them. The burden of proving the contrary of this presumption shall lie on the person who asserts it.

The claimant in the action for ownership shall be obliged to indicate how it acquired the property and the legal and factual reasons and events requiring that it be in the hands of the debtor, and to prove them.

3 – Stolen and lost things:

With respect to stolen and lost things, the provisions of Articles 902, 903 and 904 of the Civil Code are reserved.

A sale made by the enforcement office by negotiation shall have the effect of the public auction mentioned in Article 902 of the Civil Code.

B – Possession by a third person:

Amended: 2/7/2012, Law No. 6352, Art. 20

If the attached thing is not in the hands of the debtor but is with a third person who claims ownership or another right in rem over it, this property shall not be placed under safekeeping if this person accepts custodianship. The enforcement director shall give the creditor a period of seven days to file an action for ownership against the third person in the enforcement court. If no action for ownership is filed in the enforcement court within this period, the claim of the third person shall be deemed accepted. The attached property may not be sold until the action filed by the creditor in time is concluded. The provision of this paragraph shall also apply where the attachment is made in the absence of the third person and a claim of ownership is made in favour of the third person.

Formation of ranks of participation in the attachment:

Creditors who may participate in the attachment in the same rank until the proceeds of the property sold upon the first attachment are paid into the cash office are creditors relying on:

1 – A certificate of insolvency obtained in proceedings conducted before the request for proceedings, where the first attachment is based on proceedings without a judgment, or before the filing of the action, where it is based on a judgment,

2 – A judgment obtained in an action filed before the dates mentioned in the paragraph above,

3 – An official instrument, or an instrument whose date and signature are certified, dated before the same dates,

4 – A receipt or document issued, before the same dates, by official authorities or competent bodies within their competence and in due form.

In the case of participation in this way, the enforcement office shall, upon application, make additional attachments in a proportion sufficient to cover all the receivables of the creditors of the same rank.

Creditors other than these may participate in the attachment only for the amounts remaining over from the preceding rank.

Participation without the need for formalities that would otherwise have to be carried out first:

Amended: 3/7/1940, Law No. 3890, Art. 1

The spouse and children of the debtor, and persons of whom the debtor is the guardian or curator, may, for receivables arising from marriage, parental custody or guardianship, participate in the attachment in the same rank, without the need for the enforcement formalities that would otherwise have to be carried out first, until the proceeds of the property sold upon the first attachment are paid into the cash office. However, this right may be exercised only if the attachment is made during the continuance of the guardianship, parental custody or marriage or within the year following its termination. The period during which an action or proceedings continue shall not be taken into account. The adult children of the debtor may at any time participate in the attachment in the same rank for their receivables based on Article 321 of the Civil Code without the need for the enforcement formalities that would otherwise have to be carried out first. The civil court of peace may also participate in the attachment in the same way on behalf of minors, persons under guardianship or persons for whom a curator has been appointed.

Amended: 18/2/1965, Law No. 538, Art. 56 The enforcement office shall notify the requests for participation to the debtor and the creditors. It shall give them a period of seven days to object. In the case of objection, the participation of the person requesting participation in the attachment shall be accepted provisionally, and that person shall be notified of the need to file an action within seven days. If no action is filed within this period, the right of participation shall lapse. The action to be filed shall be heard according to the simple trial procedure.

A creditor relying on a judgment for maintenance may at any time participate in the attachment in the same rank without the need to carry out the enforcement formalities first. The case of bad faith is excepted.

Drawing up of the attachment record:

For the attachment of a movable property, a record shall be drawn up on the spot. The names and identifying particulars of the creditor and the debtor, the amount of the receivable, the day and hour on which the attachment was made, the attached property and its appraised values and, if any, the claims of third persons shall be written in the record, and the record shall be signed by the officer who carried out the attachment.

If the property whose attachment is requested is an immovable, the enforcement office shall notify the attachment to the competent office pursuant to Article 91, and the type and nature, the boundaries and the necessary characteristics of the immovable shall be entered in the record to be drawn up on the spot.

Where an enforcement attachment is imposed on things previously subjected to precautionary attachment, the right of participation of the holder of the precautionary attachment shall also be indicated in the record.

If the attachable property is insufficient or none is found at all, this shall be entered in the record.

Summons:

Amended: 9/11/1988, Law No. 3494, Art. 12

If, while the record is being drawn up, the creditor, the debtor or a person authorised under the provisions of the Notification Law to receive service on their behalf is not present, the absent creditor or debtor shall be summoned to the enforcement office to examine the record within three days and to state whatever they may have to say. The periods that must be added by law are reserved. If, during the attachment, a person authorised under the provisions of the Notification Law to receive service on behalf of the debtor or the creditor is present, a copy of the attachment record shall be given to the person present. No separate notice shall be given to the debtor or the creditor.

Summons in the case of participation in the attachment:

The participation of new creditors and the new attachments made for this reason by way of supplementation shall be noted at the bottom of the record.

Every new creditor participating in the attachment may, if he so wishes, obtain a full copy of the record.

Those who previously imposed attachment, as well as the debtors, shall also be summoned in accordance with Article 103 so that the new participations and supplementations are notified to them.

Certificate of insolvency (inability to pay the debt):

If no attachable property is found, the attachment record shall have the effect of the certificate of insolvency referred to in Article 143.

Even where it is established that the attachable property is insufficient according to the value assessed by the enforcement office, the record shall serve as a provisional certificate of insolvency and shall grant the creditor the rights set out in Article 277.

III. CONVERSION INTO MONEY

1 – Request for Sale

Time limits for the request and deposit of costs:

Amended together with its heading: 24/11/2021, Law No. 7343, Art. 9

The creditor or the debtor may request the sale of the attached property within one year from the attachment. Receivables of the debtor held by third parties are also subject to this provision.

With respect to attached property whose sale was requested within the one-year period but could not be realised as a result of the auction, the time limit for requesting sale shall be extended, for the creditor requesting sale, by one further year from the expiry of the time limit specified in the first paragraph.

It is mandatory that the costs of valuation and sale be deposited in full and in advance together with the request for sale.

With respect to registered motor land vehicles, it is mandatory that the requests for safekeeping, valuation and sale be made together and that all costs relating thereto be deposited together and in advance.

If the costs of valuation and sale, and additionally, with respect to registered motor land vehicles, the costs of safekeeping, are not deposited in full and in advance together with the request for sale, the request for sale shall be deemed not to have been made.

If it becomes apparent during the sale proceedings that the amount deposited in advance together with the request for sale pursuant to the above paragraphs is insufficient, the enforcement director shall grant the person requesting sale a time limit of fifteen days, and if the deficient amount is not made up within this time limit, the request for sale shall be deemed not to have been made.

The costs specified in this Article shall be determined in the tariff put into force each year by the Ministry of Justice.

Right to request:

Every creditor may request sale on behalf of the rank to which he belongs. Each of the creditors whose attachments are valid, pursuant to the last paragraph of Article 100, for the proceeds remaining in excess of the previous rank may likewise request sale on behalf of the rank to which he belongs.

In the case of provisional attachment:

A creditor whose attachment is provisional may not request sale, and the time limits in Article 106 shall not run against him.

Added: 6/6/1985, Law No. 3222, Art. 12 Property attached provisionally or by way of precautionary attachment may be sold only in the cases set out in the last paragraph of Article 113.

Suspension of the sale:

Amended: 3/7/1940, Law No. 3890, Art. 1

If the sale proceeds reach the aggregate amount of the claims in respect of which the attachment has become final, the sale shall be suspended.

Second paragraph repealed: 6/6/1985, Law No. 3222, Art. 47

Lifting of the attachment:

Amended: 2/7/2012, Law No. 6352, Art. 22

If the sale of property is not requested within the statutory time limit, or if (…) the request is withdrawn and not renewed within the statutory time limit, the attachment on that property shall be lifted. The request for the sale of attached property may be withdrawn once.

Where it is established, as a result of correspondence with the enforcement office, that the attachment of attached property registered in an official register has been lifted, the annotation of attachment shall be cancelled by the administration keeping the register and the transaction shall be notified to the relevant enforcement office.

The creditor who causes the attachment to be lifted pursuant to the first paragraph shall be liable for all costs relating to that property, such as the costs of imposing the attachment and of safekeeping.

Payment in instalments:

If, before the creditor's request for sale, the debtor undertakes to pay his debt in regular instalments and pays the first instalment immediately, the enforcement proceedings shall be stayed.

However, it is a condition that a sufficient amount of the debtor's property has been attached, that each instalment is not less than one quarter of the debt, and finally that the instalments are paid month by month and that the period does not exceed three months.

Added paragraph: 9/11/1988, Law No. 3494, Art. 13; Amended third paragraph: 17/7/2003, Law No. 4949, Art. 26 The time limits in Articles 106 and 150/e shall not run for the duration of the agreement or agreements to be concluded by the debtor and the creditor at the enforcement office for payment of the debt in instalments. However, where the total duration of such agreement or agreements exceeds ten years, the time limits shall resume running from the point at which they stopped as from the date of such excess.

Amended paragraph: 9/11/1988, Law No. 3494, Art. 13 If any instalment is not paid on time, the enforcement proceedings and the time limits shall resume from the point at which they stopped.

Added paragraph: 24/11/2021, Law No. 7343, Art. 11 The record or document to be drawn up at the enforcement office by reason of the debtor's undertaking to pay his debt in regular instalments, or of the agreement to be concluded by the creditor and the debtor, before or after attachment, for payment of the debt in instalments, shall be exempt from stamp duty.

Granting the debtor authority to sell:

ARTICLE 111/a Added: 24/11/2021, Law No. 7343, Art. 12

The debtor may, within seven days from service of the valuation, request that he be granted authority for the voluntary sale of his attached property. Where no valuation has been made, the debtor may also request that a valuation be made. After the valuation becomes final, the enforcement director shall stay the compulsory sale proceedings and grant the debtor a time limit of fifteen days. During the period from the commencement of the time limit granted to the debtor until the decision of the enforcement court rendered pursuant to the third paragraph, the time limit for requesting sale shall not run with respect to the creditor.

In a voluntary sale, the price may not be less than whichever is greater of the amount corresponding to ninety percent of the estimated value of the property and the total of the claims secured by that property which have priority over the claim of the person requesting sale, plus, in addition to that amount, the total enforcement costs incurred for that attached property up to that stage.

Where the purchaser who has reached agreement with the debtor pays the determined price into the file within the fifteen-day time limit granted to the debtor pursuant to the first paragraph, the enforcement director, if, after obtaining the necessary information and documents, he establishes that the conditions set out above are met, shall immediately send the file to the enforcement court for a decision approving the sale and ordering the transfer and delivery of the property. The court shall, as a result of the examination it conducts on the file within ten days at the latest, decide with finality to accept or reject the request. By the decision of acceptance, ownership of the property shall pass to the purchaser, all attachments shall be lifted, and the transfer and delivery procedures shall be carried out. If a decision of rejection is rendered, the price deposited by the purchaser shall be refunded to him.

The other provisions of this Law shall apply to sales carried out under this Article to the extent appropriate to their nature.

The procedures and principles regarding the implementation of this Article shall be determined by a regulation put into force by the Ministry of Justice.

Sale by public auction in electronic form:

ARTICLE 111/b Added: 24/11/2021, Law No. 7343, Art. 13

The sale of attached property shall be carried out by public auction on the electronic sales portal integrated into the National Judiciary Informatics System (UYAP).

The period for submitting bids in a public auction is seven days.

The public auction shall be held within the date and time range specified in the announcement and by way of submission of bids. The personal information of bidders may not be viewed by anyone, except the public officials operating the informatics system, and may not be displayed in the informatics system during the auction period.

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

In a public auction, the highest bidder may not withdraw his bid or recover his security unless a higher bid is submitted during the auction period.

Amended sixth paragraph: 7/11/2024, Law No. 7531, Art. 1 If a new bid is submitted within the last ten minutes of the public auction period, the public auction shall be extended by three minutes. If a new bid is submitted within the extension period, the public auction period shall be extended by three minutes from the submission of each new bid. If no new bid is submitted within the last extension period, the property shall be awarded to the highest bidder. The total of the extension periods may not exceed one hour. The one-hour period may be shortened, extended or abolished by decision of the Ministry of Justice, and such decisions shall be announced on the official website of the Ministry.

The provisions of Article 8/A of Law No. 5651 of 4/5/2007 on the Regulation of Publications on the Internet and Combating Crimes Committed by Means of Such Publications shall apply to websites that prevent the secure conduct of sale transactions on the electronic sales portal or that (…) damage the electronic sales system.

Eighth paragraph annulled by Constitutional Court decision of 25/12/2024, E. 2022/6, K. 2024/225

Operations necessary for the maintenance or improvement of the informatics system may be carried out during the bidding period. Second sentence annulled by Constitutional Court decision of 25/12/2024, E. 2022/6, K. 2024/225

The procedures and principles regarding the implementation of this Article and the sale of attached property by public auction in electronic form shall be determined by a regulation put into force by the Ministry of Justice.

2 – Sale of movables:

Time limits:

Movable property shall be sold within two months at the latest from the request for sale.

Unripe crops may not be sold without the consent of the debtor.

Sale before the due time:

A sale may also be carried out upon the request of the debtor, without a request by the creditor.

The enforcement officer may at any time decide on the sale of property whose value declines rapidly or whose safekeeping is costly.

Preparatory measures for the auction:

Amended: 24/11/2021, Law No. 7343, Art. 14

The sale shall be carried out by public auction.

The date and time range in which the first and second auctions are to be held shall be announced at least fifteen days before the commencement date of the auction. The announcement to be made on the electronic sales portal and on the Announcement Portal of the Press Advertising Agency (Basın İlân Kurumu) shall remain accessible until the end of the auction. The commencement date of the second auction shall be set so as not to exceed one month from the end date of the first auction. Added sentences: 16/7/2026, Law No. 7589, Art. 1 Where the dissolution of co-ownership by way of sale is ordered with respect to immovables which all the owners acquired by way of inheritance and over which no third party other than the heirs holds a right of ownership, in the public auctions to be held the first auction shall be held only among the heirs who are owners. This auction procedure to be held only among the heirs who are owners shall be applied once only.

Amended paragraph: 13/10/2022, Law No. 7418, Art. 25 Announcements in newspapers and on internet news sites shall be made through the Press Advertising Agency in accordance with the procedure set out below.

Added paragraph: 13/10/2022, Law No. 7418, Art. 25 For sales whose total estimated value is up to five hundred thousand Turkish liras, the enforcement office shall decide, taking into account the interests of the parties concerned, whether an announcement is to be made in a newspaper or on an internet news site. However:

1. Those whose total estimated value is above five hundred thousand Turkish liras and below two million Turkish liras shall be announced in a local newspaper published in the place where the sale is to be held and entitled to publish official announcements, or on an internet news site. Where there is no local newspaper or internet news site management entitled to publish official announcements in the place where the sale is to be held, the announcement shall be made through a local newspaper or internet news site entitled to publish official announcements in another place of publication within the administrative boundaries of the same province, to be determined by the enforcement office.

2. Those whose total estimated value is two million Turkish liras or more shall be published on an internet news site or in a newspaper entitled to publish official announcements which is distributed and offered for sale nationwide and whose actual daily sales on the date of the announcement request exceed fifty thousand copies.

3. Announcements to be published in a newspaper or on an internet news site shall also be announced simultaneously on the Announcement Portal of the Press Advertising Agency.

4. No fee shall be charged for announcements to be published on the Announcement Portal of the Press Advertising Agency within the scope of this Article.

5. The monetary limits in this paragraph shall be updated by the Ministry of Justice on the basis of the annual Producer Price Index for December of the preceding year and shall be announced in the Official Gazette by 1 February of each year, to be effective from that date. In extraordinary circumstances, the monetary limits may be updated by decision of the President of the Republic upon the proposal of the Ministry of Justice.

Announcements to be made in newspapers or on internet news sites shall not include the sale specifications as an attachment; it shall suffice to state the type, nature, essential characteristics, estimated value and location of the item to be sold, the date and time range in which the first and second auctions are to be held, and the electronic sales portal containing information on the auction. Apart from the announcements that the enforcement office is required to make, the parties may, at their own expense, announce the text of the announcement on the electronic sales portal by any means they wish. However, such private announcement shall not affect the official proceedings.

In case of discrepancy between the announced texts, the text announced on the electronic sales portal shall prevail. Amended second sentence: 13/10/2022, Law No. 7418, Art. 25 However, errors in the text announced in the newspaper, on the internet news site, on the electronic sales portal or on the Announcement Portal of the Press Advertising Agency shall be corrected by announcement only on the electronic sales portal, without changing the auction date. This correction announcement shall not be separately served on the persons concerned.

The announcement to be made on the electronic sales portal shall contain the following matters:

1. The type, nature, essential characteristics, estimated value and location of the item to be sold and, if any, its images, as well as the other information contained in the auction specifications.

2. That, in order to participate in the auction, it is mandatory to deposit a security in an amount corresponding to ten percent of the value of the attached property into the bank account of the enforcement office conducting the sale, and that, where 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. That, where the security to be provided is a letter of guarantee, those who will participate in the auction must deliver to the enforcement office conducting the sale, by the end of working hours on the working day before the end of the auction period at the latest, a definite and unlimited-term bank letter of guarantee in an amount corresponding to ten percent of the value of the attached property subject to sale.

4. That those who will participate in the auction through a representative must apply to the enforcement office conducting the sale by the end of working hours on the working day before the end of the auction period at the latest.

5. That, in cases where sale by shares is possible, joint purchasers wishing to purchase the property subject to the public auction in specific shares must apply to the enforcement office conducting the sale by the end of working hours on the working day before the end of the auction period at the latest.

6. Amended: 16/7/2026, Law No. 7589, Art. 1 That, if the creditor who has requested sale and wishes to participate in the auction applies to the enforcement office conducting the sale by the end of working hours on the working day before the end of the auction period at the latest, no security shall be taken from him to the extent that his claim covers the security, and that the Treasury is exempt from providing security in public auctions.

7. That, if the conditions are met, the property shall be awarded to the highest bidder.

8. Amended: 16/7/2026, Law No. 7589, Art. 1 That bids to be submitted on the electronic sales portal must exceed fifty percent of the estimated value of the attached property, or, in the dissolution of co-ownership by way of sale where the first auction is held only among the heirs who are owners, one hundred percent of the estimated value, and, in the second auction, whichever is greater of fifty percent of the estimated value and the total of the claims secured by that property which have priority over the claim of the person requesting sale, plus, in addition to that amount, the costs of conversion into money and distribution.

9. Amended: 16/7/2026, Law No. 7589, Art. 1 That, if the auction purchaser submits the highest bid but does not deposit the auction price within the time limit, the security taken shall not be refunded and shall first be set off against the sale costs, and the remaining amount shall be paid to the right holders in set-off against their claims with respect to the enforcement files; that, where the auction purchaser who fails to deposit the auction price within the time limit is the creditor requesting sale, ten percent of the estimated price shall be set off against his own claim and the costs incurred for this sale shall be left on him and shall not be charged to the debtor; that, in the dissolution of co-ownership by way of sale, the security taken from the auction purchaser who submitted the highest bid but did not deposit the auction price within the time limit shall not be refunded to him and shall, after deduction of the sale costs, be paid to the co-owners in proportion to their shares, and, where the person who fails to deposit the auction price within the time limit is a co-owner, the entire security taken shall be paid to the other shareholders in proportion to their shares; and further, that an administrative fine at the rate of five percent of the price bid shall be imposed by the enforcement office conducting the sale or by the sale officer on the auction purchaser who submitted the highest bid but did not deposit the auction price within the time limit, and that this fine shall be notified to the collection office for collection in accordance with the provisions of Law No. 6183.

10. That, in cases where the auction could not be held because the minimum auction price was not bid, or where the auction was cancelled because the highest bidder did not deposit the auction price, the second auction shall be held again under the conditions of the first public auction.

11. That the auction purchaser must pay the entire sale price into the account of the enforcement office within seven days at the latest from the date on which the record confirming that the auction has taken place is announced on the electronic sales portal.

12. That those participating in the sale shall be deemed to have seen the specifications together with all their annexes and to have accepted their content.

13. That, upon the auction becoming final, the registration and delivery procedures for the property shall be carried out.

Upon the auction becoming final, the delivery of the movable to the auction purchaser or the registration of registered property in the name of the auction purchaser shall be carried out after the stamp duty and value added tax have been paid.

Conduct of the auction:

Amended: 24/11/2021, Law No. 7343, Art. 17

The first and second auctions shall be commenced by the enforcement director, on the day and at the time specified in the announcement, on the basis of fifty percent of the estimated value of the attached property. If the conditions are fulfilled, the property shall be awarded to the highest bidder. However, the auction price must exceed whichever is the greater of fifty percent of the estimated value of the attached property and the total of the claims secured by that property which rank ahead of the claim of the party requesting the sale, and must, in addition to that amount, also exceed the costs of conversion into money and distribution.

If the conditions exist on the day and at the time the auction ends, the property shall be deemed to have been awarded to the highest bidder and ownership of the property shall pass to the auction purchaser.

If the auction purchaser submits the highest bid but fails to deposit the auction price within the time limit, the security received shall not be returned and shall be paid to the right holders, to be set off against their claims, after first deducting the costs of sale.

On the first working day after the auction on the electronic sales portal has ended, the enforcement director shall draw up an auction result report concerning the outcome of the auction and shall announce the information in this report on the sales portal on the same day. The report shall state: the day and time at which the auction was completed; if the conditions have been fulfilled, that the property has been awarded to the highest bidder; that the auction price must be deposited into the account of the enforcement office within seven days of the announcement of the report; and, if the conditions have not been fulfilled, the reason for which the auction could not be held.

A request for sale may not be withdrawn after bidding has commenced. If the debt is paid in full before the end of the bidding period, the sale shall be stopped.

In cases where the minimum auction price has not been bid, the highest bidder has not deposited the auction price, or the debt has been paid before the end of the bidding period, the enforcement director shall establish by a report that the auction could not be held or has been cancelled. Where the minimum auction price has not been bid or the highest bidder has not deposited the auction price, the second auction shall commence on the previously announced date within the framework of the conditions of the first auction.

If no purchaser comes forward at the auction or the conditions set out in this Article are not met, the creditor may request that a sale date be set within the period for requesting sale remaining from the previous request for sale. The period for requesting sale shall be suspended upon the request for sale, and this suspended period shall resume running from where it left off as of the date of the report stating that the auction could not be held or has been cancelled.

If, on the first working day after the auction has ended, the enforcement director establishes from the records of the sales portal that bids could not be submitted during the last ten minutes of the auction for technical reasons arising from the electronic sales portal, he shall decide to extend the auction period by one day; the decision shall indicate the dates and times at which the auction will begin and end, and all these matters shall be announced on the sales portal immediately. In this case, the start date of the auction may not be later than three days from the date of the decision to extend the auction period. Within this period, the previous highest bidder shall remain bound by his bid, and new bidders may also participate in the auction by depositing the security.

Second auction:

Repealed: 2/7/2012, Law No. 6352, Art. 105

Gold and silver articles:

Gold and silver articles may not be sold for a price lower than their value as metal.

Payment of the auction price and delivery of the property:

Amended together with its heading: 24/11/2021, Law No. 7343, Art. 18

The auction purchaser shall pay the sale price in cash within seven days of the announcement of the auction result report, even if annulment of the auction has been requested.

The property sold shall not be delivered, nor registered in the purchaser's name in the official register, before the auction becomes final.

Sale by private negotiation:

The sale may be made by private negotiation in the following cases:

1. If all interested parties so request,

2. If, for negotiable instruments or other property having a price on the stock exchange or on the market, the price fixed on that day's market is offered,

3. If gold and silver articles which did not reach their metal value at the auction are offered that value,

4. If the circumstances set out in the second paragraph of Article 113 exist,

5. Amended: 17/7/2003, Law No. 4949, Art. 31 If the estimated value of the attached property does not exceed one billion lira.

Assignment of claims in lieu of payment:

If all creditors participating in the attachment consent, the debtor's claims which have no price on the stock exchange or on the market shall be assigned at their nominal value, in lieu of payment, to them or to one of them on their account. In this case, the creditors shall be subrogated to the rights of the debtor in proportion to their claims.

In the same manner, all of those participating in the attachment, or one of them, may undertake the collection of a claim of the debtor against a third person, or the exercise of a right of action which the debtor holds against such a person, on condition that the costs are borne by them but without prejudice to their rights.

The money obtained in this way shall first be applied to the payment of the claims and costs of those who undertook it.

Other methods of conversion into money. Shares in property held in joint ownership:

If it becomes necessary to sell other kinds of property not specified in the preceding Articles, such as a right of usufruct, an undivided inheritance, or a share in a company or in property held in joint ownership, the enforcement officer shall ask the enforcement court how the sale is to be made.

The enforcement court, after summoning the interested parties whose domiciles are known and hearing those who appear, may have a public auction held, may appoint an officer for the sale, or may take any other measure required.

Family property partnership:

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

3. Sale of immovables:

Period of sale:

Immovables shall be sold by the enforcement office by public auction within three months at the latest from the request for sale.

Conditions of auction:

1. Terms of sale:

The enforcement office shall determine the conditions of auction in the most suitable manner according to the customs of the place where the immovables are located.

Repealed second paragraph: 24/11/2021, Law No. 7343, Art. 19

Repealed third paragraph: 24/11/2021, Law No. 7343, Art. 19

Repealed fourth paragraph: 24/11/2021, Law No. 7343, Art. 19

2. Contents:

The terms of auction shall expressly state that the immovable is sold together with the servitudes, land charges, mortgages, mortgage notes and annuity notes encumbering it, and that the debtor's personal debts secured by this immovable shall also pass to the purchaser.

In the case of debts secured by a mortgage or a mortgage note which are thus transferred to the purchaser, the release of the original debtor depends on the creditor's failure to notify him, within one year of the award, that he reserves his right of recourse. (Civil Code, Art. 803)

Due debts secured by a pledge on immovables shall not be transferred to the purchaser but shall be paid with priority out of the sale price.

The terms of auction shall expressly state which costs shall be borne by the purchaser.

Preparatory measures for the auction:

Amended together with its heading: 24/11/2021, Law No. 7343, Art. 20

The provision of Article 114 shall also apply to preparatory measures for the public auction of an immovable.

The sale announcement to be made on the electronic sales portal shall state, together with the matters set out in Article 114, that mortgagee creditors, if any, and other interested parties must notify the enforcement office, within fifteen days and together with supporting documents, of their rights over the immovable, in particular their claims concerning interest and costs; that otherwise, unless their rights are evidenced by the land register, they shall be excluded from the distribution of the sale price; and that these matters shall also apply to holders of servitudes.

Additional notifications:

Amended: 2/7/2012, Law No. 6352, Art. 30

A copy of the announcement shall be served on the debtor, on the creditor and on the interested parties of the immovable registered in the land register, at their addresses registered in the land registry, if any. If no address is registered in the land registry, their addresses in the address registration system, if any, shall be accepted as service addresses. Apart from these, no further address inquiry shall be made, and the sale announcement made in a newspaper or on the electronic sales portal shall substitute for service.

List of encumbrances:

Before commencing the sale, the enforcement officer shall prepare a list of all encumbrances on the immovable which are entered in the land register or based on an official instrument, shall serve this list on the attaching creditors and the debtor, and shall grant them a period of three days to state their objections. The provisions of Articles 96 and 97 shall also apply here.

Amended: 9/11/1988, Law No. 3494, Art. 19 The enforcement office shall have the value of the immovable appraised; in appraising the value of the immovable, the effect of the encumbrances on the immovable on its value shall also be taken into account. Added sentence: 17/7/2003, Law No. 4949, Art. 33 If encumbrances affecting the previously appraised value of the immovable come to light, the enforcement office shall have the value of the immovable reappraised as the basis for the sale. The appraisal report shall be served on the debtor, on the attaching creditors at their addresses in the enforcement file at which service was made, and on the other mortgagee creditors on the basis of their existing addresses in the land registry, except where a different address has been separately notified. Repealed last sentence: 17/7/2003, Law No. 4949, Art. 103

Added paragraph: 21/2/2007, Law No. 5582, Art. 2 In the enforcement of claims arising from housing finance as defined in the first paragraph of Article 38/A of the Capital Markets Law No. 2499 and of claims of the Housing Development Administration secured by pledge, the enforcement office shall have the appraisal of the immovable whose sale is requested carried out by persons or institutions authorised pursuant to subparagraph (r) of paragraph 1 of Article 22 of the same Law.

Added paragraph: 17/7/2003, Law No. 4949, Art. 33 If the immovable put up for sale includes incentive-supported property in the nature of an accessory, the enforcement directorate shall have the value of such property appraised separately. Before the sale, the relevant institutions shall be asked about obligations on such property such as taxes, duties and fees. Upon the request of the creditor requesting the sale, such property may be excluded from the sale or may be awarded together with the immovable in accordance with the provisions of Article 129, taking into account the public receivables arising from the property itself, such as taxes, duties and fees.

Added paragraph: 28/2/2018, Law No. 7101, Art. 1 Property and rights which constitute a commercial and economic whole, or which it is understood would yield a higher return if sold as a whole, shall be converted into money as a whole.

Complaint concerning the appraisal:

Article 128/a: Added: 17/7/2003, Law No. 4949, Art. 34

The interested parties on whom the appraisal has been served may file a complaint, within seven days of service of the report, with the enforcement court of the place where the enforcement office that had the report prepared is located. If the necessary costs and fees are deposited with the court cashier within seven days of the date of the complaint, a new expert examination may be carried out; otherwise the complaint shall be definitively dismissed without the need for any further action.

Amended first sentence: 12/2/2004, Law No. 5092, Art. 2 A new appraisal may not be requested unless two years have passed from the date on which the finalised appraisal was made. However, a new appraisal may be requested in cases of natural disasters and in similar cases bringing about very significant changes in zoning status.

Added paragraph: 21/2/2007, Law No. 5582, Art. 3 In the enforcement of claims arising from housing finance as defined in the first paragraph of Article 38/A of the Capital Markets Law No. 2499 and of claims of the Housing Development Administration secured by pledge, the expert examination ordered pursuant to the first paragraph shall be carried out by persons or institutions authorised pursuant to subparagraph (r) of paragraph 1 of Article 22 of the same Law.

If a complaint concerning the appraisal is filed with an enforcement court lacking territorial jurisdiction, the enforcement court shall, after examining the file on the papers, render a decision of lack of jurisdiction within ten days at the latest from the date of application and shall, covering the costs from the advance on expenses, send the file ex officio to the competent enforcement court.

Decisions rendered by the enforcement court under this Article are final.

Award at auction:

Amended: 24/11/2021, Law No. 7343, Art. 23

The provision of Article 115 shall also apply to the award of an immovable at auction.

Payment of the auction price:

Amended together with its heading: 24/11/2021, Law No. 7343, Art. 24

The auction purchaser shall pay the sale price in cash within seven days of the announcement of the auction result report, even if annulment of the auction has been requested.

Administration of the immovable during the payment period:

If a period has been granted for payment of the sale price, the immovable shall be administered by the enforcement office until the money is paid, with risk and costs borne by the purchaser. During this period, no registration whatsoever may be made in the land registry without the permission of the enforcement office. The enforcement office may require that additional security be provided to secure the sale price.

Rule on encumbrances subsequently created on immovables and on the leasing of mortgaged and attached immovables:

If, after a claim has been secured by an immovable, the debtor creates a servitude or a land charge on that immovable without the creditor's consent, such creation shall not affect the creditor's right, and the creditor may request that the immovable be put up for auction either together with or free of that right.

If the immovable is sold free of the right and the price exceeds the creditor's claim, the surplus of the price shall be allocated to the holder of the right, up to the value of that right as appraised.

If the debtor, without the creditor's consent, leases a mortgaged immovable to another person and has this registered in the land register, such registration shall not affect the right of the mortgagee creditor.

This provision shall also apply to attached immovables.

Annulment of the auction and collection of the difference:

Amended: 6/6/1985, Law No. 3222, Art. 16 Repealed: 24/11/2021, Law No. 7343, Art. 32

Effect and annulment of the auction:

Amended: 18/2/1965, Law No. 538, Art. 63

The purchaser to whom the immovable has been awarded by the enforcement office shall acquire ownership of that immovable. Added sentence: 17/7/2003, Law No. 4949, Art. 38 The manner in which the immovable is to be preserved and administered until the auction becomes final shall be decided by the enforcement office. Added sentences: 24/11/2021, Law No. 7343, Art. 27 Upon the request of the auction purchaser, the enforcement office shall order the person occupying the sold immovable under a lease contract to deposit the rent with the enforcement office, and, in other cases, the person using the immovable to deposit with the enforcement office the monthly use fee determined by an expert. If the person concerned fails, despite a warning, to deposit the rent or the determined fee with the enforcement office, the provision of Article 356 shall apply to him by analogy. The amount so deposited shall be paid to the right holder according to the outcome of the auction.

Amended second paragraph: 24/11/2021, Law No. 7343, Art. 27 Annulment of the auction, including on the grounds set out in Article 281 of the Turkish Code of Obligations No. 6098 dated 11/1/2011, may be requested only by the creditor requesting the sale, the debtor, the interested parties registered in the official register of the attached property, holders of limited real rights, and those who participated in the auction by bidding, by way of complaint to the enforcement court within seven days of the date of the auction, provided that they indicate an address in Türkiye. Added sentence: 24/12/2025, Law No. 7571, Art. 1 If annulment of the auction is requested by persons other than those specified, the court shall dismiss the request for annulment of the auction on the file and with final effect. The interested parties shall be deemed to have become aware, at the latest on the day of the auction, of irregularities in the proceedings conducted up to the moment of the auction.

Added paragraph: 24/11/2021, Law No. 7343, Art. 27 A request for annulment of the auction made by persons other than the creditor requesting the sale, the debtor, the interested parties registered in the official register and the holders of limited real rights shall be subject to a proportional fee calculated on the auction price. Half of this fee must be paid in advance when making the request. If the request is accepted, this fee shall not be imposed on any other person and shall be refunded upon request. If the request is dismissed, the fee received shall not be refunded and the remaining part of the fee shall be collected from the person who requested annulment of the auction.

Added paragraph: 24/11/2021, Law No. 7343, Art. 27 In a request for annulment of the auction made by persons other than the creditor requesting the sale, the debtor, the interested parties registered in the official register and the holders of limited real rights, security amounting to five percent of the auction price must be provided when making the request, to cover the possible damage of the persons concerned. If an action for damages is not brought under the general provisions within one month of the decision dismissing the request becoming final, the court shall notify the collection office of the situation for the collection of the fine imposed, in accordance with the provisions of Law No. 6183 on the Procedure for the Collection of Public Receivables dated 21/7/1953. If the collection office does not collect the fine out of the security received within three months of the date of notification, the security shall be returned to the person concerned upon request. Added sentences: 24/12/2025, Law No. 7571, Art. 1 If annulment of the auction is requested without depositing the security or the fee required to be deposited under the third paragraph, or with an incomplete deposit thereof, the court shall state in the memorandum it serves that the security or the fee must be completed within a peremptory period of two weeks, failing which the request for annulment of the auction shall be dismissed on the file with final effect. If the security or the fee is not completed within the time limit, the court shall immediately dismiss the request for annulment of the auction.

Added paragraph: 24/11/2021, Law No. 7343, Art. 27 Upon a request for annulment of the auction, the enforcement court shall hold a hearing within twenty days of the date of the request and shall render the necessary decision even if the parties do not appear. However, in cases where the request for annulment of the auction must be dismissed on procedural grounds, a decision may be rendered without holding a hearing. If the enforcement court decides to dismiss the request:

1. on the ground that it was made by persons other than the creditor requesting the sale, the debtor, the interested parties registered in the official register of the attached property, holders of limited real rights, and those who participated in the auction by bidding,

2. on the ground of waiver, in respect of persons other than the creditor requesting the sale, the debtor, the interested parties registered in the official register of the attached property and holders of limited real rights,

3. on the merits,

it shall order the person who requested annulment of the auction to pay a fine of up to ten percent of the price of the auction whose annulment was requested.

Added paragraph: 21/2/2007, Law No. 5582, Art. 4 In the enforcement of claims arising from housing finance as defined in the first paragraph of Article 38/A of the Capital Markets Law No. 2499 and of claims of the Housing Development Administration secured by pledge, the rate set out in the fifth paragraph shall be applied as twenty percent.

Added paragraph: 17/7/2003, Law No. 4949, Art. 38 If a complaint concerning annulment of the auction is filed with an enforcement court or a court lacking subject-matter or territorial jurisdiction, the enforcement court or the court shall, after examining the file on the papers, render a decision of lack of subject-matter or territorial jurisdiction within ten days at the latest from the date of application and shall, covering the costs from the advance on expenses, send the file ex officio to the enforcement court having subject-matter or territorial jurisdiction. These decisions are final.

Added paragraph: 17/7/2003, Law No. 4949, Art. 38 Purchasers of the immovable, provided that they have not participated in the auction by way of set-off against their claims, shall pay the sale price in cash immediately or within the period granted under Article 130, even if annulment of the auction has been requested. The enforcement director shall have the money paid as the auction price placed in banks to earn interest until the decision to be rendered on the complaint for annulment of the auction becomes final. Upon the decision accepting or dismissing the complaint for annulment of the auction becoming final, the auction price shall be paid to the right holders together with the interest accrued.

Amended paragraph: 24/11/2021, Law No. 7343, Art. 27 The auction price shall not be paid to the creditors unless the auction has become final and the property subject to the auction has been delivered to the purchaser or made ready for delivery. Where the property subject to the auction cannot be delivered or made ready for delivery, the auction shall be cancelled by the enforcement director and the auction price shall be paid to the purchaser.

If the sale announcement has not been served, or if a mistake as to the essential qualities of the property sold or collusion in the auction is discovered subsequently, the time limit for complaint shall begin from the date of discovery. However, this time limit may not exceed one year from the date on which the decision that the auction was held was announced on the electronic sales portal.

The interested party requesting annulment of the auction by way of complaint must prove that his interests have been impaired as a result of the irregularity that occurred.

The notification to the land registry office for registration shall be made after the expiry of the time limit prescribed for complaint or, if a complaint has been made, after the decision concluding the complaint has become final.

Repealed last paragraph: 17/7/2003, Law No. 4949, Art. 103

Notification to the land registry for registration and forcible eviction:

Once the immovable property has been awarded to the buyer at auction and its price has been collected, a writ shall be sent to the land registry, in compliance with the time limit set out in Article 134, for its registration in the name of the buyer.

Amended: 6/6/1985, Law No. 3222, Art. 17 If the immovable property is occupied by the debtor, or by others not relying on a transaction evidenced by an official document made on a date prior to the attachment, an eviction order shall be served on the debtor or the occupier for its evacuation within fifteen days. If it is not evacuated within this time limit, the occupier shall be removed by force and the immovable property shall be delivered to the buyer. Added sentence: 24/11/2021, Law No. 7343, Art. 28 A person who, after the registration of the immovable property in the name of the auction buyer and before the eviction has yet been carried out, purchases the immovable property from the auction buyer shall also have the right to request eviction pursuant to this paragraph.

Application to ships of the provisions on the sale of immovable property:

Amended: 14/1/2011, Law No. 6103, Art. 41

The provisions on the sale of immovable property shall also apply to all ships registered in the ship register, irrespective of their flag. In these provisions, the term “land register” means the ship register, the term “mortgage” means ship mortgages, and the term “easement” means the usufruct right over ships registered in the register.

Family homesteads:

The provisions of the Civil Code concerning family homesteads are reserved.

4 – Distribution of the Proceeds:

Time of distribution of the proceeds, costs and attorney's fees:

Where the attached property has been sold in full, the proceeds shall be distributed among the persons concerned according to their shares; where a part of it has been sold, the proceeds may, as required, be distributed to the persons concerned as an advance in proportion to their shares.

Costs concerning all creditors, such as those of attachment, conversion into money and distribution, shall first be taken from the sale proceeds, and the remaining money shall be distributed in proportion to their claims, including enforcement costs and accrued interest.

Amended: 18/2/1965, Law No. 538, Art. 64 In enforcement proceedings conducted through an attorney, the amount of the attorney's fee shall be calculated by the enforcement officer according to the attorneys' fee tariff, irrespective of any agreement made between the creditor and the debtor. The attorney's fee so determined shall also be included in the enforcement costs.

The shares set aside for provisional attachments shall, until the situation becomes clear, be deposited in a sound bank or, in places where there is no bank, in the cash offices of the court or of the enforcement office.

Supplementary attachments by the enforcement office:

If the sale proceeds are insufficient to pay all the claims, the enforcement officer shall, of his own motion, supplement the attachment by making new attachments; however, if attachments were previously imposed on the property so attached by creditors of subsequent ranks, the rights arising from those attachments shall not be prejudiced. The newly attached property shall be sold as quickly as possible, without the need for a separate request for sale.

Ranking schedule:

If the sale proceeds are insufficient to pay in full the claims of all the creditors, the enforcement office shall draw up a ranking schedule of the creditors.

The creditors shall be admitted to the rank in which they would have to be placed in the event of bankruptcy pursuant to Article 206.

Nevertheless, the date that is valid for entry into the first three ranks is the date of the request for attachment.

Service of copies of the schedule:

A copy of the ranking schedule shall be served by the enforcement office on each of the persons concerned.

Objection to the schedule:

Amended: 3/7/1940, Law No. 3890, Art. 1

Within seven days from the service of the copy of the schedule, every creditor may object to the contents of the schedule by bringing an action against the persons concerned before the court of the place where the enforcement proceedings are conducted.

The action shall be heard under the simple procedure.

If the objection does not concern the basis and the amount of the claim but relates only to the ranking, it shall be submitted to the enforcement court by way of complaint.

Payment against security:

Article 142/a: Added: 17/7/2003, Law No. 4949, Art. 39

Every creditor who has received service following the drawing up of the ranking schedule and who appears as a right holder in the ranking schedule may collect the amount falling to his share by submitting to the file a definitive and unlimited-term letter of guarantee issued by a bank. The second paragraph of Article 36 shall also apply here.

The letter of guarantee must contain an undertaking that the amount collected by the creditor from the file, together with the interest for the period until the date of repayment in the event that this amount must be repaid in whole or in part to the enforcement file, shall be paid into the file upon the first written request of the enforcement office. The amount to be guaranteed by the letter of guarantee within these principles shall be determined by the enforcement office.

Certificate of insolvency (inability to pay the debt):

Amended: 3/7/1940, Law No. 3890, Art. 1

Amended first paragraph: 17/7/2003, Law No. 4949, Art. 40 If the creditor has not received the whole of his claim and the conditions required for issuing a certificate of insolvency are fulfilled, the enforcement office shall immediately issue a certificate of insolvency for the remaining amount and give it to the creditor, and a copy thereof to the debtor; these documents shall not be subject to any fee or tax. One copy of the certificate of insolvency shall also be sent, for registration in the special register kept by that enforcement office, to the enforcement office designated by the Ministry of Justice in each provincial centre. The register of certificates of insolvency is public, and the manner in which it is kept and the matters it shall contain shall be determined by a regulation prepared by the Ministry of Justice.

This certificate and the certificate under Article 105 constitute an instrument containing an acknowledgment of the debt and grant the creditor the rights set out in Article 277.

If the creditor initiates enforcement proceedings within one year from the date on which he received the certificate of insolvency, there is no need to serve a new payment order.

No interest may be claimed on the amount of the claim stated in the certificate of insolvency.

Sureties, joint debtors and those who have guaranteed the debt may not have recourse against the debtor for the interest they are obliged to pay on this amount.

Amended sixth paragraph: 17/7/2003, Law No. 4949, Art. 40 This debt shall become time-barred as against the debtor upon the lapse of twenty years from the issuance of the certificate of insolvency. The heirs of the debtor may plead that the debt has become time-barred if the creditor has not pursued his right within one year from the opening of the succession.

Added paragraph: 17/7/2003, Law No. 4949, Art. 40 The debtor may at any time pay his debt, together with accrued interest, to the enforcement office that issued the certificate of insolvency. The enforcement office shall give the money paid to the creditor or, where necessary, deposit it in a bank in accordance with the provisions of Article 9. After the debt has been paid in full in this manner, the certificate of insolvency shall be deleted from the register, and the debtor shall be given a document stating that he has paid his debt and had the certificate of insolvency deleted from the register. Likewise, if the enforcement proceedings are null and void or are annulled, or if it is established by a court decision that the debtor is not indebted, or if the creditor withdraws the enforcement proceedings, the certificate of insolvency shall be deleted from the register and the debtor shall be given a document to that effect.

Return of the instrument and certificate of enforcement of the judgment:

The instrument belonging to a creditor whose claim has been paid in full shall be given to the debtor by the enforcement office.

A creditor whose claim has been paid only in part may take back his instrument. However, the enforcement office shall write on the instrument the amount for which it shall henceforth be valid or, depending on the nature of the instrument, have this written by the relevant offices.

In the enforcement of judgments, the debtor shall, if he so requests, be given, free of charge and without stamp duty, a certificate stating that the judgment has been enforced in whole or in part.

The enforcement office that converts an immovable property into money shall also have the entries relating to easements, real burdens and immovable pledge rights over that immovable property deleted from or transferred in the land register.

Added: 29/6/1956, Law No. 6763, Art. 42; Repealed fifth paragraph: 14/1/2011, Law No. 6103, Art. 41

Application to ships of the provisions on the distribution of the proceeds:

Article 144/a: Added: 14/1/2011, Law No. 6103, Art. 41

The provisions on the distribution of the proceeds shall also apply in the case of the sale of ships. However, the ranking schedule to be drawn up pursuant to Article 140 shall, for all ships, irrespective of their flag and of whether they are registered in a register, be subject to the provisions of Articles 1389 to 1397 of the Turkish Commercial Code.

The enforcement office that converts into money a ship registered in the Turkish ship register shall have the entries relating to the mortgage and usufruct rights registered in the register deleted or transferred; in the case of ships registered in a foreign register, it shall notify the nearest consulate of the State whose flag the ship flies so that this procedure may be carried out.

CHAPTER FIVE

I – CONVERSION INTO MONEY OF A PLEDGE OF MOVABLE PROPERTY

Request for enforcement:

Amended: 18/2/1965, Law No. 538, Art. 65

A creditor whose claim is secured by a pledge of movable property shall, in the request for enforcement, state, in addition to the matters set out in Article 58, what the pledged property is and, if the pledged property was given by a third person or the ownership of the pledged property has passed to a third person, the name of that person, and, if there is a subsequent pledge right over the pledged property, the name of the person holding that right.

Payment order:

Amended: 18/2/1965, Law No. 538, Art. 66

Upon the request for enforcement, the enforcement office shall notify the matter by a notice to the holder of the subsequent pledge right over the pledged property and shall send a payment order each to the debtor and to the third person owning the pledge, in compliance with the following conditions:

1. The time limit for payment is fifteen days.

2. It shall be stated that, if no objection is made within seven days and the debt is not paid within the time limit set out in item 1, the pledged property will be sold.

Objection to the payment order:

Amended: 18/2/1965, Law No. 538, Art. 67

The provisions of Articles 62 to 72 shall apply to objections to the payment order. However:

1. If no express objection has been made to the pledge right, the creditor's pledge right may no longer be the subject of dispute within the enforcement stage.

2. Where an objection is made solely to the pledge right, the creditor may abandon enforcement by way of conversion of the pledge into money and request that the enforcement proceedings continue by way of attachment. In this case, the debtor shall be given a period of seven days to make a declaration of assets.

II – CONVERSION INTO MONEY OF A MORTGAGE

Request for enforcement:

Amended: 18/2/1965, Law No. 538, Art. 68

The creditor of a mortgage over immovable property shall, by submitting to the competent enforcement office or to the enforcement office of the place where the immovable property is located an official copy, issued by the land registry administration, of the deed of contract of the mortgage document in his possession, state the amount of the claim and make a request for enforcement in accordance with Article 58.

Obligation to provide an address:

Article 148/a: Added: 17/7/2003, Law No. 4949, Art. 41

The parties to the mortgage agreement or those who subsequently purchase the mortgaged immovable property, or their successors, are obliged to notify the land registry directorate of an address for service within the country. Otherwise, the request of the persons concerned for registration shall be rejected by the land registry directorate.

A change of address shall take effect upon its notification to the land registry directorate. If the new address is not notified, the date on which the documents served reach the former address shall be deemed to be the date of receipt of service.

1 – Enforcement order:

Amended: 18/2/1965, Law No. 538, Art. 69

If the enforcement officer establishes that the deed of contract submitted contains an unconditional and unreserved acknowledgment of a monetary debt and that the claim is due, he shall send an enforcement order to the debtor and, if the immovable property has been pledged by a third person or the ownership of the immovable property has passed to a third person, also to those persons.

This enforcement order shall state that the debt must be paid within thirty days and that, if the debt is not paid within this time limit and no decision for the stay of enforcement is obtained from the enforcement court, the creditor may request the sale of the immovable property.

Stay of enforcement:

Article 149/a: Added: 18/2/1965, Law No. 538, Art. 70

Paragraphs 1, 2 and 4 of Article 33 shall apply to the stay of enforcement.

Amended second paragraph: 2/3/2005, Law No. 5311, Art. 10 Where the debtor or the third person who applies for appeal (istinaf) against the decision of the enforcement court rejecting the request for a stay does not deposit security in the amount of fifteen per cent of the claim subject to enforcement, the sale shall not be stopped. If the request is rejected by the regional court of appeal, this security shall be paid to the creditor as compensation without the need for a separate judgment.

Added paragraph: 21/2/2007, Law No. 5582, Art. 5 In the enforcement of claims arising from housing finance as defined in the first paragraph of Article 38/A of the Capital Markets Law No. 2499 and of claims of the Housing Development Administration secured by a pledge, the rate set out in the second paragraph shall be applied as thirty per cent. If the appeal request is rejected, half of the amount taken as security shall be paid to the creditor as compensation. If, according to the value assessed and finalised after the creditor's request for sale, it is established that the pledged property will not cover the claim, the remaining amount shall be covered from the remaining part of the security, and the remaining part of the security, if any, shall be returned to the person who deposited it.

2 – Payment order:

Article 149/b: Added: 18/2/1965, Law No. 538, Art. 70

For due claims other than in the cases set out in Article 149, the enforcement officer shall send a payment order in accordance with Article 60 each to the debtor and, if any, to the third person owning the immovable property, in compliance with the following conditions:

1. The time limit for payment is thirty days.

2. It shall be stated that, if no objection is made within seven days and the debt is not paid within the time limit set out in item 1, the creditor may request the sale of the immovable property.

Objection to the payment order:

Amended: 18/2/1965, Law No. 538, Art. 71

The debtor or the third person may raise an objection within seven days from the service of the payment order. However, the pledge right may not be made the subject of an objection. Where an action for the annulment of the mortgage is brought, the provisions of Article 72 shall apply by analogy.

Procedure and provisions for the examination of the objection:

Article 150/a: Added: 18/2/1965, Law No. 538, Art. 72

The provisions of Articles 62 to 72 shall apply to objections to the payment order. However:

1. If the mortgage has been given as security for an agreement such as a current account or a revolving credit, the enforcement court shall have the power to examine that agreement and other related documents and receipts in accordance with the principles in Article 68.

2. Amended: 2/3/2005, Law No. 5311, Art. 11 Where an appeal (istinaf) is lodged against the decision setting aside the objection, the provision of the second paragraph of Article 149/a shall apply by analogy.

Notification of tenants:

Article 150/b: Added: 18/2/1965, Law No. 538, Art. 72; Amended: 6/6/1985, Law No. 3222, Art. 18

If the pledged property is an immovable property that has been leased, the enforcement officer shall, upon the request of the creditor and without waiting for the enforcement proceedings to become final, also inform the tenants of the enforcement proceedings and order that the rents falling due be paid to the enforcement office. Added sentence: 17/7/2003, Law No. 4949, Art. 42 However, proceeding in this manner shall not extinguish the rights under Articles 132 and 135. If the tenant does not deposit the rent with the enforcement office despite the warning, the provision of Article 356 shall apply to him by analogy.

Notification of the land registry administration:

Article 150/c: Added: 18/2/1965, Law No. 538, Art. 72

The enforcement officer is obliged to notify the land registry administration that enforcement proceedings for the conversion of the mortgage into money have commenced. The land registry officer shall annotate this matter in the register of the immovable property. No enforcement order or payment order shall be served on those who acquire the immovable property after the date of this annotation.

Preparations for sale:

Article 150/d: Added: 18/2/1965, Law No. 538, Art. 72; Amended: 9/11/1988, Law No. 3494, Art. 23

Upon the request for enforcement, the enforcement office shall commence the preparations for sale. For this purpose, it shall obtain copies of the entries from the land registry and the zoning status from the municipality, and shall have the valuation carried out without waiting for the enforcement proceedings to become final.

III – COMMON PROVISIONS

Time limit for conversion into money:

Article 150/e: Added: 18/2/1965, Law No. 538, Art. 72

Amended first paragraph: 2/7/2012, Law No. 6352, Art. 32 The creditor may request the sale of a pledged movable within six months, and the sale of a pledged immovable within one year, from the service of the payment order or enforcement order.

If the sale is not requested within the time limits set out in the paragraph above, or if the request is withdrawn and not renewed within these time limits, the enforcement proceedings shall lapse.

The provision of paragraph 2 of Article 78 shall also apply by analogy to enforcement proceedings by way of conversion of the pledge into money.

Provisional certificate of pledge deficiency:

Article 150/f: Added: 18/2/1965, Law No. 538, Art. 72

If, according to the value assessed and finalised after the creditor's request for sale, it is established that the pledged property will not cover the claim, the creditor shall, upon his request, be given a provisional certificate of pledge deficiency for the amount remaining uncovered.

On the basis of this certificate, the creditor may request the enforcement officer to attach other property of the debtor and may participate in the attachments of other creditors in accordance with the principles in Article 100. In this case, the creditor shall receive the part of his claim that could not be collected as a result of the sale of the pledged property from the other attached property of the debtor without priority.

Procedure for conversion into money:

Article 150/g: Added: 18/2/1965, Law No. 538, Art. 72; Amended: 9/11/1988, Law No. 3494, Art. 24

The third paragraph of Article 92, Articles 93, 96, 97, 97/a, 98 and 99, and the provisions of Articles 112 to 137 shall apply by analogy to the pledged property whose sale is requested.

Where the claim or the pledge has been established by a court judgment:

Article 150/h: Added: 18/2/1965, Law No. 538, Art. 72

Where the claim or the pledge right, or both, have been established in a court judgment or in documents having the nature of a court judgment, the provisions on the enforcement of court judgments shall apply by analogy.

Mortgages taken to secure cash credits and non-cash credits operating in the form of a debit current account or of short, medium or long-term credit:

Article 150/ı: Added: 9/11/1988, Law No. 3494, Art. 25; Amended: 17/7/2003, Law No. 4949, Art. 43

Even if the mortgage deed of contract submitted by the party extending a cash or non-cash credit operating in the form of a debit current account or of short, medium or long-term credit does not contain an unconditional and unreserved acknowledgment of a monetary debt, where the party extending the credit submits to the enforcement director a notarised copy showing that the account statement relating to the closing of the current account belonging to the party using the credit or to the acceleration of the short, medium or long-term credit account, or the claim for indemnification due to the payment of the non-cash credit, or the warning relating to the payment of the debt, has been served on the party using the credit through a notary by being sent to the address written in the credit agreement or indicated in the mortgage deed of contract, or is deemed to have been served pursuant to Article 68/b, the enforcement director shall proceed in accordance with Article 149. However, the right of the party using the credit to file a complaint with the enforcement court, by proving that he objected through a notary to the account statement and the warning relating to the payment of the debt, or to the claim for indemnification due to the non-cash credit, within eight days from the date on which it was served on him or deemed to have been served pursuant to Article 68/b, is reserved. In this case, if the party extending the credit is able to prove its claim by other documents within the framework of Article 68/b, the complaint of the party using the credit shall be rejected. During the examination conducted in the enforcement court, no decision to stay the enforcement proceedings may be rendered unless the debtor submits an official document, or a document whose signature has been acknowledged, showing that the debt has been extinguished or deferred. The service, or deemed service, of the account statement, the claim for indemnification or the warning on the third person owning the mortgaged immovable property shall take the place of the demand for payment provided for in Article 887 of the Turkish Civil Code.

Distribution:

The provision of Article 138 shall apply to the deduction of costs from the proceeds of the pledged property and to the distribution of the remainder among the creditors.

If the sale proceeds are insufficient to pay the claims of the creditors, the enforcement officer shall determine the rank and share of each of the creditors in accordance with the second and third paragraphs of Article 206.

The provisions of Articles 141, 142 and 144 shall also apply here.

Certificate of pledge deficiency:

Amended: 18/2/1965, Law No. 538, Art. 73

If the pledged property cannot be sold because no buyer comes forward at a price exceeding the total of the other pledged claims ranking ahead of the claim of the person requesting the sale, or if it is sold but its proceeds are insufficient to cover the claim being enforced, the creditor shall be given a certificate for the whole or the remaining part of his claim.

A creditor whose claim does not arise from a land charge certificate (irat senedi) or from a real burden may, for the claim he has thus been unable to collect, resort to enforcement by way of bankruptcy or by way of attachment, depending on the status of the debtor.

If the creditor makes a request for enforcement by way of attachment within one year from the auction date where no sale has taken place, or from the date on which the sale became final where a sale has taken place, there is no need to serve a new enforcement order or payment order.

The certificate of pledge deficiency has the nature of an instrument containing an acknowledgment of debt.

Absence of the creditor or refusal to accept payment in the case of a claim secured by mortgage:

If the debtor of a claim secured by a mortgage that has fallen due applies to the enforcement office and declares that his creditor is absent and the creditor's domicile is unknown, or that the creditor refuses to accept payment of the debt and to release the mortgage, the enforcement office shall duly serve notice on the creditor to come to the office within fifteen days, receive the money and release the mortgage. If the creditor does not come within this period, or comes but refuses to receive the money and release the mortgage without stating a legally acceptable reason, and the debtor deposits his debt in full with the enforcement office, the enforcement court shall decide that the money paid be held in safekeeping in the name of the creditor and that the mortgage entry be cancelled. This decision shall be served on the land registry office and entered in the register of the mortgaged immovable.

The above provision shall also apply to a debtor who undertakes to pay a debt that has not fallen due, together with all interest accrued and to accrue under the mortgage deed.

Added: 29/6/1956, Law No. 6763, Art. 42; Repealed third paragraph: 14/1/2011, Law No. 6103, Art. 41

Application to ships of the provisions on the realisation of pledges:

Article 153/a: Added: 14/1/2011, Law No. 6103, Art. 41

The provisions on the realisation of a pledge over movables shall also apply to the realisation of a right of retention over a ship and of a pledge right conferred by a maritime claim, regardless of the ship's flag and of whether or not it is registered.

The provisions on the realisation of mortgages shall also apply to the realisation of ship mortgages. In these provisions, the term “immovable” means ships registered in Türkiye or abroad; the term “land register” means the ship register; and the term “mortgage” means ship mortgages. In the realisation of ship mortgages, the enforcement office of the place where the ship has been provisionally attached or where the ship is registered shall have jurisdiction.

The common provisions on the realisation of pledges over movables and of mortgages shall also apply to the realisation of pledge rights over ships; provided, however, that under this Law:

1. The period provided for in the first paragraph of Article 150/e shall be three months for all ships, regardless of their flag and of whether or not they are registered.

2. Article 1377 of the Turkish Commercial Code shall apply instead of Article 150/h.

3. The ranking table to be prepared pursuant to the second paragraph of Article 151 shall be drawn up for all ships, regardless of their flag and of whether or not they are registered, in accordance with the provisions of Articles 1389 to 1397 of the Turkish Commercial Code.

4. Articles 1052 and 1053 of the Turkish Commercial Code shall apply instead of Article 153.

CHAPTER SIX

Enforcement by way of bankruptcy

I – JURISDICTION:

Competent authority in bankruptcy proceedings:

Amended: 18/2/1965, Law No. 538, Art. 74

In enforcement by way of bankruptcy, the competent authority is the enforcement office of the place where the debtor's principal place of business is located.

For commercial enterprises whose head office is abroad, the competent authority is the enforcement office of the place where the branch in Türkiye is located or, where there is more than one branch, of the place where the main branch is located.

If the debtor and the creditor have designated the competent enforcement office by written agreement, the enforcement office of that place shall also be deemed competent for bankruptcy proceedings. However, no jurisdiction agreement may be made for bankruptcy actions, and a bankruptcy action shall in all cases be brought before the commercial court of the place where the debtor's principal place of business is located.

II – ORDINARY PROCEEDINGS BY WAY OF BANKRUPTCY:

Payment order and its contents:

Amended: 3/7/1940, Law No. 3890, Art. 1

If the debtor is among the persons subject to enforcement by way of bankruptcy and the creditor so requests, the following shall be added to the payment order: that, if the debt is not paid within seven days, the creditor may apply to the court and request bankruptcy; that, if the debtor objects either that he does not owe the debt or that he is not among the persons subject to bankruptcy, he must notify the enforcement office of this by petition within this period; and that he may propose a composition with creditors (konkordato).

Request for bankruptcy and its time limit:

Amended: 3/7/1940, Law No. 3890, Art. 1

If no objection has been made by the debtor within the period stated in the payment order, the creditor may request a bankruptcy decision from the Commercial Court by petition.

A copy of the payment order showing that the debtor did not object to the payment order must be attached to this petition.

If the debtor has objected to the payment order, the proceedings shall be stayed, and the creditor may request from the Commercial Court by petition the removal of this objection together with a decision on the debtor's bankruptcy.

The right to request bankruptcy shall lapse one year after the date of service of the payment order.

Withdrawal and renewal of the request:

A creditor who withdraws his request for bankruptcy may not renew it until one month has elapsed.

Adjudication procedure:

Amended: 9/11/1988, Law No. 3494, Art. 26

When the creditor's bankruptcy proceedings have become final, they shall be announced in the manner set out in the second paragraph of Article 166. Within fifteen days of the announcement of the request for bankruptcy, the other creditors may intervene in the action or object, asserting that no circumstance requiring bankruptcy exists, and request the court to dismiss the request.

The court shall obtain the enforcement file and, holding a hearing in accordance with the simple adjudication procedure, examine and decide on both the request for bankruptcy and the objections and defences in accordance with the general provisions. However, if the debtor has not duly objected to the proceedings or his objections and defences are found to be unfounded, the court shall order the debtor, or the attorney who represented him in the bankruptcy action, to perform the debt together with interest and enforcement costs within seven days or to deposit that amount with the court's cash office; such order shall be given at the hearing if the action is proceeding in the presence of the parties, and otherwise by service made in accordance with the provisions of the Notification Law (Tebligat Kanunu). If the debtor refuses, his bankruptcy shall be decided at the first session.

Protective measures:

Amended: 18/2/1965, Law No. 538, Art. 76

Upon a request for bankruptcy, the court may first order all protective measures that it deems necessary for the interests of the creditors. If the debtor has not objected to the payment order, the court is in all cases obliged, upon the creditor's request, to decide on such measures. These orders shall be carried out by the bankruptcy office.

The court may require a creditor who requests a protective measure other than the drawing up of an inventory to provide security as set out in Article 96 of the Code of Civil Procedure (Hukuk Usulü Muhakemeleri Kanunu), to cover the damages that the debtor and third parties may suffer as a result should the creditor later prove to be unjustified. No security shall be required if the debtor has not objected to the payment order or if the claim is based on a court judgment. The State and persons granted legal aid are likewise not obliged to provide security.

Protective measures taken under this Article shall not affect enforcement proceedings against the debtor.

Advance payment of costs:

Amended: 18/2/1965, Law No. 538, Art. 77

The creditor requesting bankruptcy shall be liable for the costs incurred up to the first meeting of creditors.

Amended: 9/11/1988, Law No. 3494, Art. 27 The court shall require these costs, together with all service costs necessary for the legal remedies against the bankruptcy decision, to be paid in advance.

Drawing up of an inventory:

1 – Procedure:

If the creditor requesting bankruptcy so wishes, the court may decide that an inventory of the debtor's property be drawn up. This inventory shall be drawn up by the bankruptcy office.

In cases such as the debtor failing to disclose his property or to open locked places, the provisions of Articles 80 and 81 shall apply.

2 – Effects:

Amended: 6/6/1985, Law No. 3222, Art. 19

Except for property left by the bankruptcy officer for the maintenance of the debtor and his family, the debtor is obliged to hand over the inventoried property in kind or at its value at the time it is requested.

3 – Duration:

If all creditors participating in the proceedings consent, the inventory drawn up shall be cancelled by the bankruptcy officer.

Unless extended by the court, the inventory shall cease to have effect automatically four months after the date on which it was drawn up.

Amended: 2/3/2005, Law No. 5311, Art. 12

Final decisions rendered by the commercial court shall be served ex officio on the parties by the court, the cost being met from the costs collected under the last paragraph of Article 160.

An appeal (istinaf) may be lodged against these decisions within two weeks from the date of service. An appeal on points of law (temyiz) may also be lodged against the decision of the regional court of appeal within two weeks from the date of service. Appellate and cassation reviews shall be conducted in accordance with the provisions of the Code of Civil Procedure.

Recourse to legal remedies against the bankruptcy decision shall not prevent the announcement of the bankruptcy and the constitution of the bankruptcy estate. However, the second meeting of creditors may not be held until the bankruptcy decision has become final.

If the bankruptcy decision is set aside by the regional court of appeal, the measures on the debtor's property shall continue. However, the commercial court is authorised to amend or lift these measures according to the course of the action.

Date of bankruptcy:

Bankruptcy shall be opened by judgment, and the moment of opening shall be indicated in that judgment.

Added: 9/11/1988, Law No. 3494, Art. 29 A waiver of the bankruptcy action after bankruptcy has been decided shall be invalid.

Service and announcement of the bankruptcy decision:

Amended: 18/2/1965, Law No. 538, Art. 79

The bankruptcy decision shall be notified to the bankruptcy office.

Amended: 9/11/1988, Law No. 3494, Art. 30 The office shall, ex officio and immediately, notify the decision to the land registry, the trade registry office, the customs and postal administrations, the Banks Association of Türkiye, the local chambers of commerce, chambers of industry, securities exchanges, the Capital Markets Board and other relevant bodies. The office shall also announce the decision on an internet news site or, together with one of the newspapers having a circulation above fifty thousand (50,000) on the date the announcement is requested and distributed nationwide, in a newspaper in the place where the bankrupt's principal place of business is located, and in the Trade Registry Gazette. If the place where the newspaper having a circulation above fifty thousand (50,000) and distributed nationwide is published is at the same time the principal place of business, no announcement shall be made in a local newspaper.

The closure or lifting of the bankruptcy shall also be notified and announced in the same manner.

III – SPECIAL PROCEDURES FOR PROCEEDINGS CONCERNING NEGOTIABLE INSTRUMENTS (CHEQUES, BILLS OF EXCHANGE AND PROMISSORY NOTES):

Conditions for the acceptance of proceedings:

Amended: 18/2/1965, Law No. 538, Art. 80

A creditor whose claim is based on a cheque, bill of exchange or promissory note may, even if the claim is secured by a pledge, initiate proceedings under the special procedures in this section by way of attachment or, if the debtor is among the persons subject to bankruptcy, by way of bankruptcy.

In the request for proceedings, the creditor is obliged, in addition to the matters in Article 58, to state which of the attachment and bankruptcy routes he requests against a debtor subject to bankruptcy, and to attach to the request for proceedings the original of the negotiable instrument and as many certified copies as there are debtors.

A) Enforcement by way of attachment:

Payment order:

Amended: 18/2/1965, Law No. 538, Art. 81

If the enforcement officer finds that the instrument is a negotiable instrument and that it has fallen due, he shall immediately send the debtor a payment order together with a copy of the instrument. The following shall be written in this payment order:

1. Amended: 2/7/2012, Law No. 6352, Art. 33 The particulars required to be written in the request for proceedings, except for the bank account number of the creditor or his attorney,

2. Amended: 2/7/2012, Law No. 6352, Art. 33 A warning that the debt and the costs of proceedings must be paid within ten days into the bank account of the enforcement office stated in the payment order,

3. That, if the instrument on which the proceedings are based does not qualify as a negotiable instrument, he must file a complaint with the enforcement court within five days,

4. Amended: 9/11/1988, Law No. 3494, Art. 31 That, if he claims that the signature on the negotiable instrument on which the proceedings are based is not his, he must expressly notify this to the enforcement court by petition within five days; a warning that otherwise the signature on the negotiable instrument shall be deemed to have issued from him in the enforcement proceedings conducted under this section, that if he wrongfully denies his signature he shall be ordered to pay a fine of ten percent of the claim subject to the proceedings based on the said instrument, and that compulsory enforcement shall continue unless he obtains from the enforcement court a decision accepting his objection.

5. Amended: 6/6/1985, Law No. 3222, Art. 21 A warning that compulsory enforcement shall continue unless he notifies the enforcement court by petition within five days, together with the reasons, that he is not indebted, or that the debt has been extinguished, or that a time extension has been granted, or that the claim is time-barred, or of his objection to jurisdiction, and obtains from the enforcement court a decision accepting his objection.

6. Amended: 17/7/2003, Law No. 4949, Art. 45 A warning that, if no objection is made and the debt is not paid, he must make a declaration of assets within ten days under Article 74, or, if an objection is made and dismissed, within three days under Article 75; that if he does not do so he shall be subject to coercive imprisonment; and that if he fails to make a declaration of assets or makes a declaration contrary to the truth he shall additionally be punished with imprisonment.

The last two paragraphs of Article 60 shall also apply here.

a) Objection to the debt:

Amended: 18/2/1965, Law No. 538, Art. 82

The debtor shall notify the enforcement court by petition of his objection to the debt under subparagraph 5 of Article 168. This objection shall not stay enforcement proceedings other than the sale.

Examination of the objection:

Article 169/a: Added: 18/2/1965, Law No. 538, Art. 83

Amended first paragraph: 17/7/2003, Law No. 4949, Art. 46 The judge of the enforcement court shall summon both parties to a hearing within thirty days at the latest in order to examine the grounds of objection. At the end of the hearing, the judge shall accept the objection if it is proven by an official document or a document whose signature is acknowledged that the debt does not exist or has been extinguished or deferred. In examining an objection to jurisdiction, the judge of the enforcement court shall render the necessary decision even if the parties do not appear.

Amended second paragraph: 17/7/2003, Law No. 4949, Art. 46 If the judge of the enforcement court, on the basis of the documents submitted by the debtor as annexes to his petition of objection, concludes that the debt has been extinguished or deferred, or that the claim is time-barred on the face of the instrument, or that the debtor is not indebted, or that the enforcement office lacks jurisdiction, he may decide, prior to his decision on the merits of the objection, to stay the enforcement proceedings provisionally.

Amended: 9/11/1988, Law No. 3494, Art. 32 If the signature on the document submitted by the debtor is denied by the creditor, the judge of the enforcement court, if he concludes as a result of the examination conducted under the procedure in Article 68/a that the signature belongs to the creditor, shall decide to accept the debtor's objection and shall order the creditor to pay a fine of ten percent of the value or amount to which the said document relates. If the creditor does not appear at the hearing to which he was summoned pursuant to the first paragraph, the judge of the enforcement court shall decide to stay enforcement provisionally for the disputed part of the claim. Thereupon the creditor may, within six months at the latest, request a hearing before the enforcement court and obtain a decision for the continuation of the proceedings by proving that the signature on the receipt is not his. If the enforcement court decides that the signature does not belong to the creditor, it shall order the debtor to pay a fine of ten percent of the value or amount to which the said document relates.

If the enforcement judge finds the debtor's objection of limitation well founded on the basis of the date on the negotiable instrument submitted by the creditor, and the creditor cannot prove by an official document or a document whose signature is acknowledged that the limitation period has been interrupted or suspended, he shall decide to accept the objection; otherwise he shall decide to dismiss it.

Upon the decision accepting the objection, the proceedings shall be stayed. The creditor's right to bring an action under the general provisions is reserved. If the creditor brings an action before the general court, the collection of the compensation for denial and of the fine shall be deferred until the end of the action, and if he wins that action, the compensation for denial and the fine imposed on him shall be lifted.

Added paragraph: 9/11/1988, Law No. 3494, Art. 32 Amended first sentence: 17/7/2003, Law No. 4949, Art. 46 Where the debtor's objection is accepted by the enforcement court on grounds relating to the merits, the creditor acting in bad faith or with gross fault shall, and where the proceedings have been provisionally stayed and the objection is dismissed, the debtor shall, upon the request of the other party, be ordered to pay compensation of not less than twenty percent of the claim subject to the proceedings. If the debtor brings an action for a negative declaration or for restitution, or the creditor brings an action before the general court, the collection of the compensation awarded shall be deferred until the end of the action, and the compensation previously awarded shall be lifted in respect of the party in whose favour the action concludes.

Amended last paragraph: 2/3/2005, Law No. 5311, Art. 13 Lodging an appeal (istinaf) against the decision dismissing the objection shall not stay any enforcement action. However, if the debtor provides security under the third paragraph of Article 33, enforcement shall be stayed.

b) Objection to the signature:

Amended: 9/11/1988, Law No. 3494, Art. 33

The debtor shall notify the enforcement court by petition of his objection, under subparagraph 4 of Article 168, that the signature on the negotiable instrument is not his. This objection shall not stay enforcement proceedings other than the sale.

If, in the examination it conducts before the hearing, the enforcement court considers the objection to be serious on the basis of the conviction it forms from the content of the debtor's petition of objection or the documents annexed thereto, it may decide on the file, without the need for service on the creditor, to stay the enforcement proceedings provisionally until its decision on the objection.

Amended third paragraph: 17/7/2003, Law No. 4949, Art. 47 If, at the end of the examination it conducts under the fourth paragraph of Article 68/a, the enforcement court concludes that the denied signature does not belong to the debtor, it shall decide to accept the objection. Upon the decision accepting the objection, the proceedings shall be stayed. The creditor's right to bring an action under the general provisions is reserved. If it is established that the denied signature belongs to the debtor and the proceedings were stayed under the second paragraph together with the objection, the debtor shall be ordered to pay compensation for denial of not less than twenty percent of the claim subject to the proceedings based on the said instrument and a fine of ten percent of the claim subject to the proceedings, and the objection shall be dismissed. If the debtor brings an action for a negative declaration or for restitution, the collection of the compensation and fine awarded shall be deferred until the end of the action, and if the action concludes in the debtor's favour, the compensation and fine previously awarded shall be lifted.

Amended first sentence: 17/7/2003, Law No. 4949, Art. 47 Where the enforcement court decides to accept the objection, it shall, if the creditor acted in bad faith or with gross fault in putting the instrument into enforcement, order the creditor to pay compensation of not less than twenty percent of the claim subject to the proceedings based on the instrument and a fine of ten percent of the claim. If the creditor brings an action before the general court, the collection of the fine shall be deferred until the end of the action, and if he wins that action, the fine imposed on him shall be lifted.

Complaint of the debtor under the law of negotiable instruments:

Article 170/a: Added: 18/2/1965, Law No. 538, Art. 85

The debtor may assert, by way of complaint under subparagraph 3 of Article 168, that the creditor has no right to initiate proceedings under the provisions of this section.

In matters duly brought before it by reason of a complaint or objection made within the time limit, the enforcement court may, taking into account ex officio that the negotiable instrument on which the proceedings are based does not have that character or that the creditor does not have the right to initiate proceedings under the law of negotiable instruments, annul the proceedings conducted under this section.

Added: 9/11/1988, Law No. 3494, Art. 34 If, in any manner whatsoever, the objection denying the signature has been withdrawn or the debt has been accepted in part or in full, the provision of this Article shall not apply.

Other applicable provisions:

Article 170/b: Added: 18/2/1965, Law No. 538, Art. 85; Amended: 17/7/2003, Law No. 4949, Art. 48

The second, third, fourth and fifth paragraphs of Article 61 and Articles 62 to 72 shall also apply to proceedings by way of attachment specific to negotiable instruments, insofar as they are not contrary to the provisions of this section.

B) ENFORCEMENT BY WAY OF BANKRUPTCY:

Payment order:

Amended: 18/2/1965, Law No. 538, Art. 86

If the enforcement officer finds that the instrument is a negotiable instrument and that it has fallen due, he shall immediately send the debtor a payment order together with a copy of the instrument.

The following shall be written in the payment order:

1. Amended: 2/7/2012, Law No. 6352, Art. 36 The particulars required to be written in the request for proceedings, except for the bank account number of the creditor or his attorney,

2. Amended: 2/7/2012, Law No. 6352, Art. 36 A warning that the debt and the costs of proceedings must be paid within five days into the bank account of the enforcement office stated in the payment order,

3. A warning that he must notify the enforcement office within five days, by a petition with one copy more than the number to be served on the other party, of all objections and complaints concerning the negotiable instrument and the debt, together with their grounds,

4. A warning that, if the debt is not paid and no objection or complaint is made within five days, the creditor may request the debtor's bankruptcy from the commercial court.

The last two paragraphs of Article 60 shall also apply here.

Objection or complaint:

Amended: 18/2/1965, Law No. 538, Art. 87

A debtor wishing to object to or complain about the payment order is obliged to notify the enforcement office, within five days from the service of the payment order, of all objections or complaints, together with their grounds, by a petition with one copy more than the number to be served on the other party. A copy of this petition shall be served immediately on the creditor.

Bankruptcy action:

a) Absence of objection or complaint:

Amended: 18/2/1965, Law No. 538, Art. 88

If the debtor neither pays the debt nor files an objection or complaint within five days, the creditor may request the commercial court to adjudicate the debtor bankrupt, submitting the copy of the payment order evidencing this situation.

Added: 9/11/1988, Law No. 3494, Art. 35 When the bankruptcy proceedings become final, they shall be announced in accordance with the procedure in paragraph 2 of Article 166. Within fifteen days from the announcement of the bankruptcy request, the other creditors may intervene in the action or object, asserting that no circumstance requiring bankruptcy exists, and request the court to dismiss the request.

The court shall obtain the enforcement file and, if at the end of the examination it conducts under the simple trial procedure it establishes that the debt has not been paid and that no objection or complaint has been filed, it shall order, in accordance with Article 158, that the debt together with interest and enforcement costs be performed, or that the said sum be deposited with the court cashier, within seven days. If this order is not complied with, the debtor shall be adjudicated bankrupt. However, if the debtor submits an official document showing that he paid the debt after the expiry of the time limit stated in the payment order, the request for enforcement by way of bankruptcy and the bankruptcy action shall lapse.

The debtor may file a late objection with the commercial court pursuant to Article 65. If the court finds the excuse justified, it shall decide on the bankruptcy action in accordance with Article 174.

b) Filing of an objection or complaint:

Amended: 18/2/1965, Law No. 538, Art. 89

The creditor may request the commercial court to set aside the debtor's objection and complaint and to adjudicate the debtor bankrupt. The court shall decide on the bankruptcy action in accordance with Article 158.

c) Action for restitution:

Amended: 18/2/1965, Law No. 538, Art. 90

A person who, by reason of not having objected to the bankruptcy proceedings, has paid a sum he did not owe shall have the right to recover it in accordance with Article 72.

d) Applicable provisions:

Amended: 18/2/1965, Law No. 538, Art. 91

The last paragraph of Article 156 and the provisions of Articles 157 to 166 shall also apply here.

C) COMMON PROVISIONS

Documents to be given to the creditor and the debtor:

Article 176/a: Added: 18/2/1965, Law No. 538, Art. 92

The enforcement office shall give the creditor a copy of the payment order pursuant to Articles 60 and 64.

The debtor shall be given, free of charge and without stamp duty, a document showing that he has filed an objection.

Existence of more than one debtor:

Article 176/b: Added: 18/2/1965, Law No. 538, Art. 92

Where there is more than one debtor against whom enforcement is pursued on a cheque, bill of exchange or promissory note and all of them are persons subject to bankruptcy, the creditor must make the same request (attachment or bankruptcy) against all of them. In this case, if the debtor files an objection, the provisions of Articles 169, 169/a and 170, or of Article 174, shall apply according to the nature of the request.

If among the debtors against whom enforcement is pursued on an instrument there is a person not subject to bankruptcy, and the creditor wishes to proceed by way of bankruptcy against those subject to bankruptcy and by way of attachment against those not subject to it, he is obliged to submit two separate requests for enforcement specific to these procedures. In this case, a copy of the negotiable instrument certified by the enforcement officer shall be attached to one of the requests for enforcement. The enforcement officer shall write on this copy of the instrument that the original of the instrument is in his possession.

IV. CASES OF DIRECT BANKRUPTCY

Bankruptcy without the need for prior enforcement proceedings:

A – At the request of the creditor:

In the following cases, the creditor may request the bankruptcy of a debtor subject to bankruptcy without the need for prior enforcement proceedings:

1 – If the debtor has no known domicile, absconds with the intention of evading his obligations, engages or attempts to engage in fraudulent transactions infringing the rights of creditors, or conceals his assets during enforcement proceedings by way of attachment;

2 – If the debtor has suspended his payments;

3 – If the case in Article 308 exists;

4 – If a claim based on a judgment has not been paid although demanded by an enforcement order, the debtor who has a domicile or representative in Türkiye shall be summoned to court within a short time to be heard.

Added: 9/11/1988, Law No. 3494, Art. 36 Paragraph 2 of Article 178 of this Law shall also apply here.

B – Upon application of the debtor:

Amended: 18/2/1965, Law No. 538, Art. 93

Amended: 9/11/1988, Law No. 3494, Art. 37 A debtor subject to bankruptcy may, declaring that he is in a state of insolvency, request the competent court to adjudicate him bankrupt. In this case, the debtor must attach to the bankruptcy request a declaration of assets showing all his assets and liabilities and the names and addresses of his creditors. Bankruptcy may not be adjudicated unless this document is submitted to the court.

Added: 9/11/1988, Law No. 3494, Art. 37 The bankruptcy request shall be announced in accordance with the procedure in paragraph 2 of Article 166. Within fifteen days from the announcement of the bankruptcy request, the creditors may intervene in the action or object, asserting that the debtor made the bankruptcy request in order to postpone the enforcement proceedings against him and to delay payment of his debts, and request the court to dismiss the request.

Where an attachment made as a result of enforcement by way of attachment pursued by one of the creditors against a debtor subject to bankruptcy causes half of the debtor's assets to leave his hands and the remainder is insufficient to pay his other debts that are due or will fall due within one year, the debtor is obliged immediately to declare his insolvency and request his bankruptcy.

Bankruptcy of capital companies and cooperatives:

Amended: 28/2/2018, Law No. 7101, Art. 3

If it is declared by the persons entrusted with management and representation or, where the company or cooperative is in liquidation, by the liquidators, or by a creditor, and established by the court, that capital companies or cooperatives are over-indebted according to an interim balance sheet drawn up on the basis of the probable sale prices of the assets, their bankruptcy shall be adjudicated without the need for prior enforcement 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.

Postponement proceedings:

Article 179/a: Added: 17/7/2003, Law No. 4949, Art. 50; Repealed: 28/2/2018, Law No. 7101, Art. 65

Decision of postponement and its consequences:

Article 179/b: Added: 17/7/2003, Law No. 4949, Art. 50; Repealed: 28/2/2018, Law No. 7101, Art. 65

Legal remedies:

Article 179/c: Added: 15/7/2016, Law No. 6728, Art. 4; Repealed: 28/2/2018, Law No. 7101, Art. 65

Renounced inheritances:

The liquidation of renounced inheritances shall be carried out by the competent court in accordance with the provisions of Chapter Eight. The provisions of the Civil Code on the official liquidation of the estate are reserved.

Procedure:

Articles 159, 160, 164, 165 and 166 shall also apply to bankruptcies occurring under the provisions of this section.

V. REVOCATION OF BANKRUPTCY

Revocation of bankruptcy:

If the debtor produces a declaration by all his creditors that they have withdrawn their claims, or a document showing that all the claims have been extinguished, or if the concordat concluded is confirmed, the court shall decide on the revocation of the bankruptcy and the return of his assets to the debtor for his free disposal.

Amended paragraph 2: 2/3/2005, Law No. 5311, Art. 14 The revocation of bankruptcy may be decided from the expiry of the specified time limit for the registration of claims until the closure of the bankruptcy. An appeal (istinaf) may be lodged against the judgment on the revocation of bankruptcy within two weeks from the date of service. An appeal on points of law (temyiz) may be lodged against the decision of the regional court of appeal within two weeks from the date of service. The appeal and cassation reviews shall be conducted in accordance with the provisions of the Code of Civil Procedure.

The revocation of bankruptcy shall be announced.

Suspension of the liquidation of a renounced inheritance:

If an estate is in liquidation pursuant to Article 180 and, before the closure of the liquidation, one of the heirs comes forward and declares that he accepts the inheritance, the court shall suspend the liquidation in return for the heir furnishing security for the payment of the debts.

CHAPTER SEVEN

Legal consequences of bankruptcy

I – CONSEQUENCES OF BANKRUPTCY CONCERNING THE DEBTOR'S ASSETS:

Bankruptcy estate:

All attachable assets of the bankrupt at the time of the opening of bankruptcy, wherever they are located, shall constitute one estate and shall be allocated to the payment of claims. Assets acquired by the bankrupt until the closure of the bankruptcy shall be included in the estate.

Letters addressed to the bankrupt shall be opened by the bankruptcy administration, and the postal administration shall be notified that other incoming items are also to be sent to the estate.

Pledged assets and places intended for production:

Assets subject to a pledge shall be included in the estate, the right of priority of the pledgee creditor being reserved, and shall be converted into money by the bankruptcy administration at the nearest suitable time and, after deduction of the costs of preservation and sale, the pledgee creditor shall be given his due. Sentence added: 17/7/2003, Law No. 4949, Art. 51 However, the pledgee creditor may, if he so wishes, pursue enforcement against the estate by way of realisation of the pledge even after the bankruptcy.

If it becomes evident according to the stock exchange price that the value of the pledge will not suffice for the claim secured by the pledge, and the pledgee does not request the sale of the pledge, the pledge shall be temporarily removed from the estate.

The pledgee creditor shall have the right to file a complaint with the enforcement court concerning the transactions relating to these matters.

Added paragraph: 9/11/1988, Law No. 3494, Art. 38; Amended paragraph: 28/2/2018, Law No. 7101, Art. 4 Places closed and sealed pursuant to paragraph 1 of Article 210 because it is understood that they would not be beneficial to the estate shall, even if not subject to a pledge, be sold immediately by the bankruptcy administration if this is also found appropriate by the first meeting of creditors.

Added paragraph: 9/11/1988, Law No. 3494, Art. 38 Sales to be made under this Article shall be announced in accordance with the procedure in paragraph 2 of Article 166.

Items attached by way of interim or executory attachment:

Amended: 18/2/1965, Law No. 538, Art. 94

Assets attached by way of interim attachment and attached assets not yet converted into money at the time of the opening of bankruptcy shall be included in the estate.

The proceeds of attached assets converted into money before the opening of bankruptcy shall be distributed to the creditors who caused the attachment in accordance with the provisions of Articles 138 to 144. The surplus shall pass to the bankruptcy estate.

Rights subject to an action for annulment:

The bankruptcy administration shall bring the necessary actions for the transfer to the estate of all things that may be the subject of an action for annulment pursuant to Article 201 and Articles 277 to 284.

Instruments to order or to bearer delivered for collection of their value:

Persons who have transferred to the bankrupt instruments payable to bearer or to order solely for the collection of their value, or as cover for a specified future payment, may claim them back.

Sale price of property belonging to another:

If the bankrupt has sold property belonging to another and has not received the price before the opening of bankruptcy, the owner of the property may, in return for reimbursing the estate for the expenses incurred for the property, request the assignment to himself of the claim against the buyer or, if the price of the sold item has been paid to the estate, request that this price be given to him.

Seller's right of recovery:

For goods which were sold and dispatched but did not come into the hands of the bankrupt before the adjudication of bankruptcy, the seller may claim recovery unless the price has been paid by the estate.

Amended: 29/6/1956, Law No. 6763, Art. 42 If, before the announcement of bankruptcy, these goods have been sold or pledged to a third party in good faith by means of an instrument representing the goods, such as a bill of lading, consignment note, warehouse receipt or warrant, they can no longer be recovered.

Provisions on the bankrupt's incapacity to dispose and the payment of bills of exchange:

Any disposition by the debtor of assets belonging to the estate after the opening of bankruptcy shall be null and void as against the creditors.

If a promissory note signed by the debtor, or a bill of exchange drawn on him, before the opening of bankruptcy has been paid by the bankrupt at maturity before the announcement of bankruptcy, the sum paid may not be recovered from a holder who was unaware of the bankruptcy and who, had payment been refused, would have been in a position to exercise a right of recourse against a third party.

Payment to the bankrupt:

After the opening of bankruptcy, the bankrupt may not accept any payment. A person who makes a payment to the bankrupt is released from his debt towards the bankrupt's creditors only to the extent of the money or value that enters the estate. Nevertheless, a debtor who makes a payment to the bankrupt before the announcement of bankruptcy is released from his debt if he was unaware of the bankruptcy.

Suspension and lapse of enforcement proceedings:

Amended: 18/2/1965, Law No. 538, Art. 95

Amended: 9/11/1988, Law No. 3494, Art. 39 The opening of bankruptcy shall suspend enforcement proceedings by way of attachment and proceedings for the provision of security against the debtor.

These proceedings shall lapse upon the bankruptcy decision becoming final.

During the liquidation of the bankruptcy, none of the proceedings referred to in paragraph 1 may be brought against the bankrupt.

Added: 9/11/1988, Law No. 3494, Art. 39 Enforcement proceedings by way of realisation of a pledge shall be continued by the enforcing creditors against the bankruptcy estate even after the bankruptcy, and the sale proceeds shall be distributed to the pledgee creditors in accordance with Article 151. The surplus shall pass to the bankruptcy estate. However, the enforcing creditor may abandon the enforcement proceedings by way of realisation of the pledge commenced before the bankruptcy and request the sale of the pledge in accordance with Article 185.

Suspension of civil actions:

Amended paragraph 1: 9/11/1988, Law No. 3494, Art. 40 Except in urgent cases, civil actions in which the bankrupt is claimant or defendant shall be suspended and may be continued only ten days after the second meeting of creditors. This provision shall not apply to actions for compensation arising from attacks on honour and dignity or from bodily injury, to disputes relating to marriage, personal status or maintenance, or to civil actions brought in connection with enforcement proceedings by way of realisation of a pledge.

As long as the action is suspended, limitation periods and peremptory periods shall not run.

II. EFFECTS OF BANKRUPTCY ON THE RIGHTS OF CREDITORS

Acceleration of the bankrupt's debts:

Except for claims secured by a pledge on the debtor's immovable property, the opening of bankruptcy renders the bankrupt's debts due. Interest accrued up to the day of the opening of bankruptcy and enforcement costs shall be added to the principal.

Amended: 9/11/1988, Law No. 3494, Art. 41 Interest-free debts of the bankrupt not yet due shall be discounted at the annual statutory interest rate.

Interest:

Amended: 9/11/1988, Law No. 3494, Art. 42

Upon the opening of bankruptcy, interest shall continue to accrue on claims included in the bankruptcy estate.

For claims not secured by a pledge, the interest rate applicable to non-commercial transactions shall apply.

However, interest payments accruing to creditors under this Article shall be made out of the balance after the principal amounts calculated under Article 195 have been paid.

Conditional claims:

A creditor may also register a claim whose enforceability is subject to a condition or to an indefinite term. However, he shall receive his share upon fulfilment of the condition or upon the arrival of the term.

For claims arising from a life annuity contract, the provision of paragraph 3 of Article 509 of the Code of Obligations shall apply.

Conversion of non-monetary claims into money:

A claim whose subject is not money shall be converted into a monetary claim of equivalent value. However, the bankruptcy administration may undertake specific performance of the obligation. In this case, if the creditor so requests, the bankruptcy administration shall furnish security.

The provisions of Article 290 of the Code of Obligations are reserved.

Performance of completed sales:

A seller who sold and delivered property to the debtor before the opening of bankruptcy may not rescind the contract or take back what he sold, even if he expressly reserved the right of rescission and recovery.

Set-off:

A creditor may set off his claim against a claim the bankrupt has against him. Set-off may not be made in the following cases:

1 – If a debtor of the bankrupt becomes a creditor of the bankrupt after the opening of bankruptcy;

2 – If a creditor of the bankrupt becomes a debtor of the bankrupt or of the estate after the opening of bankruptcy;

3 – If the creditor's claim is based on an instrument payable to bearer.

Amended: 29/6/1956, Law No. 6763, Art. 42 In the bankruptcy of joint-stock, limited and cooperative companies, the unpaid portions of share prices required to be paid under the articles of association, or capital contributions undertaken but not made, may not be set off against the debts of these companies.

Objection to set-off:

If a debtor of the bankrupt, knowing before the opening of bankruptcy that his creditor was in a state of insolvency, creates a claim against the bankrupt in order to secure, to the detriment of the estate, a benefit for himself or a third party by way of set-off, this set-off may be challenged in court.

Debts for which the bankrupt is surety:

Debts for which the bankrupt stood surety shall be registered as liabilities of the estate even if they have not fallen due.

The estate shall be subrogated to the rights of the creditors against the principal debtors and joint debtors to the extent of the money it has paid (Code of Obligations, Art. 496). In the event of the bankruptcy of the principal debtor or of one of the joint debtors, Articles 203 and 204 shall apply.

Simultaneous bankruptcy of joint debtors:

If the bankruptcy proceedings of persons who jointly undertook a debt coincide in time, the creditor may claim the whole of his claim from the estate of each of the bankrupts.

If the shares collected exceed the total of the claim, this excess shall pass to the estates that paid more than the share for which they were liable towards their co-debtor.

As long as the total of the shares they paid does not exceed the amount of the claim, the estates shall have no right of recourse against one another.

Partial payment of the debt by a co-debtor of the bankrupt:

If the creditor has received part of his claim from a person jointly liable with the bankrupt, the whole of the debt shall be registered in the estate, whether or not the joint debtor has a right of recourse against the bankrupt.

The right to be registered in the bankruptcy estate belongs to the creditor and to the joint debtor.

In the distribution made by the estate, the creditor shall receive, from the share attributable to the whole of his claim, as much as is needed to complete his claim; from the remaining money, the joint debtor shall be given the share attributable to the amount for which he has a right of recourse. Any surplus money shall remain with the estate.

Bankruptcy of a general partnership and of partners with unlimited liability:

If the bankruptcy proceedings of a general partnership and of one of the partners coincide in time, the creditors of the partnership shall register their entire claims in the partner's estate as well; however, they may claim from the estate of the bankrupt partner only the amount they could not obtain from the partnership estate. If this amount is paid by several partners, Articles 203 and 204 shall apply. If one of the partners goes bankrupt without the partnership going bankrupt, the creditors of the partnership shall be admitted to the estate for the whole of their claims. The estate of the bankrupt partner shall be subrogated to the partnership creditors as set out in Article 202.

Ranking of ordinary and pledged claims:

Amended: 3/7/1940, Law No. 3890, Art. 1

Amended paragraph 1: 28/2/2018, Law No. 7101, Art. 5 Creditors whose claims are secured by a pledge have a right of priority over the sale proceeds. Duties and taxes that must be collected from specific goods and real property among State levies, such as customs duty and real property tax, rank after pledged claims.

If a claim is secured by more than one pledge, when the sale proceeds are applied to the debt, the necessary proportionality shall be observed in the distribution, taking into account the administration and sale costs of each pledge and any other claims secured by some of these pledges.

The ranking of creditors whose claims are secured by an immovable pledge, and the extent to which this security covers interest and accessories, shall be determined in accordance with the provisions of the Civil Code on immovable pledges. Sentence added: 29/6/1956, Law No. 6763, Art. 42; Sentence repealed: 14/1/2011, Law No. 6103, Art. 41 (…)

Amended paragraph 4: 17/7/2003, Law No. 4949, Art. 52 Claims that are secured but not covered by the pledge, or that are unsecured, shall be registered to be paid from the sale proceeds of the assets of the estate in the following order:

First rank:

A) Claims of employees based on the employment relationship that accrued within one year before the opening of bankruptcy, including notice pay and severance pay, and notice pay and severance pay to which they became entitled upon the termination of the employment relationship by reason of bankruptcy,

B) Debts of employers to institutions or associations established for the purpose of setting up or maintaining aid funds or other aid organisations for employees and having acquired legal personality,

C) All kinds of maintenance claims arising from family law that accrued within the last one year before the opening of bankruptcy and must be performed in cash.

Second rank:

All claims arising from the relationship of persons whose property was left under the administration of the debtor by reason of parental authority or guardianship;

However, these claims shall be accepted as privileged claims if the bankruptcy is opened while the guardianship or parental authority continues or within the year following its termination. The period during which an action or enforcement proceedings were pending shall not be taken into account.

Third rank:

Claims declared privileged in their special laws.

Fourth rank:

All other claims that are not privileged.

Added paragraph: 17/7/2003, Law No. 4949, Art. 52 In calculating the periods in the first and second ranks, the following periods shall not be taken into account:

1. The period of concordat, including the moratorium, spent before the opening of bankruptcy.

2. The period of postponement of bankruptcy.

3. The period during which an action brought concerning the claim was pending.

4. In the liquidation of an estate of a deceased person under bankruptcy provisions, the period from the date of death until the liquidation decision is given.

Added paragraph: 14/1/2011, Law No. 6103, Art. 41 In the case of the realisation of ships, the ranking table to be prepared shall be drawn up for all ships, irrespective of their flag and of whether they are registered, in accordance with the provisions of Articles 1389 to 1397 of the Turkish Commercial Code.

Relationship between the ranks:

The creditors of each rank shall have equal rights among themselves.

The creditors of a subsequent rank may receive nothing unless the creditors of the preceding rank have received their claims in full.

CHAPTER EIGHT

Liquidation of the Bankruptcy

I – FORMATION OF THE ESTATE:

Preparation of the inventory:

As soon as the opening of bankruptcy is notified to it, the bankruptcy office shall begin preparing the inventory of the bankrupt's property and shall take the measures necessary for its safekeeping.

With respect to property located within another jurisdiction, this procedure shall be carried out through the bankruptcy office of that place.

Added: 9/11/1988, Law No. 3494, Art. 43 The bankruptcy office shall decide, at the latest within two months from the notification of the bankruptcy decision to it, whether the liquidation will be conducted in the ordinary or the summary form.

Duties of the bankrupt:

The bankrupt is obliged to be present while the inventory is being prepared, to show his property to the bankruptcy office and to keep it at its disposal.

If it is not possible to secure the presence of the bankrupt, this obligation shall fall upon the adult persons who have lived together with him.

The bankruptcy office shall warn the persons upon whom this obligation falls of the provision of the law.

Protective measures:

Amended first paragraph: 28/2/2018, Law No. 7101, Art. 7 The bankruptcy office shall, if it is understood that this will be beneficial to the estate, administer under its control, until the first meeting of creditors, the bankrupt's stores, goods warehouses, factories, workshops and other places intended for production, retail shops and similar places; otherwise, it shall close and seal these places.

Repealed second paragraph: 28/2/2018, Law No. 7101, Art. 7

The office shall take into safekeeping the money, securities, books relating to commercial and household management and any other documents of any importance.

It shall seal the other property until the inventory is prepared. If the office deems it necessary, it shall seal it again after the inventory is prepared.

The office shall also take into safekeeping the items located outside the places used by the bankrupt.

Items not subject to attachment:

The office shall record the property listed in Article 82 in the inventory but shall leave it in the possession of the bankrupt.

Property belonging to third parties:

Property shown as belonging to third parties, or the ownership of which is claimed by them, shall be recorded in the inventory with an annotation of these circumstances as well.

Rights of third parties over immovables:

Rights belonging to third parties over the bankrupt's immovables, as apparent from the register, shall be noted in the inventory ex officio.

Valuation:

The value of each item of property entered in the inventory shall be assessed.

Acknowledgement of the inventory by the bankrupt:

The office shall show the inventory prepared to the bankrupt so that he may make a statement as to its accuracy and completeness.

The bankrupt's answer shall be written in the inventory and he shall be made to sign it.

Obligations of the bankrupt:

Unless separately permitted, the bankrupt is obliged to remain at the disposal of the bankruptcy administration throughout the liquidation and, where necessary, shall be brought by the law enforcement forces. The bankruptcy administration may provide the bankrupt with assistance in a reasonable amount, particularly for as long as it keeps him at its disposal.

Suspension of the liquidation:

If no property whatsoever belonging to the estate is found, the bankruptcy office shall decide on the suspension of the liquidation and shall announce it. This announcement shall state that the bankruptcy will be closed unless, within thirty days, the creditors request that the proceedings relating to the bankruptcy be continued and advance the costs thereof.

II. SUMMONS TO CREDITORS

Summary liquidation:

If it is understood that the value of the property inventoried by the bankruptcy office will not cover the costs of liquidation, the summary liquidation procedure shall be applied.

In this case, the bankruptcy office shall invite the creditors, by announcement, to declare their claims and assertions within a time limit to be set at not less than twenty days and not more than two months. Within this time limit, any one of the creditors may request that the liquidation be conducted in the ordinary form by advancing the costs.

In summary liquidation, the bankruptcy office shall convert the property into money in a manner consistent with the interests of the creditors and, without the need for any further formalities, shall examine the claims, determine their ranks and distribute the proceeds.

The closure of the liquidation shall be announced.

Ordinary liquidation and announcement of the opening of bankruptcy:

Amended first paragraph: 9/11/1988, Law No. 3494, Art. 44 If the liquidation is to be conducted in the ordinary form, the bankruptcy office shall announce this, at the latest within ten days from the date of the decision it will give pursuant to Article 208, in accordance with the procedure set out in the second paragraph of Article 166. In calculating the time limits in this Article, the date of the last announcement shall be taken as the basis.

The announcement shall state:

1 – The identity and domicile of the bankrupt and the date on which the bankruptcy was opened;

2 – That the creditors and those asserting claims of ownership shall register their claims and ownership claims within one month from the announcement and shall deposit the originals or certified copies of their evidence (summaries of instruments and books, etc.), (the time limit may be extended for creditors residing in very distant places or in foreign countries.)

3 – That the debtors of the bankrupt shall, within the same time limit, make themselves and their debts known, failing which they shall incur criminal liability;

4 – That those holding the bankrupt's property in any capacity whatsoever shall, with their rights over such property being reserved, deliver it to the disposal of the office within the same time limit, and that if they fail to do so, unless they have a valid excuse, they shall incur criminal liability and shall lose their rights of priority;

5 – That the creditors shall attend the first meeting, to be held at the latest within ten days from the announcement, and that persons who are joint debtors with the bankrupt, his sureties and other persons who have guaranteed the debt have the right to be present at the meeting.

Summons to creditors in renounced inheritances:

Amended: 3/7/1940, Law No. 3890, Art. 1

Where a renounced inheritance must be liquidated, if the creditors have previously been summoned in accordance with the provisions of inheritance law, the registration period under the preceding Article shall be reduced to ten days. Those who have previously registered their claims need not apply again.

III. ADMINISTRATION OF THE ESTATE

First meeting of creditors:

Amended: 6/6/1985, Law No. 3222, Art. 25

Amended: 9/11/1988, Law No. 3494, Art. 45 The first meeting of creditors shall be chaired by the bankruptcy director or one of his assistants. The director shall form a bureau together with one or two creditors or their representatives, chosen preferably from among persons whose status as creditors is established by an official instrument in their hands, such as a notarial or mortgage deed, or by the documents specified in Articles 68/b and 150/ı.

The quorum for the meeting shall be constituted if the creditors present in person or through their representatives represent at least one quarter of the total amount of known claims. If those present at the meeting are fewer than five persons, they must hold one half of the total amount of claims.

Decisions shall be taken by a majority of the amount of claims.

Disputes as to the validity of votes shall be settled by the bureau. Interested persons may file a complaint with the enforcement court against the acts of the bureau within seven days from the date of the meeting. The complaint shall be upheld only if its ground would alter the majority by which the decision was taken. Otherwise, the complaint shall be dismissed.

Failure to constitute the quorum for the meeting or for decisions:

Amended: 17/7/2003, Law No. 3939, Art. 53

If it is not possible for the creditors to meet, or if the quorum for decisions is not constituted, this situation shall be recorded. In this case, the office shall administer the estate until the second meeting of creditors and shall commence the liquidation.

Duties of the bankruptcy administration and of the bankruptcy office:

Amended: 6/6/1985, Law No. 3222, Art. 26

The bankruptcy administration shall consist of three persons. In the election to be held by the creditors in meeting, twice this number of persons having sufficient knowledge and experience in this field shall be nominated as candidates. Four of these candidates shall be elected by those constituting the majority by amount of claims and two by those constituting the majority by number of creditors, and they shall be notified to the enforcement court. The enforcement court shall select two of the three persons who will constitute the bankruptcy administration from among the four candidates nominated by those holding the majority of claims, and one from among the two candidates nominated by the majority of creditors.

The liquidation shall be referred by the bankruptcy office to the bankruptcy administration formed in accordance with the preceding paragraph.

Amended third paragraph: 17/7/2003, Law No. 4949, Art. 54 Meetings of the bankruptcy administration shall be held upon a summons sent by the director of the bankruptcy office at least seven days before the meeting date, upon a request made by the administrators or by any creditor specifying the agenda. The bankruptcy administration shall take its decisions by majority; however, if none of the three bankruptcy administrators attends the meeting, the director of the bankruptcy office shall assume the duties of the bankruptcy administration and shall take decisions alone on behalf of the bankruptcy administration. Where one or two of the bankruptcy administrators participate in the meeting, the director of the bankruptcy office shall also attend that meeting. If no decision can be reached, action shall be taken in line with the vote of the director of the bankruptcy office. Creditors who have applied to the bankruptcy estate as creditors may request that the decisions to be taken by the bankruptcy administration be served on them, by indicating an address suitable for service and by paying an advance for the correspondence and service costs to be shown in the tariff to be issued by the Ministry of Justice. For creditors who have done so, the time limits for legal remedies against the decisions of the bankruptcy administrator shall begin to run from the date of service on them.

The bankruptcy administration shall be paid a fee in accordance with the fee tariff prepared by the Ministry of Justice and renewed every two years.

The bankruptcy administration is under the supervision of the bankruptcy office. In this respect, the bankruptcy office shall perform the following duties:

1. To object, by applying to the enforcement court within seven days, to decisions of the meeting of creditors, to all measures which it does not consider consistent with the interests of the creditors, and to those decisions of the administration on the acceptance of claims and ownership claims which it does not consider consistent with the law and the facts.

2. To submit to the enforcement court for approval the statements of account, including the fees and expenses of those administering the bankruptcy.

Added paragraph: 9/6/2021, Law No. 7327, Art. 1 Bankruptcy administrators shall be selected from the list of bankruptcy administrators drawn up by the regional boards of expert witnesses. Of the bankruptcy administrators so selected, one must be a sworn financial adviser or a certified public accountant and one must be a lawyer. Registration on the list requires completion of training to be obtained from institutions authorised by the Ministry of Justice. If there is no administrator on the list who can be assigned, an assignment shall be made from outside the list and this shall be notified to the regional board. A bankruptcy administrator may not serve simultaneously in more than five files. The qualifications, supervision and training of bankruptcy administrators, the institutions that will provide training, those to be exempted from training and other matters relating to the implementation of this Article shall be determined by a regulation put into force by the Ministry of Justice.

Decisions taken at the meeting:

Amended first paragraph: 28/2/2018, Law No. 7101, Art. 8 The meeting of creditors may take urgent decisions, in particular regarding the continuation of the bankrupt's trade or business, whether the activities of his factories, workshops and other places intended for production, as well as his stores, goods warehouses and retail shops, shall continue, pending actions, and sales by private contract.

If the bankrupt offers a composition (konkordato), the creditors may suspend the liquidation.

Recourse against decisions:

Amended: 3/7/1940, Law No. 3890, Art. 1

Any creditor may file a complaint with the enforcement court against decisions of the meeting of creditors within seven days. The enforcement court shall give its decision within a short time after obtaining the opinion of the bankruptcy office and, where necessary, after also hearing the complainant and the creditors who request to be heard.

Duties of the bankruptcy administration:

The legal representative of the estate is the bankruptcy administration. The administration is obliged to safeguard the interests of the estate and to carry out the liquidation.

Amended: 6/6/1985, Law No. 3222, Art. 27 The administration may settle and enter into arbitration directly with respect to claims of up to two billion liras, and with respect to larger claims, with the authorisation to be given by the meeting of creditors.

Duties and liability of the bankruptcy administration:

Amended: 6/6/1985, Law No. 3222, Art. 28

The provisions of the first and second paragraphs of Article 8 and of Articles 9, 11, 16 and 359 relating to enforcement offices shall also apply to the bankruptcy administration. Added sentence: 28/2/2018, Law No. 7101, Art. 9 The bankruptcy administration is obliged to inform the creditors admitted to the bankruptcy estate, upon their request, of the progress of the bankruptcy liquidation and of the plan and timetable of the subsequent steps.

Added second paragraph: 9/11/1988, Law No. 3494, Art. 46; Repealed: 2/3/2005, Law No. 5311, Art. 28

The enforcement court has supervisory authority over the bankruptcy administration and may, where necessary, terminate the duties of those constituting the bankruptcy administration. The enforcement court shall select, in replacement of a person whose duties have been terminated or who has resigned, a new one from among the previous candidates in accordance with the principles in Article 223.

Those constituting the bankruptcy administration shall be liable for damage resulting from their fault. These actions shall be heard by the ordinary courts of justice.

Those constituting the bankruptcy administration shall be deemed public officials for the purposes of the application of the Turkish Criminal Code.

Ownership claims of third parties:

Amended: 18/2/1965, Law No. 538, Art. 96

The bankruptcy administration shall decide whether the goods in respect of which third parties assert ownership claims are to be delivered to them.

If the bankruptcy administration rejects the ownership claim, it shall set and notify to the third party a time limit of seven days to bring an action for recovery of property (istihkak davası) before the enforcement court. A third party who allows this time limit to lapse shall be deemed to have waived the ownership claim against the estate.

The action for recovery of property shall be heard in accordance with the general provisions and under the simple procedure.

The enforcement court may, where necessary, require the claimant in the action for recovery of property to provide security against the possible damage to the estate.

Collection of the estate's receivables, urgent sale:

The bankruptcy administration shall collect the estate's receivables that have fallen due and shall, where necessary, initiate enforcement proceedings or bring actions for them.

Items which will lose value or whose safekeeping will be costly shall be sold without delay. Shares and goods having a price on the stock exchange or in the market may be converted into money immediately. Other property shall be sold only after the second meeting of creditors.

Property encumbered by a right of pledge is subject to the provision of Article 185.

IV. EXAMINATION OF CLAIMS AND DETERMINATION OF RANKS

Examination of asserted claims:

After the expiry of the time limit set for the registration of claims and ownership claims, the administration shall investigate and examine the claims. If it is possible to secure the presence of the bankrupt, it shall ask him what he has to say about each claim and shall decide on acceptance or rejection accordingly.

Claims entered in the land register:

Claims entered in the land register shall be accepted together with the accrued interest even if no application has been made for their registration.

Time limit and form of the ranking schedule of creditors:

Amended: 28/2/2018, Law No. 7101, Art. 10

After the expiry of the specified application period for the registration of claims, and at the latest within two months from the election of the bankruptcy administration, a schedule showing the ranking of the creditors in accordance with the provisions of Articles 206 and 207 shall be prepared by the bankruptcy administration and deposited with 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, once only, by a maximum of two further months. If the ranking schedule is not submitted within the time limit, upon the bankruptcy office referring the situation to the enforcement court, the duties of the members of the bankruptcy administration shall be terminated and no fee shall be accrued to them for the services already rendered. The court may additionally prohibit these members from serving in any bankruptcy administration for a period of not less than one year and not exceeding three years; this decision is final.

Rejected claims:

Amended: 9/11/1988, Law No. 3494, Art. 48

Claims not accepted in the ranking schedule shall be shown together with the grounds for rejection. However, with respect to a claim secured by a mortgage, the bankruptcy administration shall not issue a rejection decision as regards the cause giving rise to it or the amount of the mortgage limit, but shall notify the second meeting of creditors that it does not accept it. The right to pursue the claim for the annulment of the mortgage or the reduction of its amount shall be assigned to a creditor who so requests, within the framework of the provision of Article 245.

Ranking schedule of creditors, announcement and notice:

Amended first paragraph: 6/6/1985, Law No. 3222, Art. 29 The bankruptcy administration shall submit the ranking schedule to the bankruptcy office and shall inform the creditors by announcement in accordance with the procedure in paragraph 2 of Article 166.

Creditors whose claims have been rejected in whole or in part, or who have not been admitted to the rank they asserted, shall be notified directly.

Objection to the ranking schedule and its consequences:

Amended: 18/2/1965, Law No. 538, Art. 97

Amended: 9/11/1988, Law No. 3494, Art. 49 Those objecting to the ranking schedule are obliged to bring an action before the commercial court of the place where the bankruptcy was adjudicated within fifteen days from the announcement of the schedule. The provision of the third paragraph of Article 223 is reserved. The court hearing this action shall, upon the request of the claimant, decide within fifteen days, by analogy with the sixth paragraph of Article 302, whether and to what extent the claimant should participate in the second meeting of creditors.

If the objecting party asserts that his claim has been unjustly rejected or reduced, the action shall be brought against the estate. If the objecting party objects to another person's admitted claim or to the rank given to it, he shall bring his action against that creditor.

If an action brought for the removal of a claim is won, the share allocated to that claim, including the costs of the action, shall be given to the objecting party, irrespective of rank, in proportion to his claim, and the remainder shall be distributed to the other creditors in accordance with the ranking schedule. The action shall be heard under the simple procedure.

However, if the objection does not concern the basis or the amount of the claim but relates only to the rank, it shall be submitted to the enforcement court by way of complaint.

Late applications:

Claims not registered in the inventory in due time shall be accepted until the closure of the bankruptcy.

The costs arising from the delay shall be borne by the creditor. The creditor may be compelled to advance these costs.

The creditor has no right to participate in a distribution decided before his application.

If the bankruptcy administration accepts the claim, it shall correct the ranking schedule of creditors and notify the creditors thereof by announcement.

The provision of Article 235 shall also apply here.

V. LIQUIDATION OF THE ESTATE

Second meeting of creditors:

Amended first paragraph: 9/11/1988, Law No. 3494, Art. 50 After completing the determination of claims, the bankruptcy administration shall, upon the expiry of the time limit in Article 232, invite by announcement to the second meeting the creditors whose claims have been accepted in whole or in part by the administration, as well as those creditors who have brought an action for registration in the ranking schedule and whose participation has been decided pursuant to Article 235.

The announcement shall be made at least twenty days in advance, and a copy of the announcement shall be sent to each creditor.

If a proposal for composition is to be discussed, this matter must also be stated in the invitation.

The meeting shall be chaired by the bankruptcy officer or his assistant. Paragraphs 2 and 3 of Article 221 shall also apply here.

Powers of the second meeting of creditors:

The bankruptcy administration shall submit to the meeting of creditors a detailed report on the course of the liquidation and on the state of the receivables and debts.

If the meeting of creditors wishes to retain the bankruptcy administration in office, it shall take the necessary decisions on this matter and on other matters it considers necessary for the interests of the estate.

Failure to constitute the quorum for the meeting and for decisions:

Amended: 17/7/2003, Law No. 4949, Art. 56

If it is not possible for the creditors to meet, or if the quorum for decisions is not constituted, this situation shall be recorded. In this case, the bankruptcy administration shall continue its work until the liquidation is closed.

New meeting of creditors:

Amended: 6/6/1985, Law No. 3222, Art. 30

If the majority of the creditors so requests, or if the bankruptcy administration is convinced of its necessity, an invitation may be made for a new meeting of creditors. The votes of the creditors on the matters on the agenda of the new meeting of creditors may be obtained by means of an invitation to be sent by registered letter to their known addresses and a reply letter whose signature is certified by a notary.

The provisions of Article 221 shall apply as regards the quorum.

Procedure for converting the property into money:

The property belonging to the estate shall be sold by the bankruptcy administration by public auction or, if the creditors so decide, by private contract.

Items encumbered by a right of pledge may be sold by private contract only with the consent of the pledgee creditors as well.

Added third paragraph: 28/2/2018, Law No. 7101, Art. 12 Amended third paragraph: 9/6/2021, Law No. 7327, Art. 2 Property and rights that form a commercial and economic whole, or that are understood to yield a higher return if sold as a whole, together with the enterprises containing such property and rights, shall be sold as a whole. In the sale, the continuity of the enterprise and its contribution to the economy shall be taken into account. In this case, the provisions on the conversion of immovables into money shall apply. If a sale as a whole is not achieved, the property and rights shall be sold separately. The procedures and principles for the implementation of this paragraph shall be regulated by a regulation issued by the Ministry of Justice.

Announcement of the auction:

Amended first paragraph: 24/11/2021, Law No. 7343, Art. 30 The auction announcement and the preparatory measures shall be carried out in accordance with Article 126.

A copy of the announcement shall be given to the mortgagee, and the estimated value shall be notified to him.

Auction and Award:

The award of movable and immovable property to be sold at auction by the bankruptcy administration shall be made in accordance with those provisions of Articles 115 and 129 that are not contrary to Article 185.

Article 242 shall apply to sales of movable property.

Conditions of sale by auction:

Amended: 18/2/1965, Law No. 538, Art. 98

Articles 111/b, 117, 118, 124, 125, 130, 131, (…)78 134 and 135 shall also apply here. The duties pertaining to the enforcement office shall be performed by the bankruptcy administration.

Assignment of disputed rights to requesting creditors:

The right to pursue a claim which the creditors have not deemed necessary for the estate to pursue shall be assigned to the creditor who so requests. From the proceeds obtained, after the costs have been deducted, the claim of the assignee shall be paid and the surplus shall be paid into the estate.

Family homesteads:

The provisions of the Civil Code concerning family homesteads are reserved.

VI. DISTRIBUTION OF THE PROCEEDS

Distribution table and final account:

Once the price of the property sold has been collected and the ranking table of creditors has become final, the bankruptcy administration shall draw up the distribution table of the proceeds and the final account.

Bankruptcy costs and debts of the estate:

The costs arising from the opening of bankruptcy and from the liquidation shall be deducted first. From the proceeds of pledged property, only the costs of preserving the pledge and converting it into money shall be deducted.

Deposit of the distribution table with the bankruptcy office:

The distribution table and the final account shall be deposited with the bankruptcy office and shall remain there for ten days.

The bankruptcy administration shall notify each creditor of the deposit and of the amount of his share.

Distribution:

Amended: 17/7/2003, Law No. 4949, Art. 57

Distribution shall begin after the deposit period specified in the preceding Article has expired. If a complaint has been filed, distribution may be postponed to the extent that the decision to be rendered on that complaint may affect the distribution. The provisions of Article 144 shall also apply here. The provisions of Article 9 shall apply to the shares set aside for claims subject to a suspensive condition or to an indefinite term.

Certificate of insolvency:

Amended: 18/2/1965, Law No. 538, Art. 99

When distributing the proceeds, the administration shall issue to each creditor who has not received the full amount of his claim a certificate of insolvency for the unpaid amount. The certificate shall state whether the bankrupt accepted or rejected the claim. In the case of acceptance, the certificate shall have the nature of an instrument referred to in paragraph 1 of Article 68.

Amended first sentence: 17/7/2003, Law No. 4949, Art. 58 Without prejudice to Article 196, the certificate of insolvency shall produce the legal consequences set out in Article 143. However, no new request for enforcement proceedings may be made against the bankrupt unless he acquires new assets. If the bankrupt objects to the payment order sent to him in these new proceedings on the ground that he has not acquired new assets, the dispute shall be decided by the enforcement court in accordance with the general provisions and the simplified procedure. Added sentence: 17/7/2003, Law No. 4949, Art. 58 Assets of which a third party has been made the right holder, with the intention of enabling the bankrupt to raise the objection that he has not acquired new assets, but which the bankrupt actually disposes of, shall be deemed new assets if the third party knows or ought to know of this situation.

Provisional distributions:

Provisional distributions may be made after the time limit for objection has expired.

For disputed claims which, upon objection, have not yet been resolved by the court, a share shall be set aside and preserved in accordance with Article 250.

Unregistered claims:

The provisions concerning claims for which a certificate of insolvency has been issued shall apply to claims that were not included in the liquidation because they had not been registered earlier.

VII. CLOSURE OF BANKRUPTCY

Final report and closure decision:

After the proceeds have been distributed, the administration shall submit a final report to the court that adjudicated the bankruptcy.

If the court finds errors or deficiencies in the administration of the bankruptcy, it shall notify the enforcement court thereof.

Once the court has ascertained that the liquidation has been completed, it shall render a closure decision.

Added paragraph: 2/3/2005, Law No. 5311, Art. 15 An appeal (istinaf) may be lodged against the judgment rendered on the closure of bankruptcy within two weeks of the date of service. An appeal on points of law (temyiz) may be lodged against the decision of the regional court of appeal within two weeks of the date of service. The appeal and appeal on points of law reviews shall be conducted in accordance with the provisions of the Code of Civil Procedure.

The bankruptcy office shall announce the closure.

After closure of bankruptcy:

If, after the closure of bankruptcy, it becomes known that there is an asset which remained outside the liquidation, the bankruptcy office shall take possession of that asset and, after selling it, the proceeds shall be distributed, without the need for any further formality, to the creditors who received less than their claims, according to their ranking.

The same rule shall apply to money previously deposited in a bank that has become available for disposal.

Where a doubtful right is in question, the bankruptcy office shall announce the matter to the creditors or notify them by letter, and action shall be taken in accordance with Article 245.

Time limit for the liquidation of bankruptcy:

Bankruptcy must be liquidated within six months of its opening. If the liquidation proceedings are not completed within this period, the creditors may meet and decide to apply the summary liquidation procedure. Such a decision requires a majority by amount of claims. If no such decision has been taken, the supervising enforcement court shall extend the period as necessary.

CHAPTER NINE

Precautionary attachment

Conditions for precautionary attachment:

The creditor of a matured monetary debt not secured by a pledge may have the movable and immovable property of the debtor, whether held by the debtor or by a third party, and his receivables and other rights, attached as a precautionary measure.

For a debt that has not matured, precautionary attachment may be requested only in the following cases:

1 – If the debtor has no fixed domicile;

2 – If the debtor, in order to evade his obligations, prepares to conceal or remove his property or to abscond himself, or absconds, or for this purpose engages in fraudulent transactions infringing the rights of the creditor;

Where precautionary attachment is imposed in this manner, the debt shall become due only as regards the debtor.

Added paragraph: 29/6/1956, Law No. 6763, Art. 42; Repealed fourth paragraph: 14/1/2011, Law No. 6103, Art. 41 Added paragraph: 29/6/1956, Law No. 6763, Art. 42; Repealed fifth paragraph: 14/1/2011, Law No. 6103, Art. 41

Precautionary attachment decision:

Precautionary attachment shall be ordered by the court competent under Article 50. The creditor is obliged to produce evidence that will satisfy the court as to his claim and, where necessary, as to the grounds for attachment.

The court is free to hear or not to hear the two parties.

Added paragraph: 17/7/2003, Law No. 4949, Art. 60 Amended third paragraph: 22/7/2020, Law No. 7251, Art. 50 A decision rejecting a request for precautionary attachment shall be reasoned, and an appeal (istinaf) may be lodged against that decision. The party against whom a precautionary attachment decision has been rendered in his presence may also lodge an appeal. The regional court of appeal shall examine these applications with priority, and its decision shall be final.

Security in precautionary attachment:

Amended: 3/7/1940, Law No. 3890, Art. 1

A creditor requesting precautionary attachment shall be liable for all damage which the debtor and third parties may suffer as a result if the attachment proves unjustified, and is obliged to provide the security set out in Article 96 of the Code of Civil Procedure.

However, no security shall be required if the claim is based on a court judgment.

If the claim is based on a document having the nature of a court judgment, the court shall determine whether security is necessary.

The action for compensation may also be heard by the court that ordered the precautionary attachment.

Contents of the precautionary attachment decision:

Amended: 18/2/1965, Law No. 538, Art. 100

In the precautionary attachment decision:

1. The name, surname and domicile of the creditor and, where applicable, of his representative, and of the debtor,

2. On the basis of which documents and for what amount of claim the attachment is imposed,

3. The ground for imposing the attachment,

4. The things to be attached,

5. That the creditor is liable to compensate damage, and what the security provided consists of,

shall be stated.

Enforcement of the precautionary attachment decision:

Amended: 18/2/1965, Law No. 538, Art. 101

The creditor is obliged to request, within ten days of the date on which the precautionary attachment decision was rendered, the execution of the decision from the enforcement office within the jurisdiction of the court that rendered it. Otherwise, the precautionary attachment decision shall lapse automatically.

Precautionary attachment decisions shall be executed in accordance with the provisions of Articles 79 to 99 concerning the manner in which attachment is carried out.

Added final paragraph: 17/7/2003, Law No. 4949, Art. 61 Complaints concerning the execution of precautionary attachment shall be made to the enforcement court to which the enforcement office carrying out the execution is attached.

Drawing up of a record and service of the attachment report:

Amended: 18/2/1965, Law No. 538, Art. 102

The officer carrying out the attachment shall draw up a report. The report shall indicate the attached items and their values, and it shall be delivered immediately to the enforcement office.

The enforcement office shall, within three days, serve a copy of the precautionary attachment report on the creditor and the debtor who were not present during the attachment and, where applicable, on the third party.

Security to be provided by the debtor:

Amended: 18/2/1965, Law No. 538, Art. 103

The attached property may be left with the debtor, on condition that it is to be delivered in money or in kind whenever requested and that, to secure this, the value of the property is deposited, or shares and bonds acceptable to the enforcement director, or a movable or immovable pledge, or a reliable bank guarantee is provided; and, where the property has been attached in the hands of a third party, it may be left with that person upon receipt of a written undertaking. The security to be required shall in no case exceed the total amount of the debt and costs.

Formalities completing precautionary attachment:

Amended: 18/2/1965, Law No. 538, Art. 104

A creditor who has had a precautionary attachment carried out before filing an action or initiating enforcement proceedings is obliged, within seven days from the execution of the attachment or, if the attachment was carried out in his absence, from the service of the attachment report on him, either to request enforcement proceedings (attachment or bankruptcy) or to file an action.

In enforcement proceedings, if the debtor objects to the payment order, this objection shall be served on the creditor immediately. The creditor is obliged, within seven days of the date of service, to request the enforcement court to set aside the objection or to file an action in court. If the enforcement court rejects the request to set aside the objection, the creditor must file an action within seven days of the date on which the decision was pronounced or served.

Amended third paragraph: 17/7/2003, Law No. 4949, Art. 62 If the precautionary attachment was imposed while the action concerning the claim was pending before the court, or if the creditor has filed an action in court pursuant to the first paragraph, the creditor is obliged to request enforcement proceedings within one month of the service by the court of the judgment on the merits.

If the creditor allows these time limits to lapse, or withdraws his action or his request for enforcement, or if the request for enforcement lapses through expiry of the statutory time limits, or if the case file is removed from the docket and the action is not renewed within one month, or if he loses his action, the precautionary attachment shall become void and, if the interested parties so request, this shall be notified to the relevant authorities.

If the debtor does not object to the payment order within the time limit, or if his objection is finally set aside by the enforcement court or annulled by the court, the precautionary attachment shall automatically be converted into an executory attachment.

Objection to and appeal against the precautionary attachment decision:

Amended: 18/2/1965, Law No. 538, Art. 105

Amended first paragraph: 17/7/2003, Law No. 4949, Art. 63 A debtor who was not heard before the precautionary attachment was ordered may object, by applying to the court, to the grounds on which the precautionary attachment is based, to the jurisdiction of the court and to the security, within seven days from the execution of the attachment where it was carried out in his presence, or otherwise from the date of service of the attachment report on him.

Added second paragraph: 17/7/2003, Law No. 4949, Art. 63 Third parties whose interests have been infringed may also object to the grounds on which the precautionary attachment is based or to the security within seven days of the date on which they learned of the precautionary attachment.

The court shall examine the matter confined to the grounds raised and shall accept or reject the objection.

The objecting party is obliged to attach to his petition all the documents on which he relies. Upon the objection, the court shall summon both parties and, after hearing those who appear, may amend or revoke its decision if it finds the objection well founded. However, if neither party appears, the decision shall be rendered on the basis of the file.

Added paragraph: 17/7/2003, Law No. 4949, Art. 63; Amended: 2/3/2005, Law No. 5311, Art. 17 An appeal (istinaf) may be lodged against the decision rendered on the objection. The regional court of appeal shall examine this application with priority, and its decision shall be final. Lodging an appeal shall not stay the execution of the precautionary attachment decision.

Lifting of precautionary attachment:

Amended: 18/2/1965, Law No. 538, Art. 106

The debtor may request the court to lift the precautionary attachment on condition that he deposits money, or a pledge, shares or bonds acceptable to the court, or provides an immovable pledge or a reliable bank guarantee. After enforcement proceedings have begun, this power shall pass to the enforcement court.

Enforcement by way of bankruptcy in precautionary attachment:

Amended: 18/2/1965, Law No. 538, Art. 107

If the creditor has initiated enforcement by way of bankruptcy against his debtor who is subject to bankruptcy pursuant to the first paragraph of Article 264, or has had the debtor's property attached as a precautionary measure after initiating enforcement by way of bankruptcy, the following provisions shall apply.

If the debtor objects to the payment order, this objection shall be served on the creditor immediately. The creditor is obliged, within seven days of the date of service, to apply to the commercial court and request that the objection be set aside and that the debtor be adjudged bankrupt.

If the debtor does not object to the payment order, this situation shall be served on the creditor immediately. The creditor is obliged, within seven days of the date of service, to apply to the commercial court and request that the debtor be adjudged bankrupt.

The provision of paragraph 4 of Article 264 shall apply by analogy.

Participation in executory attachments:

Amended: 18/2/1965, Law No. 538, Art. 108

Amended first paragraph: 17/7/2003, Law No. 4949, Art. 64 If property attached as a precautionary measure under Article 261 is attached by another creditor under this Law or other laws before the precautionary attachment has become a final attachment, the creditor holding the precautionary attachment shall participate in that attachment automatically and provisionally under the conditions set out in Article 100. Where a precautionary or executory attachment exists prior to a pledge, no attachment, including attachments for public receivables, may participate in the attachment made prior to the pledge.

The costs of precautionary attachment shall be taken from the sale proceeds.

Precautionary attachment confers no other right of priority.

CHAPTER TEN

Special provisions on rents and the eviction of leased immovables

Payment order and time limit for objection for ordinary leases and usufructuary leases:

Amended: 18/2/1965, Law No. 538, Art. 109

If the enforcement proceedings concern ordinary rents or usufructuary lease rents and the creditor so requests, the payment order shall contain the warning set out in Articles 260 and 288 of the Code of Obligations and a notice that, after the statutory period has elapsed, the eviction of the debtor from the leased property may be requested from the enforcement court.

Upon this notice, the debtor is obliged to notify the enforcement office of his grounds of objection within seven days in accordance with Article 62. If, in his objection, the debtor does not clearly and definitively deny the lease contract and, if any, his signature on the related written contract, he shall be deemed to have accepted the contract.

The objection shall stay the proceedings. A creditor who does not request the setting aside of the objection within six months of the date of service of the objection may not again initiate enforcement without judgment for the same claim.

In cases where Article 260 of the Code of Obligations permits the lessor to terminate the contract upon expiry of a six-day grace period, the time limit for objection shall be three days.

Consequences of failure to object:

Article 269/a – Added: 18/2/1965, Law No. 538, Art. 110; Amended: 17/7/2003, Law No. 4949, Art. 65

If the debtor does not object and also does not pay the rent debt within the warning period, the enforcement court shall order eviction upon the request of the creditor made within six months following the expiry date of the warning period.

Procedure for objection and its setting aside:

Article 269/b – Added: 18/2/1965, Law No. 538, Art. 110

If, in his objection, the debtor denies the lease contract and, if any, the signature attributed to him in the written contract, the creditor may, if he relies on a written contract drawn up ex officio by a notary or whose signature has been certified by a notary, request the enforcement court to set aside the objection and to order the eviction of the leased property due to non-payment of the money within the warning period.

The debtor must substantiate his counterclaims and defences concerning the contract and its terms with documents of the same force and nature.

A debtor who denies the contract is bound by this ground of objection. After it has been established that the objection is unfounded, he may not raise payment, set-off or any other defence.

If, because the enforcement proceedings are not based on the documents mentioned above, the creditor is compelled to file an action under the general provisions, the payment order containing the warning shall replace the warning set out in Articles 260 and 288 of the Code of Obligations.

Amended: 9/11/1988, Law No. 3494, Art. 51 If, owing to the denial of the signature on the lease contract, the creditor is compelled to file an action in the ordinary court and obtains a decision in his favour, the debtor shall additionally be sentenced to a fine of one hundred thousand to five hundred thousand liras.

Objections other than to the lease contract, and eviction:

Article 269/c – Added: 18/2/1965, Law No. 538, Art. 110

If the debtor, without denying the contract, has objected by stating that the rent has been paid or cannot be claimed for some other reason, or has requested set-off, he is obliged to prove his grounds of objection and his request by a document drawn up ex officio by a notary, or whose signature has been certified by a notary, or which has been acknowledged by the creditor, or by a receipt or document issued by official departments or competent authorities within their powers and in accordance with due procedure.

If the creditor denies the instrument or receipt, Article 68 shall apply by analogy.

The decision of the enforcement court concerning eviction need not become final in order to be executed. However, for eviction, ten days must have elapsed from the date on which the decision was pronounced to or served on the debtor. The debtor may benefit from Article 36 with respect to the eviction decision.

Articles to be applied by analogy:

Article 269/d – Added: 18/2/1965, Law No. 538, Art. 110

The provisions of Articles 62, 63, 65, 66, 68, 70 and 72 shall also apply here by analogy.

Inventory for the right of retention:

The lessor may, without first conducting the enforcement proceedings that would otherwise be required, request the assistance of the enforcement office for the provisional preservation of his right of retention.

(Code of Obligations, Arts. 267, 269, 281).

If delay would entail danger, the assistance of the police or of the sub-district director may also be requested.

The enforcement office shall draw up an inventory of the items subject to the right of retention and shall grant the lessor an appropriate period, not exceeding fifteen days, to request enforcement by way of realization of pledge.

Right to pursue removed items:

Amended: 18/2/1965, Law No. 538, Art. 111

Items removed secretly or by force may be recovered within ten days of their removal by order of the enforcement office and with the assistance of the police. The rights of third parties acting in good faith are reserved.

In case of dispute, the court shall resolve and decide the matter under the simplified procedure.

Eviction of immovables leased under a written contract:

1 – Eviction order and its contents:

Amended: 3/7/1940, Law No. 3890, Art. 1

The eviction of an immovable leased under a written contract may be requested within one month after its term has expired, by submitting the contract to the enforcement office.

Thereupon, the enforcement director shall, by serving an eviction order, order the eviction and surrender of the immovable within fifteen days.

The eviction order shall state:

the names, titles and domiciles of the lessor and the lessee and, if any, of their representatives, the date of the contract, and that, if the lessee has an objection that the lease has been renewed or extended and fails to apply to the office within seven days to declare it and object, or fails to vacate voluntarily, he shall be evicted by force.

2 – Eviction and surrender:

If no objection is made within the time limit or if the objection is set aside, the leased immovable shall be forcibly vacated upon expiry of the time limit and surrendered to the lessor. However, the time limit in the eviction order must have elapsed.

If items not belonging to the lessor are found at the premises to be vacated, Article 26 shall apply by analogy.

Objection:

1 – Time limit and form:

Amended: 3/7/1940, Law No. 3890, Art. 1

A lessee wishing to object shall notify his objection to the enforcement office by petition or orally within seven days of service of the eviction order.

An objection made in this manner shall stay the eviction proceedings.

The provisions of Articles 63, 64 and 65 shall also apply to eviction proceedings.

2 – Setting aside of the objection:

Amended: 18/2/1965, Law No. 538, Art. 112

Where an objection is made, the lessor may request the enforcement court to set aside the objection.

If the eviction request is based on a contract drawn up ex officio by a notary, or whose date and signature have been certified by a notary, or which has been acknowledged, and the lessee cannot produce a document of the same force and nature showing that the lease has been renewed or extended, the objection shall be set aside.

Otherwise, the request to set aside the objection shall be rejected.

After eviction and surrender have been carried out upon the setting aside of the objection, or after the request for setting aside has been rejected, the right of the lessee or the lessor to apply to the court under the general provisions is reserved.

Amended: 9/11/1988, Law No. 3494, Art. 52 A lessee or lessor who, in the action filed in court, is found to be the author of the signature he denied during the enforcement proceedings shall be sentenced to a fine of one hundred thousand to five hundred thousand liras.

If a third party is present in the leased immovable:

Amended: 18/2/1965, Law No. 538, Art. 113

Where a person other than the tenant is found at the premises whose eviction is requested and is unable to produce an official document showing that he is entitled to occupy them, he shall be evicted immediately.

However, where such person, although unable to produce an official document, declares that he has been occupying the premises since a time prior to the date of the contract submitted to the office, and this declaration is corroborated by an inquiry to be conducted on site by the enforcement officer, the officer shall postpone the eviction and notify the matter to the enforcement court within three days.

The enforcement court, after hearing the parties, shall, as appropriate, either order the eviction 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 in accordance with the outcome of the action. The provisions of Article 36 shall also apply here. The party that fails to bring an action shall be deemed to have waived its claim.

The ascendants and descendants of the debtor by blood or by marriage, the debtor's wife or husband, blood relatives and relatives by marriage up to the second degree, business partners, and other persons found to be residing in the leased premises as dependants of the debtor shall not be deemed third persons for the purposes of applying this Article.

CHAPTER ELEVEN

Action for Annulment

Action for annulment and claimants:

Amended: 3/7/1940, Law No. 3890, Art. 1

The purpose of the action for annulment is to obtain a judgment declaring the nullity of the dispositions set out in Articles 278, 279 and 280. The following persons may bring this action:

1 – Every creditor holding a provisional or final certificate of insolvency,

2 – The bankruptcy administration or, in the cases set out in Article 245 and in paragraph 3 of Article 255, the creditors themselves.

Nullity of gratuitous dispositions:

Amended: 24/12/2025, Law No. 7571, Art. 2

With the exception of customary gifts, all donations and gratuitous dispositions made within one year preceding the date on which a provisional or final certificate of insolvency, or an attachment report having the nature of a certificate of insolvency, was issued, or on which bankruptcy was opened, shall be subject to annulment.

The following dispositions shall be deemed donations:

a) Unless it is proven that they were made for a consideration corresponding to the true value, dispositions made between descendants and ascendants, blood relatives up to and including the third degree, the spouse (even if the marital union has ended within the last year) and relatives by marriage up to and including the third degree, adopter and adoptee, and persons living in a common residence.

b) Unless proven otherwise, contracts in which the debtor, at the time the contract was made, accepted as consideration a price that was very low in relation to the true value of what he himself gave.

c) Unless it is proven that an appropriate consideration was obtained, contracts by which the debtor established a life annuity or a usufruct for himself or for the benefit of a third person, or contracts of maintenance until death.

Nullity on account of insolvency:

The following dispositions shall likewise be null and void if made by a debtor who does not pay his debts within one year preceding the attachment, or the insolvency due to the absence of assets, or the opening of bankruptcy:

1 – Pledges created by the debtor to secure an existing debt, except in cases where the debtor had previously undertaken to provide security;

2 – Payments made otherwise than in money or by customary means of payment;

3 – Payments made for a debt that has not yet fallen due.

4. Added: 9/11/1988, Law No. 3494, Art. 54 Annotations entered in the land register for the purpose of strengthening personal rights.

If the person who benefited from these dispositions proves that he did not know the debtor's condition and situation, the action for annulment shall not be heard.

Amended: 18/2/1965, Law No. 538, Art. 115

Amended paragraph one: 17/7/2003, Law No. 4949, Art. 66 All transactions carried out by a debtor whose assets are insufficient to cover his debts with the intent to cause harm to his creditors may be annulled in cases where the financial situation of the debtor and the intent to cause harm were known to the other party to the transaction, or where there were clear indications requiring that they be known. However, proceedings by way of attachment or bankruptcy must have been initiated against the debtor within five years from the date on which the transaction took place.

Repealed paragraph two: 17/7/2003, Law No. 4949, Art. 103

Amended: 9/11/1988, Law No. 3494, Art. 55 Where the third person is the debtor's wife or husband, ascendant or descendant, blood relative or relative by marriage up to the third degree (including that degree), adopter or adoptee, he shall be presumed to have known the debtor's situation stated in paragraph one. The third person may prove the contrary only in accordance with the last paragraph of Article 279.

A person who acquires by transfer or purchase the whole or a substantial part of a commercial enterprise or of the commercial goods existing at the place of business, or who, together with acquiring a part thereof, subsequently occupies the place of business, shall be deemed to have known of the debtor's intent to harm his creditors, and the debtor shall be deemed to have acted with intent to harm in these cases. This presumption may be rebutted only by proving that the creditor bringing the action for annulment was notified of the matter in writing at least three months before the date of the transfer, sale or abandonment, or that the matter was announced in the Trade Registry Gazette together with the posting of visible signs at the place where the commercial enterprise is located or, where this is not possible, by appropriate means ensuring that all creditors are informed.

Procedure in actions for annulment:

Amended: 18/2/1965, Law No. 538, Art. 116

The court shall hear and decide actions for annulment under the simple trial procedure and shall freely assess and resolve disputes relating to these actions, taking the circumstances and conditions into account.

The judge may, upon the request of the creditor, issue a decision of precautionary attachment concerning the property forming the subject of the dispositions subject to annulment. The necessity and the amount of security shall be assessed and determined by the court. However, where the action relates to the value substituted for property that has been disposed of, a decision of precautionary attachment may not be issued without security being provided.

If any of the defendants pays the claimant's receivable, the action shall be dismissed. In this case, the judge shall, depending on the circumstances, order each of them to bear the costs or divide such costs among them in the manner he determines.

Defendant in the action for annulment:

Amended: 18/2/1965, Law No. 538, Art. 117

Actions for annulment under Chapter 11 of the Enforcement and Bankruptcy Law shall be brought against the debtor, the persons who entered into legal transactions with the debtor or to whom payments were made by the debtor, and their heirs. In addition, an action for annulment may also be brought against third persons acting in bad faith. The action for annulment shall not infringe the rights of third persons acting in good faith.

Scope of restitution:

Amended: 18/2/1965, Law No. 538, Art. 118

Where the action for annulment is upheld, the claimant shall acquire the right to obtain satisfaction of his right by way of compulsory enforcement against the property forming the subject of the action and, where the subject of the action is an immovable, he may request the attachment and sale of that immovable without any need to rectify the registration in the name of the defendant third person.

Where the action for annulment relates to the value substituted for property that the third person has disposed of, the third person shall be ordered to pay monetary compensation in proportion to such values (not exceeding the claimant's receivable).

Upon the action for annulment, the third person may also request in the same action that the shortfall that will arise in his patrimony be collected from the debtor. This request shall not prevent the action for annulment from being separated and decided earlier.

The third person who loses the action for annulment may claim back, as counter-performance, the thing or its price from the debtor or from the bankruptcy estate.

A creditor who returns what was paid to him as a result of a null disposition shall retain his former rights.

A donee acting in good faith shall be obliged to return only the amount in his possession at the time of the action.

Peremptory period:

Amended: 18/2/1965, Law No. 538, Art. 119

The right to bring an action for annulment shall lapse upon the expiry of five years from the date on which the null disposition took place.

CHAPTER TWELVE

Concordat and Restructuring of Capital Companies and Cooperatives

by Way of Settlement

I. ORDINARY CONCORDAT

Request for concordat:

Amended: 28/2/2018, Law No. 7101, Art. 13

Any debtor who is unable to pay his debts as they fall due, or who is in danger of being unable to pay them when due, may request a concordat (konkordato, composition with creditors) in order to be able to pay his debts by being granted time or a reduction, or to escape a possible bankruptcy.

Any creditor who may request bankruptcy may, by a reasoned petition, request that concordat proceedings be initiated in respect of the debtor.

The competent court having jurisdiction shall be the commercial court of first instance at the place stated in paragraph 1 or 2 of Article 154 for a debtor subject to bankruptcy, and at the place of domicile for a debtor not subject to bankruptcy.

The person requesting the concordat shall be obliged to deposit the concordat cost advance specified in the tariff put into force 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 apply by analogy.

Documents to be attached to the request for concordat:

Amended: 28/2/2018, Law No. 7101, Art. 14

The debtor shall attach the following documents to the request for concordat.

a) A preliminary concordat project showing at what rate or within what time the debtor will pay his debts, accordingly at what rate the creditors will have waived their receivables, whether the debtor will sell his existing property in order to make the payments, and that the financial resources necessary for the debtor to continue his activities and to make payments to the creditors will be provided by way of a capital increase or obtaining credit or by using another method.

b) Documents showing the state of the debtor's assets; where the debtor is a person obliged to keep books, the latest balance sheet prepared in accordance with the Turkish Commercial Code, the income statement, the cash flow statement, interim balance sheets prepared both on a going concern basis and on the basis of the probable sale prices of the assets, the opening and closing certifications of the commercial books together with the e-ledger berat (certificate) information relating to books created electronically, other information and documents explaining the financial situation of the debtor, lists relating to tangible and intangible fixed assets containing their book values, and lists and documents showing all receivables and debts together with their maturities.

c) A list showing the creditors, the amounts of their receivables and the priority status of the creditors.

d) A table showing comparatively the amount expected to be received by the creditors according to the offer contained in the preliminary concordat project and the probable amount that the creditors could receive in the event of the debtor's bankruptcy.

e) Amended: 6/12/2018, Law No. 7155, Art. 13 An audit report, together with its supporting documents, prepared within the scope of an audit to be carried out in accordance with the Turkish Auditing Standards by an independent audit firm authorised by the Public Oversight, Accounting and Auditing Standards Authority, and giving reasonable assurance that the offer contained in the preliminary concordat project will be realised.

Repealed paragraph: 6/12/2018, Law No. 7155, Art. 13

The debtor shall also be obliged to submit other documents and records that may be requested by the court or the commissioner during the concordat process.

Added paragraph: 6/12/2018, Law No. 7155, Art. 13 With regard to the reports to be prepared within the scope of subparagraph (e) of paragraph 1 and the audits on which such reports are to be based, the provisions of the Decree Law No. 660 dated 26/9/2011 on the Organisation and Duties of the Public Oversight, Accounting and Auditing Standards Authority shall apply concerning the activities, rights and obligations of the audit firms, the review and audit of the reports, the administrative and legal liability arising from such reports, and other matters.

Added paragraph: 6/12/2018, Law No. 7155, Art. 13 The procedures and principles concerning the implementation of this Article shall be determined by a regulation put into force by the Ministry of Justice.

Provisional respite:

Amended: 28/2/2018, Law No. 7101, Art. 15

Upon the request for concordat, where the court establishes that the documents specified in Article 286 are present in full, it shall immediately issue a decision granting a provisional respite and shall take all measures it deems necessary for the preservation of the debtor's assets, including the cases set out in paragraph 2 of Article 297.

Where the initiation of concordat proceedings has been requested by one of the creditors, a decision granting a provisional respite shall be issued if the debtor submits the documents and records specified in Article 286 in full within a reasonable time to be granted by the court. In this case, the costs necessary for preparing the said documents and records shall be borne by the creditor. Where the documents and records are not submitted in time and in full, no decision granting a provisional respite shall be issued and the request for concordat made by the creditor shall also be rejected.

Together with the decision granting a provisional respite, the court shall appoint a provisional concordat commissioner for the purpose of closely examining whether it is possible for the concordat to succeed. Where necessary, taking into account the number of creditors and the amount of the receivables, three commissioners may also be appointed. Added sentence: 6/12/2018, Law No. 7155, Art. 14 Where three commissioners are appointed, one of the commissioners shall be selected from among the independent auditors authorised by the Public Oversight, Accounting and Auditing Standards Authority, provided that he carries on activities in the province where the court is located. Article 290 shall apply by analogy in this respect.

The provisional respite shall be three months. Before this three-month period expires, the court may, upon the request of the debtor or the provisional commissioner, extend the provisional respite by a maximum of two further months; where the extension is requested by the debtor, the opinion of the provisional commissioner shall also be obtained. The total duration of the provisional respite may not exceed five months.

Articles 291 and 292 shall apply by analogy to the provisional respite.

No legal remedy may be sought against decisions relating to the acceptance of the request for a provisional respite, the appointment of a provisional commissioner, the extension of the provisional respite and the measures.

Consequences, announcement and notification of the provisional respite:

Amended: 28/2/2018, Law No. 7101, Art. 16

The provisional respite shall produce the consequences of the definitive respite.

The decision of the court granting a provisional respite shall be announced in the trade registry gazette and on the official announcement portal of the Press Advertising Agency (Basın-İlan Kurumu), and shall be notified immediately to the land registry directorate, the trade registry directorate, the tax office, the customs and postal administrations, the Banks Association of Türkiye, the Participation Banks Association of Türkiye, the local chambers of commerce, the chambers of industry, the movable securities exchanges, the Capital Markets Board and other relevant places. The announcement shall further state that the creditors may, by objecting by petition within a peremptory period of seven days from the announcement, assert together with their evidence that there is no circumstance requiring the granting of a concordat respite, and may in this context request the court to reject the request for concordat.

Decisions relating to the extension of the provisional respite and to the lifting of the provisional respite and the rejection of the request for concordat shall also be announced in accordance with paragraph 2 and notified to the relevant places.

Definitive respite:

Amended: 28/2/2018, Law No. 7101, Art. 17

The court shall render its decision on the definitive respite within the provisional respite.

In order for a decision to be rendered on the definitive respite, the court shall summon the debtor and, if any, the creditor who requested the concordat to a hearing. The provisional commissioner shall submit his written report before the hearing and, if deemed necessary by the court, shall be present at the hearing in order to give a statement. In its assessment, the court shall also take into account the grounds of objection asserted by the objecting creditors in their petitions.

Where it is understood that it is possible for the concordat to succeed, the debtor shall be granted a definitive respite of one year. Together with this decision, the court shall, unless there is a situation requiring a new appointment, decide that the provisional commissioner or commissioners shall continue in office and shall entrust the file to the commissioner.

The court may, together with the decision on the definitive respite or at a time it deems appropriate during the definitive respite, additionally form a creditors' committee, provided that it does not exceed seven creditors, that no remuneration is assessed and that it consists of an odd number of members. In this case, classes of creditors whose receivables differ from one another in legal nature and, if any, secured creditors shall be fairly represented on the creditors' committee. The opinion of the commissioner shall also be obtained when forming the creditors' committee. The creditors' committee shall meet at least once a month and shall take decisions by a majority of votes of those present. The commissioner shall be present at such meeting and shall record the decisions taken in minutes by obtaining the signatures of those attending the meeting. The cases in which the creditors' committee shall be mandatorily formed, taking into account the number of creditors, the amount of the receivables and the diversity of the receivables, and other matters relating to the creditors' committee shall be set out in a regulation put into force by the Ministry of Justice.

In special situations presenting difficulties, the definitive respite may be extended by the court by up to six months upon the reasoned report of the commissioner explaining this situation and his request. The debtor may also request an extension pursuant to this paragraph; in that case, the opinion of the commissioner shall also be obtained. In both cases, the request for extension shall be made before the definitive respite expires, and before rendering the extension decision, the opinion of the creditors' committee, if any, shall also be obtained.

Decisions relating to the granting of the definitive respite, the extension of the definitive respite and the lifting of the definitive respite and the rejection of the request for concordat shall be announced in accordance with Article 288 and notified to the relevant places.

The concordat commissioner and the creditors' committee and their duties:

Amended: 28/2/2018, Law No. 7101, Art. 18

The commissioner who has received the file shall, within the definitive respite, complete the procedures aimed at the confirmation of the concordat and return the file to the court together with his report.

The duties of the commissioner are as follows:

a) To contribute to the completion of the concordat project.

b) To supervise the activities of the debtor.

c) To perform the duties assigned under this Law.

d) To submit interim reports on the matters requested by the court and at the intervals it deems appropriate.

e) To inform the creditors' committee at regular intervals about the course of the concordat.

f) To provide information to other creditors who so request about the course of the concordat and the current financial situation of the debtor.

g) To perform the other duties assigned by the court.

The provisions of Articles 8, 10, 11, 16, 21 and 359 shall also apply by analogy to the commissioners.

Complaints concerning the acts of the commissioner relating to the concordat shall be finally decided by the commercial court of first instance.

Amended paragraph: 6/12/2018, Law No. 7155, Art. 15 Commissioners shall be selected from the list of commissioners drawn up by the regional boards of expert witnesses. For registration on the list, it shall be mandatory to have completed the training to be received from institutions authorised by the Ministry of Justice. In addition, the Public Oversight, Accounting and Auditing Standards Authority shall notify to the regional boards of expert witnesses, in the form of a list, the authorised independent auditors who may be appointed as commissioners. Where there is no commissioner on the list who can be appointed, an appointment shall be made from outside the list and this shall be notified to the regional board. A person may not simultaneously serve as provisional commissioner and commissioner in more than five files. The provisions of paragraphs 4 and 5 of Article 227 shall apply with respect to the liability of the commissioner.

Amended paragraph: 6/12/2018, Law No. 7155, Art. 15 The qualifications and training of the concordat commissioner, the institutions that will provide training and the persons to be exempted from training, as well as other matters relating to the office of commissioner, shall be determined by a regulation put into force by the Ministry of Justice.

The creditors' committee shall supervise the activities of the commissioner; it may make recommendations to the commissioner and shall submit its opinion to the court in the cases provided for by law. If the creditors' committee does not find the activities of the commissioner adequate, it may request the court, by a reasoned report, to replace the commissioner. The court shall decide finally on this request after hearing the debtor and the commissioner.

Lifting of the definitive respite due to the improvement of the debtor's financial situation:

Amended: 28/2/2018, Law No. 7101, Art. 19

Upon notification to the court by a written report of the commissioner that the improvement aimed at by the request for concordat has been achieved before the expiry of the definitive respite, the court shall of its own motion decide to lift the definitive respite and to reject the request for concordat. This decision shall be announced in accordance with Article 288 and notified to the relevant places.

Before deciding to lift the definitive respite under this Article, the court shall summon the debtor and, if any, the creditor who requested the concordat and the creditors' committee to a hearing; it shall summon the other creditors if it deems it necessary.

Rejection of the request for concordat within the definitive respite and opening of bankruptcy:

Amended: 28/2/2018, Law No. 7101, Art. 20

With respect to a debtor subject to bankruptcy, if any of the following circumstances arises after the definitive moratorium has been granted, the court shall, upon the written report of the commissioner, ex officio lift the definitive moratorium and decide to reject the concordat request and to declare the debtor bankrupt:

a) If the opening of bankruptcy is necessary for the protection of the debtor's assets.

b) If it becomes apparent that the concordat cannot succeed.

c) If the debtor acts in breach of Article 297 or fails to comply with the instructions of the commissioner, or if it becomes apparent that the debtor is acting with the aim of causing loss to the creditors.

d) If a capital company or cooperative that is found to be over-indebted waives its concordat request.

With respect to a debtor not subject to bankruptcy, where the circumstances set out in subparagraphs (b) and (c) of paragraph 1 arise after the definitive moratorium has been granted, the court shall, upon the written report of the commissioner, ex officio lift the definitive moratorium and decide to reject the concordat request.

Before deciding pursuant to this Article, the court shall invite to a hearing the debtor and, if any, the creditor who requested the concordat and the creditors' committee; it shall invite the other creditors if it deems it necessary.

Legal remedies:

Amended: 28/2/2018, Law No. 7101, Art. 21

No legal remedy may be sought against decisions accepting a request for a definitive moratorium or rejecting a request for the lifting of the moratorium.

Where, as a result of the assessment of the request for a definitive moratorium, a decision is rendered rejecting the concordat request of a debtor in respect of whom no bankruptcy decision has been rendered, the debtor or, if any, the creditor who requested the concordat may lodge an appeal (istinaf) within two weeks from the service of that decision. The decision of the regional court of appeal shall be final. In cases where the regional court of appeal sets aside the decision of the court of first instance and grants a moratorium, the file shall be sent to the court of first instance for the conduct of subsequent proceedings, including the appointment of the commissioner.

In cases where the court or the regional court of appeal, together with the rejection of the concordat request, also decides on the bankruptcy of the debtor, the provision of Article 164 shall apply.

Effects of the definitive moratorium with respect to creditors:

Amended: 28/2/2018, Law No. 7101, Art. 22

During the moratorium, no enforcement proceedings may be initiated against the debtor, including proceedings conducted under Law No. 6183 on the Procedure for the Collection of Public Receivables dated 21/7/1953, and proceedings already commenced shall be stayed; decisions on interim injunctions and precautionary attachments shall not be executed; and limitation periods and peremptory periods that may be interrupted by an act of enforcement shall not run.

Enforcement proceedings by way of attachment may be conducted for the preferential claims listed in the first rank of Article 206.

Unless the confirmed concordat project provides otherwise, the accrual of interest on all kinds of claims not secured by a pledge shall cease as of the date of the definitive moratorium.

Set-off shall be subject to Articles 200 and 201 of this Law. In applying these Articles, the date of announcement of the temporary moratorium shall be taken as the basis.

The provision of Article 186 shall apply to attached assets to the extent appropriate to their nature.

If a contract for the assignment of a future claim was concluded before the granting of the concordat moratorium and the assigned claim arose after the granting of the concordat moratorium, such assignment shall be null and void.

Claims whose subject is not money shall be converted by the creditor into a monetary claim of equal value and notified to the commissioner. However, the debtor shall be free, with the approval of the commissioner, to undertake specific performance of the obligation.

Effects of the definitive moratorium with respect to secured creditors:

Amended: 28/2/2018, Law No. 7101, Art. 23

During the moratorium, enforcement proceedings by way of realisation of the pledge may be initiated, or proceedings already commenced may be continued, in respect of claims secured by a pledge; however, no protective measures may be taken and no sale of the pledged asset may be carried out by reason of such proceedings.

Added paragraph: 9/6/2021, Law No. 7327, Art. 3 However, if the use of the pledged asset by the business is not envisaged under the concordat project, or if its value is likely to decrease or its preservation would be costly, its sale may be permitted in accordance with the procedure set out in paragraph 2 of Article 297. Out of the sale proceeds, payment shall be made to the secured creditor up to the amount of the pledge.

Effects of the definitive moratorium with respect to contracts:

Amended: 28/2/2018, Law No. 7101, Art. 24

Irrespective of whether the counterparty to the contract is affected by the concordat project, contracts to which the debtor is a party and which are of importance for the continuation of the activities of its business shall, as a rule, continue. Provisions in such contracts stating that the debtor's request for a concordat shall constitute a breach of contract, shall be deemed a just cause for termination or shall render the debt due and payable shall not apply where the debtor applies for a concordat. Even if the contract contains no provision to that effect, the contract may not be terminated on the ground that the debtor has applied for a concordat. Added sentence: 9/6/2021, Law No. 7327, Art. 4 The performances owed by reason of contracts that continue during the temporary and definitive moratorium periods within the scope of this paragraph shall be performed reciprocally.

The debtor may, with the favourable opinion of the commissioner and the permission of the court, terminate continuing obligational relationships to which it is a party, which are excessively onerous and which prevent the concordat from achieving its purpose, so as to end at any time. Any compensation payable in this context shall be subject to the concordat project. The special provisions on the termination of service contracts are reserved.

Effects of the definitive moratorium with respect to the debtor:

Amended: 28/2/2018, Law No. 7101, Art. 25

The debtor may continue its business under the supervision of the commissioner. However, when granting the moratorium or during the moratorium, the court may decide that certain transactions may validly be carried out only with the permission of the commissioner, or that the commissioner shall continue the activities of the business in place of the debtor.

Amended paragraph 2: 9/6/2021, Law No. 7327, Art. 5 From the date of the moratorium decision, the debtor may not, without the permission of the court, create a pledge, stand as surety or make gratuitous dispositions; it may not transfer or encumber its immovable property, its movable property of importance for the continuation of the activities of the business, or the permanent installations of the business. Transactions carried out otherwise shall be null and void. Before deciding on such transactions, the court is obliged to obtain the opinion (…) of the commissioner.

If the debtor acts in breach of this provision or of the warnings of the commissioner, the court may revoke the debtor's power of disposition over its assets or decide within the framework of Article 292.

Decisions taken within the scope of paragraphs 1 and 3 shall be announced pursuant to Article 288 and notified to the relevant authorities.

Keeping of an inventory and valuation of pledged assets:

Amended: 28/2/2018, Law No. 7101, Art. 26

Following his or her appointment, the commissioner shall draw up an inventory of the debtor's assets and determine the value of the assets. If the debtor has assets in other places, this procedure may be carried out through the enforcement office of that place.

The commissioner shall make his or her decision on the valuation of the pledged assets available for examination by the creditors; the valuation decision shall be notified in writing to the secured creditors and to the debtor before the creditors' meeting.

The interested parties may, within seven days and subject to advancing the costs, request the court to re-value the pledged assets. If the new valuation was requested by a creditor and the value determined has changed significantly, the creditor may request the debtor to pay the costs.

The valuation of pledged immovable property within the scope of this Article may be carried out by persons authorised with a real estate appraisal licence pursuant to Capital Markets Law No. 6362 dated 6/12/2012.

Postponement of the realisation of pledged movable or immovable property:

Article 298/a: Added: 17/7/2003, Law No. 4949, Art. 78; Repealed: 28/2/2018, Law No. 7101, Art. 65

Invitation to creditors to file their claims:

Amended: 28/2/2018, Law No. 7101, Art. 27

By an announcement to be made by the commissioner pursuant to Article 288, the creditors shall be invited to file their claims within fifteen days from the date of the announcement. In addition, a copy of the announcement shall be sent by post to each creditor whose address is known. The announcement shall also contain a warning that creditors who do not file their claims shall not be admitted to the negotiations on the concordat project unless they are recorded in the balance sheet.

Invitation to the debtor to make a statement on the claims:

Amended together with its heading: 28/2/2018, Law No. 7101, Art. 28

The commissioner shall invite the debtor to make a statement on the alleged claims. The commissioner shall carry out the necessary examinations of the debtor's books and documents as to whether the claims are well founded, and shall set out the results thereof in the report to be submitted pursuant to Article 302.

Invitation to the creditors' meeting:

Amended together with its heading: 28/2/2018, Law No. 7101, Art. 29

After the preparation of the concordat project and the filing and verification of the claims have been completed, the commissioner shall, by a new announcement to be made pursuant to Article 288, invite the creditors to meet to negotiate the concordat project. The date of the meeting must be at least fifteen days after the announcement. The announcement shall also state that the creditors may examine the documents within the seven days preceding the meeting. In addition, a copy of the announcement shall be sent by post to each creditor whose address is known.

Creditors' meeting and the majority required for the acceptance of the project:

Amended together with its heading: 28/2/2018, Law No. 7101, Art. 30

The commissioner shall preside over the creditors' meeting and present a report on the debtor's situation.

The debtor is obliged to be present at the meeting in order to provide the necessary explanations.

The concordat project;

a) If signed by a majority exceeding one half of the registered creditors and of the claims, or

b) If signed by a majority exceeding one quarter of the registered creditors and two thirds of the claims,

shall be deemed accepted.

Only creditors affected by the concordat project may vote. The creditors of the preferential claims listed in the first rank of Article 206, and the spouse and children of the debtor, as well as the mother, father and siblings of the debtor and of the debtor's spouse, even if the marriage has been dissolved, shall not be taken into account in calculating the majority of claims and of creditors.

Claims secured by a pledge shall be taken into account for the portion that remains unsecured as a result of the value determined pursuant to Article 298.

The court shall decide whether, and to what extent, claims that are disputed, subject to a suspensive condition or subject to an indefinite maturity shall be taken into account. However, judgments to be rendered by the court in the future regarding such allegations are reserved.

The concordat minutes drawn up as a result of the negotiations on the concordat project shall be signed forthwith, so as to include the votes of acceptance and rejection. Accessions made within the seven days following the end of the meeting shall also be accepted.

The commissioner shall, within seven days at the latest from the expiry of the accession period, submit to the court all documents relating to the concordat together with his or her reasoned report on whether the concordat project has been accepted and whether its confirmation is appropriate.

Rights against persons jointly liable for the debt:

Amended together with its heading: 28/2/2018, Law No. 7101, Art. 31

A creditor who has not consented to the concordat shall retain all of its rights against the persons jointly liable for the debt.

A creditor who has consented to the concordat shall also benefit from this provision, provided that it offers to assign its rights to the persons jointly liable for the debt against payment and notifies them of the date and place of the meetings at least ten days in advance.

Without prejudice to its right of recourse, the creditor may authorise the persons jointly liable for the debt to participate in the concordat negotiations and may undertake to accept their decision.

Examination of the concordat by the court:

Amended together with its heading: 28/2/2018, Law No. 7101, Art. 32

The court that receives the reasoned report of the commissioner and the file shall commence proceedings to decide on the concordat. The court, after hearing the commissioner, is obliged to render its decision within a short time and in any case within the definitive moratorium. The hearing date set for rendering the decision shall be announced pursuant to Article 288. The announcement shall also state that objecting parties may attend the hearing, provided that they notify their grounds of objection in writing at least three days before the hearing date.

If it becomes apparent that a decision cannot be rendered within the definitive moratorium in the proceedings concerning the concordat, the court may, if it deems necessary after also obtaining a reasoned report from the commissioner, decide that the provisions on the moratorium shall continue to apply until a decision is rendered. This period may not exceed six months.

Conditions for the confirmation of the concordat:

Amended together with its heading: 28/2/2018, Law No. 7101, Art. 33

The confirmation of a concordat project accepted at the meeting held pursuant to Article 302 and by the votes cast within the accession period shall be subject to the fulfilment of the following conditions:

a) In an ordinary concordat, it is established that the amount offered will exceed the probable amount that the creditors could obtain in the event of the debtor's bankruptcy; in a concordat by way of surrender of assets, it is established that the proceeds obtained from realisation or the amount offered by a third party will exceed the amount that could be obtained in the event of liquidation through bankruptcy.

b) The amount offered is proportionate to the debtor's resources (in this context, the court shall also assess whether, and if so to what extent, the debtor's expected rights are to be taken into account).

c) The concordat project has been accepted by the majority provided for in Article 302.

d) The full payment of the claims of the preferential creditors in the first rank of Article 206 and the performance of debts contracted with the permission of the commissioner during the moratorium have been adequately secured, unless the creditor has expressly waived this (paragraph 6 of Article 302 shall apply by analogy).

e) The litigation costs required for the confirmation of the concordat and the fee payable on the money agreed to be paid to the creditors in the event of the confirmation of the concordat have been deposited by the debtor with the court cashier before the confirmation decision.

If the court finds the concordat project insufficient, it may, ex officio or upon request, require that the corrections it deems necessary be made.

Decision confirming the concordat, its scope and announcement:

Amended together with its heading: 28/2/2018, Law No. 7101, Art. 34

The decision confirming the concordat shall specify the extent to which the creditors waive their claims and the schedule according to which the debtor shall pay its debts.

The decision may appoint a trustee charged with taking the necessary supervision, management and liquidation measures to ensure the implementation of the confirmed concordat. In such case, the trustee shall report every two months to the court that rendered the confirmation decision on the situation of the debtor's business and on whether the debtor retains the ability to pay its debts in accordance with the project; the creditors may examine this report.

The confirmation decision shall be announced by the court pursuant to Article 288 and notified to the relevant authorities.

Postponement of the preservation and sale of pledged assets and of the return of assets subject to financial leasing:

Amended together with its heading: 28/2/2018, Law No. 7101, Art. 35

Upon the request of the debtor, the taking into custody and sale of the pledged asset may be postponed in the confirmation decision for a period not exceeding one year from the decision, subject to the following conditions.

a) The claim secured by the pledge must have arisen before the concordat request.

b) The claim secured by the pledge must have no unpaid interest up to the date of the concordat request.

c) The debtor must have established, on the balance of probabilities, that the pledged asset is indispensable for the activities of the business and that its economic existence would be endangered if the asset were realised.

Where the preservation and realisation of the pledged asset is postponed, the period for requesting sale shall not run.

Upon the request of the debtor, the return of assets subject to financial leasing may be postponed in the confirmation decision for a period not exceeding one year from the decision, subject to the following conditions.

a) The debtor must have undertaken specific performance of the financial leasing contract pursuant to paragraph 7 of Article 294.

b) The rental claim arising from the financial leasing must have arisen before the concordat request.

c) The unpaid rental debt must not exceed the amount of three months' rent.

d) Any loss that may result from the depreciation of the asset subject to financial leasing due to this postponement must have been secured.

e) The debtor must have established, on the balance of probabilities, that the asset subject to financial leasing is indispensable for the activities of the business and that its economic existence would be endangered if the asset were returned.

The creditors referred to in paragraphs 1 and 3 shall be invited to submit their written opinions before the hearing on the confirmation of the concordat; these creditors shall also be summoned to the confirmation hearing.

If the debtor voluntarily transfers the pledged asset or the asset subject to financial leasing, is declared bankrupt or dies, the postponement shall automatically become null and void.

The court that confirmed the concordat shall, upon the request of the relevant creditor and after also inviting the debtor, lift the postponement decision, provided that the existence of one of the following circumstances is established on the balance of probabilities.

a) If the debtor obtained the postponement by providing false information.

b) If the debtor's wealth and income have increased and the debtor has become able to pay the debt without endangering its economic existence.

c) If the realisation of the pledged asset or the return of the asset subject to financial leasing would no longer endanger the debtor's economic existence.

Non-confirmation of the concordat and bankruptcy of the debtor:

Amended together with its heading: 28/2/2018, Law No. 7101, Art. 36

If the concordat is not confirmed, the court shall decide to reject the request for concordat, and this decision shall be announced in accordance with Article 288 and notified to the relevant authorities. Where the debtor is among the persons subject to bankruptcy and one of the grounds for direct bankruptcy exists, the court shall decide ex officio on the bankruptcy of the debtor.

Added paragraph: 9/6/2021, Law No. 7327, Art. 6 Where the concordat process results in bankruptcy, the court that rendered the bankruptcy decision shall decide that the liquidation be carried out under the summary or ordinary liquidation procedure and, where necessary, that the ordinary liquidation be carried out by the commissioners. In this case, the duties and powers of the bankruptcy administration shall be exercised by the commissioners.

Legal remedies:

Article 308/a- Added: 28/2/2018, Law No. 7101, Art. 37

Against the decision rendered on the concordat, the debtor or the creditor who requested the concordat may apply for appeal (istinaf) within two weeks from service of the decision, and the other creditors who objected may do so within two weeks from the announcement of the confirmation decision. An appeal on points of law (temyiz) may be lodged against the decision of the regional court of appeal within two weeks. The appeal and cassation reviews shall be carried out in accordance with the provisions of the Code of Civil Procedure.

Action concerning disputed claims:

Article 308/b- Added: 28/2/2018, Law No. 7101, Art. 37

Creditors whose claims have been objected to may bring an action within one month from the date of announcement of the confirmation decision.

The court that rendered the confirmation decision may decide that the share corresponding to the disputed claims under the concordat project be deposited by the debtor, until the decision becomes final, in a bank designated by the court. Creditors who have not brought an action within the time limit may not request payment from this share; in that case, the deposited share shall be returned to the debtor.

Effects of the concordat:

Article 308/c- Added: 28/2/2018, Law No. 7101, Art. 37

The concordat becomes binding upon the confirmation decision. It may also be stipulated in the confirmed concordat project that the concordat shall become binding when the confirmation decision becomes final; in that case, the effects of the moratorium shall continue, subject to the exceptions provided for by law, until the date on which the concordat becomes binding.

A concordat that has become binding is mandatory for all claims arising before the request for concordat or arising during the moratorium without the permission of the commissioner.

The provision of the second paragraph of this Article shall not apply to the privileged claims listed in the first rank of Article 206, to the claims of secured creditors up to the amount covering the value of the pledge, and to public receivables within the scope of Law No. 6183.

Amended first sentence: 9/6/2021, Law No. 7327, Art. 7 Debts contracted with the permission of the commissioner after the temporary moratorium decision, including loans extended by credit institutions, are not subject to the terms of the concordat in an ordinary concordat; in case of default they may be made the subject of enforcement proceedings even during the moratorium, and they shall be paid immediately after the secured claims within the scope of Article 206 and before all other claims; in a concordat by assignment of assets or in a subsequent bankruptcy they shall be deemed debts of the estate within the scope of Article 248. The same rule also applies to counter-performances in continuing obligations to which the debtor is a party and in which the debtor has accepted the performance of the counter-performance with the permission of the commissioner.

Effect of the concordat on proceedings not concluded:

Article 308/ç- Added: 28/2/2018, Law No. 7101, Art. 37

The concordat becoming binding on the parties shall render ineffective the attachments imposed in proceedings commenced before the temporary moratorium decision and not yet converted into money.

The provision of the first paragraph shall not apply to attachments imposed for claims within the scope of the third paragraph of Article 308/c.

Promises made outside the concordat:

Article 308/d- Added: 28/2/2018, Law No. 7101, Art. 37

Promises made by the debtor to one of the creditors in excess of what is provided for in the concordat project are null and void.

Partial rescission of the concordat:

Article 308/e- Added: 28/2/2018, Law No. 7101, Art. 37

Any creditor towards whom performance has not been rendered in accordance with the concordat project may, while retaining the new rights acquired under the concordat, have the concordat rescinded in respect of himself by applying to the court that confirmed the concordat.

An appeal (istinaf) may be lodged within two weeks from service of the judgment to be rendered upon the request for rescission. An appeal on points of law (temyiz) may be lodged against the decision of the regional court of appeal within two weeks from the date of service.

Total rescission of the concordat:

Article 308/f- Added: 28/2/2018, Law No. 7101, Art. 37

Any creditor may request from the court that rendered the confirmation decision the rescission of a concordat vitiated by bad faith.

When the decision on total rescission of the concordat becomes final, the situation shall be 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 certificates in the concordat:

Article 308/g- Added: 28/2/2018, Law No. 7101, Art. 37

Within the scope of the confirmed concordat project;

a) Transactions to be carried out, from fees subject to the Law on Fees No. 492; documents to be drawn up due to these transactions, from stamp duty,

b) Amounts to be collected by creditors under any name whatsoever, from the banking and insurance transactions tax payable under the Law on Expenditure Taxes No. 6802,

c) Loans to be extended to the debtor, from the Resource Utilisation Support Fund,

are exempted.

These exemption provisions shall apply exclusively to the debtor and the creditors within the scope of the project with respect to the transactions specified in the concordat project. Third parties may not benefit from these exemption provisions.

The periods of incentive certificates and export commitment periods belonging to debtors whose debts have been tied to a new amortisation plan under the concordat project shall not run from the date on which the temporary moratorium decision was rendered until the date on which the concordat becomes binding.

II. NEGOTIATION WITH SECURED CREDITORS AND RESTRUCTURING OF DEBTS

Conditions of negotiation with secured creditors and effects of the restructuring:

Article 308/h- Added: 28/2/2018, Law No. 7101, Art. 38

In an ordinary concordat, the debtor, by so stating in the preliminary project, shall request the restructuring of its debts secured by a pledge established in favour of the creditor in accordance with this Article.

The commissioner shall, at such time as he deems appropriate within the definitive moratorium, invite all secured creditors, by issuing service of notice, to negotiate the debtor's offers of principal reduction, interest reduction, rescheduling or other payment offers.

If an agreement is reached during the negotiation and within the seven-day accession period following the negotiation with a majority of the secured creditors exceeding two thirds in terms of the amount of claims, the commissioner shall record the signed agreements in minutes and shall enter, under a separate and independent heading, the fact that an agreement has been made with the secured creditors in the reasoned report he will submit to the court in accordance with Article 302.

Where the debtor's offers are accepted by a majority exceeding two thirds in terms of the amount of claims, a secured creditor who could not reach agreement with the debtor shall be subject, from the date of the request for concordat, to the longest-term among the agreements made with the other secured creditors, with the pre-default interest rate stipulated in the contract between the parties being applied. This matter and the plan concerning the payments to be made by the debtor to the secured creditors with whom no agreement could be reached shall be recorded in minutes by the commissioner and shall also be entered in the reasoned report that the commissioner will submit to the court in accordance with Article 302.

If no agreement could be reached with the secured creditors, this matter shall also be entered in the reasoned report of the commissioner.

The court, after examining the agreements made with the secured creditors as to whether the two-thirds ratio has been reached and, if there are secured creditors with whom no agreement could be reached, whether the payment plan to be applied to them complies with the conditions set out in this Article, shall include the agreements and the payment plan in the decision it will render in accordance with Articles 305 and 306.

If the meeting of creditors to be held in accordance with Article 302 does not accept the debtor's concordat project, the agreements concluded with the debtor by the secured creditors who made an agreement under this Article and the payment plan prepared for the secured creditors who did not make an agreement shall not become valid.

Any secured creditor towards whom performance has not been rendered in accordance with the agreement made may have the agreement relating to that secured claim rescinded by applying to the court that rendered the confirmation decision. However, where as a result of this rescission the ratio falls below the two-thirds ratio specified in the third paragraph, the secured creditors who did not accept the debtor's offer and were made subject to the payment plan shall cease to be bound by that plan, and the secured creditors who reached agreement with the debtor may terminate the agreement.

This Article shall apply exclusively where, in an ordinary concordat, the debtor makes an offer for the restructuring of its debts secured by a pledge established in favour of the creditor. Articles 285 to 309/l shall not apply to secured creditors unless expressly stated.

III. CONCORDAT AFTER BANKRUPTCY

Conditions and effects:

Amended: 28/2/2018, Law No. 7101, Art. 39

If a debtor who has been adjudged bankrupt requests a concordat, or if one of the creditors of this debtor requests that concordat proceedings be initiated, the bankruptcy administration shall notify the creditors of this request, together with its opinion, to be deliberated at the second meeting of creditors or later.

Articles 302 to 307 and Articles 308/a to 308/g shall also apply here. The duties of the commissioner shall be performed by the bankruptcy administration.

During the period from the date of the meeting at which the request for concordat is accepted by the creditors until the date on which the concordat is confirmed by the court, the realisation of the bankrupt's assets shall be suspended. This period may not exceed six months.

The decision rendered on the concordat shall be notified to the bankruptcy administration.

Upon the decision confirming the concordat becoming final, the bankruptcy administration shall request the court that adjudged the bankruptcy to lift the bankruptcy.

After bankruptcy, a concordat may be requested only once in the course of the bankruptcy liquidation.

IV. CONCORDAT BY ASSIGNMENT OF ASSETS

In general:

Article 309/a- Added: 17/7/2003, Law No. 4949, Art. 84

By a concordat by assignment of assets, the creditors are granted the power to dispose of the debtor's assets or to transfer all or part of those assets to a third party.

The creditors shall exercise their rights through the concordat liquidators and the creditors' committee. The concordat liquidators and the creditors' committee shall be elected by the creditors who decide on the request for concordat. A concordat liquidator shall take office after the commercial court of first instance approves the decision concerning the election. The concordat commissioner may also be a liquidator.

Mandatory content:

Article 309/b- Added: 17/7/2003, Law No. 4949, Art. 84

A concordat by assignment of assets shall contain the following matters:

1- Whether the creditors waive the portion of their claims that cannot be satisfied through the liquidation of the assets or their transfer to a third party and, if they do not waive it, what the liability of the debtor is.

2- The designation of the concordat liquidators and the members of the creditors' committee, and their powers.

3- If not determined by law, the procedure for liquidating the assets and, if the assets are to be transferred to a third party, the form of this transfer and the security for it.

4- Amended: 28/2/2018, Law No. 7101, Art. 41 That announcements to the creditors and notifications to the relevant authorities shall be made in accordance with Article 288.

Any assets falling outside the scope of the concordat shall be expressly specified.

Effects of confirmation:

Article 309/c- Added: 17/7/2003, Law No. 4949, Art. 84

From the time the decision confirming the concordat by assignment of assets becomes final, the debtor may not dispose of its assets, and the signing authority of persons having the power of disposal over those assets shall terminate.

If the debtor is registered in the trade registry, the words "in concordat liquidation" shall be added to its trade name. Enforcement proceedings against the concordat estate for debts not falling within the scope of the concordat shall be conducted under this name.

The concordat liquidators shall carry out all transactions necessary for the preservation and realisation of the concordat estate or, where necessary, for the transfer of the assets.

The concordat liquidators shall represent the concordat estate before the courts. Article 228 shall apply by analogy.

Legal status of the concordat liquidators:

Article 309/ç- Added: 17/7/2003, Law No. 4949, Art. 84

The concordat liquidators shall be subject to the supervision and control of the creditors' committee. An objection may be made before the creditors' committee against decisions of the concordat liquidators concerning the realisation of the assets within seven days from learning of them, and a complaint may be filed against the decisions of this committee.

Articles 8, 9, 10, 11, 21 and 359 shall also apply by analogy to the acts of the concordat liquidators.

Determination of the creditors who shall participate in the distribution:

Article 309/d- Added: 17/7/2003, Law No. 4949, Art. 84

In order to determine the creditors who shall participate in the distribution of the proceeds obtained from the liquidation and their ranking, the concordat liquidators shall, without any need for a new call to the creditors, prepare a ranking schedule based solely on the commercial books and the registrations of claims made, and shall keep this ranking schedule available for inspection by the creditors.

Articles 230 to 236 shall apply by analogy.

Realisation:

Article 309/e- Added: 17/7/2003, Law No. 4949, Art. 84

The assets forming the concordat estate shall be realised individually or as a whole. Realisation shall be effected, in the case of a claim, by collection of that claim or sale of the right to demand it and, for other assets, by private sale or public auction.

The procedure and timing of realisation shall be decided by the creditors' committee upon the proposal of the concordat liquidators.

Pledged immovables:

Article 309/f- Added: 17/7/2003, Law No. 4949, Art. 84

Except in cases where the assets are transferred to a third party, the sale of pledged immovables by the concordat liquidators by private sale shall be possible only with the consent of the pledgee creditors who cannot collect their claims from the sale price of the pledged immovable. Otherwise, such immovables may be realised only by public auction. The existence and ranking of the servitudes, land charges, mortgages and annotated personal rights on the immovable shall be determined according to the ranking schedule.

Pledges of movables:

Article 309/g- Added: 17/7/2003, Law No. 4949, Art. 84

Creditors whose claims are secured by a pledge of movables shall not be obliged to deliver the pledged movables to the concordat liquidators. Unless another period is provided for in the concordat, the pledgee creditors may realise the pledged movable at such time as they deem appropriate, by way of realisation of the pledge or, if authorised in the pledge agreement, by private sale or by sale on the stock exchange.

However, if the realisation of the pledge is in the interest of the concordat estate, the concordat liquidators may authorise the pledgee creditor to realise the pledged property within six months. The concordat liquidators shall at the same time warn the pledgee creditor, also reminding it of the penalty provided for in Article 289 of the Turkish Penal Code No. 5237 dated 26/9/2004, that if it does not carry out the realisation within this period it shall deliver the pledged property to them, and that if it fails to deliver it without a justified reason it shall lose its right of priority.

Assignment to the creditors of rights that are difficult to collect or disputed:

Article 309/ğ- Added: 17/7/2003, Law No. 4949, Art. 84

If the creditors' committee, upon the proposal of the concordat liquidators, waives a disputed claim or a claim that is difficult to collect, in particular an action for annulment or an action for liability against the organs or employees of the debtor, it shall inform the creditors in writing or by announcement and shall offer to assign the right to pursue these claims in accordance with Article 245.

Distribution of the proceeds:

Article 309/h- Added: 17/7/2003, Law No. 4949, Art. 84

Before each distribution, even if provisional, the concordat liquidators shall draw up a distribution schedule and notify each creditor of the amount of its share; the concordat liquidators shall keep the distribution schedule available for inspection by the creditors at the bankruptcy office for ten days. A complaint may be filed against the distribution schedule.

The concordat liquidators shall deposit with the bankruptcy office, together with the distribution schedule, the final account including the expenses.

Pledge deficiency:

Article 309/ı- Added: 17/7/2003, Law No. 4949, Art. 84

Pledgee creditors whose pledge has been realised at the time of deposit of the provisional distribution schedule shall participate in the provisional distribution for the uncovered portion of their claims. The uncovered portion shall be determined by the concordat liquidators, and a complaint may be filed against this decision.

If the pledge has not been realised at the time of deposit of the provisional distribution schedule, the pledgee creditor shall participate in the distribution for the amount estimated by the commissioner to remain uncovered. A pledgee creditor who proves that the price obtained from the realisation of the pledge has fallen below the estimated amount shall be entitled to the corresponding payments.

If the total of the price obtained from the realisation of the pledge and the provisional payments made up to that time exceeds the amount of the claim, the pledgee creditor shall be obliged to return the excess.

Deposit:

Article 309/i- Added: 17/7/2003, Law No. 4949, Art. 84

Shares not collected by the persons entitled within the period determined by the concordat liquidators shall be deposited in a bank in accordance with the provisions of Article 9.

Shares not collected by the persons entitled within five years shall be distributed by the bankruptcy office; Article 255 shall apply by analogy.

Activity report:

Article 309/j- Added: 17/7/2003, Law No. 4949, Art. 84

When the liquidation ends, the concordat liquidators shall draw up a final report. This final report shall be submitted to the creditors' committee for approval. The committee shall send the final report it has approved to the commercial court, which is the confirming authority, and the confirming authority shall keep it available for inspection by the creditors.

If the liquidation lasts longer than one year, the concordat liquidators shall each year, by the end of December at the latest, draw up a schedule showing the status of the liquidated assets and of the assets not yet realised, together with a report on their activities, and deposit them with the creditors' committee. This schedule and report shall be submitted, through the creditors' committee, to the confirming authority to be kept available for inspection by the creditors until the end of February of the following year.

Annulment of legal transactions:

Article 309/k- Added: 17/7/2003, Law No. 4949, Art. 84

Legal transactions carried out by the debtor before the confirmation of the concordat shall be subject to annulment in accordance with Articles 277 to 284.

Amended second paragraph: 28/2/2018, Law No. 7101, Art. 43 In calculating the time limits for bringing an action for annulment, the date on which the provisional concordat moratorium was granted shall take the place of the attachment or the opening of bankruptcy.

Where it is possible to secure the partial or complete rejection of claims directed against the concordat estate by way of annulment of the disposition, the concordat liquidators shall be authorised and obliged to request annulment by way of defence (plea).

Common provisions to be applied:

Article 309/l- Added: 17/7/2003, Law No. 4949, Art. 84

Unless contrary to its nature, Articles 285 to 308/g shall also apply to a concordat by assignment of assets.

V. RESTRUCTURING OF CAPITAL COMPANIES AND COOPERATIVES BY WAY OF SETTLEMENT

Restructuring by way of settlement:

Article 309/m- Added: 12/2/2004, Law No. 5092, Art. 8

A capital company or cooperative that is unable to pay its due monetary debts, or whose assets and receivables are insufficient to cover its debts, or which is very likely to face the danger of falling into one of these situations, may apply to the commercial court of first instance of the place where its centre of business is located for restructuring by way of settlement, together with a restructuring project that has been negotiated in advance and accepted by the required majority of the creditors affected by the project.

The term "creditors affected by the project" used in Articles 309/m to 309/ü refers to the creditors whose claims, rights or interests are to be restructured by the restructuring project.

The term "required majority" refers to the majority required for acceptance of the project, consisting of more than half in number of the creditors affected by the project and participating in the vote and representing at least two thirds of the claims of the creditors casting votes. Where the project includes more than one class of creditors, each class of creditors must have accepted the project within itself by the required majority.

Restructuring project:

Article 309/n- Added: 12/2/2004, Law No. 5092, Art. 8

The restructuring project to be submitted to the commercial court of first instance shall contain the following matters:

1- The conditions to which the creditors affected by the project shall be subject, and how equality shall be ensured among creditors holding similar claims.

2- The effect of the project on the contracts to which the debtor is a party.

3- The effect of the project on the debtor's power of disposal over its assets.

4- If deemed necessary for the restructuring of the debts, whether the debtor shall resort to sources of financing such as loans.

5- Methods capable of ensuring the feasibility of the project, such as the partial or total transfer of the debtor's enterprise, its merger with another company or companies, the amendment of its capital structure or articles of association, the designation of the persons who shall take part in the management of the debtor enterprise, the extension of the maturities of the debts, the modification of interest rates and the issuance of securities.

6- By whom and how the implementation of the project shall be supervised after the confirmation decision.

7- That the claim of a creditor who rejects the project shall be subject to equal treatment with claims similar in nature, unless that creditor expressly accepts less than the right provided for its class in the project.

Provided that claims whose legal nature is largely similar are placed in the same class, the project may group the creditors into more than one class.

Documents to be attached to the application:

Article 309/o- Added: 12/2/2004, Law No. 5092, Art. 8

The documents to be attached to the application are as follows:

1- The restructuring project.

2- Documents showing the financial situation of the debtor, a detailed balance sheet, a schedule stating the condition of its 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 solvency and bring it into a position to pay its due debts according to the payment plan and to generate cash flow.

4- A list of the creditors affected and not affected by the project and of their claims.

5- Explanations describing the pre-application negotiation process, including evidence showing that sufficient information enabling the creditors affected by the project to decide on the project was provided by appropriate means such as registered letter with return receipt or notarial notice.

6- Minutes, with signatures and dates certified by a notary, containing the declarations of the creditors affected by the project who give their approval.

7- A document showing comparatively the amount the creditors will receive under the project and the probable amount the creditors could receive in the event of the debtor's bankruptcy.

8- A schedule showing that the majority condition in terms of number and amount has been satisfied.

9- Financial analysis reports, together with their supporting materials, prepared by an independent audit firm having the required qualifications, showing that the debtor can regain solvency and that it is possible for it to comply with the conditions set out in the project.

Acts to be performed and measures to be taken by the court upon the application and during the interim period:

Article 309/ö- Added: 12/2/2004, Law No. 5092, Art. 8

The court shall set the date of a hearing to be held within thirty days from the application; it shall announce the application by public notice according to the procedure provided for in Article 288 and shall serve it on all creditors affected by the project whose addresses are known. The announcement and service shall state the scope and consequences of the application, from which date and where the application file may be examined, and the day and time of the hearing at which objections may be raised.

In addition, upon the request of the debtor or one of the creditors, the court shall immediately take the measures it deems necessary for protecting the debtor's assets and with respect to the debtor's activities for the period until the final decision on the application is rendered. In this case, the court may set a separate hearing date without waiting for the hearing date already determined, and may appoint one or more interim period supervisors chosen by the creditors and the debtor, having the necessary knowledge and experience and the required qualifications, who shall personally assume the conduct and management of the debtor's activities, or supervise these activities, from their appointment until the decision on the confirmation or rejection of the project is rendered. Where the creditors and the debtor have not chosen an interim period supervisor or have failed to agree on any supervisor, but the circumstances make the appointment of an interim period supervisor necessary, the court may ex officio appoint one or more interim period supervisors whose qualifications and powers shall be determined by regulation.

The court may decide, for the interim period, to stay the enforcement proceedings initiated by the creditors affected by the project against the debtor and the actions related to these proceedings, including proceedings and actions conducted under Law No. 6183 on the Procedure for the Collection of Public Receivables, to prohibit the affected creditors from initiating new enforcement proceedings, and not to execute decisions of interim injunction and precautionary attachment. In this case, the limitation periods and peremptory periods that may be interrupted by an enforcement act shall not run.

During the interim period, the debtor may resort to financing instruments such as loans if this is indispensable for the continuation of the enterprise or is deemed necessary for preserving or increasing the value of its assets. If the use of a source of financing requires the provision of security, this security shall be provided primarily over the debtor's movable or immovable assets on which no pledge has previously been established.

The term source of financing also covers those who supply the debtor with goods and services necessary for the enterprise to operate, such as raw materials.

Examination of the application by the court and legal remedies:

Article 309/p- Added: 12/2/2004, Law No. 5092, Art. 8

At the confirmation hearing, the court shall hear the interim period supervisor, the authorised officers of the debtor enterprise and the creditors present at the hearing. If the court establishes that the debtor applied for restructuring in good faith, that the conditions in Articles 309/m to 309/o have been fulfilled, and that the amount every creditor who rejected the project will receive under the project is at least equal to the amount it would receive at the end of a bankruptcy liquidation, it shall decide, within thirty days at the latest, to confirm the application; otherwise, it shall decide to reject it.

Together with the confirmation decision, the court may, also taking into account the opinions of the debtor and the creditors on this matter, appoint one or more project supervisors whose powers consist solely of supervising the principles concerning the implementation of the project and reporting regularly to the creditors on the situation. If the debtor and the creditors have not chosen a supervisor or have failed to agree on any supervisor, the court may ex officio appoint a supervisor whose qualifications and scope of duties shall be determined by regulation.

Amended third paragraph: 2/3/2024, Law No. 7499, Art. 2 Against the decision of confirmation or rejection, the debtor and the creditors who raised objections during the confirmation hearing may apply for appeal (istinaf) within two weeks from the date of service, and, against the decision rendered upon the appellate review, may apply for appeal on points of law (temyiz) within two weeks from the date of service.

Objections by the parties, appeal and appeal on points of law shall be subject to a fixed fee.

Effects of the decision:

Article 309/r- Added: 12/2/2004, Law No. 5092, Art. 8

The restructuring project shall begin to produce all of its provisions and effects from the moment the decision confirming the application is rendered. The conditions of the project shall take precedence over all contractual provisions made with the creditors affected by the project.

Upon reversal of the decision by the Court of Cassation at the end of the appellate review, the execution of the decision confirming the project shall stop automatically. Acts performed until the reversal decision shall remain valid.

Regardless of whether or not the parties are affected by the project, where contracts to which the debtor is a party contain provisions that could lead to the amendment or termination of the contract, or provisions stipulating that the debtor's application for restructuring shall constitute default or a breach of contract, these provisions shall not apply in the event that the debtor applies for restructuring.

Where the court renders a decision rejecting the request for confirmation of the application, the measures ordered by the court shall be lifted and the stayed actions and enforcement proceedings shall be continued.

Termination of restructuring by way of settlement:

Article 309/s- Added: 12/2/2004, Law No. 5092, Art. 8

In the restructuring of capital companies and cooperatives by way of settlement, Article 308/e and the first paragraph of Article 308/f shall apply by analogy. If the complete termination of the restructuring is decided and this decision becomes final, the court shall announce the situation by public notice according to the procedure provided for in Article 288. Within ten days from the announcement, the creditors affected by the project may request the court that rendered the confirmation decision to decide on the immediate bankruptcy of the debtor.

Amendment of the restructuring project by way of settlement:

Article 309/ş- Added: 12/2/2004, Law No. 5092, Art. 8

In the event of a breach of part of the project, if this breach affects only some of the creditors and these creditors whose rights have been breached reach an agreement with the debtor on the amendment of the project, the amended project shall be submitted to the court for confirmation. If this amendment is indispensable for the continuation of the project and the amended project does not place the creditors whose rights have been breached in a more favourable position than the other creditors affected by the project, the court shall confirm the amended project. The procedure for confirmation of the restructuring project shall also apply to the amendment of the project.

Breach of the restructuring project by way of settlement and miscellaneous provisions:

Article 309/t- Added: 12/2/2004, Law No. 5092, Art. 8

If the debtor fails to perform its obligations arising from the project, wholly or partly, on time, the situation shall be notified by the project supervisor, the debtor or the creditors affected by the project to the court that confirmed the project. The same right also exists for a creditor who, before the confirmation of the project, provided the debtor with a source of financing such as a loan, with or without security, and who is unable to obtain its resulting claim partly or wholly. Upon this notification, the court shall take the necessary protective measures, including measures preventing the debtor's dispositions over its assets, in order to preserve the debtor's assets, and shall set a hearing date and announce it by public notice according to the procedure provided for in Article 288. After examining the objections raised by the creditors affected or not affected by the project, the court shall immediately adjudge the debtor bankrupt upon establishing that the debtor has failed to perform its obligations partly or wholly, that the project is not being implemented and that its amendment is not in question, or that the financing creditor has been unable to obtain its claim wholly or partly.

Banks and insurance companies may not, in the capacity of debtor, apply for the restructuring of capital companies and cooperatives by way of settlement.

The provisions of Article 334/a shall apply to the interim period supervisor and the project supervisor.

Fee and tax exemptions and incentive certificates:

Article 309/u- Added: 12/2/2004, Law No. 5092, Art. 8

Within the scope of the confirmed project;

1- The transactions to be carried out and the papers to be issued, from stamp duty payable under the Stamp Duty Law No. 488 and from fees payable under the Law on Fees No. 492,

2- The amounts to be collected by the creditors under whatever name, from the banking and insurance transactions tax payable under the Law on Expenditure Taxes No. 6802,

3- The loans extended and to be extended to the debtor, from the Resource Utilisation Support Fund,

4- Other similar transactions, papers and loans, from tax, duty, fee and fund obligations (excluding the Contribution to Education payable under Law No. 4306),

Are exempted.

The exemption shall also apply where the creditors dispose of the assets they have acquired within the scope of the confirmed project.

Amounts of claims whose collection is waived pursuant to the provisions of the confirmed project shall be treated, in accordance with the provisions of the Tax Procedure Law No. 213, as a worthless receivable for the creditor and as a waived receivable for the debtor.

Even if the transactions put into practice pursuant to the provisions of the confirmed project are not realised, the exemptions applied under this Article shall not be withdrawn.

The periods of the incentive certificates obtained by debtors whose debts are tied to a new amortisation plan under a restructuring project by way of settlement, and their export commitment periods, shall be deemed extended by the periods determined in the projects.

The notarial fee for notarised documents required during the implementation of the restructuring of capital companies and cooperatives by way of settlement shall be charged as a fixed amount.

Regulation:

Article 309/ü- Added: 12/2/2004, Law No. 5092, Art. 8

Within two months from the date of publication of this Law, a regulation on the implementation of the restructuring of capital companies and cooperatives by way of settlement shall be put into force by the Ministry of Justice.

CHAPTER THIRTEEN

Negligent and fraudulent bankruptcy

I. NEGLIGENT BANKRUPTCY

Cases of negligent bankruptcy:

A bankrupt in whom one of the following circumstances exists shall be deemed a negligent bankrupt and shall be punished in accordance with the Turkish Penal Code:

1 – If he cannot show reasonable grounds for his losses;

2 – If his household expenses are excessive;

3 – If he has spent considerable sums of money on gambling or games of pure chance and on stock exchange transactions;

4 – If, while knowing that his debts exceed his assets and receivables, he has purchased goods on credit or borrowed money in significant amounts from persons unaware of this situation;

5 – Amended: 29/6/1956, Law No. 6763, Art. 42 If he has not kept at all, or has not kept in the manner prescribed by law, the books listed in items 1 to 3 of the first paragraph of Article 66 of the Commercial Code;

6 – If he has signed instruments for sums far exceeding his assets and receivables;

7 – Amended: 18/2/1965, Law No. 538, Art. 128 If, during the bankruptcy proceedings, he has failed to appear without a valid excuse although summoned by the court, the bankruptcy administration or the bankruptcy office;

8 – If he has abandoned his business and fled;

9 – If he has again been adjudged bankrupt without having performed the terms of a previous concordat;

10 – If, without complying with the provision of the last paragraph of Article 178, his bankruptcy has occurred within one year.

II – FRAUDULENT BANKRUPTCY

Cases of fraudulent bankruptcy:

Amended: 18/2/1965, Law No. 538, Art. 129

A person who, before or after his bankruptcy, engages in fraudulent transactions with the intent to cause loss to his creditors, and in particular in the following ways, shall be deemed a fraudulent bankrupt and shall be punished in accordance with the Turkish Penal Code:

1. If he removes, conceals or destroys, in whole or in part, his assets which constitute the common pledge of the creditors;

2. If, to the detriment of the creditors, he issues receipts contrary to the truth or acknowledges debts in writing;

3. If he makes simulated sales, transactions or donations;

4. If he acknowledges in a marriage contract a dowry that was not actually brought as having been brought, and the wife attempts to use this contract against the creditors of her husband;

5. If he causes loss to his creditors by acknowledging debts contrary to the truth or by entering into simulated transactions and contracts;

6. If, while knowing that his debts exceed his assets and receivables, he squanders his assets by selling commercial goods of significant value or the products of his factory at a price far below both the market price on the day of sale and their cost or purchase value;

7. If he secures special benefits for a creditor outside the concordat agreement;

8. If he shows his assets as greater or smaller than they actually are by means of accounts contrary to the truth and false balance sheets.

Amended: 6/6/1985, Law No. 3222, Art. 38 Article 522 of the Turkish Penal Code shall be applied according to the value of the assets referred to in item one.

Where the offences referred to in item one are committed by members of the bankrupt's household, they shall be punished in the same manner as the bankrupt.

Even if falling outside the provisions of the Turkish Penal Code on complicity, the same penalties shall also apply to persons who, with the aim of reducing the assets of the bankrupt, conceal or remove in whole or in part movable and immovable property belonging to him, or acquire such property through simulation, or harbour or act as intermediaries in these matters, or, by applying to the bankruptcy estate, cause wholly or partly unfounded claims to be registered, or, with the aim of reducing the bankrupt's ability to pay, engage in commercial activities in their own name or under an assumed name.

CHAPTER FOURTEEN

Restoration of credit (rehabilitation)

Restoration of credit:

A – Fraudulent bankrupt:

A fraudulent bankrupt may obtain the restoration of his credit in accordance with the provisions of the chapter of the Code of Criminal Procedure concerning the restoration of forfeited rights. However, in addition to fulfilling the conditions set out in that chapter, he must attach to his petition the receipts or other documents showing that the claims of all creditors admitted to the estate have been fully discharged.

B – Negligent bankrupt:

A negligent bankrupt may, after serving the sentence required to be enforced or after the penalty has lapsed for legal reasons, apply by petition to the court that rendered the bankruptcy decision and request the restoration of his credit. The petition shall be substantiated by a list obtained from the bankruptcy office showing the claims of all creditors admitted to the estate, together with receipts or other evidentiary documents showing that these debts have been fully discharged.

C – Ordinary bankrupt:

An ordinary bankrupt may request the restoration of his credit from the court that adjudged the bankruptcy by producing receipts or documents showing that he has discharged the claims of all creditors admitted to the estate.

Announcement:

The judgment rendered upon acceptance of the request under the preceding articles shall be announced in the Official Gazette.

Restoration of credit after death:

The restoration of the credit of a fraudulent, negligent or ordinary bankrupt may also be adjudged after his death upon the request of one of his heirs.

CHAPTER FIFTEEN

Extraordinary moratorium and suspension in extraordinary circumstances

I – EXTRAORDINARY MORATORIUM

Conditions for the application of this chapter:

In extraordinary circumstances, in particular in prolonged economic crises, the President of the Republic may decide that the provisions of Articles 318 to 329 be applied, for a specified period, to the debtors of the region affected by such circumstances.

Granting of an extraordinary moratorium; petition of the debtor:

In the regions thus designated by the President of the Republic, a debtor who, without fault on his part, is unable to perform his obligations by reason of the circumstances specified in Article 317 may request from the enforcement court an extraordinary moratorium not exceeding six months at most, if the circumstances give reason to expect that he will be able to pay his debts in full upon the expiry of the moratorium.

The debtor is obliged to attach to his petition documents showing his financial situation and a list of creditors, to provide all information requested by the enforcement court and to produce all documents that may be requested from him. If the debtor is subject to proceedings by way of bankruptcy, he shall additionally attach to his petition his balance sheet and books.

Added paragraph: 17/7/2003, Law No. 4949, Art. 85 After the petition has been submitted, the enforcement court may, by way of an interim measure, stay pending proceedings, except for the claims provided for in Article 326. The enforcement court shall determine whether, and if so to what extent, the period during which the proceedings were stayed shall be deducted from the extraordinary moratorium.

Examinations to be carried out by the enforcement court:

After carrying out the inquiries it deems necessary, if the request for a moratorium does not appear unfounded at first sight, the enforcement court shall set a day, summon all creditors for that day by way of announcement and, where necessary, also consult experts.

The creditors may examine the file before the day set; the creditors also have the power to raise written objections against the request for a moratorium.

The enforcement court shall render its decision within a short period; when granting the moratorium it may also oblige the debtor to pay in one or several instalments.

Amended: 2/3/2005, Law No. 5311, Art. 20

The debtor and each of the creditors may apply for appeal (istinaf) against the decision within two weeks from the date of its service.

The extraordinary moratorium granted by the enforcement court shall remain in effect until the final decision of the regional court of appeal.

Preparation of an inventory; commissioner:

The enforcement court shall, before or when rendering the decision on the moratorium, order that an inventory be drawn up and shall take all other measures to protect the rights of the creditors.

When granting the moratorium, the enforcement court may appoint a commissioner to supervise the transactions of the debtor.

Service of the decision:

When the decision on the moratorium becomes final, it shall be served on the enforcement office and announced forthwith.

Effects, proceedings and time limits:

Amended: 17/7/2003, Law No. 4949, Art. 86

During the moratorium, proceedings may be brought against the debtor and such proceedings may be continued up to attachment or an order of deposit. Attached wages shall also be collected during the moratorium; the same rule applies to rents where they fall within the scope of a real security in the framework of proceedings commenced during or before the moratorium. On the other hand, even if the request for realisation of the pledge, the attachment or the order of deposit took place before the moratorium was granted, no sale may be carried out and no bankruptcy may be adjudged.

The time limits provided for in Articles 106, 150/e, 156, 206, 278, 279 and 280 shall be extended by the duration of the moratorium. The same rule also applies, in respect of real securities, to the interest on claims secured by a mortgage on immovable property.

Rights of disposal of the debtor:

A – In general:

The debtor may continue his business. However, during the moratorium, transactions that would harm the legal interests of the creditors or that would favour some of the creditors to the detriment of others are prohibited.

B – Special measures taken by the competent authority:

When granting the extraordinary moratorium, the enforcement court may decide that, without the consent of the commissioner or, failing one, of the enforcement court itself, the debtor shall not transfer his immovable property or establish real rights or create pledges over it or make gratuitous dispositions, shall not make payments against debts arising before the extraordinary moratorium and shall not stand surety, and that if he does so such acts shall be null and void.

However, no consent is required for the payment of the debts in the second and third ranks referred to in Article 206 or for the payment of the instalments mentioned in the third paragraph of Article 319.

If the decision on the extraordinary moratorium contains the above restrictions, these shall also be included in the announcement, and the extraordinary moratorium shall be entered in the land register as a restriction on the right of disposal.

Claims not subject to the extraordinary moratorium:

Amended paragraph one: 17/7/2003, Law No. 4949, Art. 87 The moratorium shall not apply to claims of less than five hundred million liras or to claims in the first rank of Article 206.

Even if the debtor is subject to proceedings by way of bankruptcy, these claims may be pursued during the extraordinary moratorium only by way of attachment or by way of realisation of the pledge.

Extension:

The extraordinary moratorium granted by the enforcement court upon the petition of the debtor within the period determined under the provisions of Article 317 may be extended by four months at most if the reasons necessitating it continue without fault on the part of the debtor.

The debtor is obliged to attach to his petition a supplementary list of creditors and, if he is subject to proceedings by way of bankruptcy, a supplementary balance sheet.

The enforcement court shall set a time limit for the creditors to notify their objections in writing and shall give notice of the request for extension by announcement.

If a commissioner has been appointed, he shall also be invited to submit a report.

After the expiry of the time limit, the enforcement court shall render its decision and this decision shall be announced under the same conditions. As in the case of the extraordinary moratorium, an appeal (istinaf) may be lodged against this decision.

In this case, the regional court of appeal shall render its decision on the file.

Revocation:

The enforcement court may, upon the request of one of the creditors or of the commissioner, decide to revoke the moratorium in the following cases:

1 – If the debtor fails to pay the instalments set on time;

2 – If the debtor acts contrary to the instructions of the commissioner and harms the legal interests of the creditors or favours 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 able to perform all his obligations.

The debtor shall be invited to be heard or to notify his objections in writing. The enforcement court shall, where necessary after obtaining supplementary information, render its decision on the file. In the event of an application, the regional court of appeal shall act in the same manner. The decision on revocation shall be announced under the conditions applicable to the decision on the moratorium.

If the decision on revocation has been rendered under items two and three, no concordat moratorium or new extraordinary moratorium may be granted to the debtor.

Concordat during the extraordinary moratorium and prohibition of a new moratorium:

A debtor who wishes to request a concordat during the extraordinary moratorium is obliged to submit his documents and the concordat project, together with the opinion of the commissioner, before the expiry of the moratorium.

Within six months starting from the expiry of the extraordinary period, neither a concordat moratorium nor a new extraordinary moratorium may be granted.

Relationship with the postponement of bankruptcy:

Article 329/a- Added: 17/7/2003, Law No. 4949, Art. 88; Repealed: 28/2/2018, Law No. 7101, Art. 65

II – SUSPENSION IN EXTRAORDINARY CIRCUMSTANCES

Cases of stay of enforcement proceedings:

In the event of an epidemic, a general calamity or war, enforcement proceedings may be stayed for a specified period, by decision of the President of the Republic, in a part of the country or in favour of certain economic groups.

CHAPTER SIXTEEN

I. Penal provisions

Penalty for debtors who reduce their assets with the intent to cause loss to their creditors:

Amended: 31/5/2005, Law No. 5358, Art. 1

Where, after the request for proceedings by way of attachment or within the two years preceding this request, the debtor, with the intent to cause loss to his creditor, artificially reduces his assets by actually alienating, destroying or devaluing his property or part of it, or by concealing it or transferring it to another person through simulation, or by acknowledging debts that are not genuine, he shall, provided that a certificate of insolvency has been obtained against him or the creditor proves that he could not recover his claim, be punished with imprisonment from six months to three years and a judicial fine of up to one thousand days.

These provisions shall also apply to a debtor who commits the acts in the first paragraph before the bankruptcy proceedings or, in cases of direct bankruptcy, before the request for bankruptcy, even if such acts constitute another offence.

These provisions shall also apply to a debtor who commits the acts in the first paragraph within the two years preceding the request for a concordat moratorium or for the postponement of bankruptcy, or after the request for a concordat moratorium or during the period of postponement of bankruptcy.

Where an appurtenance falling within the scope of a mortgage on immovable property is removed from the immovable property with the intent to cause loss to the pledgee creditor, the possessor of the appurtenance shall be punished with imprisonment from two to four years and a judicial fine of up to one thousand days.

These offences shall be prosecuted upon the complaint of the creditor.

Penalty for a debtor who causes his own insolvency by his own acts or knowingly aggravates the deterioration of his situation:

Amended: 31/5/2005, Law No. 5358, Art. 2

Where, after the request for proceedings by way of attachment or within the two years preceding this request, the debtor causes his own insolvency by his own acts by acting with a frivolity that cannot be tolerated according to custom, or by incurring excessive expenses, or by engaging in reckless games of chance or imprudent speculation, or by committing gross negligence in his business, or, while knowing the deterioration of his situation, aggravates this deterioration through such acts, he shall, provided that a certificate of insolvency has been obtained against him or the creditor proves that he could not recover his claim, be punished with imprisonment from fifteen days to six months.

These provisions shall also apply to a debtor who commits the acts in the first paragraph within the two years preceding the request for a concordat moratorium.

This offence shall be prosecuted upon the complaint of the creditor. Creditors who have induced the debtor to incur excessive debts or to engage in games of chance and speculation, or who have taken advantage of his weakness by charging exorbitant interest, shall have no right of complaint.

Penalty for persons securing special benefits in bankruptcy and concordat matters:

Amended: 31/5/2005, Law No. 5358, Art. 3

Any person who secures or promises a special benefit to the bankruptcy office or administration, or to a creditor or his representative at the meeting of creditors, in order to obtain his vote or his consent to a concordat, shall be punished with imprisonment from six months to two years.

The creditor or his representative who obtains the benefit shall also be punished with the same penalty.

Where the offence is committed by a member of the bankruptcy office or administration, the penalty shall be increased by one half.

Liability of the manager in a commercial enterprise:

Article 333/a- Added: 17/7/2003, Law No. 4949, Art. 90; Amended: 31/5/2005, Law No. 5358, Art. 4

Where persons having de jure or de facto management authority in commercial companies cause loss to creditors, with the intent to cause loss to them, by failing to pay the debts of the commercial enterprise in whole or in part, they shall, provided that these transactions and acts do not constitute another offence, be punished upon the complaint of the creditor with imprisonment from six months to two years and a judicial fine of up to five thousand days.

Where the offence in the first paragraph is committed by negligence, a judicial fine of up to two thousand days shall be imposed on the offender, upon the complaint of the creditor, according to the gravity of the loss.

Penalty for a debtor who misleads the competent persons in a concordat or in the restructuring of capital companies and cooperatives by way of settlement, or who fails to comply with the conditions of the concordat or of the restructuring by way of settlement:

Amended: 31/5/2005, Law No. 5358, Art. 5

A debtor who, in order to obtain a concordat moratorium or to have a concordat or a restructuring project of capital companies and cooperatives by way of settlement confirmed, misleads the creditors, the commissioner, the interim auditor or the competent official as to his financial situation through fraudulent conduct and acts, or intentionally causes loss by failing to comply with the concordat project or the project for the restructuring of capital companies and cooperatives by way of settlement, shall be punished, upon the complaint of the interested party, with imprisonment from six months to one year.

Liability of the concordat commissioner:

Article 334/a- Added: 17/7/2003, Law No. 4949, Art. 92; Repealed: 31/5/2005, Law No. 5358, Art. 23

Cases in which the tenant shall be punished:

A debtor who removes or conceals goods over which the lessor's right of retention is recognised and which have been inventoried pursuant to Article 270, and a person who causes premises whose eviction has been ordered to be occupied with the intent to cause loss to the lessor, shall be punished in accordance with Article (276) of the Turkish Penal Code.

Penalties for persons who do not hand over the property of the bankrupt:

Amended: 31/5/2005, Law No. 5358, Art. 6

Third parties holding property of the bankrupt or indebted to the bankrupt who, without a valid excuse, fail within one month from the date on which they became aware of the announcement of the opening of bankruptcy to place that property at the disposal of the bankruptcy administration or to declare their debts shall be punished with a judicial fine of up to ninety days.

Penalties for persons who do not hand over property delivered to them:

Article 336/a- Added: 17/7/2003, Law No. 4949, Art. 93; Repealed: 31/5/2005, Law No. 5358, Art. 23

Failure to perform obligations:

Amended: 31/5/2005, Law No. 5358, Art. 7

Annulled paragraph one: by Constitutional Court decision of 28/2/2008, E. 2006/71, K. 2008/69

The same penalty shall also be imposed, upon a writ issued by the bankruptcy administration, on persons who contravene the provisions of Articles 162, 209 and 216. Where the obligations set out in these articles are performed, the penalty imposed shall lapse.

Penalty for persons who abandon trade:

Article 337/a – Added: 18/2/1965, Law No. 538, Art. 133; Amended: 31/5/2005, Law No. 5358, Art. 8

A debtor who fails to make a declaration of assets under Article 44, or who shows his assets as less than they are in his declaration, or who fails to produce at the time of attachment or bankruptcy property that was among his assets or the value substituted for it, or who disposes of such property after his declaration, shall be punished, upon the complaint of the creditor harmed thereby, with imprisonment from three months to one year.

No penalty shall be imposed on a debtor who proves that the creditor suffered no loss from the commission of the acts in the first paragraph.

In the event of the bankruptcy of the debtor, the situation in the first paragraph shall additionally be deemed a case of negligent bankruptcy.

Penalty for persons making declarations contrary to the truth:

Amended: 31/5/2005, Law No. 5358, Art. 9

Any person who makes a declaration required under this Law in a manner contrary to the truth shall be punished, upon the complaint of the creditor, with imprisonment from three months to one year.

Where it is established, upon the application of the creditor holding the certificate of insolvency made within five years at the latest from the attachment of his claim to the certificate of insolvency, that a debtor against whom a certificate of insolvency has been obtained maintains a standard of living above the minimum wage, the debtor is obliged to deposit with the enforcement office, within one month at the latest from the finalisation of the decision of the enforcement court and every month until the debt in the certificate of insolvency is paid, the portion of his income in excess of the minimum wage to be determined by the enforcement court, which shall not be less than one quarter. Disciplinary (coercive) imprisonment of up to one year shall be ordered against a debtor who fails to fulfil this obligation. If, after the enforcement of the imprisonment has begun, the debtor pays the whole debt or the sum he was obliged to deposit with the enforcement cash office up to that date, he shall be released; if he stops his payments again, coercive imprisonment shall be ordered against him anew. However, the duration of coercive imprisonment for one debt may not exceed one year.

The fact that the debtor receives assistance from third parties, including those owing maintenance to him, shall not remove the obligation to deposit with the enforcement cash office the portion, to be determined by decision of the enforcement court, of the money and benefits he obtains in excess of the minimum wage.

Where the application of the provision in the second paragraph has been requested by more than one creditor holding a certificate of insolvency, they shall have priority in the order of the dates of their requests.

Penalty for a debtor who does not declare an increase in property and earnings after the declaration:

Amended: 31/5/2005, Law No. 5358, Art. 10

A debtor who is obliged under this Law to declare subsequently acquired property or increases in his earnings and income and who, without a valid excuse, fails to notify the enforcement office thereof within seven days by registered letter or orally, shall be punished with disciplinary imprisonment of up to ten days if such property or earnings still exist in kind or in value; and of up to one month if he has disposed of such property or earnings, in kind or in value, without a valid reason.

These penalties shall be imposed upon the complaint of the creditor. If the person pays in full the debt that is the subject of the enforcement proceedings, the penalty shall lapse.

Penalty where the debtor breaches the payment undertaking:

Amended: 31/5/2005, Law No. 5358, Art. 11

A debtor who, without a valid reason, breaches the undertaking to pay the debt agreed upon at the enforcement office pursuant to Article 111 or with the consent of the creditor shall, upon the complaint of the creditor, be subject to a decision of coercive imprisonment of up to three months. If, after the execution of the imprisonment has commenced, the debtor pays the entire debt or the amount he was obliged to deposit with the enforcement cash office up to that date, he shall be released; if he stops his payments again, coercive imprisonment shall again be ordered against him. However, the duration of coercive imprisonment for a single debt may not exceed three months.

Penalty for disobeying an order for the handing over of a child:

Amended: 31/5/2005, Law No. 5358, Art. 12 Repealed: 24/11/2021, Law No. 7343, Art. 32

Penalty for persons who re-enter an immovable or a ship delivered by the enforcement office:

Amended: 31/5/2005, Law No. 5358, Art. 13

A debtor who, without a justified reason, re-enters an immovable or a ship delivered to the creditor or to the purchaser through the enforcement office shall be punished pursuant to Article 290 of the Turkish Penal Code No. 5237 in accordance with the general provisions.

Penalty for persons who contravene the provisions of Articles 30 and 31:

Amended: 31/5/2005, Law No. 5358, Art. 14

Debtors who, without relying on a valid excuse, contravene the provisions of a judgment concerning the performance of an act that can only be performed by themselves, or the refraining from an act, or the establishment or removal of a servitude, shall, upon the complaint of the person in whose favour the judgment was rendered, be subject to a decision of coercive imprisonment of up to three months. If the requirements of the judgment are fulfilled after the execution of the imprisonment has commenced, the debtor shall be released.

Penalty for persons who fail to comply with decisions on maintenance:

Amended: 31/5/2005, Law No. 5358, Art. 15

A debtor who fails to fulfil the requirements of decisions on maintenance shall, upon the complaint of the creditor, be subject to a decision of coercive imprisonment of up to three months. If the requirements of the decision are fulfilled after the execution of the imprisonment has commenced, the debtor shall be released.

Where the debtor has filed an action requesting the cancellation or reduction of the maintenance, the application of coercive imprisonment may, taking into account the grounds asserted by him, be deferred until the conclusion of that action.

Persons to be punished in respect of the transactions of legal persons:

Where the offences set out in this Law are committed in the course of the management or the conduct of the transactions of a legal person, the penalty shall be imposed on whichever of the managers, representatives and agents, liquidators, chairman and members of the board of directors, or auditors and inspectors of that legal person committed the act

Second paragraph repealed: 29/6/1956, Law No. 6763, Art. 42

Penalty for persons obliged to request the bankruptcy of capital companies:

Article 345/a: Added: 18/2/1965, Law No. 538, Art. 137; Amended: 31/5/2005, Law No. 5358, Art. 16

Persons entrusted with management and representation, or liquidators, who fail to request the bankruptcy of the company by declaring that the assets of the company do not cover its debts in accordance with Article 179 shall, upon the complaint of one of the creditors, be punished with imprisonment from ten days to three months.

Withdrawal from an auction:

Article 345/b: Added: 9/11/1988, Law No. 3494, Art. 59; Amended: 31/5/2005, Law No. 5358, Art. 17

In tenders conducted under this Law, a person who withdraws from an auction or does not participate in an auction in return for a benefit promised or provided to himself or to another shall be sentenced to imprisonment of up to one year and a judicial fine of up to one thousand days.

The same penalty shall be imposed on intermediaries.

Jurisdiction and prohibition of joinder:

Amended: 31/5/2005, Law No. 5358, Art. 18

Disciplinary or coercive imprisonment under the provisions of this Law shall be ordered by the enforcement court.

These matters falling within the jurisdiction of the enforcement court may not be joined with criminal actions heard before other courts.

Actions concerning the offences set out in this Chapter shall be heard by the enforcement court.

Time limit for complaint:

Amended: 31/5/2005, Law No. 5358, Art. 19

The right to file a complaint in respect of the acts set out in this Chapter shall lapse upon the expiry of three months from the date on which the act became known and, in any event, of one year from the date on which the act was committed.

Venue:

Amended: 31/5/2005, Law No. 5358, Art. 20

The competent enforcement court in respect of the acts set out in this Chapter is the court at the place where the enforcement proceedings were conducted.

Rules of procedure:

The complaint shall be made by petition or by oral statement. The enforcement court receiving the petition or the statement of claim shall immediately set a day for the hearing, obtain the signature of the complainant and send a summons to the accused. If witnesses have been named, they shall also be summoned.

Both parties are obliged to appear before the enforcement court on the day and at the hour set, or to send a representative.

Where necessary, the enforcement court may order the parties to be present in person.

If the accused resides elsewhere, he shall be interrogated by way of letters rogatory.

If the accused does not appear before the enforcement court that received the complaint or to which letters rogatory were addressed, or does not send defence counsel, or if his presence in person is deemed necessary, he shall be brought by the police. If he cannot be brought in this manner either, the trial shall be conducted in his absence.

If the complainant does not appear at the specified time and does not send a representative either, the right to complain shall lapse.

The provisions of the Code of Criminal Procedure shall apply to the treatment of witnesses who fail to appear and to requests for restitution to the former state (restitutio in integrum) against a decision rendered in the absence of the debtor.

Hearing:

The enforcement court shall hear both parties and their evidence and shall record the statements of both the parties and the witnesses in the minutes of the hearing.

The Public Prosecutor shall not be required to be present.

Investigation:

The complainant is bound by the evidence indicated in his petition or statement.

The accused may request the extension of the investigation for his defence only once.

Decision:

After hearing the statements of both parties and all of their evidence, claims and defences, the enforcement court shall render its decision within five days at the latest and shall notify a summary thereof to the Public Prosecutor.

Added paragraph: 17/7/2003, Law No. 4949, Art. 99 In offences the prosecution of which is subject to a complaint, the decision shall state that the action and the penalty shall lapse on the grounds set out in Article 354.

Penal order:

Article 352/a: Added: 17/7/2003, Law No. 4949, Art. 100; Repealed: 31/5/2005, Law No. 5358, Art. 23

Article 352/b: Added: 6/6/1985, Law No. 3222, Art. 44; Repealed: 31/5/2005, Law No. 5358, Art. 23

Objection:

Amended: 31/5/2005, Law No. 5358, Art. 21

Amended first paragraph: 31/3/2011, Law No. 6217, Art. 5 An objection may be lodged against decisions of the enforcement court on coercive and disciplinary imprisonment (…)131 within two weeks from the date of service. For the examination of the objection, the court shall send the file, where there is more than one division of the enforcement court at that place, to the division following it in number, and for the last-numbered division, to the first division; where there is a single division of the enforcement court at that place, to the criminal court of first instance; and where the judge of the enforcement court and the judge of the criminal court of first instance are the same judge, to the nearest criminal court of first instance. The decision rendered upon the examination of the objection is final.

With respect to judgments rendered by the enforcement court for the offences set out in this Chapter, the provisions on legal remedies of the Code of Criminal Procedure No. 5271 dated 4.12.2004 shall apply.

Where, among the offences set out in this Chapter of the Law, those the prosecution of which is subject to a complaint are concerned, if the complainant waives the complaint or if it is established that the debt has been discharged, the action and the penalty together with all of its consequences shall lapse.

Repealed second paragraph: 17/7/2003, Law No. 4949, Art. 103

Added paragraph: 31/5/2005, Law No. 5358, Art. 22 A decision of the enforcement court on coercive or disciplinary imprisonment rendered under the provisions of this Chapter shall not be executed after two years have elapsed from the date on which it became final.

Added paragraph: 31/3/2011, Law No. 6217, Art. 6 Except for proceedings relating to maintenance claims, the disciplinary and coercive imprisonment provided for in this Law shall not be applied in proceedings where the amount of the claim is below the highest monthly gross minimum wage determined each year by the Minimum Wage Determination Commission.

CHAPTER SEVENTEEN

Special provisions

Procedure for deductions from salaries and wages:

The legal addressees of the notifications to be made by enforcement offices for deductions from the salaries and wages of debtor officials or employees working in State service or in private establishments are obliged to report, within one week at the latest, that the attachment has been executed and the amount of the debtor's salary and wage, and, until the debt is paid off, to withhold the attached amount in accordance with the notification of the enforcement office and send it immediately to the office.

The finance officer or the head of the office, or the legal addressees of private establishments, are obliged to notify the enforcement office immediately of any changes in the official's salary, wage or position, or changes that would entail receiving a salary from another branch, and, where his service is terminated, of that fact as well, and, in the second case, to inform that branch or its head of the attachment procedure.

Provisions concerning persons who fail to comply with the preceding article:

The money that persons who have failed to comply with the provisions of the preceding article did not deduct or did not send by the first means shall be collected by the enforcement office from their salaries or other property without the need to obtain a separate judgment from a court.

They have a right of recourse against the debtor in accordance with the provisions of the law.

It is the duty of the office to which any official or head who fails to comply with the provisions of the preceding article belongs to provide the enforcement office immediately with the information requested about them.

Prosecution by the public prosecutor's office:

Those concerned are obliged to carry out immediately the notifications and orders made by the enforcement office in accordance with the law and to report the result to the enforcement office without delay. Persons who fail to carry out notifications and orders without a valid reason shall be prosecuted directly by the Public Prosecutor's Office, without the need for a preliminary investigation by the office to which they belong.

Property left with a third party:

A third party is obliged to return, in its former condition, property attached in enforcement and left with him, at the moment it is requested by the enforcement office.

In respect of a third party who cannot prove that property so left in his hands perished or was lost for a reason not attributable to him, in addition to criminal prosecution, the previously determined values shall be ex officio made good by him through the enforcement office without the need for a judgment.

Those liable to make good such values may file a complaint with the enforcement court against the request and decision of the enforcement office in this respect within the time limit specified in Article 16.

Correspondence of enforcement offices:

Enforcement officers may correspond directly with any office and authority in respect of the procedures they carry out.

Sale of attached property by way of letters rogatory:

Where the attached property is located in another place, the sale shall be conducted by way of letters rogatory. Disputes relating to the auction and the tender shall be resolved by the enforcement court to which the enforcement office to which the letters rogatory were addressed is subject.

Recovery of money paid in excess:

If it is understood upon accounting that the enforcement offices collected excess money from the debtor and paid it to the creditor, or paid money to a party by mistake, the money paid shall be recovered from that person without the need for a separate judgment.

Limitation regarding deposits:

If money deposited with the enforcement cash office or collected by the office, or goods kept in custody by reason of enforcement proceedings, are not claimed by those concerned within ten years from the date of deposit, collection or custody, the right to claim shall lapse in favour of the Treasury.

Attachment of movable and immovable property of private schools and private student dormitories and similar institutions:

ARTICLE 362/a: Added: 9/5/2018, Law No. 7141, Art. 1

The movable and immovable property of schools operating within the scope of the Private Education Institutions Law No. 5580 dated 8/2/2007, and of dormitories and similar institutions providing private student accommodation services operating within the scope of the Law No. 5661 dated 24/3/1950 Supplementary to the Law on Higher Education Student Dormitories and Canteens, shall, except in proceedings conducted under the Law No. 6183 on the Procedure for the Collection of Public Receivables, be attached at the end of the current education and training year.

Amended: 2/3/2005, Law No. 5311, Art. 24

An appeal (istinaf) may be lodged against the decisions of the enforcement court, other than its decisions on the manner of application of Article 85, the attorney's fee calculated by the enforcement office, the manner of application of Article 103 and the content of the invitation regulated in that article, the fee of the custodian, the replacement of the custodian, the manner of safekeeping of attached movable property, complaints concerning valuation, the deposit of security in order to participate in the tender and the amount of the security, the suspension of the sale, the annulment of the sale announcement, the cancellation of the sale due to failure to request the sale within the time limit, the manner of application of Article 263, the formation of the bankruptcy administration, decisions rendered by the enforcement court upon a complaint concerning the acts of the bankruptcy administration, the account statement concerning the fees and expenses of the bankruptcy administrator, and the stay of enforcement under Article 36, provided that the value or amount of the claim, right or property concerned exceeds seven thousand Turkish liras. The time limit for lodging an appeal (…)135 is two weeks from the date of service.

If it is understood that an appeal has been lodged against decisions of the enforcement court in bad faith, such as to prolong the proceedings, the provision of Article 422 of the Code of Civil Procedure shall apply.

The provision of the preceding paragraph shall also apply to persons who lodge an appeal in bad faith against a final decision.

Lodging an appeal shall not stay enforcement procedures other than the sale. The documents required for the continuation of enforcement shall be retained and a copy of each shall be placed in the file to be sent to the regional court of appeal.

Amended: 2/3/2005, Law No. 5311, Art. 25

An appeal on points of law (temyiz) may be lodged against final decisions rendered by the civil chambers of the regional courts of appeal whose amount or value exceeds fifty-eight thousand eight hundred Turkish liras.

Amended sentence: 2/3/2024, Law No. 7499, Art. 3 An appeal on points of law may be lodged against the decisions specified in the first paragraph within two weeks from the date of service; the lodging and examination of the appeal on points of law shall be carried out in accordance with the provisions of the Code of Civil Procedure. In this case as well, the provisions of the second and third paragraphs of Article 363 shall apply.

Lodging an appeal on points of law shall not stay enforcement procedures other than the sale.

Amended: 2/3/2005, Law No. 5311, Art. 26

If the appeal is lodged after the expiry of the statutory time limit, or relates to a decision against which no appeal may be lodged, or to the dismissal of an objection or complaint due to withdrawal, or to a complaint filed out of time, the request shall be dismissed by the enforcement court in accordance with the relevant provisions of the Code of Civil Procedure.

If the person lodging the appeal does not accept the dismissal decision, the appeal petition shall, after being served on the other party, be sent to the competent regional court of appeal together with a copy of the decision and, if submitted, the response petition. However, in this case no enforcement procedure, including the sale, shall be stayed.

The regional court of appeal shall not return an application that falls within the scope of the first paragraph but has not been dismissed, and shall directly render a final decision thereon.

Amended: 2/3/2005, Law No. 5311, Art. 27

Appeal and appeal on points of law examinations shall be carried out in accordance with the Code of Civil Procedure and shall be decided within fifteen days.

If the person concerned so requests and pays or sends the fee, a summary of the decision shall be notified to the locality by the fastest means.

A decision of resistance may be rendered in accordance with the general provisions against the decisions of the civil chamber of the Court of Cassation dealing with enforcement and bankruptcy matters. Decisions of resistance shall be deemed urgent matters before the Assembly of Civil Chambers.

Upon a reversal decision of the Court of Cassation, or upon decisions of the regional court of appeal on annulment, on correction, or rendered anew on the merits, the provision of Article 40 shall apply by analogy in enforcement and bankruptcy matters.

Obligation to provide information on the debtor's assets:

Every natural and legal person is obliged to provide immediately all information that the enforcement or bankruptcy offices may request concerning the debtor's assets and, upon request, to deliver such assets to these offices.

Repealed laws:

Articles 69 and 71 of the Notaries Law, the provisions of the Regulation on the Lease of Real Property and the Law supplementary thereto concerning the eviction of the lessee, the provisions of special laws and regulations concerning the realisation of pledges other than the matters accepted by Article 49, the Enforcement and Bankruptcy Law No. 1424 and the laws and provisions repealed by Article 342 of the said law, and Law No. 1425 are repealed.

Added: 17/7/2003, Law No. 4949, Art. 102

The monetary limits in Articles 119, 226, 326, 363 and 364 of this Law shall be applied, effective from the beginning of each calendar year, by increasing the monetary limits applied in the preceding year by the revaluation rate determined and announced each year by the Ministry of Finance for that year pursuant to the provisions of repeated Article 298 of the Tax Procedure Law No. 213. Portions of the limits so determined that do not exceed one thousand Turkish liras shall be disregarded.

Amended second paragraph: 24/12/2025, Law No. 7571, Art. 3 In applying the monetary limits in Articles 363 and 364, the amount on the date on which the complaint was filed or the action was brought shall be taken as the basis.

Added paragraph: 7/11/2024, Law No. 7531, Art. 2 Repealed third paragraph: 4/6/2025, Law No. 7550, Art. 1

Added: 6/2/2014, Law No. 6518, Art. 2

Within the framework of the “Convention on International Interests in Mobile Equipment” and the “Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment”, signed on behalf of the Republic of Türkiye in Cape Town on 16/11/2001 and whose ratification was approved by Law No. 6192 dated 10/3/2011, the chargee exercising its rights under subparagraph (a) of paragraph 1 of Article 8 of the “Convention on International Interests in Mobile Equipment” and the conditional seller or lessor exercising its rights under subparagraph (a) of paragraph 1 of Article 10 thereof may, without any court decision being required, apply to the Ankara Enforcement Office with the registration certificate to be issued by the Directorate General of Civil Aviation showing that it is the right holder, and request the performance of the right it has chosen.

Upon the request, without any further investigation, the enforcement director shall render a decision on the transfer of possession or control of the object over which the security has been created in favour of the right holder, and the decision shall be served on the debtor. If the debtor party does not comply with this order within three working days from the date of service, the enforcement director shall send the decision he has rendered to the Directorate General of Civil Aviation so that it may take the necessary action within the framework of the said Articles 8 and 10 of the Convention.

For procedures carried out by the Enforcement Office under this article, no tax, duty or fee shall be charged other than a fixed fee of 10,000 Turkish liras in accordance with the provisions of the Fees Law No. 492. Fees and expenses shall be borne by the requesting party.

The principles and procedures relating to the acts and procedures to be carried out by the Enforcement Office within the framework of the Convention and the Protocol and to the proceedings shall be regulated by a regulation to be issued by the Ministry of Justice and the Ministry of Transport, Maritime Affairs and Communications.

Added: 3/11/2016, Law No. 6754, Art. 19

Experts to be appointed under this Law shall be selected from the lists prepared by the regional expert boards, and the provisions of the Expert Witness Law and other relevant laws shall apply to them.

This is the unnumbered provisional article of Law No. 2004 itself and has been numbered for the sake of sequence.

1 – The scope of application of the 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 attachments imposed, or to requests made for the realisation of pledges, before the entry into force of this Law.

3 – The provisions of the second chapter concerning the enforcement of judgments shall also cover judgments submitted for enforcement before the entry into force of this Law.

4 – Precautionary or executory attachments imposed on immovables before 4 September 1929 shall be lifted automatically if no transaction or proceeding whatsoever has been carried out on them by 4 September 1932.

Those whose proceedings and transactions are pending and not yet concluded shall be subject to the provisions of this Law after the said date.

5 – Where liquidations relating to bankruptcy decisions rendered before 4 September 1929 have not been concluded by 4 September 1932, their files shall be transferred to the bankruptcy offices. The offices shall continue the liquidation in accordance with the provisions of the eighth chapter of this Law.

6 – The provisions concerning Treasury receivables that have been collected, pursuant to Articles 6 and 23 of the General Budget Law for the year 1341, from land free of buildings that became part of national property under the laws dated 13 September 1331 and 15 April 1339 shall remain in force.

7 – For money deposited with the enforcement cashier or collected by the office before the publication of this Law, and for goods kept in custody by reason of enforcement proceedings, the owners' right to claim shall not lapse until three years have elapsed from the entry into force of this Law, even if ten years have passed since the date of deposit, collection or custody.

Added: 9/11/1988, Law No. 3494, Art. 62

In this Law and in other laws and decrees having the force of law, the title of enforcement officer has been changed to “enforcement director”, the title of assistant enforcement officer to “assistant enforcement director” and the title of bankruptcy officer to “bankruptcy director”. Those concerned need not be reappointed by reason of this change. They shall continue to receive supplementary payments on the basis of their former titles until their new titles are included in the supplementary payment decrees.

Added: 17/7/2003, Law No. 4949, Art. 105

In Enforcement and Bankruptcy Law No. 2004, the expressions “enforcement president”, “assistant enforcement judge” and “enforcement judgeship” have been changed to “judge of the enforcement review authority”; and the expressions “ikametgâh” (residence), “menkul” (movable), “gayrimenkul” (immovable) and “teferruat” (accessories) have been changed respectively to “yerleşim yeri” (domicile), “taşınır” (movable), “taşınmaz” (immovable) and “eklenti” (appurtenance).

Added: 17/7/2003, Law No. 4949, Art. 105

Until depots and garages are opened by the Ministry of Justice or the Foundation for Strengthening the Judicial Organisation for the safekeeping of attached goods, the relevant regulation and fee tariffs issued by the Ministry of Justice shall continue to be applied in private depots and garages.

Added: 17/7/2003, Law No. 4949, Art. 105 Of Enforcement and Bankruptcy Law No. 2004 as amended by this Law:

1- the provisions amending Articles 4, 13, 26 and 250 and the fourth and fifth paragraphs of Article 88, three months after the entry into force of the Law,

2- the provision amending Article 14, six months after the entry into force of the Law,

3- the provision amending Article 18, with respect to complaints made after the entry into force of the Law,

4- the provisions amending Articles 24, 79, 85, 92 and 94 and the second and third paragraphs of Article 88, in attachments carried out after the entry into force of the Law,

5- Article 25/b, in handovers of children and in the establishment of personal relations with children where the judgment is to be enforced compulsorily after the entry into force of the Law,

6- the provision amending Article 30, in acts of the debtor nullifying the judgment that occur after the entry into force of the Law,

7- the provision amending Article 32, in enforcement orders to be sent after the entry into force of the Law,

8- the provision amending Article 44, in declarations of assets to be made after the entry into force of the Law,

9- the provisions amending Articles 58 and 269/a, in proceedings initiated after the entry into force of the Law,

10- the provisions amending Articles 62, 67, 68/a and 170, in objections made after the entry into force of the Law,

11- the provision amending Article 63, in hearings for the removal of objection held after the entry into force of the Law,

12- the provision amending the first sentence of the last paragraph of Article 68, to requests for the removal of objection made after the entry into force of the Law,

13- Amended: 12/2/2004, Law No. 5092, Art. 10 the provision amending Article 68/b, in account statements and notices sent after the entry into force of the Law,

14- the provision amending the third paragraph of Article 89, in attachments in respect of which, on the date of entry into force of the Law, the second notice under the former rules had not yet been sent, or had been sent but the time limit for bringing an action for negative declaratory judgment had not yet expired; the provision amending the fifth paragraph, in actions to be brought where the second attachment notice had been sent under the former rules and the time limit for bringing an action for negative declaratory judgment had expired,

15- the provision amending Article 91, in changes of possession occurring after the entry into force of the Law,

16- the provision amending Article 111, also in contracts concluded before the entry into force of the Law,

17- the provisions amending Articles 114, 115, 116, 126 and 129, in sales to be made after the entry into force of the Law whose announcement text had not yet been sent to the Press Advertising Agency on the date of entry into force of the Law,

18- the provisions amending Articles 118, 119, 130 and 133, in sales to be made after the entry into force of the Law,

19- the provisions amending Articles 128 and 128/a, in valuations made after the entry into force of the Law,

20- the provision amending Article 134, in requests for annulment of the tender made after the entry into force of the Law,

21- the provision amending Article 142/a, in ranking schedules drawn up after the entry into force of the Law or in ranking schedules that were the subject of a complaint and/or objection pending 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, six months after the entry into force of the Law; the provision amending the sixth paragraph of Article 143, as from the entry into force of the Law,

23- the provision amending Article 148/a, in the registration in the land register of mortgage agreements to be concluded after the entry into force of the Law,

24- the provisions amending Articles 150/b and 150/ı, in proceedings by way of realisation of pledge initiated after the entry into force of the Law,

25- the provision amending Article 166, in bankruptcy decisions rendered after the entry into force of the Law,

26- the provisions amending Articles 168 and 170/b, in proceedings by way of attachment specific to negotiable instruments initiated after the entry into force of the Law,

27- the provision amending Article 169/a, in objection proceedings pending at the time the Law entered into force,

28- the provision amending Article 179, in requests for postponement of bankruptcy made after the entry into force of the Law,

29- Articles 179/a and 179/b, in requests for postponement of bankruptcy pending at the time the Law entered into force,

30- the provision amending Article 185, in bankruptcy liquidations ongoing at the time the Law entered into force,

31- the provision amending Article 206, in ranking schedules to be drawn up after the entry into force of the Law,

32- the provision amending Article 222, in first meetings of creditors to be held after the entry into force of the Law,

33- the provision amending Article 223, in meetings of the bankruptcy administration to be held after the entry into force of this Law,

34- the provision amending Article 226, in settlements and arbitrations made after the entry into force of the Law,

35- the provision amending Article 250, in distribution schedules drawn up after the entry into force of the Law or in distribution schedules that were the subject of a complaint pending at the time the Law entered into force,

36- the provision amending the first sentence of the second paragraph of Article 251, six months after the entry into force of the Law with respect to the first and seventh paragraphs of Article 143 to which it refers, and as from the entry into force of the Law with respect to the sixth paragraph of Article 143 to which it refers; and the fourth sentence added to the second paragraph of Article 251, as from the entry into force of the Law,

37- the provisions amending Articles 257, 258, 261, 264, 265 and 268, in requests for precautionary attachment made after the entry into force of the Law,

38- the provision amending Article 280, also in actions for annulment brought before the entry into force of the Law and still pending,

39- the provisions amending Articles 285, 286, 287, 288, 289, 290, 291, 292, 296, 297, 298, 300, 301, 302, 303 and 309, together with the provisions of Articles 298/a and 309/a to 309/l introduced by this Law, in requests for concordat made after the entry into force of the Law,

40- the provisions amending Articles 318, 323 and 326, together with the provision of Article 329/a, in requests for extraordinary respite made after the entry into force of the Law,

shall apply.

Added: 12/2/2004, Law No. 5092, Art. 11

In this Law, the expressions “enforcement review authority”, “review authority” and “authority” have been changed to “enforcement court”; and the expressions “enforcement authority judge” and “authority judge” have been changed to “enforcement judge”. References made in various legislation to the enforcement review authority and its judge shall be deemed to have been made to the enforcement court and its judge.

Added: 2/3/2005, Law No. 5311, Art. 29

With respect to decisions rendered before the date on which the regional courts of appeal commence their duties pursuant to provisional Article 2 of Law No. 5235 dated 26.9.2004 on the Establishment, Duties and Powers of First Instance Courts of Ordinary Jurisdiction and Regional Courts of Appeal, the provisions of the Enforcement and Bankruptcy Law on appeal to the Court of Cassation and on rectification of decision, as they stood before the amendment made by this Law, shall apply until such decisions become final.

Added: 21/2/2007, Law No. 5582, Art. 6

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 proceedings for the collection of receivables arising from housing finance as defined in the first paragraph of Article 38/A of Capital Markets Law No. 2499 and of receivables of the Housing Development Administration secured by pledge, the valuation of, or the expert examination concerning, the immovable may be carried out not only by persons or institutions authorised to engage in real estate appraisal activities pursuant to subparagraph (r) of the first paragraph of Article 22 of the Capital Markets Law but also by other specialist experts.

Added: 2/7/2012, Law No. 6352, Art. 38

In order for payment to be made pursuant to the second paragraph of Article 9, the bank account number must be notified by the person concerned within six months from the date on which the said article enters into force.

Added: 2/7/2012, Law No. 6352, Art. 38

With respect to enforcement proceedings initiated before the date on which the relevant provisions of this Law enter into force, the provisions in force before the amendment shall continue to apply.

Added: 2/7/2012, Law No. 6352, Art. 38

The Ministry of Justice shall complete all legal and technical infrastructure required under the fifth paragraph of Article 88 within one year from the date on which the said article enters into force. Until licensed custodian depots become operational, safekeeping operations shall continue in the existing depots and garages in that locality within the framework of the existing regulation and fee tariffs.

For goods kept in existing depots and garages whose safekeeping is no longer legally necessary, the enforcement director shall ex officio notify the person concerned to take delivery of them within one month from the date on which the said article enters into force.

If service cannot be effected on the person concerned or the goods are not taken back within the time limit given, the sale shall be carried out within three months in accordance with the sixth paragraph of Article 88.

However, if the sale cannot be made, ownership of the goods may be transferred to the custodian, by way of set-off against the custodian's receivable, on the basis of the value determined by a valuation commission chaired by an enforcement director to be designated by the Ministry of Justice and composed of one person each nominated by the district governorship, the municipality, the presidency of the local bar association and the chamber of commerce; if the commission decides that the goods have no remaining economic value, they shall be destroyed by means of a record.

Any surplus remaining from the price of the goods sold or whose ownership has been transferred, after deduction of safekeeping and other costs, shall be paid to the person concerned upon request.

Added: 15/7/2016, Law No. 6728, Art. 6

The provisions amended by the Law introducing this article shall apply to requests for postponement of bankruptcy made after the date on which this article enters into force.

A decision to be rendered on a request for extension made on the basis of a decision on postponement of bankruptcy rendered before the date on which this article enters into force shall also be subject to the legal remedy applicable to the decision rendered on the request for postponement of bankruptcy.

Persons appointed as trustees in files pending on the date on which this article enters into force shall be notified to the presidencies of the justice commissions of the first instance courts of ordinary jurisdiction within ten days from the date on which this article enters into force. Trustees whose duties continue in more than three files shall not be given new assignments.

Added: 15/8/2017, Decree-Law No. 694, Art. 9; adopted without amendment: 1/2/2018, Law No. 7078, Art. 9

In matters falling within the jurisdiction of the administrative courts, with respect to enforcement proceedings without judgment initiated before the date on which this article enters into force, the enforcement director shall, upon request, render a decision of discontinuance on the file pursuant to the third paragraph of Article 42, and the decision shall be served ex officio on the creditor. The creditor may file a complaint within seven days from service of the discontinuance decision. An action may be brought before the administrative judicial authority within thirty days from the discontinuance decision becoming final. The proceedings may not be continued until the decision rejecting the request for discontinuance or accepting the complaint against the discontinuance decision becomes final.

In actions for annulment of objection or for removal of objection brought in respect of enforcement proceedings without judgment within the scope of the first paragraph, a decision that there is no need to render a decision shall be given upon request. The proceeding and litigation costs and attorney's fees incurred by the parties shall be borne by themselves. Upon this decision becoming final, the enforcement file shall be returned to the enforcement directorate and action shall be taken on the proceedings in accordance with the first paragraph.

Added: 28/2/2018, Law No. 7101, Art. 46

The provisions in force on the date of the request shall continue to apply to requests for postponement of bankruptcy and for concordat pending on the date on which this article enters into force.

The Council of Judges and Prosecutors shall, within two weeks from the date on which this article enters into force, designate the commercial courts of first instance specialised in bankruptcy and concordat matters, within the scope of its power of designation under the fifth paragraph of Article 5 of Law No. 5235 dated 26/9/2004 on the Establishment, Duties and Powers of First Instance Courts of Ordinary Jurisdiction and Regional Courts of Appeal.

Added: 6/12/2018, Law No. 7155, Art. 17

The provisions in force on the date of the request shall continue to apply to requests for concordat pending on the date on which this article enters into force.

Until the list of commissioners is established pursuant to the fifth paragraph of Article 290, commissioners shall be appointed without regard to the procedure of appointment from the list. For the purpose of monitoring the prohibition on a person serving simultaneously as commissioner in more than five files, the temporary commissioners and commissioners appointed shall be notified to the regional expert witness board of the regional court of appeal to which the court is attached.

Added: 20/2/2019, Law No. 7165, Art. 3

With respect to final decisions rendered from 2/12/2016 until the date on which this article enters into force, the threshold for applying for the remedy of appeal to the Court of Cassation set out in the first paragraph of Article 364 shall be applied as forty thousand Turkish liras.

Added: 9/6/2021, Law No. 7327, Art. 8

Until the list of bankruptcy administration officers is established pursuant to the sixth paragraph of Article 223, bankruptcy administration officers shall be appointed without regard to the procedure of appointment from the list. For the purpose of monitoring the prohibition on a person serving simultaneously as officer in more than five files, the bankruptcy administration officers appointed shall be notified to the regional expert witness board of the regional court of appeal to which the enforcement court is attached.

Added: 24/11/2021, Law No. 7343, Art. 33

The regulation on the implementation of Article 111/b and the tariff required to be issued pursuant to Article 106 shall be issued within six months from the date of entry into force of the Law introducing this article.

The application of the amendments made by the Law introducing this article to Articles 87, 88, 106, 110, 111/b, 114, 115, 118, 124, 126, 127, 129, 130, 133, 242 and 244 and to the ninth and tenth paragraphs of Article 134 shall commence in the provinces or districts determined by the Ministry of Justice from the date of entry into force of the regulation on the implementation of Article 111/b, and these amendments shall be applied nationwide by the end of one year at the latest. The date on which the amendments will be applied in each province or district shall be announced on the official website of the Ministry of Justice. In applying these amendments, the following principles shall be taken into account:

1. In provinces and districts where implementation has started, the provisions of Articles 87, 106 and 110 as amended by the Law introducing this article shall apply to goods attached after the transition date. For goods attached before the transition date, the provisions in force before the amendments and the repealed provisions shall continue to apply.

2. In provinces and districts where implementation has started, Articles 88, 114, 115, 118, 124, 126, 127, 129 and 130 as amended by the Law introducing this article, the ninth and tenth paragraphs of Article 134 and the newly introduced Article 111/b shall apply to public auctions to be announced after the transition date. For public auctions announced before the transition date, the provisions in force before the amendments and the repealed provisions shall continue to apply.

3. In provinces and districts where implementation has started, with regard to sales relating to the realisation of a pledge on movables or of a mortgage, bankruptcy liquidation and the dissolution of co-ownership, the provisions amended and introduced by the Law introducing this article shall apply to public auctions to be announced after the transition date. For public auctions announced before the transition date, the provisions in force before the amendments and the repealed provisions shall continue to apply.

4. The provisions amended and introduced by the Law introducing this article shall also apply to public auctions in which the tender could not be concluded following an announcement made before the transition date and whose resale has been requested.

In cases where a sale was requested before the date of entry into force of the tariff to be issued pursuant to Article 106 but the costs of valuation and of safekeeping and sale were not paid in full, it is mandatory to pay the costs determined in the tariff within one year from the date of entry into force of that tariff. If the costs are not paid in advance within this period, the request for sale shall be deemed not to have been made.

The amendments made to Article 134 by the Law introducing this article shall not apply to requests for annulment of the tender pending before first instance courts, regional courts of appeal and the Court of Cassation on the date on which this article enters into force. However, the provision concerning conviction to a fine of up to ten per cent of the tender price shall also apply to pending requests for annulment of the tender. For files at the stage of review on appeal to the Court of Cassation, the amendment concerning the rate of the fine may not by itself constitute a ground for reversal. The Court of Cassation may correct the judgment by applying the amendment.

Added: 28/3/2023, Law No. 7445, Art. 5

Article 79/a, added to the Law by the Law introducing this article, shall not apply to decisions on carrying out attachment in a dwelling rendered before the date on which this article enters into force. The provisions in force before this amendment shall continue to apply to decisions on attachment in a dwelling rendered before the date of entry into force of this amendment.

The amendments made by the Law introducing this article to subparagraph (3) of the first paragraph and to the second paragraph of Article 82 of the Law shall not apply to goods attached before the date on which this article enters into force. The provisions in force before these amendments shall continue to apply to goods attached before the date of entry into force of these amendments.

Added: 28/3/2023, Law No. 7445, Art. 6 Annulled by Constitutional Court decision of 27/3/2025, E. 2024/205, K. 2025/88

Entry into force:

This Law shall enter into force on 4 September 1932.

Those charged with the execution of the Law:

The Council of Executive Commissioners (İcra Vekilleri Heyeti) shall execute the provisions of this Law.

PROVISIONS THAT COULD NOT BE INCORPORATED INTO THE ENFORCEMENT AND BANKRUPTCY LAW

NO. 2004 DATED 9/6/1932

1. Provisional articles of Law No. 538 dated 18/2/1965:

The provisions of the former law shall apply until the completion of whatever stage the enforcement proceedings are at on the date this Law enters into force.

The creditor's request and the issuance of the payment order, together with the objection and the removal of the objection, constitute the first stage; attachment and the acts completing the attachment constitute the second stage; conversion into money constitutes the final stage.

In proceedings conducted by way of bankruptcy, the period elapsing until the bankruptcy decision becomes final shall be deemed the first stage, and the subsequent period the second stage.

Where a concordat moratorium was granted before the entry into force of this Law, the provision of the last paragraph of former Article 285 of the Law shall apply.

Third-party ownership claim (istihkak) actions shall be subject to the provisions of the law in force on the date the attachment was executed; actions for annulment shall be subject to the provisions of the law in force on the date the acts whose annulment is sought were performed.

The provisions of Article 72 shall apply, after this Law enters into force, to all enforcement proceedings conducted by way of attachment and by way of realisation of pledge.

The Ministry of Justice shall ensure that the Official Decisions Journal referred to in the second paragraph of Article 14 is issued within one year at the latest following the publication of this Law.

2. Provisional article of Law No. 3222 dated 6/6/1985:

Provisional Article: The provisions of the Enforcement and Bankruptcy Law amended by this Law shall also apply to events and transactions prior to the entry into force of the Law.

However, the provisions of this Law which amend the following provisions of the Enforcement and Bankruptcy Law:

a) The provisions amending Articles 59, 62, 162 and 168, to enforcement proceedings to be initiated after the entry into force of the Law,

b) The provisions amending Articles 68 and 68 a, to objections to be made after the entry into force of the Law,

c) The provision amending Article 78, to instalment agreements to be concluded after the entry into force of the Law,

d) The provision amending Article 79, to complaints to be filed after the entry into force of the Law,

e) The provisions amending Articles 116, 129 and 133, to sales to be conducted upon sale requests made after the entry into force of the Law,

f) The provision amending Article 135, to sales that become final after the entry into force of the Law,

g) The provision amending Article 221, to meetings of creditors to be held after the entry into force of the Law,

h) The provision amending Article 223, to elections of bankruptcy administrators to be held after the entry into force of the Law and to the fees to be accrued,

ı) The provisions amending Articles 166, 219, 234, 240, 288, 292, 296 and 300, to announcements to be made after the entry into force of the Law,

j) The provision amending Article 302, to decisions to be rendered after the entry into force of the Law,

k) The provisions amending Articles 337, 338, 340, 341 and 343, and the provision of Article 352 a introduced by this Law, to offences to be committed after the entry into force of the Law,

l) The provision amending Article 363, to appeals to the Court of Cassation to be lodged against decisions to be rendered after the entry into force of the Law,

shall apply.

3. Provisional article of Law No. 3494 dated 9/11/1988:

Provisional Article: The provisions of this Law concerning interest which amend Articles 195 and 196 of the Enforcement and Bankruptcy Law shall apply as of the date of entry into force of this Law.

Furthermore, the provisions of this Law:

a) Amending Articles 67, 68, 68/a and 169/a, to objections and complaints made after the entry into force of the Law,

b) Amending Articles 69, 72, 89, 97, 158, 160, 164, 165, 173, 177, 178, 269/b, 275 and 345/b, in actions filed after the entry into force of the Law,

c) Amending Articles 83/c, 85, 91 and 103, to attachment procedures carried out after the entry into force of the Law,

d) Amending Articles 150/d and 170/a, to enforcement proceedings initiated before the entry into force of the Law,

e) Amending Articles 116, 118, 124, 126, 129, 133 and 134, to sales conducted after the entry into force of the Law,

f) Amending Article 221, at the first meeting of creditors held after the entry into force of the Law,

g) Amending Article 287, to concordat requests made after the entry into force of the Law,

h) Amending Articles 227, 288 and 363, to appeals to the Court of Cassation lodged against decisions rendered after the date of entry into force of the Law,

i) Amending Article 111, to instalment agreements concluded before the entry into force of the Law,

j) Amending Articles 168 and 170, to enforcement proceedings initiated after the entry into force of the Law,

k) Amending Articles 193 and 194, to bankruptcies opened after the entry into force of the Law,

l) Amending Articles 208, 219, 232, 233, 235 and 237, to bankruptcies opened before the entry into force of this Law,

m) Amending Articles 278, 279 and 280, to dispositions and annotations made after the entry into force of this Law,

n) Amending Articles 127, 128, 150/g and 166, to events and transactions after the entry into force of the Law,

o) Amending Articles 68/b and 150/ı, to enforcement proceedings initiated after 2 May 1985,

shall apply.

4. Provisional article of Law No. 4578 dated 8/6/2000:

The provision of Law No. 2004 amended by this Law shall apply to actions and matters to be initiated after the entry into force of the Law.

5. Article 104 of Law No. 4949 dated 17/7/2003:

The procedures and principles concerning the application of Articles 309/a to 309/l of Law No. 2004 shall be set out in a regulation to be issued by the Ministry of Justice.