Bankruptcy in Turkey
Bankruptcy in TurkeyUpdated on Thursday 26th January 2023
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In rare situations when companies in Turkey are no longer profitable and are in debt, the creditors can claim their due payments by initiate the bankruptcy proceedings. Ordinary bankruptcy in Turkey applies to merchants, either companies or individuals involved in purchasing and selling of goods for profit. In some cases, the claim for bankruptcy can be brought directly before a court in Turkey.
Bankruptcy proceedings against the debtor in Turkey
At the beginning of the bankruptcy procedure, all the assets and goods belonging to the individual or company are seized on insolvency. After the process is commenced, all of the debts will be due and payable. Existing creditors can make their individual claims.
The creditors appoint a bankruptcy administrator during the initial meetings that take place between them. Afterward, they will decide how the assets will be sold and divided according to the claims. The execution office located in the area where the debtor has its registered office in Turkey is the competent authority for supervising the bankruptcy proceedings. The commercial court in the same area is the one that has jurisdiction should the case be brought before a court.
A bankruptcy procedure can last for approximately one year, depending on the number of creditors and the particular situation of the Turkish company.
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Direct bankruptcy in Turkey
When a bankruptcy claim is brought before a commercial court in Turkey the process is called direct bankruptcy. This can be done at the demand of the creditor and it is used in cases when the debtor does not have a local or known residence and he is trying to avoiding making the payments or he is already involved in other fraudulent actions.
Another option is for the debtor to file a bankruptcy claim against himself in court. This can be done voluntarily when the debtor recognizes that he can no longer pay his debts or mandatory when a court order is issued against him.
Our lawyers in Turkey can help you in either of the bankruptcy cases described above. We can help represent you in court or make the necessary claims to recover debts.
Contact our law firm in Turkey for more information about our services.