Enforcement & Bankruptcy Law

Enforcement and bankruptcy law regulates the most critical matters of economic life, including the forced collection of debts, the debtor's inability to pay and the restructuring of businesses. Within the framework of the Enforcement and Bankruptcy Code No. 2004, this field aims both to safeguard the rights of creditors and to protect debtors from unjust enforcement practices. At Efeo�lu Law and Consultancy, we provide effective legal support at every stage of enforcement and bankruptcy proceedings, regardless of whether our client is a creditor or a debtor.

Enforcement without Judgment

The fastest way to commence debt collection proceedings without a court judgment is to send a payment order. However, if the debtor objects, the debt must be proved through legal proceedings � making the correct choice of strategy essential.

• Initiating and managing general distraint proceedings
• Filing a motion to set aside the debtor's objection
• Enforcement court processes to lift the objection
• Applying attachment and locating assets
• Collection of the debt together with interest and costs

For the commercial law dimension of commercial debts and receivables disputes, please see our work in Commercial and Corporate Law.

Enforcement on Judgment

In enforcement proceedings based on judgments � such as court decisions, arbitral awards or notarially executed documents � the debtor's scope for objection is very limited. This route produces faster and more effective results; it should be the preferred option, particularly for debts where litigation has already been successful.

• Initiating enforcement of final court judgments
• Enforcement of foreign court judgments and arbitral awards following exequatur
• Defence against applications to stay enforcement
• Enforcement of non-monetary obligations such as eviction and demolition

Distraint Route Specific to Negotiable Instruments

Negotiable instruments such as cheques, bills of exchange and promissory notes are subject to a special legal regime for both creditor and debtor. Enforcement proceedings based on these instruments proceed much more quickly, and the grounds for objection are limited.

• Proper commencement of negotiable instrument enforcement proceedings
• Preparing defences based on objections to the debt and signature
• Representation in negative declaration proceedings
• Defence in cheque cancellation and criminal proceedings arising from cheque law

Defence against Unjust Enforcement

Being a debtor does not mean you are obliged to accept every enforcement action. Effective legal instruments exist against erroneous, disproportionate or irregular enforcement practices.

• Objection to payment orders and timely service of objection
• Applications to stay enforcement
• Complaints concerning non-attachable assets
• Third-party ownership claims over attached assets
• Challenges to unjust attachments of salary, pension and basic income
• Complaints against enforcement office decisions

Bankruptcy Law

Debtors unable to pay their commercial debts, or facing payment difficulties, and creditors unable to collect their receivables may have recourse to bankruptcy proceedings. Given the far-reaching legal and economic consequences of a bankruptcy order, this process must be managed with great care.

• Preparation of bankruptcy petitions and management of proceedings
• Filing a claim with the bankruptcy estate as a creditor
• Negotiations with and representation before the bankruptcy administration
• Challenges to the order of priority table
• Discharge of bankruptcy and restructuring alternatives

Concordat

Concordat is a statutory restructuring mechanism that allows debtors in financial difficulty to reach an agreement with their creditors, thereby avoiding bankruptcy. The process requires detailed financial planning and supervision by the commercial court.

• Preparation of the preliminary concordat project
• Submission of applications for temporary and permanent moratorium
• Preparation for and negotiation support at creditors' meetings
• Preparation of documents to be submitted to the concordat commissioner
• Representation and management throughout the court stages

Debt Collection Strategy

Each debt claim carries its own unique characteristics. Identifying the debtor's assets, selecting the most appropriate enforcement route and timing the process correctly directly affect both the collection rate and speed.

• Asset investigation and debtor profiling
• Priority strategy where multiple creditors are involved
• Attachment of real property, vehicles and bank accounts
• Debt assignment, transfer and factoring processes

Where enforcement proceedings are based on a contract, additional legal avenues under contract law may also be considered. Please see our work in Contract Law.