Publication of the law amending the law on enforcement and bankruptcy and certain laws – Insolvency / Bankruptcy / Restructuring

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Turkey: The law amending the law on execution and bankruptcy and certain laws is published

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Law number 7343 amending the Law on Forced Execution and Bankruptcy and certain laws (“Amendment law“) was published in the Official Journal dated November 30, 2021 and numbered 31675 and entered into force on the same day. With the Amendment Law, fundamental changes to the organizational structure of the enforcement offices as well as the postponement procedures enforcement, and sale, appraisal and supply of foreclosed property were introduced under the Enforcement and Bankruptcy Law numbered 2004 (“EBL“).

Some notable changes to the amending law are summarized below:

  • Article 3 / a added to the EBL and the changes to Article 1, Article 4 and Article 13 of the EBL allow the appointment of a Chief Execution Manager to increase the efficiency and regulating the organization of the executing offices which have an excessive workload and are staffed with high numbers. The amendment also allows the establishment of the Directorate of the Enforcement Office in these provinces.
  • In accordance with the amendment to article 36 of the LBE, the court to decide on the stay of execution is determined as the enforcement court in which the enforcement proceedings are started, instead of the Regional Court of Justice or of the Court of Appeal. In addition, it was clarified that if the Regional Court of Justice rejects the request on the merits and the decision is subject to appeal, the effect of the postponement will continue until the end of the period of appeal before the Court of Justice. ‘call.
  • The modification made to article 87 of the LBE cancels the power of appraisal of the enforcement officers of seized property entered in an official register. If such assets are seized, the expertise will be made by the experts who are registered with the regional commission of expertise seized ex officiate without the request of the parties.
  • In accordance with the amendment to article 106 of the LBE, the limitation period for requesting the sale of seized movable property is increased to 1 year from the seizure, in the same way as buildings. In addition, the debtors were granted the right to demand the sale of the foreclosed properties. Also, it has become compulsory to deposit the expert’s and sales costs in advance with the sales request.
  • In accordance with the amendment made to article 111 of the LBE, the agreements to be concluded between the creditor and the debtor concerning the installment of the debt payment are exempt from stamp duty.
  • In accordance with Article 111 / a added to the EBL, debtors were granted the right to sell their seized property themselves. The condition is that the sale price must be greater than 90% of the estimated value of the property or the sum of the claims secured by this asset and which take priority over the claims of the person requesting the sale, whichever is greater. , plus the sum of the enforcement costs incurred for the asset up to that point.
  • In accordance with the changes to article 111, article 114, article 115 and other miscellaneous articles of the LBE, the forced sales of movable and immovable property by auction will take place on an electronic platform . The amount of the security deposit for participation in the tender has been reduced from 20% to 10% of the value of the property.
  • Pursuant to the amendment to article 134 of the LBE, if a seized building is the subject of a forced sale, the successful tenderer can ask the person who uses the building because of a rental contract or another legal reason to pay the rent or the monthly usage fee determined by the expert at the enforcement office. In this case, the enforcement office will issue a payment order to the person concerned.
  • In accordance with the amendment to article 142 / a of the LBE, creditors who are informed of the list of creditors can recover the amount corresponding to their quota by depositing a bank letter of guarantee for an indefinite period, even if there is no opposition or claim against the list of creditors.

Please find the full text of the amending law here. (Only available in Turkish)

Information first published in the MA | Gazette, a bimonthly legal newsletter produced by Moroglu Arseven.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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