Within the scope of the basic information on Enforcement and Bankruptcy Law, enforcement proceedings refer to the process of using public power through the Execution Directorates to recover the creditor’s receivables in the event of non-payment of a due debt.

Execution proceedings are handled in two different types depending on the basis of the proceedings;

Execution proceedings without execution is a type of proceeding initiated for the collection of receivables such as money and collateral. In this type of enforcement proceeding, there is no requirement for the creditor to have a document proving the receivable. In the event that the receivable is based on a court decision or a document in the nature of a judgment, enforcement proceedings with judgment should be initiated instead of this type of enforcement proceeding.

Execution proceedings without judgment must be filed at the Enforcement Directorate in the debtor’s place of residence in accordance with the Execution and Bankruptcy Law, except for exceptions.

Execution proceedings without enforcement proceedings begin with the file to be prepared by the Enforcement Directorate upon the creditor’s request for enforcement proceedings. The Enforcement Directorate prepares a payment order regarding the debt and notifies the debtor.

In the enforcement proceedings without execution, the debtor has 7 days to object, depending on the Enforcement and Bankruptcy Law. Within 7 days, if no objection is duly filed, the enforcement proceeding becomes final. This period is 5 days for proceedings based on bills of exchange (checks, promissory notes, policies). Following the finalization of the proceedings, the creditor has the right to seize the debtor’s assets and sell them through the Enforcement Directorate and turn them into money.

If the person who appears as the debtor in the enforcement proceeding objects to the proceeding within the time limit, the proceeding stops. In this case, what the creditor must do is to file a lawsuit for the cancellation of the objection according to the basis of the proceeding or to request the removal of the objection.

In the event that the debtor objects to the enforcement proceeding within the legal period, if the creditor wishes to continue the enforcement proceeding, the creditor must file an action for annulment of objection before the competent and authorized court. The creditor may file a lawsuit for annulment of objection within 1 year from the debtor’s objection to the enforcement proceeding. The period for filing a lawsuit starts from the notification of the debtor’s petition of objection to the proceeding to the creditor.

If the lawsuit is concluded in favor of the creditor, the enforcement proceedings will continue from where they left off. In this case, there is no requirement for the court’s decision to be finalized.

If the creditor has requested in the lawsuit petition, an execution-denial compensation of not less than twenty percent shall be awarded in his favor.

Unlike the annulment of objection, removal of objection is a procedure that allows the creditor to continue the proceedings without the need to prove its receivable in the presence of certain documents. The lifting of objection is a procedure specific to the Execution and Bankruptcy Law and does not constitute a lawsuit. It is divided into two as definitive removal of objection and provisional removal of objection.

The final lifting of the objection is in case the debtor objects to the proceeding. The final removal of the objection may be requested within 6 months following the notification of the objection to the creditor. If the creditor has the documents listed in Article 68-b of the Enforcement and Bankruptcy Law, this procedure may be applied.

The documents that the creditor must have in order to apply for this remedy are as follows

A valid promissory note that accepts a valid money debt and whose signature is accepted,
Receipts, invoices or documents duly issued by official authorities and authorities,
Deeds whose signature has been accepted or whose signature has been notarized,
Loan agreements and related uncontested account statements,
Documents or receipts duly issued by the creditors.

Following the request for the final lifting of the objection, the court will decide on the continuation of the enforcement proceedings and the final lifting of the objection if it finds the creditor right. If the request is rejected by the court, the enforcement proceedings will not continue and the creditor will be deprived of the right to pursue enforcement proceedings for the same receivable without judgment.

In order for the creditor to apply for this remedy following the objection to the proceeding, the bill subject to the objection must be an ordinary promissory note, the bill must contain an unconditional acceptance of a money debt and the debtor must deny the signature on the bill.

The provisional lifting of the objection may be requested within 6 months following the notification of the documents indicating that the debtor has objected to the signature on the promissory note to the creditor.

In case a decision is made for the provisional lifting of the objection, the creditor will be able to request a provisional attachment, not the continuation of the proceedings.

As seen within the basic information on the Enforcement and Bankruptcy Law, the debtor may file a lawsuit for relief from debt within 7 days after the notification of the decision regarding the temporary removal of the objection to the debtor. If the debtor does not file this lawsuit within the 7-day legal period, the provisional lifting of the objection will turn into a final lifting of the objection. In this case, the creditor may request the continuation of the proceeding.

In accordance with the Enforcement Law, since receivables other than money and collateral receivables require a trial, the creditor does not have the opportunity to obtain his/her receivables by initiating direct enforcement proceedings. In these cases, the creditor first files a lawsuit, and after the enforcement case is concluded in its favor, the creditor collects the receivable ruled in the decision of the enforcement court through enforcement proceedings without judgment. This type of proceeding is the procedure to be followed if the receivable is based on a court decision or a document with the force of a judgment.

Decisions subject to judgment enforcement proceedings:

Court decisions,
Court of Accounts judgments,
Referee decisions,
Arbitral awards rendered in accordance with the Arbitration Law,
Foreign court decisions that have been enforced in accordance with the legislation.

Documents in the nature of a judgment:

Settlements that are unconditional and made before the court,
Acceptances made before the Enforcement Court,
Notarial deeds in the form of an unconditional acceptance of a money debt,
Bail bonds for appeal and appeal,
Sureties given at the execution office.

Documents in the nature of a judgment according to special laws:

Minutes of conciliation signed by lawyers and their clients,
Reconciliation report or document in case the suspect violates his/her obligation in crimes subject to reconciliation,
Decisions made by the consumer arbitration committee,
Decisions of the Union of Notaries of Turkey regarding the payment of fines or expenses,
According to the Law on Agricultural Credit Cooperatives and Unions, bills of credit, papers and all kinds of undertakings and contracts related to agricultural credit cooperatives loans approved by the village or neighborhood elders’ committees where the member resides or where the cooperative is located,
Decisions of the Bar Associations concerning fines or payment of expenses,
Decisions of chambers of engineers and architects regarding dues and fines,
Finalized decisions on the approval of dispatch reports and decisions on the approval of dispatch reports that have not been appealed,
If the parties reach an agreement at the end of the mediation activities and this agreement is annotated by the court for enforceability, the document containing this annotation,
It is a document of agreement signed by the parties, their lawyers and the mediator.

If the debtor has the status of merchant or merchant in accordance with the procedures of the Execution and Bankruptcy Law, the creditor will have the right to request a bankruptcy proceeding. Bankruptcy proceedings are a legal procedure that allows all creditors to collect their receivables by converting all assets of the debtor into money.

Bankruptcy proceedings can be carried out in three different ways: ordinary bankruptcy proceedings, direct bankruptcy proceedings and finally, bankruptcy proceedings specific to bills of exchange.

In this bankruptcy proceeding, the creditor initiates the proceeding through the enforcement directorate. The debtor may object to the proceeding within 7 days. If the debtor does not object to the proceeding within this period, the proceeding becomes final. If the debt remains unpaid after this, the creditor may apply to the commercial court and request the bankruptcy of the creditor.

In this type of proceeding, instead of applying to the Enforcement Directorate, the creditor applies directly to the Commercial Court and requests the bankruptcy of the debtor. In order to apply for this type of proceeding, the debtor’s place of residence cannot be determined, the debtor has fled abroad, the debtor has committed fraudulent acts to violate the rights of creditors and the debtor has smuggled the goods that can be seized.

This type of bankruptcy proceeding is possible if the creditor holds a bill of exchange. In this type of proceeding, the creditor applies to the Enforcement Directorate. Unlike ordinary bankruptcy proceedings, the debtor has 5 days to object to the proceeding, as stated in the basic information on the Bankruptcy and Execution Law.

If the debtor objects to the proceeding within the time limit, the creditor may apply to the Commercial Court and request both the removal of the objection to the debt and the decision to declare the debtor bankrupt.

If the debtor does not object to the proceeding and does not pay the debt, the proceeding becomes final. The creditor may then apply to the Commercial Court and request the debtor’s bankruptcy.