Bankruptcy Law
Bankruptcy Law is a specialized branch of private law that enables companies and individual traders who are unable to meet their debt obligations to legally liquidate their debts while ensuring that creditors recover their claims within a structured system and in a defined proportion. In today’s world of intense commercial activity, both natural and legal person traders facing financial difficulties can find solutions through the rules and mechanisms established under Bankruptcy Law.
How Does the Bankruptcy Process Work?
The bankruptcy process usually begins with an application to the court by either the debtor or the creditors. Bankruptcy cases are heard in commercial courts, and if the court issues a bankruptcy ruling, the debtor’s authority to dispose of their assets ceases. From this point, the debtor’s assets are transferred to a legal entity known as the “bankruptcy estate.” The bankruptcy estate represents the collective claims of all creditors, and the debtor’s assets enter this estate.
The assets within the bankruptcy estate are sold by the bankruptcy administration, and the proceeds are distributed to creditors according to priority. While the principle of equality among creditors is observed, certain claims (e.g., employee claims, government claims) are given precedence.
Who Can Be Declared Bankrupt?
Under Turkish law, only traders can be declared bankrupt. Individuals who are not traders are subject to enforcement proceedings rather than bankruptcy if they are unable to pay their debts. However, certain types of companies, such as ordinary partnerships, collective companies, and limited partnerships, are also subject to bankruptcy provisions under specific conditions.
Creditors’ Rights and Enforcement-Bankruptcy Cases
During the bankruptcy process, creditors submit claims within a designated period to register their receivables with the estate. The bankruptcy administration reviews the declared claims and incorporates them into the liquidation process. Creditors may also participate in creditors’ meetings, where they can exercise influence over the liquidation of the estate’s assets.
Various legal disputes may arise during this process. For example, objections regarding the validity of claims, annulment of fraudulent transactions, and suspicion of asset concealment may lead to both bankruptcy and subsequent related lawsuits. Additionally, reclamation actions and annulment of transfers to third parties are important components of this branch of law.
Sayın Law Office Approach
At Sayın Law Office, we provide comprehensive legal support to our clients at every stage of Bankruptcy Law. We assist with filing bankruptcy petitions, monitoring the bankruptcy process, managing bankruptcy estate procedures, submitting creditor claims, participating in creditors’ meetings, handling concordat applications, and pursuing reclamation actions.
With our team of specialized attorneys, we develop solution-oriented strategies to address the financial difficulties companies face, offering effective remedies to potential commercial crises and ensuring the legal process is managed efficiently and professionally.