Your debtor’s assets are just a click away! – Insolvency/Bankruptcy/Restructuring

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Turkey: Your debtor’s assets are just a click away!

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The Regulation on the investigation of assets, rights and claims through the national judicial computer system (the “Regulation“) was published in the Official Journal.

The settlement details changes to the Enforcement and Bankruptcy Code, which allow a creditor suing a debtor through enforcement proceedings to easily investigate and verify the assets, rights and claims of the debtor via the online national judicial computer system. (“UYAP“). A prerequisite is that the period prescribed in the payment order for paying the debt has expired and any opposition to the debt has been lifted.

Prior to the relevant amendments to the Enforcement and Bankruptcy Code, creditors had to request the bailiff to send warrants to the competent institutions to investigate debtors’ assets, which was time-consuming and costly. This in turn increased the risk that the debtor would use the delay to conceal its assets.

The investigation provided for by the regulation extends to searches of motor vehicles, real estate and accounts in Turkish banks and other financial institutions. In addition, creditors also have the right to inquire into the employment status of debtors and whether debtors have claims in other enforcement proceedings as creditors.

Finally, creditors can also trigger the mechanism for seizing debtors’ assets, rights and claims via UYAP without having to go to a bailiff’s office to complete the paper formalities. Given the ever-increasing workload of bailiff offices in Turkey, the settlement is a most welcome development and most likely a significant time saver for creditors.

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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