Debt Collection, Execution, and Confiscation Operations
Debt collection, execution, and confiscation operations sound overwhelming, most times. What they refer to legally? What are your rights if you encounter any of these? What kind of action you must take? These questions are frequently asked by many. You can continue to read if the problems are relatable. Plus, the articles apply to both creditors and debtors.
What is the Procedure of Debt Collection in Turkey?
There are two core foundations to start debt collection proceedings in Turkey: The first one is enforcement proceedings without a court judgment. The second is enforcement proceedings with a court judgment.
- Enforcement Proceedings without a Court Judgment: Three application of enforcement proceedings are:
- General seizure enforcement proceedings
- Enforcement to bonds
- Eviction of rented immovable properties enforcement
Debt Execution happens in this procedure when the creditor applies for a debt collection request, which is called a payment order. Here is what you can do if you’d like to reject the debt collection as a debtor?
- Debtors have the right to object to the signature: If you have debt because of a deep, and if the signature on the deep is not yours, you can apply for an objection at the Debt Execution Office.
- Debtors have the right to object to the debt: If you as a debtor claim that the debt is not yours, you can object to Debt Execution Office.
- Debtors have the right to object to the authority: If you believe as a debtor that the debt execution office has no right to execute, you can claim an objection.
Let’s say that you are the creditor. So, you can file an action for the revocation of the objection. Or you can submit an action for the abolition of the objection.
- Enforcement Proceedings with a Court Judgment
In this proceeding, there must be a judge’s decision to collect the debt. This case differs in terms of the name of the order. The payment order is named as a debt collection order since it is enforceable. The judge issues the order, which is submitted by the creditor. Also, the submission must include the full name and the address of both the debtor’s creditor; and the debt value, including the interest rates.
When the creditor demands to collect the proceeds of the debt via executive proceeding instead of filing an action for debt, the creditor could finalize the procedure (Unless the debtor object against the order of payment). In this case, the collector could collect their debt through a confiscation operation on the debtor. If you are the debtor in this scenario, you can fill and submit a Withdrawal of Appeal Suit or Nullity Suit for Exception to reject the confiscation operation. From this perspective, Precautionary Distraint is significant.
Precautionary Distraint is the confiscation of a debtor’s assets by a preliminary seizure, decision of the order, at the stage where the creditor cannot currently request “final injunction” and before filing a lawsuit or initiating an enforcement proceeding.