DEBT ENFORCEMENT AND BANKRUPTCY CODE

Law Number : 2004

Date of Adoption : June 9,1932

Date and No. of Publication in the Official Gazette : June 19,1932 - 2128


NOTE: This translation is unofficial and for information purposes only. All rights of it are reserved as a translation anyway. Read this page first, please. Click "İCRA VE İFLAS KANUNU" for full Turkish text of the Code.

 

PART ONE
Organization and Miscellanous Provisions

Execution offices:

Article 1 – (As amended on July 2,2012; Act No:6352/1)

There shall be provided sufficient number of execution offices in judicial locality of every court of general jurisdiction.

There shall be provided an execution office manager, sufficient number of deputy execution office manager and execution clerk to be appointed by the Ministry of Justice and sufficient number of summoner and attendant to be assigned by the first instance judicial justice commissions in every execution office.

Execution office manager and deputy execution office manager shall be appointed by result of written exam to be made held by the Ministry of Justice and by oral exam to be held by the Ministry of Justice. There may also be made appointment from among execution clerks to the positions of execution office managership and deputy execution office managership according to the result of written exam to be made held by the Ministry of Justice and by oral exam to be held by the Ministry of Justice.

Those to be appointed to execution clerkship for the first time, shall be appointed according to the result of practice and oral exam to be made by the first instance judicial justice commissions to be authorized by the Ministry of Justice in that subject from among those who will become successful in central exam to be made for appointment to public service for the first time; while those to be appointed by means of change of title be appointed according to the result of practice and oral exam. Number of those to be appointed to execution clerkship by means of change of title, may not exceed fifty percent of the positions appropriated.

Written exam, oral exam, assignment, transfer, change of title, advancement in duty and other issues of execution office managers, deputy execution office managers and execution clerks, shall be specified by a by-law.

In execution offices, recording clerks, summoners and attendants are assigned by the first instance judicial justice commission when required in the framework of principles to be determined by the Ministry of Justice.

In case of absence of execution office manager, deputy execution office manager or execution clerk for any reason, his or her duties and authorities are fulfilled by chief executive or court clerk to be assigned by the first instance judicial justice commission.

The Ministry of Justice shall have authority to maintain execution offices together and to attach them to the same court of execution.

 

Bankruptcy offices:

Article 2 – There shall be provided sufficient number of bankruptcy offices in judicial locality of every court of general jurisdiction.

First article is also valid for bankruptcy offices.

 

Uniting execution and bankruptcy offices:

Article 3 – Execution and bankruptcy affairs may be united in one office.

 

Court of execution:

Article 4 – (As amended on July 3,1940; Act No:3890/1)

(Amended first paragraph: July 17,2003; Act No:4949/1) Examinations of complaints and objections made against transactions of execution and bankruptcy offices are performed by judge of execution or by judge to whom that duty has been assigned by operation of law. There may be established more than one department of the court of execution by the Ministry of Justice in places where business condition necessitated by receiving positive opinion of the High Council of Judges and Prosecutors. In this case departments of the court of execution are enumerated. In places where there have been more than one department of the court of execution, distribution of work and principles related to that, shall be determined by the High Council of Judges and Prosecutors. Every judge of court of execution, examines complaints and objections aimed at transactions of the execution and bankruptcy offices which have been connected to him/her alternately by the Presidency of the First Instance Judicial Justice Commission, carries out their surveilance and supervision, conducts administrative affairs of them.

Court of execution with respect to complaints and objections that will arise against transactions of civil court of peace possessing execution power, shall be the judge of that court.

 

Liability:

Article 5 – (As amended on June 6,1985; Act No:3222/1)

Actions for damage arising from the faults of the officials of the Execution and Bankruptcy Offices, may only be filed against the Administration. Right to recourse of the State to the officials who have been faulty in occurance of damage, is reserved.

 

Embezzlement:

Article 6 – (As amended on June 6,1985; Act No:3222/2)

In case where the money that has been lodged to execution office or the money collected or taken under custody by that office has been embezzled by the official concerned, the amount that has been embezzled shall immediately be deposited to the execution office counter by the Treasury unless being expected the result of the criminal investigation and unless being deemed a decree to be provided aimed at restitution. Right to recourse of the State to the persons who are primarily liable, is reserved.

 

Lapse of time of action for damages:

Article 7 – Action for damages becomes time barred by elapsing one year from the day on which aggrieved party discovered the damage and by elapsing ten years in any case from the occurance of the act which caused the damage.

However, if the damage is a result a punitive act and the criminal laws prescribe a longer lapse of time for that act, criminal lapse of time shall become valid in civil suit.

 

Minutes:

Article 8 – (As amended on February 18,1965; Act No: 538/4)

Execution and bankruptcy offices shall take a minute down about transactions that they made and requests and statements made towards them. Oral objections, requests and statements shall be underwritten by those concerned, execution officer, deputy execution officer or execution clerk.

(Added paragraph: July 2,2012; Act No: 6352/2) Decisions rendered by execution and bankruptcy offices shall be taken down onto minutes together with justification.

The persons concerned, may observe those minutes and may obtain copies of them.

Minutes of execution and bankruptcy offices, shall be deemed valid unless contrary has been proved.

 

Electronic transactions:

Article 8/a – (As amended on June 2,2012; Act No: 6352/3)

In every kind of affairs and transactions to be made by execution and bankruptcy offices, the National Judiciary Network Informatics System is used, every kind of data, information, document and decision, is processed, saved and kept by means of the National Judiciary Network Informatics System.

Electronic data which have been constituted in due procedure by secure electronic signature has the force of deed. Secure electronic signature, has the same proving force as the handwritten signature has. Secure electronic signature, may be used in place of handwritten signature in transactions except ones which stipulated explicitly at laws that they can not be made by secure electronic signature. In the documents and decisions which have been constituted by secure electronic signature, the provisions at laws that prescribe drawing up more than one transcript and sealing process may not be applied.

Documents and decisions which have been drawn up physically because of compelling reasons, shall be transferred into the National Judiciary Network Informatics System after signed by secure electronic signature through authorized persons and transmitted by means of National Judiciary Network Informatics System to the units concerned when necessary. Original copies of the documents and decisions which have been transmitted to the units concerned by being transferred into electronic media in this manner, shall be kept in the execution and bankruptcy office, not be sent additionally and physically. However the circumstances which necessitates examination of the original copy of the document or decision, are reserved.

In cases where physical sample has to be extracted from electronic media, it is signed and sealed by the execution office manager or the personnel charged by him/her, by stating that it is same as the original copy of the document.

Time period in transactions made in electronic media, terminates at the end of the day.

Procedures and principles regarding making electronic transactions by means of the National Judiciary Network Informatics System, shall be regulated by a by-law to be issued by the Ministry of Justice.

 

Payment of money and custody of valuable property:

Article 9 – (As amended on July 2,2012; Act No: 6352/4)

Any kind of payment to be made in cash to execution and bankruptcy offices, shall be made to the account opened in the name of execution and bankruptcy office at the banks which have been deemed suitable by the Ministry of Justice. The moneys collected during attachment due to payments made by debtor or third persons, shall be kept in safe-deposits of the execution offices or courts so as to be deposited to the bank account at the latest until the end of working hour of the first day following the day on which the collection made

Any kind of payment that has to be made in cash by the execution and bankruptcy offices, so as to be transferred to the bank acount indicated by the person concerned, shall be made in accordance with the instruction given to the bank by the execution office manager ex officio. Instruction, shall be given until the end of three working days following the day on which the money has been deposited to the account of the execution and bankruptcy office at the latest.

Execution and bankruptcy offices shall keep negotiable instruments and valuable things that they obtained in their safe-deposits, as to compelling circumstances, in safe-deposit boxes of the banks.

 

Inhibition from performing work:

Article 10 – (As amended on February 18,1965; Act No: 538/6)

Officers and attendants who conduct the execution and bankruptcy affairs, may not perform the tasks that are advantageous for;

1. Himself/herself,

2. His/her spouse, his /her fiancee or lineal kins and collateral kins by blood and by marriage until third degree so as to be included third degree,

3. Any person who he/she is his/her legal representative or attorney.

And they are obliged to inform the court of execution immediately. If the court of execution deems the application proper, it imposes that task to another officer, in places where he/she is absent, to the one of its clerks.

 

Challenge of judge of execution:

Article 10/a – (Added on February 18,1965; Act No: 538/7.; As amended on March 2,2005; Act No: 6352/4)

In case where the judge of the court of execution has been challenged, the provisions stipulated in the Civil Procedure Code shall be applied. The person who challenged the judge, has to submit his/her grounds for challenge with his/her evidences.

Being applied to the way of appellate against the decision of refusal of request for challenge, is not an obstruction for the judge to handle the job and make decision. In case of removal of the decision related to the refusal of request for challenge, the decision made by the judge challenged, may not be executed. In this case the file shall be sent to another department of the court of execution, if there is no any department of the court of execution in that locality, to the nearest court of execution by the regional court of justice. The provisions of the 40 th Article, shall be aplied mutatis mutandis.

 

Works prohibited:

Article 11 – Judges who perform the duty of investigation and officers and attendants of the execution and bankruptcy offices, may not conclude any contract related to a debt being followed-up or an object being sold by their offices on behalf of themselves or other people, no matter with whom the contract is concluded. If they do, it shall be void.

 

Payment to execution office:

Article 12 – (Repealed on July 2,2012; Act No: 6352/105)

 

Surveilance and supervision:

Article 13 – (As amended on June 6,1985; Act No: 3222/3)

(Amended first paragraph: July 17,2003; Act No: 4949/2) Execution and bankruptcy offices, shall be under constant surveilance and supervision of the judge of the court of execution pursuant to the rules laid down in the Article 4. These offices, shall be subjected to auditing through public prosecutors and judicial inspectors. Public prosecutors shall inspect those offices at least once a year.

There shall be applied the provisions of the Public Servants Law regarding disciplinary punishments related to the actions and attitudes of the execution and bankruptcy officers and deputy officers which necessitate disciplinary punishment.

 

First inspection:

Article 13/a – (As amended on February 18,1965; Act No: 538/9)

The inspection to be carried out by Puplic Prosecutors for the first time according to the 13 th Article, must be conducted in the month of January every year so as to be comprising transactions of the past one year and one examples of the reports to be drawn up must be kept in execution and bankruptcy office and public prosecution office.

There shall be regulated in by-law how inspections to be made, by whom to be performed in cases where public prosecution offices are open and how inspection reports to be drawn up.

 

Regulation, by-law and Court of Cassation Decisions

Article 14 – (As amended on February 18,1965; Act No: 538/10)

Manner of application of this Code is defined and determined through regulation, method of drawing up books and other printed papers kept in execution and bankruptcy offices and courts defined and determined through by-law to be prepared by the Ministry of Justice.

(Repealed second paragraph: June 6,1985; Act No: 3222/47)

(Added paragraph: July 17,2003; Act No: 4949/3) The Court of Cassation, promulgates all of the decisions related to execution and bankruptcy affairs regularly. Principles concerning that shall be regulated by by-law.

 

Fees:

Article 15 – (As amended on July 3,1940; Act No: 3890/1)

Execution and bankruptcy fees shall be determined by law. If otherwise is not provided at law, all fees and expenses shall belong to debtor and shall consequently be collected regardless of the necessity of a judgement or execution proceedings.

In execution proceedings, decisions of legal aid shall be rendered by competent court of execution authorized to follow-up pursuant to the 465 th and following Articles of the Civil Procedure Code.

 

Complaint and conditions:

Article 16 – (As amended on July 3,1940; Act No: 3890/1)

There may be made complaint to the court of execution about transactions made by execution and bankruptcy offices in cases where they are against the law or they are not consistent to the incident, provided that be excluded the issues that their resolving have been assigned to the court by law. Complaint shall be made within seven days starting from the day on which that transaction has been discovered.

There may be made complaint at any time owing to non-fulfillment of a right or procrastination of it without a reason.

 

Transactions to be made upon complaint:

Article 17 – If the complaint is accepted by the court of execution, the transaction that has been complained about either shall be reversed or corrected.

There shall be ordered to be executed the affairs which they have not been done or been procrastinated by the officer.

 

Trial procedures:

Article 18 – (As amended on February 18,1965; Act No: 538/11)

(Amended first paragraph; July 17,2012; Act No: 6352/6) The issues submitted to the court of execution shall be deemed among urgent tasks and there shall be applied simple trial procedure for those tasks.

However, requests and answers may be through petition as well as by making the statements taken down at the court of execution.

(Amended third paragraph; July 17,2003; Act No: 4949/4) In cases where there have not been a contrary provision, the court of execution assesses whether there is a need the execution office to make an explanation or to be conducted hearing or not, if it deems proper hearing to be conducted, summons the persons concerned for hearing in a shortest time and renders required decision even though they do not come. In matters which hearing is not conducted about, the court of execution renders its decision within ten days following the day on which the matter has come to it. Hearings, may only be postponed in case there is compelling situation and provided that not to pass thirty days.

 

TIME PERIODS

Its beginning and termination:

Article 19 – (As amended on February 18,1965; Act No: 538/12)

The first day, shall not be taken into consideration in time periods which have been designated as day.

Time periods which have been designated as month or year, on whichever day they started tu run, terminates on the same day of the month or year that will end and if there is not such a day at the end of the month that the period will end, terminates on the last day of the month.

If the last day of a time period coincides with a day of formal holiday, period terminates on the day which follows holiday.

Time period, shall be deemed terminated at non-business hour of the last day.

 

Being not to be changed time periods:

Article 20 – All contracts shall be invalid altering the time periods designated by this Code. However, the debtor who has right of benefit in elapsing of a time period, may withdraw from that right of him/her. This withdrawal, shall not have any effect on third persons.

 

Notifications of execution:

Article 21 – (As amended on February 18,1965; Act No: 538/13)

Notifications to be made by offices of execution, shall be in written form and according to the provisions of Notification Law.

Creditor or debtor who changed the address written in verdict and in documents deemed having the force of verdict according to the 38 th Article and in mortgage bond; unless they notified the situation to each other by means of notary, notification shall be made to the same address and in case that they haven’t been found in that address, 35 th Article of the Notification Law, shall be applied.

As the creditor or debtor benefited from the 35 th Article of the Notification Law by making notification to the former address although change of address has been notified by a party to the other pursuant to the Article above, is obliged to indemnify all the damages inflicted to the other party in this way with its 15 percent surplus, the punishment stipulated in the 343 rd Article shall also be applied about him or her.

 

Halt of execution:

Article 22 – Complaint, shall not halt the execution unless decided by the court of execution.

 

Terms in the Code:

Article 23 – (As amended on January 14,2011; Act No: 6103/41)

In the implementation of this Code;

1. The term of “Mortgage” shall contain mortgages, mortgaged debt bonds, annuity bonds, immovable mortgages established according to the former law, charges on land, private privileges on some immovables and mortgage transactions on annexes of immovables,

2. The term of “Chattel Mortgage” shall contain mortgages depending upon delivery, the mortgages regulated in the 940 th Article of the Turkish Civil Code, commercial enterprise pledge, right of detention and mortgages over credits and other rights,

3. Only the term of “Pledge” shall contain all movable and immovable pledges included in the terms of “Mortgage” and “Chattel Mortgage”.

Other than the exceptions prescribed explicitly, provisions related to immovables of this Code shall be applied about all ships regardless of considering their flag and whether they have been recorded to a registry or not. Annotations to be added into the registry of ships pursuant to this Code, shall be subject to the 977 th Article of the Turkish Commercial Code.

 

PART TWO
Execution of Verdicts

Delivery of movable:

Article 24 – (As amended on February 18,1965; Act No: 538/14)

When a verdict regarding delivery of a movable has been submitted to the office of execution, execution officer orders the debtor to deliver that thing to the execution office within seven days by means of notification of an execution order.

In the execution order; there shall be written the names and surnames, distinctions and domiciles of debtor and creditor, if there are those of their representatives, the name of the court rendered judgement, what the thing adjudicated about consists of, date and number of verdict, that there will be continued to compulsory execution unless has been brought a decision regarding postponement of execution from the court of execution or from the court that it belonged to, by way of appeal, cassation or rehearing.

If debtor does not fulfill the order by any means, leaves unfinished and the thing adjudicated about or its similar one is found under his/her possession, it shall be taken from his/her possession by force and given to creditor.

If not found under his/her possession, there shall be taken its value written in verdict. If he/ she does not give, it shall be collected by means of attachment regardless of the notification of an execution order. Value of movable property, in case it has not been written in verdict and been controversial, shall be assessed by the execution officer according to the current value that is at the time of attachment which has been made.

Value of immovable adjudicated about, shall be assessed according to the answer to be received after enquired from stock exchange or chamber of commerce, in localities which they have not been, from an expert to be assigned by the execution officer.

The persons concerned, shall have right to file complaint to the court of execution in that matter.

(Repealed seventh paragraph: January 01,2011; Act No: 6103/41)

 

Delivery of child:

Article 25 – (As amended on July 3,1940; Act No: 3890/1)

When the writ related to delivery of child has been given to execution office, execution officer orders by means of notification of execution order in a manner that has been stipulated in the 24 th Article the debtor to deliver the child within seven days. If debtor does not fulfill the order, provision of verdict shall be carried out by force, wherever the child is found.

If the other party takes the child back without a justified reason after the the child has been delivered, he/she is taken from his/her hand by force and delivered to the other party unless being needed a judgement additionally.

 

Execution of writ related to establishment of personal relationship with child:

Article 25a – (Added: February 2,1965; Act No: 538/15)

Execution officer upon request of execution of rule of writ related to establishment of personal relationship with child, notify debtor by an execution order in a manner that has been stipulated in the 24 th Article that there must not be prevented the child to be in personal relationship with the party who has been rendered decision in favour of; otherwise provision of verdict will be executed by force. In this order, there shall be also written that the act against the provision of writ will require the punishment stipulated in the 341 st Article.

If debtor does not fulfill that order, provision of verdict shall be executed by force. Debtor shall be punished according to the 341 st Article additionaly upon complaint of creditor.

 

Being provided specialist in execution of verdicts related to delivery of child and establishing personal relationship with child:

Article 25/b – (Added; July 17,2003; Act No: 4949/7)

Execution of verdicts related to delivery and establishment of personal relationship with child, shall be carried out by execution office manager together with an expert who is present such as a social worker, pedagog, psychologist or child development specialist assigned by the Social Services and Child Protection Agency, in places where such persons are absent, an educator.

 

Evacuation and delivery of immovable:

1 – If it is under possession of debtor:

Article 26 – (As amended on January 14,2011; Act No: 6103/41)

When the writ related to evacuation and delivery of an immovable has been given to execution office, execution officer orders by means of notification of an execution order in a manner that has been stipulated in the 24 th Article the debtor to deliver the thing adjudicated about within seven days.

If debtor does not not fulfill that order while occupying immovable, provision of verdict shall be executed by force.

Debtor who enters to immovable again unless there has been a justifiable cause, shall be evacuated by force unless being needed a judgement additionally.

If there has been property in immovable that is not included in verdict, it is entrusted to debtor, if he or she is not present, to his/her representative or a person from his/her family members or attendants who is major. If there is not such people of those, said property shall be made kept in a safe place or under possession of creditor by being collected its expense from creditor in advance on condition that to be paid by debtor in future, if debtor abstains from taking property or from paying expense within five days in case he/she is in the locality where the property is and within thirty days if he/she is not upon notification to be made by execution office immediately, or if it is deemed necessary, execution office manager sells them by the decision of execution court and cover expense from its amount. If remains surplus, it shall be deposited in the name of debtor in one of banks which their qualifications have been determined at a by-law issued by the Ministry of Justice.

 

2 – If immovable is under possession of third person:

Article 27 – If immovable is being occupied by a third person by depending on a contract recorded to land registry after case and before judgement, creditor shall have the rights that the debtor has towards that person. He or she may file an action for damage against his/her debtor if he/she does not choose that option. However there shall be reserved general provisions towards bad-faithed persons.

(Added: June 29,1956; Act No: 6763/42, Repealed second paragraph: January 14,2011; Act No: 6103/41)

 

Notification of judgements to office of the register of deeds in immovable property cases:

Article 28 – (As amended on January 14,2011; Act No: 6103/41)

In case where there has been rendered a judgement in favour of plaintiff in immovable lawsuits, the court notifies its summary to the office of the register of deedsas soon as it was pronounced unless required any other decision. The office concerned, shall make this case annotated to registers of immovable abjudicated about. This annotation shall be subject to the second paragrapf of the 1010 th Article of the Turkish Civil Code.

If the judgement rendered over the case of immovable becomes final in future against the plaintiff, the court also notifies its summary to the office of the register of deeds immediately.
 

Change in possession after judgement related to immovable:

Article 29 – (As amended on January 14,2011; Act No: 6103/41)

There shall not be any effect of alterations over execution transactions after judgement has been notified to the office of the register of deeds. Under whoever’s possession the thing indicated in judgement is, it shall be taken from him/her and delivered to the creditor.

However, if the third person who is present there submits a record of title deed registry which declares that he or she has not received that property from debtor and occupying it directly, a period of seven days shall be granted him/her to file a lawsuit by applying to the court. In case the lawsuit is filed within that period, execution shall be postponed.
 

Verdicts related to being performed or not performed of a job:

Article 30 – When the writ related to being performed of a job has been given to execution office, execution officer orders by means of notification of an execution order in a manner that has been stipulated in the 24 th Article the debtor to perform the job within the period determined in verdict and by defining beginning and completing times of it if a period has not been determined,

If debtor does not start to work or complete it in determined times and the work is something which can be made by someone else and if creditor wants also, it shall be made an expert assess how much expense will be needed in order the job to be performed. In case creditor gives consent that expense to be covered on condition that to be collected from debtor in future unless being needed a judgement additionally, it shall be collected and that job shall be performed. If he/she does not give consent, that job shall be performed by attachment and liquidation of debtor’s adequate number of properties unless being needed a judgement additionally.

In case verdict is related to not being performed of a job, provision of verdict shall be notified by execution office to debtor through an order including the same period. There shall be written in that order that, opposition to the provision of verdict, shall necessitate punishment stipulated in the Article of 343 rd.

(Added last paragraph: July 17,2003; Act No: 4949/9) If debtor does an act removing provision of verdict after the provision of verdict has been carried out related to being performed or not performed of a job, provision of former verdict shall be executed by force unless being provided any judgement from the court additionally.

 

TRANSLATION OF OTHER ARTICLES WILL CONTINUE