Ministry Of Justice's Circular On Suspending The Execution And Bankruptcy Proceedings In The Scope Of COVID-19 Measures

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Pursuant to the Presidential Resolution on Suspending the Execution and Bankruptcy Proceedings, which was published in the Official Gazette dated 22 March 2020 and numbered 31076
Turkey Insolvency/Bankruptcy/Re-Structuring
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Pursuant to the Presidential Resolution on Suspending the Execution and Bankruptcy Proceedings, which was published in the Official Gazette dated 22 March 2020 and numbered 31076, it has been decided to suspend all active execution and bankruptcy proceedings in the country until 30 April 2020. On the application of this Resolution, the Ministry of Justice, Department of Execution Proceedings published the Circular dated 24 March 2020 ("Circular"). 

Pursuant to the Circular, no separate decision regarding the suspension of the execution and bankruptcy proceedings will be given, and time periods under the execution and bankruptcy law shall not continue until 30 April 2020. In accordance with the Circular, only the maintenance executions are exempted. 

Article 5 of the Circular indicates that payments to the execution offices will be accepted; the money collected with this respect will be distributed to the creditors in cases where there is no need to prepare an alignment list and the rights of the debtor or third persons shall not be breached. With the same provision, it is also regulated that the annotations of attachment and seizure could be removed and the file closing procedures could be done with priority upon the payment of the debt or the request of creditor's attorney.

In addition, the Circular clarified that payment and enforcement orders will not be sent in any execution file including those opened before the suspension order; no objection and request will be taken; and that the decisions of provisional attachment issued before or during the suspension order will not be executed by the executive offices until April 30, 2020.

It is also stated in the Circular that a new date of sale shall be determined if the sale date of goods and rights by the execution and bankruptcy offices falls within the suspension period. Further, it is noted that the registration processes for bids, which are finalized before the Presidential Resolution on suspension, could be done by the execution offices.

You may access the full text of the Circular's Turkish version here.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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