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Special Enforcement Proceedings in Turkish Legislation:
Enforcement by Foreclosure of Collateral and Bankruptcy
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Att. Alper Uzun
Introduction
According to Turkish enforcement legislation, the legal remedies
for execution proceedings and the rights granted to the creditor, depend
on the legal power of the documents possessed on which the proceed-
ing is based. There are different types of proceedings for each legal cir-
cumstance. In each type of procedure, the period for payment and
objection and also the consequences of objection are different.
According to Article 45 of the Enforcement and Bankruptcy Law
(“EBL”), if a creditor has a security over the assets of the debtor (e.g.
mortgage, movable pledge, share pledge, bank account pledge), the
creditor has to initiate special execution proceedings against the debtor
first, which is called “enforcement by foreclosure of collateral”. If the
security is not enough to cover the credit, then the creditor may initi-
ate other execution proceedings, which will be determined according
to the power of the documents that the creditor possesses.
Enforcement by Foreclosure of Collateral
One of the special enforcement proceedings regulated under the
Turkish legislation, which is “enforcement by foreclosure of collater-
al” divides into two categories that are called “enforcement by fore-
closure of collateral on movables (or, foreclosure of pledged property)”
and “enforcement by foreclosure of mortgage”.
According to the enforcement by foreclosure of collateral on mov-
ables (or foreclosure of pledged property), the creditor may initiate the
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NEWSLETTER 2014
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Article of May 2014