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Direct Bankruptcy for Collection of Receivables under
Turkish Law
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Att. Suleyman Sevinc
Introduction
Bankruptcy cases may be filed by the creditors following an
enforcement proceeding against the debtor, without any need for a
prior enforcement proceeding, in the presence of certain grounds. The
grounds for the initiation of a direct bankruptcy cases are, in general,
set out under Articles 177 and 178 of the Enforcement and Bankruptcy
Law (“EBL”). In addition to these Articles, there are various provisions
in other legislation that permit the creditor to file a direct bankruptcy
case against the debtor.
Grounds for Direct Bankruptcy Case
Article 177/1 of the EBL provides four grounds for filing a direct
bankruptcy case against a debtor. The first ground is when the resi-
dence of the debtor cannot be determined. The notion of “residence” is
interpreted wider than its meaning in civil law, and therefore, it com-
prises the domicile of the debtor. As a result, in the event where the
debtor has a
de facto
, or temporary, domicile, the condition shall not be
fulfilled. In addition, in the event where the debtor has a domicile
abroad, the condition shall not be deemed fulfilled, as the provision
does not make any distinction between a domicile within the country,
or abroad. The presumptive evidence for these conditions is sufficient.
This ground is only applicable for real persons, since the residence of
the legal persons are stated in their articles of association and are,
therefore, determinate.
MISCELLANEOUS
385
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Article of September 2015