Legal support in bankruptcy and liquidation procedures of companies in Turkey

Bankruptcy in Turkey is a lengthy process for which it is advisable to have a qualified lawyer. Our lawyers are ready to provide legal support at every stage of bankruptcy to help you properly organize the process and protect your interests.

Who can be declared bankrupt in Turkey?

In accordance with Turkish legislation, any individual or legal entity that is unable to pay its obligations in full may be declared bankrupt.

The following entities may be declared bankrupt:

• Entrepreneurs (individuals);
• Companies (legal entities);
• ZAO and OJSC;
• Any forms of business.

What liabilities can lead to bankruptcy?

Liabilities that may lead to bankruptcy include:

• Salaries to company employees, interest payments on shares, dividends and other obligatory payments;
• Taxes, government, customs and other feesthat are mandatory for citizens and businesses;
• Debts to contractors, suppliers and partners.

What happens if debt accumulates?

When the debt on any of the items is significant, the bankruptcy process begins, which includes:

1. Restoring solvency through concluding an agreement with creditors or going to court.
2. The disposition of property to satisfy debts, which may include the sale of assets.

Important changes in Turkish bankruptcy legislation

Since 2020, there have been important changes in the bankruptcy procedure in Turkey. An opportunity has been introduced to preserve the enterprise and restore its financial stability by concluding a deferred payment agreement (concordat). This agreement is concluded between the debtor and creditors for the purpose of deferring the repayment of debts.

The Concordat can be concluded by both commercial and non-profit organizations. All cases under such agreements are considered in the arbitration court of first instance in Turkey.

Punishment for hiding from paying debts and falsifying bankruptcy

In Turkey there is criminal liability for:

• Ignoring debt notices or avoiding contact with creditors;
• Falsification of bankruptcy - if a company deliberately declares bankruptcy, hiding its real financial situation.

Such actions may result in serious legal consequences, including criminal prosecution.

Our lawyers in Alanya provide the following services in the field of bankruptcy and liquidation of companies:

• Legal advice on bankruptcy and liquidation of a company in Turkey;
• Full legal support at all stages of bankruptcy and liquidation of a company.