Debtor’s right to amicable sale of confiscated property
On Tuesday, November 30th, 2021, Law No. 7343 amending the Enforcement and Bankruptcy Code and certain other codes were published in the Official Gazette No. 31675 and entered into force on the day of publication in accordance with Article 5 of the same Code.
Although some changes have been made to the aforementioned Code, for the first time in the foreclosure system. The debtor is authorized to dispose of the attached items by mutual agreement.
The 12th article of Law No. 7343 introduced Article 111 / a entitled “ Authorization of the debtor to sell by mutual agreement ”, which is added after Article 111 of the Enforcement and Bankruptcy Law.
With the additional article, the debtor can be authorized, upon request, to dispose of confiscated items by mutual agreement. The article mentioned above regulates the scope of the sales authorization, the duration and the procedure.
In the first paragraph it is decided that the The debtor can request the power of attorney to sell of confiscated property within 7 days of the announcement of the rating.
Another important point is that The debtor can request an assessment. With the granting of this right, the debtor, who is constantly threatened with seizure and sale, has the option of selling the property directly and converting it into money before it diminishes the value of the property or without leaving it at the discretion of the obligee.
Upon completion of the evaluation process, the bailiff will cease judicial sales transactions and give the debtor a period of 15 days. This period relates to the deposit of the amount determined in the file under the second paragraph.
The time limit for the application for sale does not expire for the obligee from the beginning of the time limit given to the debtor until the custody of an enforcement court over the sale made in accordance with this article.
According to paragraph 2, the price in the sales contract is 80% of the estimated value of the goods and the sum of the claims that are secured by these goods and that have priority over the claims of the seller, whichever is higher; and, in addition to this amount, may not fall below the sum of the enforcement procedure costs incurred for the above-mentioned confiscated items up to this point in time
The third paragraph provides that the buyer, with whom the debtor has agreed, pays the determined value to the file within 15 days, provided that it is made available to the debtor in accordance with paragraph 1, the bailiff establishes that the specified in the article Conditions are met after the required information and documents have been provided. The file is then sent to a Enforcement Court to approve the sale and transfer.
In this context, the court decides indisputably whether to accept or reject the application in the file within 10 days at the latest.
With the court decision, ownership of the property is transferred to the buyer and all pledges of the property are to be lifted and the pledging transactions to be carried out. In the event of non-compliance with the court ruling, the deposited amount will be refunded to the buyer.
ARTICLE 12 – The following article has been added to Act number 2004 under Article 111.
The article text above is as follows:
” Permitting the debtor to approve the mutual sale ”
Item 111 / a- A debtor may apply for approval for the amicable sale of his confiscated property within seven days of the notification of the appraisal. In cases in which a valuation is not carried out, the debtor can also request a valuation. After the valuation is complete, a bailiff will stop the judicial sales transactions and give the debtor a period of fifteen days. The time limit for the application for sale does not expire for the obligee from the beginning of the time limit granted to the debtor until an enforcement court is called.
In the case of a mutually agreed sale, 80% of the appraised value of the property and whichever is higher between the sum of the claims secured by this property and the sum of the claims that take precedence over the claims of the seller; furthermore, other additional amounts cannot be less than the sum the enforcement costs incurred up to this point in time for the aforementioned confiscated items.
If a buyer with whom the debtor has agreed pays the determined value to the debtor within 15 days, the bailiff, after providing the necessary information and documents, determines that the conditions specified in the article are met, the file is for approval of the sale and transfer to an enforcement court. The court decides undisputedly whether to accept or reject the application for the file within 10 days at the latest. With the court decision, ownership of the property is transferred to the buyer and all pledges of the property are to be lifted and the pledging transactions to be carried out. In the event of non-compliance with the court ruling, the deposited amount will be refunded to the buyer.
Other provisions of this Act apply to such sales, insofar as this is appropriate to the nature of the sales under this article.
The procedures and principles for the implementation of this article are set out in the regulation issued by the Ministry of Justice. “