Basic Principles of Enforcement and Bankruptcy Law

Basic Principles of Enforcement and Bankruptcy Law

Execution and bankruptcy law is a branch of law established to ensure the payment of debts and protect the rights of creditors. The basic principles of this branch of law are the protection of the creditor’s rights, consideration of the debtor’s financial situation, fair and equal treatment, transparency and accountability. These principles ensure that enforcement and bankruptcy processes are carried out in a fair and efficient manner and maintain the balance between the parties.

Creditor’s Rights

The creditor is the party who has the right to demand payment of the debt. The basic rights of the creditor in enforcement and bankruptcy law include the right to initiate enforcement proceedings, to obtain information about the debtor’s assets, to request foreclosure, to request a sale, and to request the distribution of funds. While exercising these rights, the creditor must act within legal limits and contribute to the fair execution of the processes.

Debtor’s Rights

The debtor is the party obliged to pay the debt. However, the law of enforcement and bankruptcy provides that the debtor also has certain rights. The debtor’s basic rights include the right to object to the existence and amount of the debt, to object to the payment order, to object to attachment, to declare property and to request a certificate of insolvency. These rights protect the debtor against unfair practices and help to strike a fair balance in the process.

Execution Proceedings and Rights of the Parties

The enforcement proceedings begin with the creditor’s application to the enforcement office. In this process, the creditor has the right to make a request for enforcement proceedings, request a payment order, request foreclosure and request a sale. The debtor, on the other hand, has the right to object to the payment order, to pay all or part of the debt, to offer payment in installments and to declare property against seizure. It is important for both parties to know their rights and to exercise them appropriately in order to ensure that the process is carried out fairly and effectively.

Sequestration and the Rights of the Parties

Attachment is the process of seizing the debtor’s assets. During seizure, the creditor has the right to request seizure, to participate in the seizure process and to request the preservation of the seized goods. The debtor, on the other hand, has the right to declare the goods that cannot be seized, to object to the seizure report, to claim for appropriation and to request the determination of the value of the seized property. Knowing and exercising these rights during the attachment process ensures that the process is carried out fairly and protects the interests of the parties.

Insolvency Process and Rights of the Parties

Bankruptcy is a process applied when the debtor is unable to pay all its debts. In the bankruptcy process, the creditor has the right to file for bankruptcy, to declare its claim to the bankruptcy estate and to object to the actions of the bankruptcy administration. The debtor, on the other hand, has the right to object to bankruptcy, request concordat and request the bankruptcy to be lifted. The bankruptcy process can have serious consequences for both the debtor and the creditor. Therefore, it is important that the parties exercise their rights carefully and take care to ensure that the process is conducted in a fair manner.

Concordat and Parties’ Rights

Concordat is the process by which the debtor restructures its debts in agreement with its creditors. During the concordat process, the creditor has the right to object to the concordat project, to notify the concordat commissioner of its receivables, and to attend and vote at the creditors’ meeting. The debtor, on the other hand, has the right to request concordat, to be protected from proceedings during the grace period and to continue the activities of the business. Concordat is a last chance for the debtor and aims to protect the rights of the parties in a balanced manner.

Insolvency Certificate and its Consequences

An insolvency certificate is a document showing that the debtor is unable to pay his/her debts. The consequences of this document are that the statute of limitations is extended for the creditor, the proceedings can be renewed if the debtor’s financial situation improves, and the debtor is deprived of certain rights. An insolvency certificate may have severe consequences for the debtor, but it also provides some advantages to the creditor. The issuance and consequences of this document constitute an important part of enforcement and bankruptcy law.

Current Developments in Enforcement and Bankruptcy Law

Execution and bankruptcy law is constantly updated according to economic conditions and social needs. Recent important developments include the widespread use of electronic attachment, improvements in the concordat process, new regulations protecting the debtor and the expansion of the creditor’s right to information. These developments aim to ensure a more efficient and fair execution of the enforcement and bankruptcy processes and to better protect the rights of the parties.