It is possible for the debtor to choose one of three different methods for the payments to be made to the execution file. The debtor can pay the enforcement file directly at the enforcement office, pay the creditor or his/her attorney, or get rid of the debt as a result of paying with a credit card over the National Judiciary Informatics System (UYAP). However, the debtor should be informed about which of these methods is more advantageous for the debtor. Because this choice made by the debtor changes the amount to be paid. In other words, it is possible to get rid of debt by making significantly less payments, but the debtor may suffer financial loss because the debtor is generally unaware of this issue.
In addition, the debtor’s not knowing how to pay the enforcement file creates the risk of not closing the enforcement file despite the debt being paid. It is possible to pay the debt with the method introduced in 2016, which also allows the debtor to be paid in installments with a credit card. For the aforementioned reasons, in this bulletin, we have explained that what issues the debtor should pay attention to when making a payment to the execution file and which payment method the debtor should prefer. You can access the details on the subject from the rest of our article.
1. Payment Order Sent to the Borrower to Pay the Debt and Case Afterwards
The creditor may request the debtor to pay the debt by sending a payment order. For all receivables that are not subject to a court order, it is legally obligatory to send a proper payment order prior to the commencement of foreclosure proceedings against the debtor. The debtor has the right to object to the payment order sent due to an improper or non-existent debt. If the debtor’s objection to the deadline is justified, the payment order is canceled and enforcement proceedings are no longer continued. In order for the enforcement proceedings to continue, the creditor must take action.
If the debt that the debtor is given time to pay in the payment order really belongs to the debtor, and the debtor may want to pay this debt voluntarily. In addition to being obliged to pay, the debtor also has an interest in paying this debt. Because the debtor can prevent the issuing of the enforcement proceedings by paying the debt during the enforcement proceedings. In the same way, a person whose house, land or car has been seized, does not want these to be sold at low prices and counted as compensation for the debt. The only way to prevent this is to fully pay the debt of the creditor during the enforcement proceedings. If the debt subject to enforcement proceedings is paid in full and the enforcement file is closed, the problem is resolved, both parties are satisfied and the debtor is not exposed to enforcement proceedings for the same debt.
2. Problems Related to Payment of Debt During Enforcement
The fact that the debtor does not have information about how and to whom the debt that has come to the execution stage will be paid may bring some aggrievement. For example, due to the assumption that the amount of debt to be paid is only the amount of the original debt, the execution files may remain open because this amount is paid. Since the attorney fees, fees, expenses etc. calculated in the execution file remain unpaid, the debtor is subject to re-execution proceedings.
Again, due to the fact that the payment made to the creditor or his/her attorney is not notified by the creditor to the execution file, the file remains open, resulting in aggrievement.
Another and main problem is that the debtor does not know that the amount to be paid will change depending on which payment method the debtor chooses. However, there are differences of up to 50% in the amounts that the debtor will pay, depending on who and how she/he pays.
Likewise, since the debtor may not naturally be informed about whether she/he has the opportunity to pay the debt in cash or in installments, whether she/he can pay by card or not, she/he may be deprived of such opportunities and may not be able to pay the debt as a result.
3. Methods The Debtor Can Choose To Pay the Debt During Enforcement
- To pay directly to the enforcement file at the enforcement office,
- To pay the debt in installments with an agreement to be made with the enforcement office or externally,
- To pay with a credit card and in installments on havandas.uyap.gov.tr,
- To pay the creditor or his/her lawyer,
The debtor who wants to pay the debt can choose one of the above methods, which is suitable for him/her. But before making this choice, the debtor should have sufficient knowledge of the advantages and risks of the above methods. These issues are examined separately below.
3.1. Making payments to the executive file at the enforcement office
In the payment order sent to the debtor, an IBAN number is specified to which the debtor can make the payment. This account belongs to the enforcement offices, and the payment to be made here will be made directly to the enforcement file. After the payment made, the executive director takes the necessary actions, delivers the payment to the creditor and closes the execution file. In this way, the debtor discharged.
The debtor should pay attention to the following issue when making payments to this account;
- Payment must be made with purpose. Information on which debt has been paid should be included.
- The debtor must pay not only the amount sent in the payment order, but also the entire amount, including the main debt amount, application fee, collection fee, interest, expense and attorney’s fee, which is finalized in terms of enforcement proceedings according to the File Account Report prepared by the enforcement office on the date of payment. Because the debt, being subject to enforcement proceedings, has led to the new expenses and these must be paid by the debtor. If only the amount written in the payment order is paid, the execution file is not closed; In order to pay the remaining amount, new enforcement proceedings can be issued against the debtor with the same file.
3.2. To pay the creditor or his/her lawyer
Instead of paying in the enforcement office and the enforcement file, the debtor can also discharge the debt by paying the debt directly to the person she/he owes or to this person’s lawyer. In this payment method, the debtor has the opportunity to communicate and negotiate with the creditor. In this way, it is possible to get rid of debt by paying less.
Namely, in the payment to be made to the creditor, without the obligation to pay the debt amount, interest, expense and attorney’s fee determined in the File Account Report of the enforcement office, it is possible to close the debt by reconciling with the creditor and paying the agreed amount. The debtor can agree with the creditor to make a discount on the amount of the debt, interest, etc. In order for the execution file to be closed with the payment made to the creditor or her/his lawyer, it is obligatory for the creditor or her/his lawyer to notify the enforcement office that the debt has been collected. If the debtor is going to make a payment to the creditor or her/his lawyer, the debtor should not only make the payment, but must also make sure that the enforcement office has been informed about the payment information.
In this method, which is in favor of both the creditor and the debtor, even if the creditor and the debtor agree on the exact amount in the file account, that is, even if the creditor demands all of their receivables, they still have an advantage over the payment to be made in the execution file. Because, in payments to be made directly to the creditor, the collection fees to be collected from the enforcement file are 50% less than the payments to be made directly to the enforcement file. In addition, in case of payment by this method, the 2% prison fee charged by the creditor in return for the enforcement office to collect the receivable from the debtor is not collected from the creditor.
3.3. To pay the debt in instalments with an agreement to be made with the enforcement office or externally
It is possible to pay the debt in instalments after the payment order is finalized or during the attachment before the goods subject to the seizure are sold. These stages are subject to different conditions regarding the payment of the debt in instalments.
In order to pay the debt in installments at the stage before the seizure;
The creditor and the debtor can make an agreement as they wish. However, the amount of installments and payment dates must be specified in the agreement. The creditor is not obliged to make such an agreement, if she/he wishes, she/he can request the seizure of the debtor’s goods.The creditor is not obliged to make such an agreement, if she/he wishes, she/he can request the seizure of the debtor’s goods.
In order to pay the debt in installments after the seizure;
The creditor and debtor must make an agreement in accordance with the conditions specified in the Enforcement Bankruptcy Law. The creditor has to accept the debtor’s offer to pay in installments that meet these conditions. Accordingly, each instalment must not be less than one-fourth of the debt, the first instalment must be paid immediately and the payment period must not exceed three months. If the payments are not made on time and in full, the enforcement proceedings are resumed and the seized oods are sold.
3.4. Payment of debt in installments by credit card
As of 27.05.2016, the Ministry of Justice has introduced the opportunity to pay the execution files with credit cards in one shot or in installments. The debtor can pay the debt by logging in with the e-signature or e-government password on citizen.uyap.gov.tr, following the necessary steps. In the payments to be made by this method, the File Account Report must be obtained from the enforcement office, the amount of the payment to be made must be determined correctly and the collection fee rate to be paid must be chosen in accordance with the event. The collection fee rate varies according to whose account the payment is made and whether there is a lien on the debtor goods. Responsibility for this issue still rests with the debtor. Payments to be made are transferred to the relevant account by the intermediary institution.
4. 2021 collection fee rates and amounts
In payments to be made directly to the executive file; If the debt is paid before the lien, after the service of the payment or enforcement order; 4.55% on the amounts payable, 9.10% on the collected amount if the debt is paid after the lien and before the sale;
In payments made directly to the creditor or his representative; 2.27% if the debt is paid before the enforcement after the service of payment or enforcement order; If payment is made after the lien and before the sale, a 4.55% collection fee must be paid.
Conclusion
There are different options in front of the debtor to pay the debt that has come to the execution stage and to close the execution file. Which method the borrower debtor may cause a change in the amount to be paid. In addition, each payment method has some advantages and disadvantages. For example, if payment is made directly to the execution file, the debt must be paid in full with the additional expenses in the file account report, there is no opportunity to negotiate the debt with the creditor. However, in case of direct payment to the account of the debtor’s creditor or her/his lawyer, the debt can be settled and the enforcement file can be closed by negotiating with the creditor with a lesser payment and less collection fees by both parties. However, in this method, the execution files may remain open because the creditor or her lawyer does not notify the collection to the enforcement file. This issue needs to be followed up. You should definitely get detailed information from your lawyer about determining the most suitable and most advantageous payment method for you. For your legal questions and problems, you can request legal assistance from the Solmaz Law and Consultancy team.
Best Regards.
Solmaz Law and Consultancy Team.
References
PEKCANITEZ, Hakan/ATALAY, Oğuz/SUNGURTEKİN ÖZKAN, Meral/ÖZEKES, Muhammet, 2015, İcra İflas Hukuku, Yetkin Yayınları, Ankara.
Harçlar Kanunu Genel Tebliği Seri No:86 (https://www.resmigazete.gov.tr/eskiler/2020/12/20201229M1-10.htm)