Comprehensive legal consultancy and advocacy services in bankruptcy and liquidation processes of companies in Turkey

Bankruptcy Procedure in Turkey: Process, Terms and Legal Support

The bankruptcy procedure in Turkey is a long, complex and multi-stage process. Therefore, it is highly recommended to work with an experienced lawyer in order to manage the process correctly and prevent loss of rights.

Our lawyers provide professional support at every stage of the bankruptcy process, ensuring that the proceedings are conducted in accordance with the law.

**Who Can Go Bankrupt in Turkey?

Under Turkish law, any natural or legal person who is unable to pay its debts on time and in full may become bankrupt.

Persons and institutions that can go bankrupt:

real person traders

All companies with legal personality

Joint Stock Companies (A.Ş.)

Limited Companies (Ltd. Şti.)

All kinds of commercial enterprises and commercial organizations

**Which debts can cause bankruptcy?

Failure to pay the following obligations can trigger insolvency proceedings:

• Employee salaries

• Share interest, dividends

• Payables arising from commercial contracts

• Taxes, government fees, customs obligations

• Payables to suppliers and business partners

• Bank borrowings and financial liabilities

**What happens when debt grows?

When debt reaches a critical level, the bankruptcy process can be initiated. This process includes:

✔ Concordat (Restructuring) Application

• The payment plan is reorganized to protect the debtor's assets.

• The aim is to enable the company to continue its operations and to restructure the debt.

**✔ Use of Assets against Debts

• Company assets can be sold or valued against liabilities.

**Updates to the Insolvency Laws in Turkey

Significant reforms to insolvency legislation in Turkey since 2020:

• The concordat system has been strengthened.

• The aim is to prevent the complete closure of businesses and to provide the opportunity for financial improvement.

• Concordat can be requested by both commercial and non-commercial enterprises.

• Applications are evaluated by Commercial Courts of First Instance.

**Penalties in cases of false bankruptcy and debt concealment

The following acts give rise to serious criminal liability in Turkey:

• Failure to make debt notifications intentionally

• Evasion of property from creditors

• Filing for fake bankruptcy by concealing the real financial situation of the company

• Preparing unrealistic balance sheets

These actions can result in criminal prosecution, imprisonment and heavy fines.

Services Offered by Our Lawyers

Our legal team offers comprehensive insolvency and financial restructuring services in Alanya and throughout Turkey:

## ✔ Legal advice in bankruptcy and liquidation processes**

✔ Concordat application and debt restructuring

Representation at all stages of insolvency proceedings

✔ Company closure and liquidation procedures

✔ Receivables-debt management and risk analysis

Professional support is your biggest advantage in the insolvency process - one wrong step can have irreparable consequences.