Execution and Bankruptcy Law

Enforcement and Bankruptcy Law is a branch of law that includes legal regulations aimed at protecting the rights of creditors and ensuring the collection of debts when debtors fail to fulfill their financial obligations. This area of law seeks to provide legal solutions to the economic difficulties faced by both individuals and legal entities. Enforcement and Bankruptcy Law covers topics such as the forced collection of debts, liquidation of the assets of bankrupt businesses, concordat, and methods for creditors to collect their claims.

Enforcement Law focuses specifically on the legal collection of debts. A creditor must initiate enforcement proceedings to legally collect a debt from the debtor. In this process, the creditor may use methods such as placing a lien on the debtor's assets, garnishing their wages or income, and selling movable or immovable properties to collect the debt. Enforcement proceedings are divided into two categories: judicial enforcement and non-judicial enforcement. Judicial enforcement is based on a court decision, while non-judicial enforcement occurs without a court ruling.

Bankruptcy Law, on the other hand, regulates the process of liquidation and fair distribution of the assets of a debtor who is unable to pay their debts, known as a bankrupt individual or business. The bankruptcy process applies to individuals and companies engaged in commerce. In this process, all of the debtor's assets are taken under the control of the bankruptcy office, and the assets are sold to satisfy the creditors' claims. Upon the declaration of bankruptcy, the debtor loses the authority to manage their assets, and the assets are included in the bankruptcy estate.

Concordat offers a way out for debtors who are struggling to pay their debts but wish to avoid bankruptcy. In the concordat process, the debtor restructures their debts by reaching an agreement with their creditors. This process is carried out with the approval of the court and grants the debtor a specific period to pay off their debts. Concordat provides an opportunity for the debtor to recover economically while also protecting the rights of the creditors.

Enforcement and Bankruptcy Law plays a critical role in ensuring the smooth conduct of economic relations. This branch of law aims to ensure that debtors fulfill their obligations and that creditors' rights are protected. Lawyers in this field provide legal support to their clients on matters such as debt collection, bankruptcy applications, concordat processes, and enforcement procedures. They also play a key role in resolving legal disputes that arise during enforcement and bankruptcy proceedings.