Bankruptcy Process in Turkey and Debt Collection
How does a Turkish company go bankrupt?
To find a significant answer to this question, we need to understand what exactly the word of ‘bankruptcy’ means in general. If a company has financial problems, it disrupts the balance between incomes and expenses. Once the debts of a company cannot be paid on time, it becomes impossible for the company to afford its existence and continue its activities. The company goes bankrupt mostly because it became impossible to recover its receivables on time. The damage becomes huge and the company loses its ability to the return for the investment, experiences corruption and frustration.
A Turkish company, which has become bankrupt, has the opportunity to declare concordat, and can apply to the court with a project. This means that the company can not be traced legally for a certain period of time and its debts are postponed. The company is allowed to recover their work within the given reasonable time until it becomes able to pay off its debts. If the Turkish court deems the presented project to be credible, it gives the company a 3-month temporary deadline and examines the applicability of the project and whether the financial data are correct or not , through the trustee. If the company’s project is not accepted and the commitments are not fulfilled, the bankruptcy decision is made about the applicant.
How Does the Trustee Process Work?
The assets of the Turkish company whose bankruptcy is decided, passes to the bankruptcy administration. The bankruptcy administration is the official institution appointed by the government. The bankruptcy book is kept about the company and all the assets of the bankrupt company are liquidated by the bankruptcy administration. The bankruptcy administration meets with the foreign and Turkish creditors who register their receivables at the bankruptcy desk for liquidation and distributes the receivables according to the order of the creditors by selling the goods of the bankrupt, ranking them according to the concession and application order.
How To Handle A Long and Difficult Process?
The answer is simpler than you think. 3 words. Working with professionals…
As ARS Consultancy, we have been aiming to raise awareness since 2011 in order to provide amicable solutions before legal action. We offer our pre-legal Receivable Management services in Turkey to our international customers with No Recovery, No Fee, without demanding any additional expenses. ARS Consultancy’s main business focus is International Debt Collection and has specialists who are trained and talented to monitor in every step of a trade. As Turkey’s first and leading International Debt Collection Agency, we keep working on and monitoring our customers’ International cases professionally.
Working with us helps you to be aware of your customers which are going through a bankruptcy process or not, because we always monitor the companies closely. Accordingly, we share our reviews with our clients when a change occurs in the financial situation of Turkish debtors.
After the start of a bankruptcy process we do not have much to do but if you work with us before it is too late, we can help you to recover your debts from Turkish companies. At the same time, we help your Turkish customers to settle your debts before they go bankrupt. As ARS Consultancy, we are here for you not only collecting your bad debts in Turkey but also your receivables which are due.
Director of Foreign Affairs | ARS Consultancy