The collection of debts and the protection of creditor rights are very important for a fair society. For this purpose, various legal instruments such as the seizure and sale of the debtor’s assets have been regulated within the framework of the Enforcement and Bankruptcy Law (EBL). In this article, we will examine the basic information regarding the seizure and sale of the debtor’s assets and discuss the balance of creditor and debtor rights.
What is Seizure?
Seizure is the process of a creditor placing a legal restriction on the debtor’s assets in order to collect his/her receivables. Seizure is carried out by the enforcement officer upon the request of the creditor and the seizure process is recorded in the minutes. The seized property cannot be disposed of by the debtor and this situation continues until the debt to the creditor is paid.
Which Properties Can Be Seized?
The properties that can be subject to seizure are regulated in detail in the EBL. Accordingly, assets such as a portion of the debtor’s salary and wages, movable and immovable properties, receivables and inheritance shares can be seized.
However, some goods are also exempt from seizure. For example, the minimum salary required for the debtor and his family, a certain amount of cash, some household goods and work tools cannot be seized.
Sale of Seized Goods
The sale of seized goods is a way for the creditor to collect his receivables. Following the seizure process, the creditor or debtor may request the sale of the seized goods within one year from the seizure. Upon the request for sale, the enforcement office conducts the sale procedures of the goods.
The sale of seized goods is carried out by auction. The person who bids the highest price in the sale purchases the goods. The proceeds from the sale are distributed to the creditors in order of priority.
Balance of Creditor and Debtor Rights
While the seizure and sale of the debtor’s goods are an important tool for the protection of creditor rights, the debtor also has certain rights. If the value of the seized goods is disproportionate, the debtor may submit a seizure complaint or file an objection with the enforcement court.
In addition, the debtor can have the lien lifted by paying his debt before or after the lien.
