Checks, which are frequently used in commercial life, play an important role as a means of payment. However, in some cases, checks may bounce and this may have legal consequences for both the person issuing the check and the person presenting the check. In this article, we will examine the relationship between bad checks and concordat in detail.
What is a Bad Check?
A bounced check is a check that is not paid by banks because there is not enough money in the account on the date it is drawn. This may occur for various reasons, such as the person issuing the check not having enough money in their bank account or their account being blocked.
What is Concordat?
Concordat is a legal process that a debtor trader or company applies to restructure its debts and prevent bankruptcy through an agreement with its creditors. The concordat process is initiated by a court decision and is carried out by a concordat commissioner.
Relationship between Bad Check and Concordat:
Issuing a bad check is considered a crime in the Turkish Penal Code. A person convicted of this offense may be fined or imprisoned. However, a person who declares concordatum may be free from criminal liability for issuing bad checks during the concordatum process.
Consequences of Issuing a Bad Check in the Concordat:
• Removal of Penal Sanctions: No criminal sanctions are applied for bounced checks issued during the concordat process.
• Restructuring of Debts: Within the scope of concordat, all debts, including bad check creditors, are restructured. In this way, the debtor can pay his debts in a longer term and in fewer installments.
• Right to Complain: Creditors can file a complaint about bounced checks issued during the composition process. Upon complaint, the court decides whether the check will be included within the scope of concordat.
