Abolition of Postponement of Bankruptcy and Concordat: Application Process

Is postponement of bankruptcy still available?

The former postponement-of-bankruptcy institution was abolished in 2018 by Law No. 7101. It must not be presented as an available route for new applications. Transitional rules may matter for older proceedings. Concordat is a separate restructuring procedure with its own conditions and effects.

Who may seek concordat?

Article 285 of the Enforcement and Bankruptcy Law permits applications by debtors unable to pay debts when due or at risk of such inability. Creditors entitled to seek bankruptcy also have a statutory application right. Eligibility is not confined to joint-stock or limited companies. The Commercial Court of First Instance has subject-matter jurisdiction; territorial jurisdiction depends on whether the debtor is subject to bankruptcy.

Application and moratorium

The preliminary proposal, financial records, creditor list and other statutory documents must be prepared. The ordinary temporary moratorium is three months, extendable by up to two months under the statutory conditions. A one-year definitive moratorium may follow where success is possible, with an exceptional extension of up to six months. These periods do not guarantee an overall completion date.

Creditors and confirmation

Filing alone does not erase debts or stop every enforcement measure. The effects of a moratorium, exempt claims and secured enforcement require separate analysis. Claims must be notified, the proposal voted on and the court’s confirmation conditions satisfied. Unanimity is not invariably required, but the debtor’s proposal alone is insufficient. Refusal and confirmation have consequences that depend on the debtor’s circumstances and statutory rules.

Legal basis

İcra ve İflas Kanunu / Enforcement and Bankruptcy Law, Articles 285–309; Law No. 7101

Legal information: This article provides general information on Turkish law. The documents, dates and applicable rules of each case require individual assessment.