Debtor's Right to Consensual Sale of Seized Property

On Tuesday, November 30, 2021, the Law numbered 7343 on the Amendment of Enforcement and Bankruptcy Code and Some Other Codes were promulgated in the Official Gazette numbered 31675 and entered into force on the date of promulgation in accordance with Article 5 of the same code.

Although several changes have been made regarding mentioned code, in the compulsory enforcement system for the first time. The debtor is authorized to consensually sell the seized property.

With the 12th Article of the Law numbered 7343, Article 111/a titled ‘‘Granting the Debtor to Authorize the Consensual Sale’’ was introduced to be added after article 111 of the Enforcement and Bankruptcy Code.

With the added article, upon request, the debtor can be authorized to sell seized property consensually. The above-mentioned article regularizes the scope of sale authorization, term, and procedure.

In the first paragraph, it is ruled that the debtor may request authorization for the sale of seized property within 7 days following the notification of the valuation.

Also, another important pointis the debtor can request to carry out a valuation. With the grant of this right, the debtor, who is under the constant threat of seizure and sale, has the opportunity to take direct action in order to sell the property and convert it into money before decreasing the value of the property or without leaving it to the discretion of creditor.

After the valuation process is finalized, the bailiff shall halt the transactions of judicial sale and give the debtor a period of 15 days. This period is related to depositing the amount determined in the file within the scope of the second paragraph.

The period for the sale request shall not lapse for the creditor from the beginning of the period provided to the debtor to the holding of an enforcement court regarding the sale made pursuant to this article.

According to the second paragraph, the price in the consent sale is 80% of the appraised value of the goods and the sum of the receivables that are secured by that goods and which are the priority of the receivables of the seller, whichever is more; and in addition to this amount, it cannot be less than the sum of the enforcement proceedings costs for this incurred for mentioned seized property until this stage

In the third paragraph, it is ruled that buyer, with whom the debtor has agreed, pays the determined value to the file within 15 days, provided to the debtor in accordance with the first paragraph, the bailiff determines that the conditions specified in the article have been fulfilled after providing the necessary information and documents. Afterward, the file shall be sent to an enforcement court for the approval of the sale and conveyancing.