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Coronavirus Desk

23/03/2020
Dispute Resolution / General

Fight with COVID-19: Turkish Enforcement and Bankruptcy Proceedings Suspended

Legal Alerts

Recent Development

In scope of the various response measures implemented by the Turkish government to prevent the spread of the coronavirus (COVID-19) in Turkey, the President of the Turkish Republic issued the “Decree to Suspend Enforcement and Bankruptcy Proceedings” on March 22, 2020, in accordance with Article 330, “Suspension In Case of Emergency”, of the Enforcement and Bankruptcy Law (“EBL“).

What Does the Decision Say?

  • President’s Decision

As per Article 330 of the EBL, in case of a pandemic, a common calamity or a war, enforcement proceedings may be suspended for a certain period in some parts of the country or for in favor of an economic class through  the President of Turkish Republic’s decision. In line with the law, the “Decree to Suspend Enforcement and Bankruptcy Proceedings” (“President Decree“) entered into force on March 22, 2020 due to the COVID-19 pandemic.

The President Decree suspends the following proceedings until April 30, 2020, except for enforcement proceedings commenced for child support payments:

  1. all pending enforcement and bankruptcy proceedings;
  2. new enforcement and bankruptcy proceedings; and
  3. interim attachment proceedings.

Conclusion

COVID-19 has substantially affected Turkey and the Turkish litigation practice, and warrants governmental precautionary measures. Accordingly, the President Decree suspends all current enforcement and bankruptcy proceedings in Turkey (except those for child support payments); prohibits the initiation of new enforcement and bankruptcy proceedings; and prohibits implementing interim attachment orders until April 30, 2020.

Coronavirus Desk
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