Concordat Declaration Conditions and Bankruptcy Process

Previously, there was “Bankruptcy Postponement” for companies in economic bottlenecks, this was removed and replaced by the “Concordat” system which has stricter conditions. The aim is to save the honest but struggling debtor.

1. What is Concordat?

It is the debtor applying to the court saying “Give me time, let me restructure my debts, erase interest, agree with creditors.”

• Who Can Apply? Companies, Cooperatives, and Individuals (Even non-merchants) can apply.

2. Process (Respite)

1. Temporary Respite (3 Months): If the court finds the application appropriate, it immediately grants 3 months protection. Seizures stop. A “Concordat Commissioner” is appointed to the company.
2. Definitive Respite (1 Year): If things go well, another 1 year is granted.
3. Ratification: If the majority of creditors (50%) accept the proposal, the court ratifies the concordat. Debts are paid according to the new plan.

3. Bankruptcy (Commercial Death)

If the concordat is rejected or the company cannot be saved, the court issues a Bankruptcy Decision.

• All assets of the company are sold, the money is distributed to creditors.
• The legal entity ceases to exist.

Frequently Asked Questions

Q: How do I collect my receivable from a company that declared concordat? A: You cannot perform seizures during the process. You must attend the creditors’ meeting, vote, and be part of the plan.

Legal Support: You can contact us for the preparation of the concordat project and registration of receivables to the bankruptcy estate.

Professional Legal Support

Contact us for professional legal assistance on this matter.

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📧 Email: info@avukatfevziyaskir.com

📍 Address: Opposite the Courthouse, Karatay/Konya, Turkey

⚖️ Attorney Fevzi Yaşkir - Licensed attorney at Konya Bar Association providing legal consultation and case management services for international clients.