Execution and Bankruptcy Law is the branch of law that regulates the collection of debts and the distribution of the debtor's property to creditors. This branch of law aims to protect the rights of creditors in case the debtor fails to pay its debt. In addition to regulating debtor-creditor relations, Execution and Bankruptcy Law also includes detailed regulations on how to collect debts and how to evaluate the debtor's assets.

Enforcement Law
Enforcement Law covers enforcement proceedings initiated upon the request of the creditor in case the debtor fails to pay its debt. Enforcement proceedings begin when the creditor applies to the enforcement office for a certain receivable. The enforcement office sends a payment order to the debtor and if the debtor does not object to this payment order, foreclosure proceedings begin. Foreclosure proceedings ensure that the debtor's assets are sold to the creditor and the debt is collected.

Bankruptcy Law
Bankruptcy Law comes into play when the debtor is unable to pay its debts. Bankruptcy is declared by the commercial court and all assets of the debtor are included in the bankruptcy estate. The bankruptcy estate carries out the sale of the debtor's assets and the distribution of the proceeds among the creditors. In this process, equality among creditors is sought and the debtor's assets are distributed fairly.

Basic Concepts

Creditor: A person or organization that has a claim against a debtor.

Debtor: A person or institution that owes money to a creditor.

Sequestration: The process of collecting the debt by selling the debtor's assets to the creditor.

Bankruptcy: The process of including all assets in the bankruptcy estate and distributing them to creditors in case the debtor is unable to pay its debts.

As a result, Execution and Bankruptcy Law is an important branch of law developed to ensure balance and justice in economic relations and regulates the relations between debtors and creditors.