Enforcement & bankruptcy · Legal information

Avoidance of a Disposition If the Debtor Put Assets Out of Reach

Author · Av. Ayşenur Konar, Avukat

Published ·

In short

If the debtor put assets out of reach, avoidance of a disposition is the action that speaks the property that was disposed of back against the creditor. Avoidance does not arise by itself for every sale. It is not said that the property is taken back without a certificate of insolvency, the type of the act, and its date. A provisional attachment is spoken while the property is still with the debtor.

A provisional attachment does not stand in for this action

A provisional attachment is a temporary record asked from the court while the property is in the debtor's estate and there is a risk of it being put out of reach. If the transfer is complete, an annotation is no longer written on someone else's title as if it were the debtor's property. The complaint route is separate too. A mistake of attachment or of service by the enforcement directorate is not the avoidance of a contract made with a third person. A contract made with a third person is not a paper of the directorate. The order of collection is not the list of conditions of this action either. An avoidance opened before the claim has become final stays early if there is no certificate of insolvency.

The conditions looked at before the action is filed

The statute has the avoidance action opened by a creditor who holds a provisional or final certificate of insolvency. In bankruptcy, the bankruptcy administration and the cases the statute lists carry a separate capacity. If there is no document, an impression that no property remained inside does not become a condition of the action. In practice it is also looked for that the claim is real, that the proceedings have become final, and that the act sought to be avoided was made after the debt. These preliminary conditions are not the ground of avoidance itself. Before the preliminary condition is completed, a debate of kinship or of a low price stays early. A certificate of insolvency does not wait, in every file, for the sale to end. The insolvency character of an attachment record and the final document after distribution are not the same paper. Which of them is of use in this action is read from the stage of the file.

Which acts enter the scope

Gratuitous dispositions, and acts treated as gifts, are the first group. Customary gifts are left outside. The measure is the period in the statute running backwards from the certificate of insolvency, the attachment record of an insolvency character, or the date bankruptcy was opened. The current text writes this look-back as one year. The old account of two years is checked separately for files from before the change. Two years is not used from memory in a new act. A transfer between relatives for which the real price is not proved, a contract for a price very low compared with what the debtor gave, and a contract of care until death are among the cases that can be treated as a gift. The presumption may be shaken by the other side's proof. The acts the statute lists one by one in a state of insolvency, and the acts made with the intention of harming the creditors, are separate clauses. The intention is not built with a sentence that the debtor was in a difficult position. The statute also provides a five-year forfeiture period starting from the date the disposition was made. When the period is up, the action cannot be filed. Five years and the one-year look-back are not the same calendar.

Where the judgment leaves the property

Avoidance does not have to treat the disposition as null against everyone. The aim is that the creditor can collect their claim over that property. If the third person is in good faith and has paid the price, the result is not built the same as a collusive family transfer. The defendant, as a rule, is the debtor and the person in whose favour the disposition was made. An action opened only against the debtor may not bind the person who holds the title. An acceptance decision does not mean the sale price is written onto the order of distribution by itself. The document that is read is the insolvency paper, the date of the title, and the contract of the disposition. Service separates whether it went to the defendant. The petition writes which act it asks to be avoided. The decision is not treated as having passed the property into the creditor's ownership. An invoice may show that the price appears low. An invoice is not a judgment of avoidance. The register shows to whom the property passed. The register does not open the action by itself. The record may write that the property was not found during the attachment. The application should show the file number of the certificate of insolvency.

Where the avoidance file is read from

This article sets the certificate of insolvency, the date of the title, and the contract of the disposition side by side. This article does not carry the year of avoidance outside the period written in the file. This article does not treat every sale as avoided by itself. The Çankaya office does not change the competent authority.

Conclusion

Avoidance of a disposition speaks the property that was disposed of back against the creditor. A provisional attachment and a complaint do not open this door. An Ankara lawyer does not write the year of avoidance without looking at the file. The frame stands on the enforcement and bankruptcy law page. Temporary protection stands under provisional attachment. A mistake of the directorate stands under a complaint against an enforcement act. The order of collection stands under my debtor is not paying, and distribution stands under the order of distribution. The basis is the provisions of the Enforcement and Bankruptcy Code No. 2004.

Legislation

Frequently asked questions

If the land-registry transfer is complained of to the enforcement directorate, is the sale taken back?

A complaint debates the unlawfulness of an act of the directorate. A sale the debtor made with a third person is not an act of the directorate. Treating that disposition as without effect against the creditor is the subject of an avoidance action opened on the conditions the statute looks for. A complaint petition does not return the title to the former owner.

Is avoidance of a disposition opened without a certificate of insolvency?

The statute gives the action to a creditor who holds a provisional or final certificate of insolvency, and, in bankruptcy, to the capacities the statute lists. The document is among the conditions on which the action can be heard. A certificate of insolvency is the photograph, at that moment, of the hope of collection. While there is no document, a sentence of 'they put the assets out of reach' does not stand in for the condition of the action. At which stage the document can be presented is read in the concrete file.

Is a house sold to a spouse or a child always avoided?

Some dispositions between relatives may be read like a gift unless consideration matching the real value is proved. This is a debate of a presumption. Not every transfer inside the family is treated as void by itself. The price, the date of the title, and the order in which the claim arose are looked at together. Kinship does not stand in for the judgment by itself.

Are an avoidance action and an action for recovery of property the same thing?

They are not. Recovery of property puts forward that the attached property belongs to a third person. Avoidance of a disposition asks that an act the debtor made, and that harmed the creditor, be left without result against the creditor. To whom the property appears to belong, and whether the act is suitable for avoidance, are separate questions.

Related reading

This article sits under one practice area. The neighbouring guides carry the detail that does not belong in this text.

Practice areas · Enforcement & bankruptcy

Sources

AK

Author

Av. Ayşenur Konar

Lawyer on the Ankara Bar Association roll, founder of Konar Hukuk. This text is general information; a specific file is reviewed separately. Author profile · Editorial policy

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