COMMUNIQUE: Advance on Expenses Tariff in Terms Of (Concordatum)Composition of Debts Has Been Published in the Official Gazette!

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Uçar Law & Consultancy Office

Uçar Law & Consultancy Office

Introduction

Advance on Expenses Tariff for Composition of Debts (“Tariff”) has been published on the Official Gazette dated June 13, 2019 and numbered 30800. With the subject Tariff, the procedures and principles regarding the payment of the advance on expenses to be made to the court desk are determined in accordance with the Execution and Bankruptcy Law while concordatum (composition of debts) is requested.

Terms: The Court Fee and The Advance on Expenses

In the case of a plaintiff filing a lawsuit, two payments are deposited to the court desk by the plaintiff, namely, the court fee and the advance on expenses. Court fee can be defined as a small amount of money taken in return for the purpose of benefiting from the services rendered by the state according to their subjects. Court fees are regulated in the Law No. 492 on the Act of Fees.

Advance on expenses is regulated in the Law No. 6100 on Civil Procedure and in the other laws containing procedural provisions. Advance on expenses is collected by the court before the trial and on trial to cover litigation expenses such as accumulation of evidences and making of notifications.

Composition of Debts(Concordatum) is the compulsory execution made between the debtor and a certain majority of the creditors.

Newly Published Communique

According to the Tariff prepared by the Ministry of Justice, the advance on expenses in terms of composition of debts(concordatum) is defined as follows (Article 3):

“Advance on expenses in terms of composition of debts includes notifications and postal fees, fees of the experts and the trustees in composition, annunciation fees, bankruptcy charges and return fare of the file to the Regional Courts of Justice and the Court of Cassation”

According to the latest amendment published in the Official Gazette dated June 13, 2019, advance on expenses to be paid to the court desk by the interested party requesting composition of debts(concordatum) are as follows (Article 4):

  • Notification fee of 3 times the number of creditors reported when requesting composition of debts(concordatum),
  • TRY650,00, which is the minimum amount of the price of the 7 announcements to be published in the Turkish Commercial Registry Gazette,
  • The minimum amount of 7 announcement price to be made on the official announcement portal of the Press Ad Agency, determined in the Official Announcement Price Tariff,
  • 50 amounts of fees of the return receipt requested posts for the relevant institutions and organizations,
  • For an expert, a fee of 3 times the amount of the fee specified in the Expert’s Minimum Wage Tariff,
  • For the person to be appointed as the trustee in composition, to be determined by the Court and whose fee is to be determined by the Court, 5-months of a minimum of monthly TRY1.000,00,
  • TRY350,00 for other jobs and transactions,
  • Bankruptcy charges of TRY17.000,00 in terms of those subject to bankruptcy.

According to the Tariff, unused portion of the advance on expenses will be refunded to the requester after the finalization of the verdict (Article 5).

Effective Date

With the publication of the subject Tariff in the Official Gazette, the former tariff dated June 2, 2018 will be abolished. This Tariff shall enter into force on June 13, 2019 (Article 9). The advance on expenses in this Tariff will be applied to the composition of debts(concordatum) claims made after the date March 15, 2018.

The full text of the Tariff published in the Official Gazette No. 30800 dated June 13, 2019 can be accessed here.

Please review our in-office client-attorney training presentation for the detailed information on the Composition of Debts(Concordatum) subject here.

You can contact us for further information and to take advantage of our advocacy and consulting services. You can find detailed information about our office’s work on Bankruptcy and Enforcement Law and Corporate Law on our website.

 

Uçar Law & Consultancy Office

Diclaimer:

This article is prepared by Uçar Law & Consultancy Office for information purposes only, and the information and visual materials contained in it cannot be used, reproduced, published, transmitted to a third party or translated without prior written permission from us. This legal memorandum is not a comment or legal opinion and was prepared on the publication date and our attorney’s office is not responsible for its failure to
update continuously.”

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