What are the Conditions of Concordat?
Concordat, which is offered as a way out for companies and individuals in economic distress, allows debtors to restructure their debts by agreeing with their creditors. In Turkey, there has been a significant increase in concordat applications in recent years due to increasing economic fluctuations. Getting the right legal support in this process is critical for a successful concordat process. In this article, we will discuss the conditions of concordat in detail for those who are looking for a concordat lawyer in Gebze, Izmit and Kocaeli.
What is Concordat?
Concordat is a legal process applied to prevent bankruptcy and improve the debtor’s financial situation. In the concordat process, the debtor company or individual can continue to pay its debts by agreeing on a specific payment plan with its creditors by court order. Thus, both the debtor’s commercial activities can be sustained and the creditors can collect a certain amount.
Concordat Conditions
In order to apply for concordat, certain conditions must be met. Here are the basic conditions to apply for concordat:
1. Debts Becoming Unpayable
The debtor should be unable to pay its debts when due or this situation should be foreseen to occur in the near future. The debtor’s financial statements and financial condition reports should support this.
2. Presenting a Realistic and Feasible Concordat Project
The debtor must clearly state the terms and rates at which it will pay its debts with the concordat project to be submitted to the court. This project is examined by independent auditors and submitted to the court.
3. Applying to the Court with a Concordat Request
The debtor or creditors may initiate the concordat process by applying to the competent court. It is of great importance to prepare the application completely and in accordance with the law. Getting support from Gebze, Izmit and Kocaeli concordat lawyer ensures that the process proceeds without legal errors.
4. Obtaining a Temporary Suspension Decision
After examining the concordat request, the court may grant a three-month temporary respite in order to protect the debtor’s assets. During this period, the debtor cannot be subjected to enforcement proceedings by the creditors.
5. Approval of the Creditors’ Meeting
In order for the concordat project to be valid, the creditors must accept this proposal by a certain majority. Generally, at least two thirds of the creditors are expected to accept the concordat proposal.
6. Decree of Final Sealing by the Court
Following the approval of the creditors, the court grants a final respite order, allowing the debtor to carry out the concordat process for a certain period of time. This period is usually one year, but can be extended if necessary.
The Importance of Legal Assistance in the Concordat Process
The concordat process involves very complex and detailed legal procedures. Therefore, it is of great importance to get support from an expert lawyer from the beginning to the end of the process. Businesses and individuals who are in search of a concordat lawyer in Gebze, İzmit and Kocaeli can carry out the process in a healthier way by working with an experienced law firm.
Conclusion
Concordat offers companies and individuals struggling with economic difficulties the opportunity to avoid bankruptcy and to continue their commercial activities by restructuring their debts. However, getting the right legal advice is essential for the successful management of the process. With the support of Gebze, İzmit and Kocaeli concordat lawyer, the legal risks of the process can be minimized and the future of your business can be secured.
If you want to get more information about the concordat process and get legal support, you can contact our expert lawyers.
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