Action for Annulment of Disposition

The lawsuit filed to annul the fraudulent dispositions made by the debtor before the seizure or the initiation of bankruptcy proceedings, with the intent to evade their obligations, is called an action for annulment of disposition. In this article, we will briefly provide general information about the action for annulment of disposition.

Who Can File an Action for Annulment of Disposition?

It can be filed by a creditor who cannot collect their debt through enforcement proceedings and who possesses a certificate of insolvency. Whether it is a provisional or definitive certificate of insolvency, both grant the right to file an annulment lawsuit. A certificate of insolvency is a specific prerequisite for this type of lawsuit.

Against Whom Can an Action for Annulment of Disposition Be Filed?

The defendants in an annulment action are listed in Article 282 of the Enforcement and Bankruptcy Code (EBC). Defendants include the debtor, persons with whom the debtor has entered into legal transactions or made payments, their heirs, and third parties acting in bad faith.

In What Circumstances Is a Certificate of Insolvency Issued?

A certificate of insolvency is issued to a creditor who has not been fully compensated after the distribution of funds. It is issued without any fees or charges, and the enforcement officer automatically prepares the certificate and provides it to the creditor. A certificate of insolvency is a prerequisite for this lawsuit. Additionally, during a seizure, if the debtor has several seizable assets but the appraisal shows that these are insufficient to cover the debt and related costs, the seizure record is treated as a certificate of insolvency. This certificate can be submitted at any stage of the lawsuit.

Other Lawsuit Conditions Addressed by the Court of Cassation in Annulment Actions

According to the Court of Cassation, for an annulment action to be valid, the following conditions must be met:

1. The enforcement proceedings against the debtor must be finalized.

2. A legitimate debt relationship must exist between the creditor and debtor.

3. The disposition subject to annulment must have occurred after the debt arose.

Statute of Limitations for Annulment Actions

According to Article 284 of the İİK(EBC), such a lawsuit is subject to a statute of limitations of 5 years from the date of disposition.

Types of Dispositions That May Be Subject to Annulment

Since there is no exhaustive list of dispositions in the law, this can be exemplified based on doctrine and court decisions. Examples include:

• Transferred company shares

• Assets transferred under a settlement agreement in a divorce

• Actions preventing the debtor's asset increase (e.g., rejecting inheritance)

• The debtor’s acceptance of a lawsuit for the annulment and registration of a title deed

• Trust transactions

• Assignment of claims

• The debtor’s avoidance of filing a reduction lawsuit

• The debtor’s avoidance of appealing court decisions

• The debtor’s acknowledgment of a fraudulent debt

• Strengthening personal rights by registering them in the land registry

• Sale of movable or immovable property

These are provided as examples, and all transactions aimed at harming creditors may be subject to annulment actions, regardless of their legal nature.

It should not be forgotten that each legal case should be evaluated in its own context, and handling such matters by a competent lawyer is crucial to prevent any loss of rights.