Case for cancellation of disposition
The case for cancellation of disposition is regulated in Section 277 et seq. of the Enforcement and Bankruptcy Code. This case; is a type of suit in which the debtor maliciously disposes in favor of 3rd parties in order not to pay his debts to the creditors and in the presence of certain conditions against which the disposition has been made is requested by the creditor and if the case is decided to be accepted, he will receive the dispositions subject to the suit by foreclosure and sale as if they were still in the debtor’s assets and give the opportunity to collect the receivable and accessories attached to it.
We can list the transactions that may be subject of the cancellation of disposition case as follows:
- Mutual dispositions made with the spouse, his or her spouse’s descendants and ascendants, relatives up to the 3rd degree and adopted children.
- Contracts in which the counter-act remains remarkably low in response to the debtor’s own act.
- Dispositions made in connection with legal donating contracts, such as the contract to care until death.
- Pledges (movable and immovable pledges) provided by the debtor as collateral against another debt (Except if the debtor has undertaken to provide collateral before the debt occurred.)
- Payments made other than the usual payment methods.
- Debt payments made before they are due.
- Unreasonable annotations put onto the title deed.
- Any disposition transaction made by the debtor with the intention of harming his/her creditors.
The conditions required for filing a lawsuit for cancellation of disposition are as follows:
- There must be a legally valid debt relationship between the creditor and the debtor.
- There must be a finalized enforcement proceeding against the debtor.
- As a result of the enforcement proceedings carried out against the debtor, a final or temporary insolvency certificate must be issued to the debtor.
- The disposition transaction that is subjected to the cancellation case must have been carried out after the occurrence of the debt that is subjected to enforcement proceedings.
- The lawsuit must be filed within the 5-year period of prescription. The calculation of the 5-year period begins from the disposition date.
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