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Case for Cancellation of Savings: What Does the Creditor Do If the Debtor Loses His Property? Transactions subject to annulment within the scope of EBL Article 277-284, insolvency certificate, 5-year period and results of the case have been updated as of 2026.
When the debtor becomes aware of the enforcement proceedings, he can transfer his real estate to his relative, donate his vehicle or liquidate his assets in any other way. In this case, the law allows the creditor to file for annulment of the disposition. The lawsuit does not invalidate the transfer; It ensures that the goods are seized and sold as if they still belong to the debtor for enforcement purposes, limited only to the amount of the receivable. The guide explains transactions subject to annulment, case conditions, deadlines, competent court and evidence collection.
1. What is the Case for Cancellation of Savings?
The creditor enters into a receivables relationship by relying on the debtor's assets. If the debtor smuggles these assets from the creditor, the creditor will have no possibility of collection. Articles 277 to 284 of the Enforcement and Bankruptcy Law establish a protection system against this situation: the action for annulment of disposition.
This case is different from the collusion case in the Turkish Code of Obligations. Muvazaa argues that the transaction is invalid from the beginning because it does not reflect the real will. In case of cancellation of the savings, the transaction remains valid; shall be deemed void against the creditor, limited only to his receivables.
1. A real claim: The plaintiff must have a real claim against the debtor. Receivables on paper alone are not sufficient for this case.
2. Finalized enforcement proceedings: The proceedings initiated against the debtor must be finalized.
3. Certificate of insolvency (Art. 277): There must be a certificate of final or temporary insolvency for the debtor. This document shows that the debtor's assets do not cover the receivable at the end of the pursuit. The document may also be presented during trial or on appeal.
4. Savings made after the debt: The savings requested to be canceled must have been made after the debt was born. In post-dated checks and bills, the actual debt birth date is taken as basis.
3. Which Savings Are Subject to Cancellation?
EBL article 278 Non-refundable savings (donation, gratuitous transfer) 2 years from the date of foreclosure or bankruptcy. Customary gifts are excluded.
EBL Article 279 Transactions made by the insolvent debtor (pledge, non-cash payment, payment of overdue debt) 1 year before foreclosure or bankruptcy
EBL art.280 Transactions made with the intention of causing loss to the creditor The other party should know or need to know this intention. There is a presumption of information for relatives.
In terms of Article 280 of the EBL, the creditor must prove that the debtor intended to harm his creditors and that the other party knew or should have known this. In transfers made to people who are relatives of the debtor (such as spouse, descendants, ancestors, siblings), it is accepted as a presumption that the other party knows this intention. It is up to the other party to refute this presumption.
The right to file for annulment expires after 5 years from the date of disposal (Executive Law Article 284). This period is based on the date of disposition, not the date of birth of the debt, and is non-entitleable. After the period has passed, the creditor cannot file a lawsuit against that disposition. The case can also be heard during judicial recess.
Plaintiff: The creditor with the certificate of insolvency or the bankruptcy administration.
Defendant: The debtor is the third party who conducts a transaction with the debtor. These are compulsory companions; In other words, both of them should be named as defendants together. A lawsuit can also be filed against subsequent transferees in bad faith.
The competent court: It is the civil court of first instance.
Trial procedure: It is a simple trial procedure (EBL article 281).
The court is not bound by the article relied upon by the plaintiff. Even if the creditor relies on Article 280, the judge may also evaluate other reasons for cancellation in the case.
If the court decides to annul the disposition, the transferred property is seized and sold as if it were the debtor's assets, limited to the receivable amount. The portion that will cover the receivable from the sale is paid to the creditor; The remaining part remains with the transferee. The rights acquired by bona fide third parties are protected.
The creditor may request an interim injunction from the court to prevent the transferee from transferring the property to someone else during the course of the case. Otherwise, the goods will continue to change hands and the case may remain unsolved.
Land registry records, vehicle registration records and transfer agreements are summoned.
Whether the transfer price is compatible with the real value is determined by expert examination.
Bank records show whether the price was actually paid.
The kinship or commercial ties between the debtor and the transferee are proven by population and trade registry records.
A supplier initiated enforcement proceedings against the debtor for his commercial debt and the prosecution was finalized. During the foreclosure, it was learned that the debtor's real estate was transferred to his brother free of charge three months ago. Since the debtor has no other property, a certificate of insolvency has been issued.
Making the transfer free of charge constitutes a free disposition and is within the scope of EBL Article 278. In transfers made to a close relative, the knowledge of the other party is considered a presumption. The creditor may file a lawsuit against the debtor and his brother in the civil court of first instance, based on the certificate of insolvency. Requesting an interim injunction during the lawsuit prevents the transfer of the real estate to someone else.
In case of cancellation of disposition, will the real estate be transferred to the creditor?
No. The property remains with the transferee; The creditor can only collect the amount of his receivable by seizing and selling the goods as if they were the debtor's property.
Can a lawsuit be filed without a certificate of insolvency?
A lawsuit may be filed; However, the certificate of insolvency is a condition for litigation. The document may be submitted to the file until the end of the trial.
If the property is transferred to someone else, who can sue?
The lawsuit must be filed against the debtor and the first transferee. A lawsuit can also be filed against subsequent transferees in bad faith.
Is a low price sale subject to cancellation of the savings?
If the sale is made well below the real value, the intent to cause harm and the knowledge of the other party are investigated within the framework of Article 280 of the EBL. The conclusion depends on the evidence.
The action for annulment of disposition is the most powerful tool given to the creditor against the unlawful ineffectiveness of enforcement proceedings. Success depends on establishing the case conditions completely, not missing the deadline, and collecting evidence on time. Küheylan Law Firm carries out the entire process, from asset search to action for annulment of disposition and provisional injunction, in cases where the debtor has missed his assets; For evaluation, an appointment can be requested via info@kuheylanhukuk.com.
Important Legal Notice: The legal explanations contained in this guide have been prepared by Küheylan Law Firm for general information purposes and do not constitute legal advice. In enforcement and bankruptcy law, the periods are short and the consequences are heavy; Since each file has its own unique conditions, it is recommended to get support from a lawyer before taking action. © 2026 Küheylan Law Firm. All rights reserved.
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