Composition is an Execution and Bankruptcy Law institution which has been adopted with the aim of protecting honest debtors whose financial situation has deteriorated unavoidably and who wish to pay their debts and continue their business activities and ensuring equality between the creditors of these debtors.
In order to apply for composition, it is not necessary for the debtor to be one of the debtors subject to bankruptcy. Any debtor may apply to composition if he/she wishes. Although the law mentions that each debtor can apply for composition, in our opinion, the high litigation expenses for composition shall limit the individual application in restricted income groups such as civil servants and workers.
The advantage of composition is that it provides the agreement between the debtors and creditors and the opportunity for the continued commercial activity by delaying the sale of their seized property.
The composition process is a process that should be followed rigorously by the debtor and the creditor, and the legal assistance of the jurists who are experienced in composition and, if possible, trained as trustee in composition is very important in this process. Otherwise, missing small details could end the composition process and lead to severe damages for debtors.
Our firm produces composition solutions for companies and merchants of all kinds with the participation of qualified financial experts.
