Introduction

In Turkish enforcement and bankruptcy law, negative declaratory and restitution lawsuits are vital legal tools that protect both debtors and creditors. These lawsuits allow parties to challenge the legitimacy of a debt or recover funds that have been wrongfully collected. This guide explores the legal framework for these types of lawsuits, their applications, and recent developments in Turkish law.

Purpose:

• A negative declaratory lawsuit is filed by a debtor to challenge the existence or validity of a debt. The goal is to obtain a court declaration stating that the debtor does not owe the claimed debt.
• These lawsuits are commonly used in cases where creditors have initiated enforcement actions for debts that the debtor disputes.

Legal Basis:

• Negative declaratory lawsuits are governed by the Turkish Execution and Bankruptcy Law (EBL). The debtor must provide evidence that the debt either does not exist or has been wrongfully claimed by the creditor.

Effects of Filing:

• Filing a negative declaratory lawsuit does not automatically stop the enforcement process. However, the debtor may request a stay of execution (icranın durdurulması) if they provide collateral to the court.
• If the court rules in favor of the debtor, the enforcement action is annulled, and any collected amounts must be returned to the debtor.

Common Scenarios:

• Negative declaratory lawsuits are often filed when a creditor claims a debt based on incorrect information, or when the debtor believes they have already settled the debt.

Purpose:

• A restitution lawsuit is filed by a debtor to recover funds that have been wrongfully collected through enforcement proceedings. These lawsuits arise after the debtor has paid the debt under protest, and later seeks to prove that the payment was unjustified.

Legal Basis:

• Restitution lawsuits are also governed by the Turkish Execution and Bankruptcy Law (EBL). The debtor must demonstrate that the payment was made involuntarily (due to enforcement action) and that the debt was either non-existent or invalid.

Filing Conditions:

• Restitution lawsuits can only be filed after the debtor has made the payment under protest. The debtor must also have a valid legal claim challenging the legitimacy of the debt.
• If the court rules in favor of the debtor, the creditor is obligated to return the wrongfully collected funds, along with any applicable interest.

Common Scenarios:

• Restitution lawsuits are typically filed when a debtor believes that they were coerced into paying a debt due to the threat of asset seizure, despite the debt being invalid or already settled.