UPDATE ON THE FINANCIAL LIMITS FOR SALE ANNOUNCEMENTS UNDER THE ENFORCEMENT AND BANKRUPTCY LAW
The " Announcement on the Update of Financial Limits for Sales under the Enforcement and Bankruptcy Law " was published by the Ministry of Justice in the Official Gazette dated January 22, 2025, and numbered 32790. The Enforcement and Bankruptcy Law No. 2004 (“the Law”) holds an important place in our legal system, and its Article 114 contains regulations related to the method and announcement of the sale of seized goods. According to paragraph (5) of the fourth section of this article, the financial limits for sale announcements are to be updated annually. In accordance with this notification, the financial limits for 2025 have been updated. This article will discuss the updated limits.
Financial Limits
With the announcement, the financial threshold, which allows enforcement offices to decide whether to make announcements via newspapers or internet news sites while considering the interests of creditors, has been increased.
The changes are as follows:
- Previously, for goods with an estimated value (the appraised value of the item for sale) up to 500,000 TL, the enforcement office would decide whether to publish the announcement in a newspaper or on an internet news site. For items valued below 500,000 TL, the enforcement office would decide, considering the interests of the creditors, whether the announcement was mandatory. This threshold has now been raised to 925,000 TL.
- Previously, for goods with an estimated value between 500,000 TL and 2,000,000 TL, the announcement was required to be published in a local newspaper or an internet news site that had the right to publish official notices in the area where the sale would take place. The limit of 500,000 TL to 2,000,000 TL has now been updated to a range of 925,000 TL to 3,710,000 TL.
- Previously, for goods with an estimated value of 2,000,000 TL or more, the announcement was required to be published in a national newspaper or internet news site with the right to publish official notices and that had a daily circulation of at least fifty thousand copies at the time of the announcement. This limit has now been raised to 3,710,000 TL.
Conclusion
Considering the economic fluctuations, inflation increases, and the rise in real estate values, the financial limits for the publication of sale announcements have been updated. The new financial limits were adjusted based on the annual Producer Price Index (PPI) rates published by the Turkish Statistical Institute for December. The updated limits aim to increase the reach of sale announcements, foster more competitive environments, reduce the risk of goods being sold below their value, and enhance transparency in enforcement processes to prevent harm to either the debtor or the creditor. This announcement will come into effect on February 1, 2025, and the applicable financial limits will be based on the current limits at the date of the sale request.