UPDATE ON THE MONETARY LIMITS FOR SALE ANNOUNCEMENTS UNDER THE ENFORCEMENT AND BANKRUPTCY LAW
"The Communiqué on the Update of Monetary Limits for Announcements of Sales to Be Made Under 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 subparagraph (5) of the fourth paragraph of this article, the monetary limits for sale announcements are to be updated annually. In accordance with this notification, the monetary limits for 2025 have been updated. This article will discuss the updated limits.
Monetary Limits
With the announcement, the monetary 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 estimated value of the goods subject to sale) up to 500,000.00-TRL, the enforcement office had the discretion to decide whether to publish the announcement in a newspaper or on an internet news site. For goods valued below 500.000,000 TL, the enforcement office would determine whether the announcement was mandatory by considering the interests of the creditors. This threshold has now been raised to 925,000.000-TRL.
* Previously, for goods with an estimated value (the estimated value of the goods subject to sale) between 500,000.00-TL and 2,000,000.00-TRL, 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 500,000.00-TRL to 2,000,000.00-TRL has now been updated to a range of 925,000.00-TRL to 3,710,000.00-TRL.
* Previously, for goods with an estimated value (the estimated value of the goods subject to sale) of 2,000,000.00-TRL 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 3,710,000.00-TRL.
Conclusion
Considering the economic fluctuations, inflation increases, and the rise in real estate values, the monetary limits for the publication of sale announcements have been updated. The new monetary 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 monetary limits will be based on the current limits at the date of the sale request.