The bankrupt merchant must be relieved of all his debts after liquidation and "restitution of his reputation" is regulated in Article 182 et seq. of the Bankruptcy Bankruptcy Law.
Conditions of Restitution of Reputation
- Bankruptcy liquidation has been completed
- All creditors have been paid 50% of the debt amount
- Cheating/forgery in bankruptcy. none
- Application to the commercial court of first instance
Consequences of Reinstatement
- Right to commercial activity again
- Becoming a company organ
- Deletion of special record in the bankruptcy registry
- Ability to get a loan again
Bankruptcy Crimes
- Fraudulent bankruptcy (TCK art. 161): 3-8 years in prison
- Negligent bankruptcy (TCK article 162): 2 months - 1 year in prison
- Smuggling property from the bankruptcy estate: additional penalty
Supreme Court 19. HD
19. HD adopts that the criterion of "objective good faith" should be applied and economic conditions should be evaluated in order to restore reputation. discussion)Agreement with former creditors is well received. Bankruptcy/commercial lawyer is recommended.