In cases where the deed of debt cannot be paid, which legal process is going to work is quite an edematous issue. Well, what happens if the deed is not paid? for further explanation

What is the Deed?

The deed is named as an opportunity to provide a guarantee for the payment of existing debt. The debtor person gives the promissory note to the creditor in order to be a guarantee. The deed has the feature of legal document and is therefore very important. Creditor and debtor persons are required and sufficient to create the bill.

No third person is required to create the bill. The names and surnames of the parties, TR identity numbers and address information are on the bills. If one of the parties is a firm, the stamp and signature of the company’s officers must be available. The bills also contain information about the debt and the payment method of the debt. After the bill is created, it must be signed separately by the parties.

What Happens If The Debt Is Not Paid?

What Happens If The Debt Is Not Paid?

If there is a deed created during a debt payment, this debt must be paid. If this debt is not paid, the creditor can initiate legal action to collect the money he/she will receive with the deed. Legal action turns into a very difficult process for borrowers, both in terms of costs and procedures.

Execution Process

In cases where the debt cannot be paid, the creditors apply to the enforcement officer with the promissory note they have. With this application, a lawyer is appointed for the debt in question. These lawyers contact the borrower and follow a path to pay the debt.

At this point, lawyers’ costs are added to the existing debt. The lawyer and the borrower can agree on the payment of the debt. Here, lawyers can create a payment plan for the borrower, in line with the knowledge of the creditors. The most logical way to do for borrowers; is to agree with creditors. Borrowers may also request their debts to be paid in installments.

In the event that the lawyers and debtors cannot agree, enforcement proceedings are initiated and the payment document is sent to the debtors. At this stage, the debtor can appeal to the debt within five working days after receiving the payment document. It is obligatory to pay the debt in question within ten working days.

What happens if the deed given to the execution is not paid?

What happens if the deed given to the execution is not paid?

The executioner must make a commitment that he can pay the debts. If it does not fulfill this commitment, criminal proceedings are initiated. To put it briefly, the borrower can get a prison sentence for his debt. However, if the person has not made a statement that he will pay the debt, no jail or judicial fine will be imposed. When the bills are not paid, they go to court and enforcement proceedings are initiated.

The Enforcement Office examines the bills in the hands of the creditor and initiates the enforcement proceedings. Following the period when the debt is not paid, the debt is collected through the execution of the debt. The collection of unpaid bills is made after foreclosure. However, this process is the last legal step that is used in the collection of promissory notes.