This is the English version of a Turkish article. The original, with further detail and linked petition templates, is at İflastan Mal Kaçırma: Alacaklının Hakları ve İptal Davaları.
Transfers a debtor makes to put assets beyond a creditor's reach can be rendered ineffective as against that creditor by a claim to set the disposition aside (Articles 277 ff. of the Enforcement and Bankruptcy Act). The creditor must hold a final or provisional certificate of insolvency. The period is five years from the date of the disposition.
Debtors transferring property to relatives or third parties to escape their creditors is a familiar pattern. Turkish law protects the creditor through a detailed mechanism in the Enforcement and Bankruptcy Act. This article covers what such a transfer means, how the claim is brought, and what the creditor gets.
What the Claim Does
A claim to set aside a disposition, under Articles 277 ff., renders certain transactions the debtor made to the detriment of creditors ineffective as against the creditor.
An important point: the claim does not make the transfer void. The property does not return to the debtor. What happens is that the property becomes a source from which the creditor can be paid — it can be made the subject of enforcement even while it remains in the third party's hands.
Bringing the Claim
The conditions must be met together:
- the claimant must hold a valid claim
- there must be a final decision on the debt against the debtor, or at least a request for enforcement
- the debtor's disposition must have caused the creditors loss
- the claim must be brought within the statutory period
A certificate of insolvency, final or provisional, is required — the document showing that the debt could not be collected from the debtor's own assets.
The Three Grounds
- Gratuitous dispositions (Art. 278): transfers made without consideration in the last two years — gifts, renouncing an inheritance, sales far below market value. No bad faith need be proved.
- Dispositions made while insolvent (Art. 279): certain transactions made while the debtor was unable to pay — paying debts not yet due, or giving security to some creditors at the expense of others — in the last year.
- Dispositions made with intent to harm creditors (Art. 280): transactions in the last five years that damaged creditors, where the transferee acted in bad faith. Here it must be proved that the transferee knew of the debtor's intention.
| Ground | What it covers | Provision |
|---|---|---|
| Gratuitous dispositions | Gifts and transactions treated as gifts; the last two years | Art. 278 |
| Dispositions while insolvent | Transactions made while unable to pay; the last year | Art. 279 |
| Dispositions to harm creditors | Intent to damage the creditor; the last five years | Art. 280 |
In transactions with a spouse, ascendants, descendants or siblings, a presumption of gift or of knowledge of bad faith may apply.
How Long Do You Have?
Under Article 284 the right to bring the claim lapses five years after the date of the disposition. That single period applies to all three grounds.
The two years in Article 278 and the year in Article 279 are not periods for suing: they define how far back the relevant transactions can reach.
The five years is a forfeiture period: once it has run, no claim can be brought.
Who Must Prove Bad Faith?
Not every ground requires proof of bad faith. For gratuitous dispositions there is a presumption against the transferee, who must prove their own good faith. Under Article 280, by contrast, the creditor must prove that the transferee acted in bad faith — that they knew the debtor's position.
How It Differs from a Simulated Disposition by a Testator
- A simulated disposition by a testator is made to keep property from the heirs; the heirs bring the claim, it depends on the death, and it returns the title to its true owner.
- A claim to set aside a disposition concerns a transfer made to escape a creditor; the creditor brings it. The property stays with the transferee, but becomes attachable for the creditor's debt.
If the Claim Succeeds
- The property does not return to the debtor; the transfer remains valid.
- The creditor may proceed to enforcement against that property in the third party's hands, to the extent of their claim.
- Any surplus after the debt is met stays with the transferee.
The claim cannot be brought without a final or provisional certificate of insolvency, and the right lapses five years after the date of the disposition — for every ground. Establish the enforcement position before the clock runs out.
Frequently Asked Questions
Does the property come back to the debtor?
No. The transfer stays valid; what changes is that the property becomes attachable for your claim while still in the transferee's hands.
What do I need before bringing the claim?
A valid claim, a final decision or at least a request for enforcement against the debtor, loss caused by the disposition, and a final or provisional certificate of insolvency.
How long do I have?
Five years from the date of the disposition, for all three grounds. It is a forfeiture period.
Do I have to prove bad faith?
For gratuitous dispositions, no — the transferee must prove their good faith. Under Article 280 you must prove the transferee knew of the debtor's position.
What about a transfer to the debtor's spouse or child?
Presumptions applying to close relatives make bad faith easier to establish, and the courts scrutinise the transferee's good faith far more strictly.