As Uzunpınar & Tüfek International Law Firm, we provide effective legal support to our clients in disputes arising within the scope of enforcement and bankruptcy law. One of the most important legal remedies that arises when assets seized during enforcement proceedings—believed to belong to the debtor—actually belong to third parties is the action for recovery of property (istihkak claim / action for ownership claim in enforcement proceedings).

 

This type of lawsuit, which is frequently encountered in enforcement procedures, is of great importance in preventing serious loss of rights for creditors, debtors, and third parties alike. In this article, you will find comprehensive information about what an action for recovery of property is, in which situations it is filed, and how the process operates.

 

What Is an Action for Recovery of Property (Istihkak Claim)?

 

The basis of an action for recovery of property is the claim of ownership (istihkak claim) asserted by a third party who alleges that the seized asset belongs to them either during or after the seizure.

 

The enforcement office grants the creditor and the debtor a three-day period to declare whether they object to the third party’s claim. Following any objection by the creditor or the debtor, the enforcement office automatically sends the file to the enforcement court. At this stage, the enforcement court first decides whether the enforcement proceedings should be suspended or continue, without examining the merits of the ownership claim.

 

After this decision of the enforcement court, the third party may file an action for recovery of property within 7 days before the enforcement court.

 

An action for recovery of property is a lawsuit filed when it is asserted that an asset seized during enforcement proceedings does not belong to the debtor but to a third party. In other words, a third party who claims ownership or another real right over the seized property files this action in order to protect that right.

 

This procedure is regulated under Article 97 of the Turkish Enforcement and Bankruptcy Law (İİK m. 97) and applies where the property is in the possession of the debtor or jointly in the possession of the debtor and a third party.

 

However, if the property is not in the possession of the debtor but in the possession of a third party, the enforcement officer grants the creditor a period of 7 days to file an action for recovery of property against the third party.

 

Through this lawsuit:

 

• Unlawful seizure may be lifted.
•  The ownership rights of third parties are protected.
•  Legal balance within the enforcement process is ensured.

 

In practice, actions for recovery of property particularly arise in the following situations:

 

• Assets located in the same workplace belonging to different individuals
•  Seizure of equipment located in rented workplaces
•  Seizure of property belonging to family members
•  Confusion between company assets and assets belonging to company partners

 

For this reason, obtaining professional legal assistance during enforcement proceedings is highly important.

 

In Which Situations Is an Action for Recovery of Property Filed?

 

An action for recovery of property generally arises in the following circumstances:

 

• The seized asset belongs to a third party
•  The assets are leased or entrusted
•  Company property is mixed with personal property
•  Seizure takes place in jointly used workplaces

 

Assets are seized even though the invoice or ownership documents belong to a third party

 In such cases, the third party may assert their rights against the seizure by submitting an ownership claim.

 

How Does the Process Work in an Action for Recovery of Property?

 

The process generally consists of the following stages:

 

• A seizure is carried out during enforcement proceedings.
• A third party claims rights over the seized property.
• The enforcement office grants time to the parties.

 

The parties file an action for recovery of property before the court.

 

The court evaluates the evidence and renders its decision.

 

The most important elements during the court process include invoices, contracts, payment records, witness statements, and commercial records.

 

Frequently Asked Questions (FAQ)

1.Who can file an action for recovery of property?

 

Third parties who claim that the seized property belongs to them during enforcement proceedings may file an action for recovery of property. In addition, as regulated under Article 99 of the Turkish Enforcement and Bankruptcy Law (İİK m. 99), the enforcement creditor may also be involved in this process.

 

In other words:

 

If the property is in the possession of the debtor or jointly with a third party, the lawsuit is generally filed by the third party asserting the ownership claim.

 

If the property is in the possession of the third party claiming ownership or a real right, the lawsuit is filed by the creditor.

2.How long does an action for recovery of property take?

 

The duration of such cases may vary depending on the workload of the court and the nature of the file; however, they are generally concluded within a few months to one year.

 

3.How can I prove that the seized property belongs to me?

 

Any evidence such as invoices, sales agreements, bank payment records, warranty certificates, and commercial ledger records is important for supporting a third party’s ownership claim.

 

4.Does an ownership claim stop the seizure?

 

In some cases, the court may decide to suspend the enforcement proceedings. However, this depends on the specific circumstances of the case.

5.Is there a time limit for filing an action for recovery of property?

 

Yes. The ownership claim must be asserted within specific time limits. Following the ownership claim, if the creditor or debtor objects to the claim, the third party must file an action for recovery of property within 7 days. Missing these deadlines may result in loss of rights. Therefore, it is important to act quickly once enforcement proceedings begin.

6.Which court has jurisdiction over actions for recovery of property?

 

Actions for recovery of property are generally examined by the Enforcement Court (Enforcement Law Court) or, in some cases, the Civil Court of First Instance, depending on the nature of the case.

7.What happens if the action for recovery of property is rejected?

 

If the action filed by the third party claiming ownership of the property is rejected, it is deemed proven that the ownership of the property belongs to the debtor. Consequently, the seizure process continues and the sale of the seized asset may begin. In some cases, compensation liability may also arise.

 8.Is it mandatory to hire a lawyer for an action for recovery of property?

 

Hiring a lawyer is not mandatory; however, since actions for recovery of property involve technical legal details, obtaining professional legal assistance reduces the risk of loss of rights.