Direct bankruptcy of the debtor during the period of bankruptcy composition

A debtor who is unable or in danger of being unable to pay his/her debts on time, may apply for bankruptcy composition in order to liquidate his/her assete debts or to improve its financial situation. However, it is possible to decide on the bankruptcy of the debtor in cases where the bankruptcy composition respite is lifted, the bankruptcy composition is not by the court approved and the bankruptcy composition is completely terminated (CEB Art. 292, CEB Art. 308, CEB Art. 308/f). The reasons of the lifting of the bankruptcy composition respite are regulated under Article 292 of the Turkish Code of Enforcement and Bankruptcy, and these reasons are also grounds for bankruptcy. The decision on the bankruptcy of the debtor upon the non-approval of the bankruptcy composition is regulated under Article 308 of the Turksisch Enforcement and Bankruptcy Code. According to the article in quesiton, the existence of a direct reason for bankruptcy is also required for a bankruptcy decision. On the other hand, under Article 177 of the Turkish Code of Enforcement and Bankruptcy, if there is a case under Article 308, the creditor may request the direct bankruptcy of the debtor. As such provisions of Article 308 and Article 177 of the Turkish Code of Enforcement and Bankruptcy, do not suits each other and contain conflict. In addition, while no other reason is needed for a bankruptcy decision upon the lifting of the bankruptcy composition respite under Article 292 of the Turkish Code of Enforcement and Bankruptcy, another contradiction is that one of the reasons for direct bankruptcy is needed for a bankruptcy decision pursuant to Article 308 of the Turkish Code of Enforcement and Bankruptcy. In case of termination of the bankruptcy composition, the court may apply Article 308 of the Turkish Code of Enforcement and Bankruptcy. If bankruptcy composition fails, in case of fulfilment of the condition of bankruptcy the court may decide ex officio on the bankruptcy of the debtor. With the bankruptcy decision, the court must also determine the type of liquidation (CEB Art. 308/f. 2). In addition, if deemed necessary, the bankruptcy composition commissars may be appointed as maybe bankruptcy administraton board. On the other hand, debts incurred with the permission of the commissioner during the bankruptcy composition respite shall be considered as bankrupts estate if the bankruptcy composition concludes with bankruptcy. Keywords: lifting of the bankruptcy composition respite, rejection of the bankruptcy composition, termination of the bankruptcy composition, bankruptcy composition commissar, bankruptcy.