Fraudulent and Negligent Bankruptcy Offenses

The offenses of 'Fraudulent Bankruptcy' (Article 161) and 'Negligent Bankruptcy' (Article 162), found in Chapter X of the Turkish Penal Code, titled 'Offenses Against Property', are crimes subject to investigation and prosecution concerning the debtor against whom a bankruptcy order has been issued, and where victims have suffered economic harm. The distinction between these two offenses lies in the element of intent. Specifically, intent is essential for fraudulent bankruptcy, whereas for negligent bankruptcy, it is sufficient that the due care and diligence required of a merchant have not been exercised.

Fraudulent Bankruptcy, regulated by Article 161 of Chapter X of the Turkish Penal Code, titled 'Offenses Against Property', stipulates that a person who engages in fraudulent dispositions aimed at diminishing their assets, either before or after a bankruptcy order has been issued, shall be punished with imprisonment for a term of three to eight years.

For fraudulent bankruptcy to be established, pursuant to subparagraphs (a) through (d) of this legal provision, it is stipulated that the following must occur: the concealment, hiding, or causing a decrease in the value of assets serving as security for creditors' claims; the concealment or destruction of commercial books, records, or documents to prevent the discovery of dispositions aimed at absconding with assets; the creation of documents that increase liabilities as if a genuine creditor-debtor relationship exists when it does not; or the misrepresentation of assets as being less than their actual value through false accounting entries or the preparation of a fictitious balance sheet.

Furthermore, pursuant to Article 128 of the Code of Criminal Procedure No. 5271, rights, receivables, and other assets derived from these offenses may be seized. Similarly, pursuant to Article 248 of the Code of Criminal Procedure, the defendant's assets, rights, and receivables located in Turkey may also be seized.

Negligent bankruptcy, regulated by Article 162 of Chapter X of the Turkish Penal Code, titled 'Offenses Against Property', stipulates that a person who causes bankruptcy due to a failure to exercise the care and diligence require __DIR__ . '/../../footer.php'; ?>