SERVICE DETAILFraudulent Bankruptcy Audit

A bankruptcy decision may be issued for merchants who are subject to bankruptcy if they are unable to pay their debts.

If the debtor merchant can pay debt before the bankruptcy decision is made, she will be saved from bankruptcy. However, if the merchant cannot pay debt and a bankruptcy decision is made, she becomes bankrupt. Thus, a bankruptcy estate is created with all the assets of the bankrupt. Creditors receive their receivables from this bankruptcy office in a certain order. Sometimes debtors may want to prevent certain assets from entering the bankruptcy estate before or after the bankruptcy decision. Therefore, they may perform some fraudulent acts on their asset values. In this context, the crime of “fraudulent bankruptcy” has been established in the Turkish Penal Code and penalties have been prescribed for some fraudulent acts.