Commercial life is recognised as an occupational field where a lot of money is earned in our daily life and a wide employment area. However, it can sometimes be dangerous for people. In such cases, the legislator wanted to prevent unemployment and economic problems by protecting the business, operators and companies. The shortest answer to the question “What is concordat?” is that it is one of these measures. Accordingly, in cases where the debts are not sufficient to pay the receivables, the debtor or creditor applies to the court. The court aims to reach an agreement between the creditors and the debtor. Thus, in line with the demands of both parties, it decides on issues such as the payment of debts in instalments, how and when the instalments will be made. In this way, it is aimed to ensure that the owner of the commercial enterprise, whose bankruptcy and foreclosure is postponed, continues production and pays its debts through this production.
Who Can Declare Concordat?
Although it is considered quite similar to the bankruptcy institution, it is clear that there are differences in some aspects. One of these aspects manifests itself in terms of the persons to whom it is subject. For example, the persons subject to bankruptcy are limited in the law. These persons are as follows:
- Merchants
- Those deemed to be traders
- Subject to the provisions on merchants
- Persons declared to be subject to bankruptcy in special laws
However, since the legislator has enacted concordat as a remedy, it has not limited the beneficiaries. Therefore, the answer to the question “Whocan declare concordat?” can be given as anyone who applies.