Bank and Credit Debt Timeout Period – How Many Years?
If it is not specified in another way within the scope of the time-lapse laws related to receivables, the receivables that cannot be processed for a period of 10 years are subject to timeout. However, since bank receivables taken over by Asset Management Companies are covered by the Savings Deposit Insurance Fund (SDIF), the bank debt timeout period is based on 20 years.
Bank Credit and Debt Overdue Time
Today, the main reason for the execution of many executive files is due to debts to buy and give. Especially, the legal follow-up due to credit cards and loans are extremely common, and many customers do not pay their debts and expect them to expire.
The bank receivables taken over by the Asset Management Companies extended the expiration periods of bank debts up to 20 years. Therefore, it is extremely difficult to wait for a debt to expire within these processes.
Before the Timeout of Loans Comes into Effect
When a loan is used from a bank, it may be possible for timeout processes to be processed if this debt is not paid. The main reason for the occurrence of these transactions may be reasons such as disabling or discontinuing the follow-up of the debt.
If we observe the transaction steps related to the follow-up of the receivables, a 90-day payment process is set for the bank loan. When this process passes, legal proceedings begin and within 15 and 45 days, the bank’s lawyer begins to monitor the debt by handling the transactions. In this case, the addressee of the debt will now be the bank lawyer together.
The debt taken by the lawyer ensures that a payment order is sent to the debtor through the bailiff. The payment order means the start of enforcement proceedings and this process initiates the timeout process of the loan.
Processing the Timeout Process
If you do not have any income to pay the debt or you do not own any property, then the waiting period of the creditor is activated and many steps can be taken for collection for 2-3 years. But, as stated, the debt reduction does not take place over 10 years ago. This situation is determined by the Executive Directorate when you enter a job or acquire a property and foreclosure is applied to your salary or property.
For this reason, entering a job or owning a property before it expires will cause the enforcement proceedings to be reset and become active again. The creditor restarts the 10-year process from scratch and retains the right to repeat the duration again.
Foreclosures and Execution Timeout
There is no timeout in enforcement proceedings, so execution can always remain on an income such as salary until the creditor’s debt is over. Therefore, it is not possible to make a request for the removal of foreclosures. Also, foreclosure transactions on the immovable property cannot be removed until the debt is fully paid. It will not make any sense to request banks to withdraw such transactions.