Extinguishment Through Merger of Creditor and Debtor Capacities

Legal Article · 12 November 2026
Av. Thomas Andreas Di Constantinople

Merger occurs when one person holds creditor and debtor capacities in the same obligation. Article 135 of the Turkish Code of Obligations extinguishes the debt in that case. Since a person cannot demand performance from themselves, the statute gives merger a discharging effect.

Not every economic link or proximity is merger. Companies sharing shareholders do not automatically lose separate personality. A person with multiple capacities also requires examination of the assets or relationship in which they act. The decisive question is whether both capacities genuinely coincide in the particular claim.

Pre-existing third-party rights over the claim are unaffected. This prevents a change of party capacity automatically eliminating others' acquired legal positions. Security or other burdens over the claim therefore require separate assessment.

If merger is reversed retroactively, the debt revives. Special mortgage and negotiable-instrument provisions remain reserved. Assessment therefore requires not merely party names but the legal reason for merger, third-party rights, and special rules together.

Legal Basis: Turkish Code of Obligations No. 6098, Article 135. Official legislative text.

This article has been prepared for general legal information purposes.