Merger of Creditor and Debtor Capacities

The same person becoming both creditor and debtor of one obligation may affect that obligation's fate. It may arise through inheritance, assignment, or another transaction. Economic links alone are insufficient; the legal capacities must actually merge.

For Which Obligation Does Merger Occur?

Article 135 of the Turkish Code of Obligations governs merger of creditor and debtor capacities in one person. Being a shareholder does not mean a company's creditor is also its debtor. Separation of assets and special provisions matter in inheritance or partnership relationships. The claim's parties and scope of the acquisition must first be identified.

Third-Party Rights

Third parties may hold rights or security over the obligation. The merger's effect on them must be examined with statutory protections. If the merger later ceases, the debt's position requires separate assessment. An accounting entry between debtor and creditor alone should not be regarded as terminating every legal relationship.

How Is the Document Chain Established?

The document creating the claim, acquisition or inheritance records, and sequence of dates must be compared. Partial assignment or several debts may have different consequences. We show changes in capacity for each claim separately and assess extinguishment, continuing security, and third-party claims together.

Documents That May Be Prepared for the Initial Review

• The document creating the claim
• Assignment or inheritance records
• Security and attachment documents
• A chronology of transactions

Submit Your Matter

File review and representation are paid services. Scope and fees are agreed in writing before work begins.