Alright… Let’s look at the stress-filled days before the auction at the Office for Enforcement of Official Documents.
Alireza put up his property as collateral for his father’s loan. However, he couldn’t repay the debt due to his father’s bankruptcy. The bank then initiated enforcement proceedings and auctioned Alireza’s property.
By presenting the bankruptcy ruling of Alireza’s father to the enforcement office, we successfully had the auction rescheduled. This was because, according to bankruptcy laws, from the date the bankruptcy ruling is issued, the trustee becomes the legal representative of the bankrupt individual, and all financial claims and enforcement actions must be directed against the trustee. This measure is intended to protect the rights of the bankrupt person’s creditors. In this case, all enforcement actions were directed against the bankrupt individual himself, Alireza’s father, and all notifications were sent to him instead of the trustee. Therefore, the auction was rescheduled to be conducted with the proper legal procedures.
With the renewal of enforcement proceedings, the auction of the property was postponed, allowing Alireza to release the collateral by paying the legal debt, which was less than half of the amount claimed by the bank.
If the bank has initiated enforcement proceedings and is about to hold an auction for the collateralized property, we recommend not waiting until the last minute to pursue legal action. If there are any deviations from the law, the sooner you act, the better your chances of preventing an unfair transfer of assets.
To protect the rights of the parties involved, fictitious names have been used.
Feel free to contact us to review this ruling. It should be noted that to maintain confidentiality, the names of the parties, case number, judgment number, and issuing authority have been redacted.
