Specialising in all legal aspects of Turkish Debt Collection

Our native solicitors are all experienced in pursuing debts through Court action. Following a standard procedure of the issue of letters before Court action and judgment and execution, our  collection managers will handle all aspects of commercial and private bad debt in Turkey.

Many operate on a no collection / no fee basis but we recommend that you compare and contrast services, terms and conditions and the
more important point: the success rate. Cash flow is frequently the factor by which companies stand or fall and with debtors proving less willing or able to pay, there is an increasing need to pass accounts over to a third party Turkish law office.

Direct and Strong Debt Recovery Approach

Our Turkey based debt collection agency is your direct route to recovering bad debt. We will use a number of different techniques and always work to gain an agreement between yourself and the debtor, enabling the latter to meet their obligation. Hiring a local third party to collect monies on your behalf may be a last resort but it can ease cash flow problems for small business and re-introduce liquidity into your finances.

While some substantial changes in regards to the Turkish judiciary structures have been done in recent years, it will still take some time for the law to include more safeguards. In line with these reforms, numerous arrangements have been made to settle disputes by negotiation and arbitration, in parallel to the court of law. In Turkey, if out - of-court mediation is insufficient, and if the debt acknowledgment has been secured, an order for payment can be given through bailiffs, while the creditor may begin court proceedings if there is opposition.

Practices to debt collection issues in Turkey are legislated under the Enforcement and Bankruptcy Law No. 2004, released to the public in the Official Gazette dated June 19, 1932 (the “EBL”). The creditors can recover their debts from the debtors via execution procedures or liquidation, in compliance with the EBL. The qualified Execution Offices have the right to conduct the prosecutions.

In Turkey there are three kinds of execution proceedings:

1- Proceedings without Court Decision in Turkey
2-Proceedings with Court Decision in Turkey
3- Foreclosure Proceedings in Turkey

Proceedings without Court Decision in Turkey

The most frequently used form of execution proceedings in Turkey are proceedings without a Court decision.

After the creditor makes a request for execution to the competent execution office, the execution office shall issue a payment request and deliver it to the place of work or home of the debtor within three days of the request being released.

The order of payment is issued unless the Debtor appeals to the order of payment within seven days of receipt. An appeal instantly halts the execution proceedings and until the challenge is dismissed or annulled, the execution proceeding shall not continue. In the event of an objection from the Debtor, the Creditor may either file a cancelation of the objection lawsuit within six months or terminate the objection lawsuit within one year of the complaint from the debtor.

In the event that the debtor is found to have acted illegally and in bad faith in the appeal, the debtor shall pay a fee of twenty percent of the sum decided by the tribunal.

Proceedings with Court Decision in Turkey

The Creditor must have a final court order to begin Claims with Court's decision.

The hearings with a court decision are very comparable to the proceedings without a court decision, but the execution procedure is not necessarily terminated in the event that the debtor objects to the payment order in due course.

The Debtor shall draft a letter of guarantee obtained by a bank or other security negotiated upon by the creditor to suspend the execution proceeding. The Debtor shall not object to the payment order if the ten-year limitation period has not expired or if the debt has not been paid before the execution order is delivered.

Foreclosure Proceedings in Turkey

In the course of the foreclosure proceedings, the debtor wouldst, along with default interest and legal fees, compensate the amount of the debt within fifteen days of receiving the payment order, or object to the insides of the payment order within seven days after receiving the payment.

The Creditor may demand the Debtor's resources to be sold to the Execution Office. In the case that the selling of the properties is not high enough to cover the demand of the claimant, the execution office shall issue a statement of failure. Another execution procedure may begin with the creditor.

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