Two major mechanisms exist to begin debt collection in Turkey
This article looks at the debt collection process in Turkey and provides suggestions as to how to recover the debt in Turkey.
Three forms of implementation are available:
The general enforcement procedure will be discussed more in detail for the purposes of this article.
The creditor sends an application for debt collection to the correct loan execution office (the debtor's residence). The debtor can appeal to the payment order within 7 days of a written notice for payment of the debt by:
The execution proceedings will be stopped in the case that the borrower objected to the compensation request (ödeme emri). The claimant can, however, either file a reversal action (itirazın iptali daası) or, a reversal action for a reversal of the objection (itirazın kaldırılması sabası, or an action for the abolition of the objection (itirazın kaldırılması daası), in order to enforce the continuation of the execution and annul the opposition resolution.
If the creditor wins this case and revokes the objection agreed, then the implementation of the debt collection becomes final and the creditors may continue with the debt enforcement proceedings as though the debtor had never objected in the first place to the debt collection. If the borrower loses the case and the intent is withdrawn, the debtor must retrain the debtor's compliance process, and the creditor will be disciplined by the repudiatory fee (icra inkars tazminatı), which will equate to at less than 20 percent of the value of the entire debt.
It ensures that the records you submit are of those issued according to Article 68 and can not be taken in litigation for the abolition of the complaint UNLESS. The appeal may be initiated by the borrower to be extinguished by the compliance court within 6 months after the debtor challenge to the debt collection.
The creditor no longer holds the right to request this kind of case after 6 months have passed since the debtor objection date. In fact, because of the lapse of time the judge may determine sua sponte to dismiss the request. The action taken to eliminate the complaint was subdivided into two types: complete abolition of the opposition and partial abolition of the objection.
That would be the consequence of the intervention of the claimant to eradicate the objection on his / her own motion without the formal request by the other group. If the debtor's opposition to receiving the debt is attributable to an argument against the debt and the law, then the creditor will request for the complete abrogation of the complaint whereas the creditor can ask for the immediate abolition of the objection on grounds of challenge to the signature.
This is the type of claim based on an enforceable court judgment. In this case, any objection the debtor may claim within 7 days after the receipt of summons will be disregarded by the court in a summary proceeding.
In contrast to the enforcement proceedings without a court judgment, where the debt enforcement order is referred to as the "payment order" which is sent to the debtor, in enforcement proceedings with a court judgment, the debt enforcement order is referred to as the "debt collection order".
Just as every other type of debt enforcement process under Turkish law, enforcement proceedings with a court judgment is issued by the submission of a "request to enforcement proceedings". This request document shall contain: the names-surnames and addresses of the debtor and the creditor and the debt value, including the interest rates.
With the recent amendments to the Law no. 7155, a mandatory mediation process before initiating litigation for commercial disputes entered into force, as of 1 January 2019. This new law the scope of mediation as an alternative dispute resolution tool is extended to capture commercial disputes and not only disputes related to employment matters.
Please click here for further information about the mediation process for commercial disputes – or contact us for further suppport.