According to Turkish law, the right of a creditor to recover his receivables in Turkey is possible using 2 methods. Initially, he can start proceedings by lodging a debt case in local courts. The other alternative approach is to launch statutory enforcement proceedings ( yet not unwarranted enforcement proceedings) before execution bureaux.
an overseas natural or legal person (the "Claimant") who logs an action before legal courts or initiates enforcement proceedings should first deposit security, unless there is a legal or de facto cooperation between the state of the Claimant and Turkey.
Legal reciprocity applies to the presence of an agreement on judicial assistance or to being a party to the convention concerned.
De facto reciprocity of implementations with respect to protection exemption is considered to be a connection between the country of the applicant and Turkey.
In the case of non-existenceof reciprocity, the applicant is obliged to deposit insurance for a sum to be calculated at the judge / bailiff's discretion, which is typically around 20 percent of the total value of the case.
And as to the legal process, the debt action court varies depending on the type of debt.
In the case that the debt arises from an employment contract, the dispute must first be taken to labor courts.
In case the debt arises from a general legal partnership, first-instance civil courts shall be the court of jurisdiction.
The presence of a buyer-seller relationship shall give jurisdiction to the consumer courts while first-instance commercial courts shall be granted jurisdiction by a business relationship.
In addition, a power of attorney (the "PoA") must be given to the attorney. If the country of the Claimant is a party to the Hague Convention, the PoA must be stamped with an apostille after it has been acquired by the competent authorities, otherwise the PoA must be approved by the Turkish embassy or consulate after it has been acquired by the relevant authorities.
The filing of a debt action grants the Claimant interim measures which make the litigation more advantageous than the enforcement action.
First, the Claimant is entitled to request that precautionary attachment be made to the debtor's movable and immovable property along with the privileges and receivables kept by third parties.
The second solution is to apply for a preliminary injunction to be imposed on the defendant's movable and immovable property to prohibit their selling and/or redistribution to third parties in any way that prevents the debtor from stripping his assets until the suit is completed.
The Turkish Court must be convinced in all cases by demonstrating the importance of the interim solution at issue.
If the debt action results in the Claimant's favor, the verdict may be applied effectively over the debtor.
The Claimant shall be granted to begin administrative compliance proceedings with judgment before the execution office in case of non-performance of paying the debt.
The administrative procedure of judgment process is as follows: the complainant advises the debtor of his claim by issuing a compliance order (referred to as payment order in enforcement proceedings before trial) based on the favorable court decision.
In the event that the debtor refuses to object to the presumed claim of the claimant within 7 days from the date of operation
the proceeding therefore alleged debt is final and for such proceeding the claimant may initiate a judicial seizure proceeding against movable property, immovable property and other assets (including the debtor's shares in a company in Turkey) and debtor's receivables.
In the case that the debtor objects to the compliance order, this protest shall not result in the proceedings being stopped.
The grounds for opposition to the compliance order are, however, limited in comparison with.
1- constraint ii) the debtor has been given time
2- the debt is paid.
Ultimately, as stated above, the Claimant's second recourse is to begin compliance proceedings before the execution office without any judgment.
The execution office prepares a payment order in the aftermath of the implementation, and imposes it on the debtor. If the debtor refuses to object to the payment warrant within 7 days (if the debt originates from a bill of exchange the object time frame for complaint is 5 days) after the date of delivery, the proceedings shall be concluded.
As a consequence, the defendant is required to begin judicial seizure proceedings with the judgment stated above, as in the compliance procedures. In case the debtor objects to the payment order, it is unlikely that the action will continue with judgment in the compliance proceeding.
In this scenario, the plaintiff must file before the compliance court a temporary / permanent withdrawal of the opposition action within 06 months or exoneration of the objection action before the civil / commercial court within 1 year.
The said six month period is a period of prescribing. In other terms, if the Claimant fails to file an action within the time stated, he shall lose his right to make a claim for ever.
The compliance process, on the contrary, shall not be abolished; the complainant shall have the right to appeal, within 1 year, the said annulment of the opposition case.
Nonetheless, after the expiry of the said1-year term, the compliance proceeding shall be dissipated.