Debt Collection in Turkey: Complete Legal and Enforcement Strategy

Debt Collection in Turkey - Turkish Law Firm

Debt collection in Turkey involves a structured, legally enforceable process governed by the Turkish Enforcement and Bankruptcy Law (İcra ve İflas Kanunu – İİK). Whether you are a foreign corporation recovering unpaid invoices or an individual creditor, working with a Turkish Law Firm is critical to ensure success, minimize delay, and protect your interests through lawful enforcement actions.

Understanding the Legal Landscape of Debt Collection in Turkey

Debt collection is not merely sending a letter or making phone calls — it is a sophisticated legal process. Turkey’s system includes:

  • Amicable collection procedures (ihtarname, negotiation)
  • Non-judicial enforcement (ilamsız takip)
  • Judicial enforcement with court judgment (ilamlı takip)
  • Attachment and seizure orders (haciz kararı)
  • Cross-border recovery mechanisms under MÖHUK

Our English Speaking Turkish Lawyers advise clients from the U.S., EU, MENA, and Asia on enforcing debt recovery through legal channels across Istanbul, Ankara, Izmir and other key jurisdictions.

1. Amicable Debt Collection (Pre-Litigation Phase)

The collection process often begins with a professionally drafted notice of default (ihtarname). This formal warning puts the debtor on legal notice and gives them a final opportunity to pay voluntarily.

  • Sent via notary or registered mail
  • Specifies amount, due date, legal consequences
  • Typically grants 7–15 days for payment

Debtors who respond positively at this stage may avoid court involvement and execution measures. Our best lawyer firm in Turkey has a 40%+ settlement rate during this phase alone.

2. Enforcement Proceedings Without a Court Judgment (İlamsız Takip)

If the debtor fails to respond, we initiate direct enforcement via Turkish Enforcement Offices. This is the fastest legal route to recover monetary claims.

Steps:

  1. Creditor files a request with the Enforcement Directorate
  2. Payment Order (Ödeme Emri) is served to debtor
  3. Debtor has 7 days to object, or enforcement becomes final

Upon objection, a court case (itirazın iptali davası) must be filed within 6 months to continue enforcement. If no objection is made, seizure (haciz) can be requested.

3. Enforcement Based on a Judgment (İlamlı Takip)

Creditors with a Turkish or foreign judgment can apply directly for enforced execution. These are faster and more secure due to already-proven claims. In such cases:

  • Execution follows the judgment without delay
  • No objection period is available for the debtor
  • Assets can be seized immediately

This process is ideal for post-litigation recovery, or where arbitral awards or international decisions are recognized in Turkey.

4. Enforcement of Foreign Judgments

Under MÖHUK (Law No. 5718), foreign decisions (e.g., U.S. court judgment, Dubai arbitration ruling) can be enforced in Turkey after exequatur (recognition) proceedings:

  • Filing before competent civil court of first instance
  • Proving reciprocity and procedural fairness
  • Obtaining execution writ (icra edilebilirlik şerhi)

Our Turkish Law Firm handles the full exequatur and enforcement process, offering dual-language legal representation and strategic coordination with bailiffs.

5. Special Enforcement for Negotiable Instruments (Kambiyo Takibi)

For debts arising from promissory notes, bills of exchange, or cheques, the creditor may initiate a kambiyo senetlerine mahsus takip. This fast-track procedure includes:

  • 3-day objection period for the debtor
  • Automatic asset seizure if unopposed
  • Legal presumption of validity for commercial papers

This process is especially powerful for foreign investors holding Turkish cheques or notes, allowing rapid action via enforcement offices without a lengthy trial.

6. Precautionary Attachment (İhtiyati Haciz)

To prevent debtors from hiding or transferring assets, creditors may apply for a court-ordered temporary attachment (ihtiyati haciz). This is a powerful litigation tool that:

  • Freezes assets before or during enforcement
  • Requires creditor to provide a guarantee (teminat)
  • Can target bank accounts, vehicles, real estate

We regularly obtain such orders for foreign clients to secure claims exceeding €25,000, especially in commercial debt and construction-related disputes.

7. Debt Recovery Through Commercial Litigation

If enforcement is objected to, or if the claim requires judicial determination, we proceed with a commercial lawsuit before Turkish courts. Our firm handles:

  • Invoice-based lawsuits for unpaid services or goods
  • Compensation claims for breach of contract
  • Banking and finance sector disputes

Commercial courts have jurisdiction and typically resolve disputes in 12–18 months. Interim measures can still be taken during this period.

8. Bankruptcy Proceedings Against Debtors

If the debtor is insolvent or refuses to cooperate, bankruptcy may be requested. Turkish law allows for:

  • Ordinary bankruptcy proceedings (Adi İflas)
  • Post-enforcement bankruptcy if debt remains unpaid
  • Liquidation of assets under court supervision

Bankruptcy is an effective tool for group creditors and companies seeking debt restructuring or judicial liquidation of debtor assets.

Documents Required for Debt Recovery

  • Original or notarized invoice / contract
  • Copies of promissory notes / cheques
  • Communication records (emails, letters, WhatsApp logs)
  • Signed delivery receipts or acceptance letters
  • Foreign court or arbitral decisions (if applicable)

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Frequently Asked Questions (FAQ)

  • Q1: Can I file debt collection without a Turkish court ruling?
    Yes. Non-judicial enforcement is allowed if you have documents like invoices, contracts, or bills of exchange.
  • Q2: What if the debtor objects to the payment order?
    You must file a civil lawsuit to cancel the objection within 6 months.
  • Q3: Is interest recoverable?
    Yes. Turkish law allows both statutory (default) and contractual interest to be added to the principal amount.
  • Q4: Can bank accounts be frozen?
    Yes. Once the enforcement phase starts, we file with the bank registry and issue freezing orders.
  • Q5: What if the debtor sells their assets?
    A precautionary attachment (ihtiyati haciz) may be filed to freeze the asset beforehand.
  • Q6: Do I need to be physically present in Turkey?
    No. With a notarized and apostilled power of attorney, we can act fully on your behalf.
  • Q7: Can I enforce a UK judgment in Turkey?
    Yes. Under MÖHUK, foreign judgments can be enforced with an exequatur decision.
  • Q8: Are enforcement offices fast?
    Yes. Especially in uncontested cases, execution may begin in less than 30 days.
  • Q9: Are all debts recoverable?
    Commercial debts, utility debts, lease debts, and more are recoverable — but statute of limitation rules apply.
  • Q10: What’s your success rate?
    ER&GUN&ER Law Firm has resolved over 70% of uncontested cases in under 90 days through efficient enforcement strategies.

Start Your Debt Collection Process with ER&GUN&ER Law Firm

If you’re seeking a fast, effective, and legally sound way to recover your debts in Turkey, our expert team at ER&GUN&ER Law Firm is here to help. We serve as your best lawyer firm in Turkey, offering unmatched insight into enforcement, litigation, and cross-border strategy. Our English Speaking Turkish Lawyers guide you at every stage — from document preparation to final enforcement.

We provide fully transparent legal fees, case-specific strategies, and bilingual representation. Let us protect your receivables, freeze debtor assets, and secure your collection success.