Unpaid commercial debts are a serious risk for foreign businesses operating or trading in Turkey. Fortunately, Turkish law provides several effective legal remedies to recover receivables. With the support of an experienced Turkish Law Firm and guidance from an English Speaking Turkish Lawyer, foreign companies can pursue debt collection confidently and lawfully. This guide, prepared by the Best Lawyer in Turkey, covers all stages of commercial debt recovery in Turkey for international companies.
Can Foreign Companies Legally Collect Debts in Turkey?
Yes. Under Turkish law, foreign companies can file lawsuits, initiate enforcement proceedings, and appoint lawyers to act on their behalf. No local partnership or entity establishment is required to collect commercial debts.
Common Scenarios for Debt Collection by Foreign Entities
- Unpaid invoices for goods or services
- Breach of supply or distribution contracts
- Failure to honor payment agreements
- Returned checks (çek) or promissory notes (senet)
- Unresolved commercial disputes involving Turkish companies
Debt Collection Options in Turkey
- Amiable Settlement (Pre-Litigation Negotiation): Contacting the debtor via a legal demand letter.
- Enforcement Proceedings (İcra Takibi): Fast-track legal process via enforcement offices.
- Lawsuit (Alacak Davası): Civil/commercial court action for confirmed debts.
- Cheque Enforcement: Execution through protested or dishonored checks.
Step-by-Step Enforcement Procedure in Turkey
1. Draft and Send a Payment Order
Your lawyer issues a formal demand (ödeme emri) through the enforcement office (icra müdürlüğü).
2. Debtor Has 7 Days to Object (for Non-Titled Debt)
If the debt is not based on a court decision or notarial deed, the debtor may raise an objection within 7 days.
3. Proceed with Lifting the Objection (İtirazın İptali or Kaldırılması)
If an objection is filed, your lawyer can initiate legal action to lift it and continue the enforcement.
4. Asset Seizure and Liquidation (Haciz ve Satış)
Once finalized, assets may be seized and sold through judicial auction to satisfy the debt.
Evidence Requirements for Foreign Claimants
- Contract or invoice proving the debt
- Commercial correspondence and delivery notes
- Bank records or proof of non-payment
- Original check or promissory note, if applicable
Jurisdiction and Legal Representation
Foreign companies must appoint a licensed Turkish attorney to represent them. The case is typically filed in the commercial court where the debtor is located or where the obligation arose.
Enforcement of Foreign Judgments in Turkey
If you already have a court decision in your country, it can be recognized and enforced in Turkey through a separate procedure called exequatur (tenfiz davası).
Why Work with ER&GUN&ER Turkish Law Firm?
- End-to-end debt collection services for foreign companies
- Drafting and issuing formal legal notices
- Filing enforcement proceedings and lawsuits
- Enforcing foreign judgments and arbitral awards
- Full communication and reporting in English
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Frequently Asked Questions (FAQs)
- Can a foreign company initiate debt collection in Turkey? Yes, through a local attorney with a power of attorney.
- Is court action always required? No, enforcement offices allow fast collection without court intervention.
- How long does the process take? Uncontested cases: 2–4 months. Contested cases may take 6–12 months.
- Can I collect debts based on foreign invoices? Yes, if the invoices are supported by commercial evidence and translation.
- Are attorney fees recoverable? In most cases, a portion of legal costs can be awarded to the creditor.
- What if the debtor has no assets? Your lawyer may request asset discovery and banking inquiries.
- Do I need to come to Turkey personally? No, your Turkish lawyer can represent you fully.
- What if the debtor goes bankrupt? You can file a claim in the bankruptcy proceedings.
- Are mediation procedures required? Only for certain disputes; not mandatory in pure debt collection via enforcement offices.
- Why choose ER&GUN&ER? We are a trusted Turkish Law Firm serving foreign clients with English Speaking Turkish Lawyers and aggressive commercial litigation experience.
Conclusion: Recover Debts in Turkey with Legal Precision
Foreign companies have powerful legal tools available to recover unpaid debts in Turkey. With the guidance of the Best Lawyer in Turkey and an expert Turkish Law Firm, debt collection becomes efficient, lawful, and enforceable. Contact us today to begin your recovery process.