Turkish Non-Judgment Collections
Turkish debt collection laws give creditors extraordinary powers most foreigners never discover. While your debtor might think they can simply ignore your demands, Turkey's collection system offers several tactical advantages you won't find elsewhere. This article reveals the insider strategies for navigating Turkey's three-path collection system, the little-known flexibility in jurisdiction selection, and the powerful objection-removal tools that can fast-track your recovery. We'll expose the critical seven-day windows that shape collection outcomes and share practical workarounds for common debtor delay tactics. Having helped clients recover millions in Turkish debts, I've seen how these lesser-known provisions consistently surprise both debtors and inexperienced attorneys alike. The difference between success and failure often comes down to these procedural nuances that most resources simply gloss over.
Collection Proceeding Types
Attachment or Bankruptcy
In Turkey, collection proceedings for monetary debts begin with a creditor's request and follow one of three paths:
Attachment of assets (haciz)
Conversion of pledged property to money
Bankruptcy (iflas)
For most debts, attachment is the standard approach - identifying and seizing the debtor's assets to satisfy the debt. Bankruptcy proceedings, however, can only be initiated against merchants or those subject to bankruptcy laws per the Commercial Code.
As a creditor dealing with a merchant, you have a unique advantage - you can choose either method and even switch once from one to another without additional fees. This flexibility can be crucial when your initial strategy isn't yielding results.
Secured Debt Procedures
When your claim is secured by collateral like a mortgage, Turkish law generally requires you to first pursue the "conversion of collateral to money" procedure rather than regular attachment or bankruptcy proceedings.
If the collateral doesn't cover the entire debt, you can then pursue the remaining balance through either attachment or bankruptcy. Housing finance claims have special provisions, allowing creditors to choose between collateral conversion or direct attachment.
Finding a lawyer experienced in secured debt collections is essential, as they'll help determine the most efficient path based on your specific type of security and the debtor's status.
Merchant Trade Cessation
When merchants cease trading in Turkey, they must:
Notify the commercial registry within 15 days
Submit a detailed declaration of their assets, liabilities, and creditor information
This information is publicly announced, creating a one-year window during which bankruptcy proceedings can be initiated against the former merchant.
The law imposes a two-month restriction on transferring attachable assets after filing the declaration, protecting creditors from asset dissipation. Third-party claims to these assets are limited, particularly for family members who cannot claim good faith acquisition.
This specialized knowledge can be valuable when pursuing a merchant who has closed shop - the right lawyer can help you capitalize on these provisions before the one-year window closes.
Starting Collection Proceedings
Filing Requirements
Starting a collection proceeding in Turkey is surprisingly straightforward. You can file a request orally, in writing, or electronically with the enforcement office. Your request must include:
Your identity and contact details (including bank information)
The debtor's information
The exact amount owed with any interest
The basis for the debt
Your preferred collection method
If your claim is based on a document, you must provide the original or a certified copy. The enforcement office will issue you a free receipt confirming your request and the evidence you've submitted.
"Think of your filing as the foundation of your collection case," my Turkish lawyer friend once told me. "The more complete and precise it is, the stronger your position will be if the debtor objects."
Collection Costs
While the debtor is ultimately responsible for collection costs, you'll need to advance these expenses when initiating proceedings. This includes the cost of necessary procedures and notifying the debtor about potential objections.
The good news? You can recover these advanced costs from the first payments received during the collection process. This arrangement ensures the enforcement system functions efficiently while protecting your financial interests.
When hiring a lawyer, be sure to discuss these upfront costs so you can budget appropriately. Some attorneys may also advance certain costs on your behalf, which can be helpful if you're facing cash flow challenges.
Jurisdiction Rules
For monetary debt collections, jurisdiction generally follows Civil Procedure Code provisions. You can typically file in the enforcement office where the debtor resides, but Turkish law provides a practical alternative: you can also file with the enforcement office where the contract was made.
This can be particularly helpful if you're trying to collect from someone who has moved or is difficult to locate. If jurisdiction is contested, the enforcement court will address this issue before examining the substance of the case.
Choosing the right jurisdiction can significantly impact the speed and success of your collection efforts. A knowledgeable attorney can help you make strategic decisions about where to file based on your specific circumstances.
Payment Order Requirements
Payment Order Content
A Turkish payment order contains several critical elements that inform debtors of their obligations and rights:
The parties' identification details
A seven-day payment deadline
A warning that enforcement will continue without payment or objection
Instructions for debtors to declare assets if they don't object
Warnings of imprisonment for failing to declare assets or making false declarations
For document-based claims, requirements to contest signatures within seven days
This structured approach ensures transparency in the process while establishing a clear framework for creditors to pursue their claims. The payment order essentially serves as both a demand and a detailed roadmap of the enforcement process.
Notification Requirements
Timing is crucial in Turkish collections. The enforcement office must send the payment order to the debtor within just three days of receiving your request. If your claim is based on a document, a certified copy must be attached.
Each joint debtor receives a separate payment order unless represented by a common representative. If multiple collection requests against the same debtor arrive on the same day, their payment orders must be sent simultaneously.
The law also establishes a priority system – if collection requests against the same debtor arrive on different days, payment orders for newer requests cannot be sent before those for older requests. This ensures procedural fairness and prevents strategic manipulation of the notification process.
Response Deadlines
Once a debtor receives a payment order, they have just seven days to pay or object. This tight timeline keeps enforcement cases moving efficiently through the system.
For creditors, this means knowing quickly whether your claim will be contested or if you can proceed to the next enforcement steps. For debtors, missing this deadline essentially validates the debt and allows enforcement to continue unimpeded.
"The seven-day window is both a sword and shield in Turkish collections," explains a seasoned enforcement attorney. "For creditors, it forces quick resolution; for debtors, it demands immediate attention to preserve their rights."
Debtor Objection Rights
Objection Deadlines
Debtors must file objections within seven days of receiving the payment order. This can be done in writing or orally to any enforcement office, which must immediately forward it to the appropriate office if necessary.
When a debtor objects, the enforcement office notifies the creditor within three days using the advance payment you made when filing. This prompt notification ensures all parties remain informed about the status of the proceedings.
The objection itself pauses the enforcement process, creating a critical juncture in your collection efforts. This is why many creditors benefit from legal representation - an experienced attorney can quickly evaluate the objection's validity and determine the best strategy for overcoming it.
Valid Objection Grounds
Turkish law limits how debtors can present their arguments:
If a hearing is held to remove the objection, the debtor cannot change or expand their objection grounds beyond what's apparent from the document the creditor is relying on
A debtor can object to the entire debt or just a portion
For partial objections, they must clearly specify which part they're contesting and why – otherwise, the objection is considered invalid
When contesting a signature, the debtor must expressly state this in their objection
Failure to properly contest a signature means they're deemed to have accepted it for enforcement purposes. This strict approach prevents debtors from using vague objections as delay tactics.
Late Objection Procedures
If extraordinary circumstances prevented a debtor from objecting within the standard seven-day window, they can file a "late objection" until assets are converted to money. To do so, they must:
Act within three days after the obstacle is removed
Provide evidence of why they couldn't object earlier
Pay associated hearing costs
The enforcement court may suspend proceedings after evaluating the excuse, but this isn't automatic. The court initially reviews documents and may call both parties for a hearing to assess the excuse's validity.
If the court accepts the late objection, enforcement stops temporarily. During the same hearing, the creditor can request removal of the objection, allowing for immediate resolution rather than starting a new procedural track.
Fighting Debtor Objections
Removing Objections Permanently
When a debtor objects to your collection, you can permanently override their objection within six months if your claim is based on strong documentation. This applies if you have:
A document with an acknowledged or notarized signature
An official receipt
Other government-issued document
The enforcement court examines both sides' evidence. If the debtor can't produce compelling documentation, the court permanently lifts the objection. However, if the debtor has valid documentation, your request will be denied.
This efficient process helps creditors with well-documented claims avoid lengthy trials while still protecting debtors with legitimate defenses. A lawyer experienced in Turkish collections can evaluate your documentation before you file to determine your likelihood of success.
Temporary Objection Removal
When your claim rests on a private document and the debtor denies their signature, you can request "temporary removal of objection" within six months of learning about their objection. This unique procedure focuses specifically on authenticating the signature.
The debtor must personally appear at the hearing if they live within the court's jurisdiction. The judge will compare the contested signature with known specimens or have the debtor provide new signatures for comparison.
If the court finds the signature authentic, it temporarily removes the objection and enforcement continues. The debtor can still file a "debt release lawsuit" but must deposit 15% of the claimed amount first. This balances efficient enforcement with preserving the debtor's right to a full hearing on the merits.
Negative Declaratory Actions
Debtors in Turkey have a powerful tool: they can file a "negative declaratory action" to prove they don't owe the debt, either before or during enforcement proceedings.
If filed before enforcement starts:
They can request an injunction by providing security of at least 15% of the claim
If filed after enforcement begins:
They cannot stop the process
They can prevent you from receiving collected funds by providing similar security
This procedure can significantly delay your recovery, but the law protects you by requiring substantial security and mandating compensation (at least 20% of the claim) if the debtor's case fails. An experienced collection attorney can help you develop effective counter-strategies when facing these actions.
Turkish Debt Collection Essentials
Turkey's collection system balances efficiency with robust protections for both parties. While the process can seem complex at first, understanding these fundamentals puts you in a stronger position to recover what you're owed. At Atlas Legal Partners, we've guided countless foreign clients through these proceedings in Istanbul, helping them navigate Turkey's unique legal landscape with confidence. When you're dealing with cross-border debt recovery, local expertise makes all the difference. What challenges have you faced when trying to collect debts in unfamiliar legal systems? We'd love to hear your experiences.
