Expert debt collection services in Turkey. CKAY Law Firm handles debt recovery, cross-border collection, and enforcement proceedings.
When international businesses or persons face unpaid invoices from Turkish debtors, the path to recovery can seem uncertain. Different legal systems, unfamiliar procedures, and language barriers create genuine obstacles. Yet Turkish Law provides powerful mechanisms for creditors — mechanisms that deliver results when properly applied.
CKAY Law Firm serves as your debt collection lawyer in Turkey, guiding foreign creditors through every stage of the recovery process. Whether you hold a straightforward unpaid invoice or need to enforce a foreign court judgment, our Enforcement and Bankruptcy Law practice provides the expertise required to turn outstanding debts into recovered funds.
This guide explains how debt collection in Turkey works, what foreign creditors need to know, and why engaging a specialized Turkish debt recovery lawyer significantly improves your chances of success.
Turkish debt collection operates under the Enforcement and Bankruptcy Law No. 2004, a framework that gives creditors direct access to enforcement mechanisms without requiring prior court approval in many cases. This distinguishes Turkey from jurisdictions where creditors must first win a lawsuit before pursuing collection.
The system offers two primary pathways. The first allows creditors to initiate enforcement proceedings directly through execution offices based on documentary evidence such as contracts, invoices, or promissory notes. The second applies when creditors already hold enforceable titles like court judgments or arbitration awards.
For international businesses seeking to collect debt in Turkey, this means faster potential recovery compared to litigation-first systems. However, success depends on understanding the procedural requirements and acting within strict legal timeframes. The Turkish enforcement system provides creditors with several important advantages:
Understanding the legal foundation helps creditors appreciate both the opportunities and obligations involved in debt recovery. Several key statutes govern the process.
The Enforcement and Bankruptcy Law (No. 2004) establishes the procedural framework for all enforcement actions. This law determines how payment orders are issued, how debtors can object, and how seized assets are liquidated. Every debt collection lawyer in Turkey operates within this framework on a daily basis.
The Turkish Code of Obligations (No. 6098) defines contractual relationships and sets limitation periods for various types of claims. General contractual debts carry a ten-year limitation period, while commercial debts are subject to five years. Promissory notes and checks have only three years.
The Turkish Commercial Code (No. 6102) applies specifically to commercial transactions between businesses, establishing the rules that govern B2B debt collection in Turkey.
For foreign creditors, the Private International Law (No. 5718) determines how foreign judgments can be recognized and enforced, what security deposits may be required, and how cross-border elements are handled.
Since 2019, Turkish Law requires mandatory mediation before filing commercial lawsuits involving monetary claims. Creditors must apply to an accredited mediator and attempt settlement before proceeding to court. While this adds a step, mediation often resolves disputes quickly — many conclude within weeks. If parties reach an agreement, the settlement becomes directly enforceable.
If mediation fails, the mediator issues a “Minute of Disagreement” document. This document is required to proceed with any court case. Skipping mediation results in automatic case dismissal, making compliance essential.
The term “icra takibi” refers to enforcement proceedings conducted through Turkey’s specialized execution offices (Icra Daireleri). Understanding these proceedings is essential for any creditor pursuing debt enforcement in Turkey.
This pathway allows creditors to pursue collection without first obtaining a court ruling. A debt collection attorney in Turkey can file directly with the enforcement office based on contracts, invoices, or other evidence of debt.
The enforcement office issues a payment order (odeme emri) to the debtor. For ordinary debts, the debtor has seven days (7) to either pay or file an objection. For debts supported by negotiable instruments like promissory notes or checks, this window shrinks to just five (5) days.
If the debtor fails to respond within the legal timeframe, the debt becomes finalized. The creditor can then proceed to asset seizure without further court involvement. This speed makes enforcement without judgment particularly attractive for clear-cut commercial debts.
When creditors already hold a court judgment, arbitration award, or officially recognized foreign judgment, they use this pathway. Since the debt has already been confirmed, the debtor’s ability to object becomes severely limited.
Enforcement with judgment proceeds faster because it skips the debate over whether the debt exists. The enforcement office simply executes what the court has already decided.
The debtor’s right to object is a critical factor in enforcement proceedings in Turkey. If an objection is filed within the legal period, enforcement pauses. The creditor must then challenge this objection through one of two methods.
The first option involves filing an Action for Removal of Objection with the Enforcement Court. This fast-track process focuses solely on whether the objection has merit. If the creditor wins, the objection is removed, and enforcement continues. This route works best when strong documentary evidence exists.
The second option is an Action for Annulment of Objection filed in a civil court. This transforms the dispute into a full lawsuit examining the underlying debt. While slower, it may be necessary for complex cases.
An important incentive exists; when creditors successfully overcome frivolous objections, Turkish Law awards them denial compensation of at least twenty percent of the claimed amount. This discourages debtors from objecting merely to delay.
Business-to-Business (B2B) debt recovery follows the same fundamental procedures but involves important distinctions that affect strategy and outcomes.
Commercial courts hold exclusive jurisdiction over B2B disputes. These specialized courts understand commercial relationships and typically process cases more efficiently than general civil courts. For international businesses pursuing commercial debt collection in Turkey, this specialization proves beneficial.
The statute of limitations for commercial debts is five years — shorter than the ten-year period for general obligations. This compressed timeline makes prompt action essential. Waiting too long can extinguish otherwise valid claims entirely.
B2B debt collection cases in Turkey often benefit from the use of promissory notes (senet). When debtors have signed these instruments, creditors gain access to accelerated enforcement with only a five-day objection window. Experienced Turkish debt collection lawyers advise clients to incorporate promissory notes into commercial agreements precisely for this advantage.
Several factors influence the success of commercial debt recovery:
Foreign creditors enjoy equal standing under Turkish Law, nationality creates no barrier to pursuing debts. However, international debt collection in Turkey involves additional considerations that require specialized handling.
Under Article 48 of Turkey’s Private International Law, foreign plaintiffs may need to deposit security (cautio judicatum solvi) when initiating proceedings. This deposit, typically around fifteen percent (%15) of the disputed amount, guarantees payment of legal costs if the creditor loses.
The good news; this requirement is waived when reciprocity exists between Turkey and the creditor’s home country. Many nations have such arrangements, and de facto reciprocity applies to major economies, including the United States, the United Kingdom, and Germany. A cross-border debt collection lawyer in Turkey can verify whether your country qualifies for exemption.
Foreign creditors must prepare documents carefully for Turkish proceedings:
International debt collection lawyers in Turkey bridge the gap between foreign business practices and Turkish legal requirements. Beyond handling paperwork and court appearances, experienced counsel provides strategic guidance on:
Creditors holding judgments from foreign courts cannot enforce them directly in Turkey. Turkish Law requires a separate recognition and enforcement proceeding (tenfiz davası) to convert foreign judgments into locally enforceable titles.
Turkish courts evaluate several conditions before recognizing foreign judgments:
Turkey maintains bilateral enforcement agreements with twenty-nine countries, including Italy, China, Poland, Romania, and various Central Asian nations. For countries without treaties, courts examine whether Turkish judgments receive equivalent treatment there.
Turkish courts will not enforce punitive damages, only compensatory damages are recoverable. This reflects Turkish public policy and applies regardless of how the foreign judgment characterizes the award.
Recognition proceedings typically take six to eighteen months when unopposed. Contested cases involving appeals can extend to two to four years. Planning for these timelines helps creditors manage expectations.
Foreign arbitration awards enjoy somewhat smoother treatment under the New York Convention, which Turkey ratified in 1992. While recognition proceedings are still required, the grounds for refusal are narrower. Commercial arbitration clauses in international contracts can thus simplify eventual enforcement in Turkey.
Turkish Law provides robust protections for creditors, including mechanisms that extend beyond the immediate debtor in certain circumstances.
Secured creditors holding mortgages (ipotek) or pledges (rehin) enjoy absolute priority in both enforcement and bankruptcy proceedings. Notably, mortgage-secured debts are immune from limitation periods, they remain enforceable regardless of time elapsed.
Unsecured creditors participate in general distribution after secured claims are satisfied. In bankruptcy situations, this often means partial recovery at best. This reality makes security arrangements in commercial contracts particularly valuable.
When multiple creditors pursue the same debtor, Turkish Law establishes a clear hierarchy. Secured claims come first, followed by certain public debts like customs and property taxes. Employee severance claims receive priority among unsecured creditors, followed by other privileged categories, then ordinary unsecured claims, with interest payments ranking last.
Understanding this hierarchy helps creditors assess realistic recovery prospects, especially when debtors face financial distress.
Generally, shareholders in Turkish joint-stock companies (Anonim Sirket) and limited liability companies (Limited Sirket) bear liability only for their committed capital. However, important exceptions exist.
If you wish to establish a new company, check our company establishment services in Turkey here.
Directors become jointly and severally liable for unpaid taxes, customs duties, and social security contributions when company assets prove insufficient. Limited liability company shareholders bear personal responsibility for public debts proportional to their ownership stakes.
Directors who fail to file for bankruptcy when legally required face potential criminal liability, including imprisonment of ten days to three months. This personal exposure sometimes motivates debtor companies to negotiate seriously.
When debtors attempt to conceal assets or make fraudulent transfers, Turkish Law provides remedies. Creditors can file an Action for Annulment of Transfer (tasarrufun iptali davası) to void suspicious transactions made to escape debts. Courts examine whether transfers occurred under circumstances suggesting bad faith.
Provisional seizure (ihtiyati haciz) allows creditors to freeze assets early in proceedings when evidence suggests the debtor may dissipate them. Obtaining this measure typically requires posting security of ten to fifteen percent of the claim and demonstrating urgency.
Istanbul dominates Turkey’s commercial landscape. The city generates forty percent of national tax revenue, hosts thirty percent of all Turkish businesses, and handles roughly sixty percent of imports. For debt collection purposes, this concentration creates practical advantages.
Istanbul’s enforcement offices process the highest volume of commercial cases nationwide. The European side (Caglayan) houses thirty-four execution offices, three bankruptcy offices, and forty-six enforcement courts. The Asian side (Kartal) adds another twenty-five execution offices and courts.
Specialized offices handle specific case types, including bank receivables and real estate sales. This infrastructure supports efficient case processing, particularly for commercial matters.
Many international commercial contracts specify the Istanbul courts for dispute resolution. When the debtor or contract performance location connects to Istanbul, jurisdictional requirements are often satisfied. Having a debt collection lawyer in Istanbul provides direct access to these courts and offices, facilitating faster communication and case monitoring.
CKAY Law Firm operates from Istanbul while serving clients across Turkey. This positioning allows us to handle Istanbul-centric cases efficiently while maintaining the capability for matters elsewhere in the country.
Proper documentation significantly impacts debt collection outcomes. Creditors should prepare the following before engaging Turkish debt recovery services:
A debt collection law firm in Turkey handles document preparation as part of case intake, ensuring all materials meet local requirements before filing.
Transparency about costs and realistic timelines helps creditors make informed decisions about pursuing debt recovery.
Turkish enforcement offices charge statutory fees based on claim amounts:
| Fee Type | Rate |
|---|---|
| Advance Fee at Filing | 0.5% of Claimed Amount |
| Collection Fee (Before Seizure) | 2.27% |
| Collection Fee (After Seizure) | 4.55% |
| Collection Fee (Full Recovery) | Up to 11.38% |
For cases requiring court proceedings, filing fees run approximately 5.9% of the disputed amount, with one-quarter payable at initiation.
Fee arrangements vary based on case complexity and firm practices. Many debt collection attorneys in Turkey offer:
CKAY Law Firm discusses fee structures during initial consultation, tailoring arrangements to case circumstances and client preferences.
Recovery timelines depend heavily on debtor behavior:
| Scenario | Typical Duration |
|---|---|
| Amicable Resolution | 2-8 Weeks |
| Uncontested Enforcement | 1-3 Months |
| Contested With Court Proceedings | 6 Months to 2+ Years |
| Foreign Judgment Recognition (Unopposed) | 6-18 Months |
| Foreign Judgment Recognition (Contested) | 2-4+ Years |
Statistics indicate that approximately ninety-five percent of debt cases resolve without court intervention — through payment orders and negotiations. This high resolution rate reflects the effectiveness of Turkey’s enforcement system when properly utilized.
CKAY Law Firm brings focused expertise to debt collection and enforcement matters. Our practice combines deep knowledge of Turkish Enforcement Law with practical experience serving international clients.
Our team handles the full spectrum of debt recovery matters; pre-litigation negotiation, enforcement proceedings, contested litigation, and post-judgment collection. This end-to-end capability means your matter stays with lawyers who understand its full history.
As an English-speaking law firm in Istanbul, we routinely work with foreign businesses navigating Turkish legal requirements. We understand international business practices and communicate clearly in English throughout the engagement. Document preparation, strategy discussions, and status updates occur in a language you understand.
Every case begins with assessment; evaluating documentation strength, investigating debtor solvency, and identifying optimal recovery pathways. We advise honestly about prospects, helping clients make informed decisions before committing resources.
Clients receive regular updates on case progress. Questions get prompt responses. We believe informed clients make better decisions and experience less frustration with legal processes that can otherwise feel opaque.
Ultimately, debt collection success means converting paper claims into actual payments. Our focus remains on achieving recoveries efficiently, whether through negotiated settlements or enforced judgments.
Unpaid debts don’t resolve themselves. The longer you wait, the greater the risk that debtors dissipate assets, limitation periods expire, or evidence becomes harder to gather. Turkish Law provides effective tools for creditors who act decisively.
CKAY Law Firm offers free initial consultations for debt collection matters. Contact us to discuss your situation, assess recovery prospects, and understand your options under Turkish Law. Let us help you turn outstanding debts into recovered funds.
If you need any help, please feel free to contact us. We will get back to you with in one (1) business day, or if in hurry, just call us now.
Call : +90 212 356 0350 / +90 533 191 32 11
info@ckay.com.tr Mon. – Fri. 08:00-18:00
Not necessarily. Turkey’s enforcement system allows creditors to pursue collection directly through execution offices without prior court judgment. If you hold contracts, invoices, or promissory notes establishing the debt, a payment order can be issued immediately. Court proceedings become necessary only if the debtor objects, and that objection cannot be removed through expedited processes.
Yes. Foreign creditors have equal rights under Turkish Law. You must work through a licensed Turkish attorney and may need to deposit security if no reciprocity arrangement exists with your country. Many countries, including the US, UK, Germany, and EU members, have reciprocity, potentially exempting creditors from security requirements.
Turkish enforcement allows seizure of nearly all debtor assets; bank accounts, real estate, vehicles, equipment, inventory, receivables from third parties, and wages (up to twenty-five percent of net salary). Certain basic necessities are protected, but commercial assets and investment properties remain fully seizable.
Uncontested debts can be collected within one to three months. If the debtor objects and litigation ensues, expect six months to two years or longer, depending on complexity and appeals. Amicable settlements often occur within weeks when debtors recognize serious enforcement action is underway.
General contractual debts have a ten-year limitation period. Commercial debts between businesses are limited to five years. Negotiable instruments like checks and promissory notes carry only three years. Missing these deadlines can extinguish otherwise valid claims, making timely action essential.
Foreign judgments require recognition proceedings (tenfiz davasi) before Turkish courts. You must demonstrate that the judgment is final, reciprocity exists, proper jurisdiction was exercised, and the judgment doesn’t violate Turkish public policy. Once recognized, enforcement proceeds as with any Turkish judgment. The process typically takes six to eighteen months when unopposed.
Individual enforcement proceedings stop when bankruptcy is declared. All creditors then participate in collective proceedings with distribution according to legal priority. Filing your claim promptly with the bankruptcy estate protects your position. In some cases, threatening bankruptcy proceedings motivates debtors to settle rather than face business liquidation.
Enforcement office fees range from 0.5% to approximately 11% of the collected amount, depending on the stage reached. Court fees run about 5.9% of disputed amounts for litigated matters. Attorney fees vary by arrangement — many firms offer contingency or hybrid fee structures where payment depends partly on successful recovery.
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