Debt Recovery in Turkey

  • Basak
    Basak
    BASAK studied law at the Eastern Mediterranean University and went on to obtain a Masters degree in Energy Law at Yasar University. Basak is specialized in all matters concerning Energy Law, Business and Commercial Law, Real Estate, İnheritance and Family Law. She was admitted to Antalya Bar Association in 2009 . She speaks Turkish and English while Russian is also spoken in her office.
  • Dilruba
    Dilruba
    Dilruba graduated from the Gazi University, Faculty of Law and for several years has been working at one of the top law firms of Ankara specialising on cases regarding insurance law, corporate law, labour law, enforcement law and international private law that embodies different departments for each field of law. She is fluent in English and German as well as her native Turkish
  • Yusuf
    Yusuf
    Yusuf graduated from Izmir University and started working immediately with a prestigious law firm in the city. He now manages his own law office, focusing on commercial litigation, contractual disputes, debt collection, employment law as well as occasionally assisting clients in the areas of property law. Yusuf is a member of Izmir Bar Association and speaks English fluently.
  • Nihan
    Níhan
    Nihan was admitted to the Turkish Bar in 2009. She primarily concentrates on Contracts Law, Real Estate and Construction Law. She also regularly advises on Litigation (debt recovery, breach of contract, liability and corporate conflicts etc.), Family Law and Labour Law. She has considerable experience in the field of cross-border and transnational legal matters. She is fluent in English and French and in addition she is a registered sworn translator and interpreter.
  • ilkay
    Ilkay
    Having lived and studied in a number of countries such as the USA, Japan, Belgium and Russia, ilkay has an international background that makes him ideal for assisting English-speaking clients in Turkey. Specialising in business law, property matters and immigration, ilkay speaks fluent English and is a registered and regulated lawyer in Istanbul.
  • Kübra
    Kübra
    Kubra is a partner in her law firm which has offices in Istanbul and Izmit. Kubra and her firm focuses primarily in the areas of Corporate Law, Inheritance and Family Law. Her firm also regularly advises on Litigation (labor law, debt recovery, breach of contract, liability and corporate conflicts ), She also represents multinational corporate clients on regulatory compliance matters, particularly in the areas of corporate, trade and customs and real estate property matters. she is a registered arbitrator and a sworn translator and interpreter.

Administrative & Judicial Processes

Under Turkish Law, a creditor is granted the right to collect its receivable in two ways.

Debt Enforcement via Administrative Procedure

Once the relevant administrative body has received the details of the claim it submits an order for payment to the debtor. If the debtor objects to the order for payment by claiming that the debt does not exist within 7 days (7 days if an ordinary debt. If the debt stems from a bill of exchange then the time frame for objection is reduced to 5 days ) subsequent to submission of the letter, the enforcement process shall be frozen and the only way to proceed with it shall be to file a litigation case against the debtor company. In the event that the debtor does not make an objection to the payment order the proceedings shall finalize.

 

Debt Enforcement via Litigation Process

The litigation process shall be governed by the court with consideration given to evidence such as invoices, contracts, correspondence between the parties, accounting books and related proof. This process will also encompass hearings including claim and counterclaim procedures. The court fee related to litigation shall be also dependent on the amount of the debt.

The litigation process must be initiated by a Turkish attorney. Moreover, the attorney must be given a power of attorney (the “POA”). If the Claimant’s country is a party to the Hague Convention, the PoA must be stamped with the Hague Apostille via the usual government authorities, if not, the POA must be approved by a Turkish embassy or Consulate.

 

Advantages of the Litigation Approach

Filing an action of debt grants the claimant interim measures which make the litigation process more advantageous than the enforcement process. Firstly, the Claimant shall be entitled to request precautionary attachment to be placed on the fixed and liquid assets of the debtor along with the rights and receivables held by third parties.

The second remedy is to request for a preliminary injunction to freeze the fixed and liquid  assets of the debtor to restrict their sale and/or transfer to third parties under any manner whatsoever to prevent the debtor from stripping their assets until the completion of the proceedings. In all cases the court must be persuaded by illustrating the necessity of the subject interim measure.

If the Court awards in favor of the Claimant, the verdict can be enforced directly against the debtor. In the event of non-performance of the paying the debt, the Claimant shall be entitled to initiate an executive enforcement procedure with judgement before the execution office.

Executive Procedure with Judgement Process

The executive procedure with judgement process is as follows:

The Claimant informs the debtor regarding their claim by sending an enforcement order (it is called a payment order in enforcement proceedings without judgement process) which is based on the favorable court decision.

If there are restrictions in the creditor’s country against Turkish Citizens and Turkish legal entities filing a litigation case in that country, the Turkish Court will request a security deposit from the creditor. Should there be no judicial assistance agreement or relevant convention between Turkey and third countries, there is an obligation to pay a security deposit (Cautio Judicatum Solvi) for foreign legal entities or real persons who intend to initiate a lawsuit or enforcement procedure in Turkey. (Article 97 of the Turkish Code of Civil Procedure and Article 32 of the Code of Private International Law and International Civil Procedure).

There is no amount or percentage specified with regard to the amount of the deposit, however in practice the courts determine 15% of the disputed amount to be an appropriate amount for the security deposit.

Countries with a Judicial Assistance Agreement with Turkey

A Judicial Assistance Agreement Exists between Turkey and the countries below:

United Kingdom, Germany, N. Cyprus ,Albania, Kuwait, Austria ,Lithuania, Azerbaijan, Hungary Bulgaria, Macedonia, Czech Republic, Algeria ,Moldova, China, Mongolia, Morocco, Uzbekistan, Georgia, Poland, India, Romania, Croatia, Tajikistan, Iraq, Tunisia, Jordan, Yugoslavia, Ukraine, Switzerland, Italy, Kazakhstan

There are also countries exempt from security deposit due to reciprocity principle in Turkish Private State Law Act. These countries do not apply any security deposit to Turkish citizens and legal entities in the case of debt recovery proceedings, accordingly Turkey does not seek any security deposit obligation for those countries: Russia, Egypt, Chile, Finland, Peru, Libya, Syria.

Advocate Abroad can help you set-up and incorporate your business in Turkey. Find more details on our Services Page.

 

Client Testimonials

Reviews of Advocate Abroad lawyers placed by clients directly on the Wufoo client survey platform:

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    David W Baker, Malaga
    Tuesday, November 06, 2018
    We were extremely satisfied with Alvaro: He explained the law to us and gave us a solution to our problem. He could not have been more helpful and we will definitely use him again.
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    Thom Koller, London
    Monday, November 05, 2018
    Francisca provided a perfect service!

    She is professional, dedicated and took care to understand the needs of my situation. Her service offers exceptional value for money and gives complete peace o...f mind.
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    Michael O'Sullivan, Ibiza
    Thursday, November 01, 2018
    Understanding Spanish law regarding buying and selling properties is a minefield for English speakers. Cristina provided the legal expertise, the translation of legal documents, explanations for all i...ssues, and solutions for our challenges.

    Also, she provides confidence and reassurance that what we are doing is in our best interests and within the law - very important when working in a foreign country.

    In summary, she is an excellent professional that we are so pleased we found and will continue to use for all our legal matters.

    I think you have a perfect solution for supporting people abroad. I was lucky to find you on the internet. Perhaps you could promote your services to all estate agents abroad, so more people can get access to your service when buying or selling abroad.
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    Colin Wilson, Australia
    Tuesday, October 30, 2018
    Overall it was great. Rosa always answered all questions asked and provided clear, concise and well explained answers.

    When there was a delay in responding she did offer an apology which was appre...ciated. Rosa always instilled a sense of confidence that she knew exactly what was going on, what I was asking, and what the applicable law was.

    When not a Spanish local and dealing with her remotely, this provided great comfort in a sensitive matter.
  • Default Avatar75
    Campbell Reynolds, Spain
    Monday, October 22, 2018
    We were very satisfied with the service provided by our lawyer Sabela.

    She was very accomodating, quick response to everything while thinking outside the box for solutions. Also, her English was mo...re or less fluent.
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    David Edwards, England
    Wednesday, October 17, 2018
    Very Satisfied with the service provided by Oliver. He was quick, efficient and value for money. Would definitely recommend to friends.
  • Default Avatar75
    Andrew Morecroft, Lubrin
    Monday, October 15, 2018
    Juan was extremely helpful during every part of the purchase. As I was buying an older property there were slight complications but Juan explained every issue and managed to work through the difficult...ies with supreme efficiency.

    Also there was a ridiculous situation with my Spanish bank account where I could not access the money even though it was in the account. Thankfully I had given Juan power of attorney and he managed to sort-out the problem.

    He went above and beyond the call of duty and I am very grateful for all his help. I would strongly recommend him to anyone looking to buy in the Almeria region.
  • Default Avatar75
    Manoochehr Jafari-Nahad, UAE
    Saturday, October 13, 2018
    Jose-Antonio was extremely helpful and prompt and also it was helpful that he could be contacted via social media like Whatsapp
  • Default Avatar75
    Michele Jansen van Vuuren, Benajarafe
    Saturday, October 13, 2018
    Alvaro was extremely helpful, he couldn't have done more. Very quick to respond to my query.

    Only issue was that some of the documents I needed to provide were not mentioned. However, would defini...tely recommend his services to friends.
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    John Fraser Dunfield, San Francisco
    Friday, October 12, 2018
    Good understanding. Applied sufficient pressure as needed to get the issue resolved. Reasonable charge for service provided. Would definitely recommend this service to friends.
  • Default Avatar75
    Rosemarie Byrne and John Cooper, Dublin Ireland
    couple
    Tuesday, October 09, 2018
    We found Francisca extremely helpful with a great amount of knowledge about buying a house and re-locating to Spain.
  • Default Avatar75
    Jane Evanson, London, UK
    female
    Tuesday, October 09, 2018
    Francisco was very helpful and professional. I was very happy with the advice and service.
  • Default Avatar75
    David McChesney, Puerto Banus
    Wednesday, October 03, 2018
    Alvaro was very professional, Knowledgeable of the subject at hand, did not over-charge - in fact cut costs in the best way for me. Very efficient in the entire process. Thank you.
  • Default Avatar75
    Martha Kimes, Scottsdale, Arizona USA
    female
    Tuesday, October 02, 2018
    Francisco was incredibly responsive (and quickly).

    Unlike American attorneys (and I know, because I am one), he didn't even bill me for a few follow-up emails/calls that he made on my behalf which... he easily could have done.

    I was supremely happy with his legal services.
  • Default Avatar75
    David Roots, England
    Monday, October 01, 2018
    We were very satisfied with the service we received. Rosa dealt with the matter in hand promptly and efficiently.
  • Default Avatar75
    David Knors, Barcelona
    Wednesday, September 26, 2018
    Oscar was very kind, professional and fair. He was able to help me with my problem and he was very determined that he would.

    Oscar is very competent, polite and showed a lot of effort to solve my ...problem. I strongly recommend him.
  • Default Avatar75
    Tauri, Estonia
    female
    Tuesday, September 25, 2018
    Very satisfied with the service. Francisco is bilingual English-Spanish and was always quick to respond and was very professional at all times.
  • Default Avatar75
    Mohamed kheder, Dublin, Ireland
    Monday, September 24, 2018
    Every thing was great ... Rosa was really helpful and understanding. And I see the value for money was good enough.. of course I would recommend it to any of my friends.

    And I would like to have th...e chance to thank Rosa and the whole company for everything.
  • Default Avatar75
    Daniel Elias, New York
    Tuesday, September 18, 2018
    Excellent service, delivered exactly as promised, and at half the cost a different translator had requested for the same project!
  • Default Avatar75
    Darren & Gemma Nesbitt, Valencia
    Tuesday, September 11, 2018
    Inmaculada has been of excellent service to us, as a family and in helping to set up a business in Spain. She has now undertaking several project for us and has delivered high quality on all of them. ...Perfect service!
  • Default Avatar75
    Patsy Valentin, Granada
    Tuesday, September 11, 2018
    Extremely accommodating and highly professional and very pro active. Excellent result and service. Highly recommended.
  • Default Avatar75
    Jovie, Malaga
    Wednesday, September 05, 2018
    My lawyer Alvaro was extremely helpful and very efficient. I would definitely recommend his services to friends.
  • Default Avatar75
    Albert Roldan, France
    Tuesday, September 04, 2018
    Alfonso was extremely helpful, particularly since we requested a quick turnaround for the 18 documents needing to be translated from English and French to Spanish.

    He was fluent in our phone conver...sations and email correspondence, he never misunderstood what our requirements were. He was was clear in explaining how this process works and what the price included.

    I would highly recommend him to anyone needing these services.
  • Default Avatar75
    David Grundy, UK
    Friday, August 24, 2018
    Jose was very polite and we received an excellent service from him. Nothing was to much trouble and his communication was 2nd to none. Highly recommended!
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    Mario Klappholz, Miami, Florida
    Thursday, August 16, 2018
    Inma was very helpful, always happy to assist. I particularly appreciated her professionalism. I would not hesitate to recommend her services to friends.
  • Default Avatar75
    Daniel Spitzhorn, Spain
    Tuesday, August 14, 2018
    Miguel in Oviedo helped us during the process of buying a flat in Asturias. He was just brilliant!
  • Default Avatar75
    Tracey Iliffe Bradley, UK
    female
    Tuesday, August 14, 2018
    Rosa dealt with everything efficiently and promptly and went beyond our expectations by helping us to open a Spanish bank account and deal with other minutiae.
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    Erslaan Ahmed, Bangladesh
    Friday, August 10, 2018
    Gave very good advice and provided an excellent solution. Inma is very professional in her work. I would recommend her services to friends.
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    John Ryan, Derby, England
    Wednesday, August 08, 2018
    A perfect relationship between client and professional. Nothing was too much trouble.

    Went over and above his job and more. I would only use his services if I need legal services. I were very lucky... to find Jose first time round.

    Thank you jose
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    Robert Brownlee, Almeria, Spain
    Wednesday, August 08, 2018
    Everything was as it should be: excellent. Had to pay by bank transfer and maybe would have liked another means of paying.

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