Debt Collection in TurkeyAdministrative & Judicial Processes

Debt collection in Turkey

Under the law relating to Turkish Debt Collection, 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.

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    Jun 18, 2020