Foreign creditors who have outstanding receivables from debtors in Turkey can use the Turkish enforcement and bankruptcy system to collect their claims. The fact that the creditor is not resident in Turkey, or is a foreign company or individual, does not prevent them from starting enforcement proceedings, as long as certain procedural and jurisdictional requirements are met. Below is a step-by-step overview of how a foreign creditor can initiate enforcement in Turkey.
1. Determine the Legal Basis of the Claim
Before starting enforcement, the foreign creditor must identify on what legal basis they will proceed:
- Ordinary (non-judgment) claim
- Based on invoices, contracts, acknowledgment of debt, promissory notes, etc.
- No court judgment is yet obtained.
- Foreign court judgment or arbitral award
- If there is already a foreign court decision or an international arbitration award, the creditor must usually obtain recognition and enforcement (exequatur) in Turkey before proceeding with full enforcement.
- Turkish court judgment
- If the creditor has already sued in Turkey and has a Turkish judgment (ilam), enforcement will be via ilamlı icra (enforcement of a judgment).
Each category follows different procedural paths, although all end up in the Turkish enforcement offices.
2. Choose the Correct Type of Enforcement Proceeding
The main enforcement routes for a foreign creditor are:
- Ordinary enforcement for money (ilamsız icra)
Used where there is no Turkish judgment and the claim is a simple monetary debt. - Enforcement based on negotiable instruments (kambiyo takibi)
Used if the claim is based on a cheque, promissory note or bill of exchange; this is a faster and stricter route with shorter objection grounds for the debtor. - Enforcement of judgments (ilamlı icra)
Used when there is a Turkish court decision or a foreign judgment/arbitral award that has been recognised and made enforceable in Turkey.
3. Jurisdiction and Competent Enforcement Office
The creditor must apply to a Turkish enforcement office (İcra Dairesi) that has jurisdiction. Typically:
- The enforcement office where the debtor’s domicile or registered seat is located in Turkey; or
- The place where the obligation is to be performed (e.g. place of payment agreed in the contract); or
- The location of the property to be seized (e.g. real estate located in a particular district).
In practice, foreign creditors often choose the enforcement office where the debtor’s main assets (bank accounts, real estate, company headquarters) are located to facilitate future seizure and collection.
4. Filing the Enforcement Request
The foreign creditor will usually instruct a Turkish attorney to act before the enforcement office. The attorney files an enforcement request (takip talebi) which must include:
- Names and addresses of creditor and debtor
- The legal basis of the claim (invoice, contract, note, judgment, etc.)
- The amount of the claim (principal, interest, and costs)
- Currency of the debt (and, if necessary, conversion to Turkish Lira)
- Type of proceeding chosen (ordinary, negotiable instrument, or judgment enforcement)
The enforcement office then issues a payment order (ödeme emri) to be served on the debtor.
5. Service of the Payment Order
Service is a crucial step and especially sensitive when the debtor is also a foreign national or resides abroad.
- If the debtor has an address in Turkey, service is made at that address under Turkish Notification Law.
- If the debtor is abroad, service may be made through international notification channels, consulates or applicable conventions.
Once service is validly completed, the objection period for the debtor begins to run (for example, 7 days for ordinary monetary enforcement).
6. Debtor’s Objection and Its Consequences
If the debtor does not object within the legal time limit, the payment order becomes final, and the creditor can request attachment (haciz) of the debtor’s assets (bank accounts, movable assets, real estate, company shares, etc.).
If the debtor objects:
- In ordinary enforcement, the proceedings are stayed, and the creditor may file a lawsuit (typically for annulment of objection or for determination of the debt).
- In negotiable instrument enforcement, the creditor can apply to the court to have the objection removed through a more accelerated procedure, often relying on the evidential strength of the instrument.
For foreign creditors, it is important to understand that an objection does not mean the claim is lost; it simply moves the dispute to the court stage, where evidence will be assessed.
7. Enforcement Based on Foreign Judgments or Arbitral Awards
If the foreign creditor already holds a foreign court judgment or international arbitral award:
- First, the creditor must obtain recognition and enforcement in a Turkish court.
- The court will examine conditions such as:
- Proper jurisdiction of the foreign court or tribunal
- Proper service and right to be heard
- No conflict with Turkish public order
- Once the decision is recognised, it becomes enforceable like a Turkish judgment, and the creditor may start ilamlı icra.
This route can significantly strengthen the creditor’s position, as the debtor can no longer challenge the merits of the claim in enforcement proceedings.
8. Seizure and Collection of Assets
After the payment order becomes final or a judgment is obtained:
- The creditor can request attachment of assets such as:
- Bank accounts in Turkish banks
- Vehicles registered in Turkey
- Real estate (with registration of seizure in the land registry)
- Shares in Turkish companies
- If the debtor still does not pay, these assets can be sold through public auction and the proceeds used to satisfy the claim, with surplus returned to the debtor.
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