Enforcement Proceedings Against a Foreign Debtor with Assets in Turkey

1) Understanding the Turkish Enforcement Architecture (What You Are “Plugging Into”)

Türkiye’s enforcement system is built around enforcement offices (sometimes referred to in English as execution offices) that administer procedural steps: issuing payment orders, processing objections, registering attachments, sending notices to third parties, and coordinating sales. Courts become involved mainly in dispute stages (e.g., objections, annulment actions, recognition/enforcement of foreign judgments, interim measures, and enforcement complaints).

From a creditor’s standpoint, enforcement in Türkiye has three defining characteristics:

1. Procedural momentum is strong when formalities are satisfied. Once the enforcement track is correctly triggered, it can create immediate consequences for debtor liquidity.
2. Objections can stop or delay the process, but only if handled correctly by the debtor. Many defenses are procedural and time-sensitive.
3. Asset targeting is everything. A theoretically valid claim does not collect itself; the creditor must convert legal entitlement into attachable value.

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2) The First Decision: What Legal Instrument Do You Hold?

Before filing anything, determine your starting “instrument.” Your enforcement pathway depends on what you have in hand.

A) You have a Turkish court judgment (or an enforceable Turkish instrument)

This is usually the strongest starting point. Judgment-based enforcement is generally more direct because the enforcement office is not evaluating the merits of your claim.

Typical creditor advantage: the debtor’s room to argue the substance is narrower, and enforcement actions can be activated faster.

B) You have a foreign court judgment

A foreign judgment is not automatically enforceable in Türkiye. In most cases, you must first obtain a Turkish court decision allowing enforcement (commonly called exequatur in international practice). Only after that can you proceed like you would with a Turkish judgment.

Key strategic implication: You may need a court case first, but you can often plan protective measures to prevent asset flight while that case proceeds.

C) You have a foreign arbitral award

Arbitral awards typically have their own enforcement route in Türkiye, often benefiting from international arbitration enforcement principles. Creditors often use Türkiye as an enforcement seat when assets exist locally, even if arbitration occurred elsewhere.

Key strategic implication: Awards may offer a faster merits closure than litigation, but local procedure and service still matter.

D) You have no judgment (you have invoices, a contract, acknowledgments, delivery documents, correspondence, etc.)

You will likely choose between:

• Non-judgment enforcement (a payment order route where the debtor can object), and/or
• A lawsuit on the merits (while seeking interim asset protection where appropriate)

Practical reality: Many cross-border collections begin with non-judgment enforcement because it is fast and creates early pressure—provided you can manage service and objection risk.

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3) Selecting the Correct Venue and Competent Enforcement Office

Foreign-debtor files often fail or stall due to poor venue planning. Venue is not merely administrative; it is commonly weaponized by debtors through competence objections.

A) Venue logic in practical terms

As a creditor, you should map venue using a layered approach:

1. Debtor’s local presence: Does the debtor have a branch, office, registered activity, or representative address in Türkiye?
2. Place of performance: Where was payment supposed to occur? Where was delivery performed? Where were services provided?
3. Contractual jurisdiction clauses: Is there a valid Turkish jurisdiction selection clause? Is there arbitration?
4. Asset location: Which enforcement office is best positioned to reach the most valuable asset category?

B) Why “asset-centric venue selection” matters

Even when multiple venues are arguably available, you want to file where you can most efficiently reach:

• bank accounts and payment institutions
• local counterparties who owe money to the debtor
• real estate or registered assets
• shares in Turkish companies
• rental income streams

Creditor tip: When in doubt, prefer venues that align with the debtor’s strongest attachable cashflow in Türkiye, because cashflow attachments often produce faster settlements than real estate sales.

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4) International Service and Notification: The Most Common Cause of Delay

If the debtor is abroad, you may have a strong case and excellent evidence—but still lose months due to service issues. In cross-border enforcement, service is not a formality; it is a critical timeline driver.

A) Why service is more complex with foreign debtors

To be effective, service must typically satisfy:

• Turkish notification standards, and
• the international route required for the debtor’s location (often via treaty channels or diplomatic/central authority routes, depending on the country)

If service is handled incorrectly, the debtor may later challenge deadlines, claim lack of proper notice, and attempt to invalidate key steps.

B) Practical strategies to reduce service friction

1. Search for a legitimate local service anchor:
   If the debtor has a Turkish branch, representative, or legally recognized address, service may be completed domestically—often much faster.
2. Document everything:
   Keep a clean record of how addresses were obtained and how service was attempted and completed.
3. Expect longer timeframes and build parallel pressure:
   While international service proceeds, you can prepare asset mapping, draft interim measures, and plan third-party attachment targets so you can act immediately once procedural gates open.

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5) Security Requirements for Foreign Parties (Cost Bonding) and How It Shapes Strategy

In some cross-border scenarios, foreign creditors may be required to deposit security to cover potential costs or damages. This requirement can arise in litigation stages (such as exequatur proceedings) and may affect interim relief applications.

A) Why this matters in enforcement planning

If security is likely, it becomes part of your budget and timeline. Debtors sometimes exploit this by pushing the process toward procedural stages where security may be demanded, hoping the creditor loses momentum.

B) Creditor tactics

• Budget early to avoid surprise delays.
• Assess treaty exemptions or reciprocity-based exceptions where applicable.
• Structure the workflow so that the most valuable assets are targeted first—reducing the chance the debtor survives long enough to benefit from procedural slowdowns.

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6) Interim Protection: Provisional Attachment and Other Freezing Tools

Foreign debtors can move value fast. If you suspect the debtor will dissipate assets, you should consider interim protective measures that preserve the asset base while the main route (enforcement or court stage) continues.

A) What provisional attachment achieves in practice

A properly obtained provisional attachment can:

• freeze bank balances or receivables
• block payment streams
• place a legal grip on valuable property
• force the debtor into settlement talks quickly

B) When provisional attachment is most appropriate

• You have a credible monetary claim supported by strong documentation.
• There is clear risk the debtor will hide, transfer, or dissipate assets.
• Waiting for judgment or exequatur would likely make later enforcement meaningless.

C) Common creditor mistakes

• Applying too late (after asset flight)
• Under-documenting urgency and dissipation risk
• Targeting the wrong assets first (slow assets instead of liquid ones)
• Neglecting security considerations where required

Creditor tip: In cross-border matters, provisional attachment is often less about ultimate sale and more about forcing a payment decision by interrupting the debtor’s operational cashflow.

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7) Asset Mapping in Türkiye: How to Find What You Can Attach

Winning enforcement is rarely about legal theory; it is about identifying attachable value. Foreign debtors often hold Türkiye-based value in ways that are not immediately visible.

A) The asset categories that most often produce real recovery

1) Third-party receivables (often the fastest collection lever)

If Turkish customers, distributors, contractors, tenants, insurers, or platform operators owe money to the debtor, you can target those receivables through garnishment mechanisms.

Why it’s powerful: third parties dislike legal risk. When served with a proper attachment notice, many will freeze payments or comply to avoid liability. This quickly pressures the debtor.

Examples:

• rental income owed by tenants
• invoice payments owed by Turkish counterparties
• balances held by local platforms or payment service providers
• insurance claim payments payable to the debtor
• contractor payments on ongoing projects

2) Bank accounts and payment institutions

Bank attachments can deliver immediate leverage. Even when balances are low, the mere fact that accounts are “touched” often pushes the debtor to negotiate.

3) Real estate

Real estate is slower but strategically decisive, especially if high-value property exists. Real estate attachments limit the debtor’s ability to exit Türkiye “cleanly.”

4) Shares in Turkish companies

Foreign debtors frequently hold shares directly or indirectly. Attaching shares is more complex than attaching cash, but can be effective—especially when dividends or exit transactions are anticipated.

5) Movable assets (vehicles, equipment, inventory)

Movables are attachable but may require location knowledge and raise third-party claims (leasing, pledge, retention of title).

6) Special assets: vessels, aircraft interests, IP rights

Sector-specific assets can be extremely valuable but demand specialized enforcement planning.

B) A practical order of attack

In many files, the most productive sequence is:

1. third-party receivables and payment streams
2. bank accounts
3. shares (if liquidation or dividends expected)
4. real estate (as strategic anchor)
5. movables (if easily locatable and not encumbered)

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8) The Most Effective Enforcement Pathways in Türkiye (Step-by-Step)

Below are the main pathways and what the creditor should expect.

Pathway 1: Judgment-Based Enforcement (Turkish judgment or enforceable instrument)

Workflow in practice:

1. File with the competent enforcement office using the judgment as the basis.
2. Trigger enforcement actions (attachments, third-party notices, etc.) following procedural steps.
3. If the debtor resists, disputes often focus on procedural issues or payment/settlement logistics rather than the merits.

Creditor advantage: strong legitimacy; fewer substantive disputes.

Pathway 2: Non-Judgment Enforcement (Payment order route)

Workflow in practice:

1. File the claim with the enforcement office, producing documentation supporting the debt.
2. A payment order is issued and must be properly served.
3. The debtor may object within the applicable period.
4. If objection occurs, you must shift into court-linked processes to remove/override the objection and continue enforcement.

Creditor strategy: Use this pathway to create early pressure, but be ready for objections and litigation links.

Pathway 3: Enforcing a Foreign Judgment (Exequatur first)

Workflow in practice:

1. Prepare an exequatur case file: finality documents, certified copies, translations, and proof of proper notice in the foreign proceedings.
2. File the case in the competent Turkish court.
3. Once the Turkish enforcement decision is obtained, proceed with judgment-based enforcement.

Debtor tactics: public order arguments, due process claims, improper service allegations, or challenges to finality.

Creditor counter: a clean, well-documented foreign procedural history and strong service evidence.

Pathway 4: Enforcing a Foreign Arbitral Award

Workflow in practice:

1. File the award for enforcement under the applicable framework.
2. Expect the debtor to raise limited procedural defenses.
3. Use interim measures where asset flight risk exists.
4. Once enforceability is confirmed, proceed to attachments and collection.

Creditor advantage: arbitration often provides a clear merits endpoint, but local procedure remains essential.

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9) Objections and Defensive Tactics: How Foreign Debtors Try to Stop You

Foreign debtors rarely start with “we will pay.” They usually start with delay.

A) Competence objections

Debtors may argue that you filed in the wrong venue or that the enforcement office is not competent. Poor venue planning creates avoidable delays.

Creditor response: anchor venue selection to a defensible legal and factual basis (place of performance, asset location, contractual clause, local presence).

B) Service objections

The debtor may claim improper international service or lack of proper notice. This is especially common when the debtor is abroad and service used an incorrect route.

Creditor response: follow the correct international channel and maintain clean documentation.

C) Substantive debt objections (in non-judgment enforcement)

Debtors may object generally (“I do not owe”) or assert offset, invalidity, lack of authority, or signature disputes.

Creditor response: prepare for the likely litigation step: choose whether to pursue fast objection removal or a full merits case, while preserving interim protection.

D) Exequatur defenses (foreign judgments)

Debtors typically argue:

• decision is not final
• lack of proper notice or defense opportunity
• public policy incompatibility

Creditor response: strengthen the exequatur file at the start—finality proof, service proof, and procedural fairness documentation.

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10) Converting Enforcement Pressure into Payment: Settlement Engineering

Enforcement is not only about seizure and sale. In many cross-border cases, the optimal outcome is a structured settlement that pays faster than a long sale process.

A) What debtors care about

• ability to access bank accounts
• ability to collect receivables from Turkish counterparties
• reputational risk with Turkish business partners
• risk to local operations, licenses, and projects
• inability to sell or refinance real estate

B) How creditors can use pressure ethically and effectively

• Attach the most liquid assets first (cashflow targets).
• Offer a clear settlement pathway: instalments secured by guarantees, escrow mechanisms, or staged release of attachments.
• Use “conditional release” structures: partial payment triggers partial release; default triggers immediate re-attachment.

Creditor tip: When the debtor is foreign, settlement compliance improves when payment is tied to a practical business necessity (e.g., releasing a receivable so the debtor can close a transaction).

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11) Special Scenarios That Frequently Appear in Foreign-Debtor Files

Scenario 1: The debtor has no known address in Türkiye

You must treat address uncertainty as an enforcement risk. Focus on:

• identifying local counterparties who owe money to the debtor
• identifying local registered assets
• using formal channels for international service properly

Scenario 2: The debtor operates in Türkiye through an affiliate company

Do not assume that an affiliate’s assets are automatically attachable for the foreign debtor’s liabilities. Separate legal personality matters.

Strategic approach: target direct receivables and payment streams owed to the debtor; if necessary, explore legal routes to challenge sham transfers or abusive structures under applicable rules.

Scenario 3: The debtor’s Türkiye asset is “contractual” rather than registered

Examples: a Turkish buyer owes payment under a supply agreement; a local employer owes consulting fees; a platform holds a payout balance.

These are often the best assets because they are liquid and third parties prefer compliance.

Scenario 4: The debtor is trying to transfer assets out of Türkiye

This is a prime case for provisional attachment or other interim protection. Delay can destroy collectability.

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12) Timing and Cost Reality: What to Expect

Cross-border enforcement timing is heavily influenced by:

• service abroad duration
• translation and certification logistics
• court scheduling (especially for exequatur)
• debtor objection strategy
• asset category (cashflow attachments move faster than real estate sales)

A) The “fastest realistic path” to money

In many files, the fastest path is:

1. Proper initiation + defensible venue
2. Targeted third-party garnishment to freeze receivables
3. Bank attachment to create liquidity pressure
4. Settlement or rapid payment to regain operational capacity

B) The “slow but decisive path”

If cashflow attachments fail, the decisive path is often real estate or high-value registered assets—slower, but harder for the debtor to ignore.

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13) Creditor Checklist: Pre-Filing to Collection

A) Pre-Filing Checklist

• Identify your instrument category (Turkish judgment / foreign judgment / arbitral award / no judgment).
• Map debtor’s Türkiye asset profile (cashflows, counterparties, property, shares).
• Choose venue strategically and defensibly.
• Plan service: domestic anchor or international route.
• Decide on interim protection (provisional attachment) if risk exists.
• Prepare translations and document formalities.

B) Filing Checklist

• Prepare a clean claim narrative with supporting exhibits.
• File with the competent enforcement office or competent court (exequatur/award enforcement).
• Ensure service instructions are accurate and supported by address evidence.
• Request targeted measures aligned with the asset map.

C) Post-Filing Checklist

• Track service progress aggressively.
• Execute third-party attachments quickly once procedurally available.
• Monitor objections and respond within deadlines.
• Prepare settlement proposals that convert pressure into payment.
• If sale becomes necessary, ensure procedural compliance and valuation readiness.