Foreign Creditor’s Claim Registration in Turkish Bankruptcy Proceedings

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açık Ocak 15, 2026

1) Why Claim Registration Matters for Foreign Creditors in Turkey

When a debtor is declared bankrupt in Turkey, the bankruptcy estate (iflas masası) is formed and managed for the benefit of all creditors. From that moment on, individual enforcement actions are largely replaced by collective liquidation and distribution rules. For a foreign creditor, the single most important procedural step is claim registration (alacak kaydı), because:

You cannot receive a distribution (pay-out) if your claim is not duly registered and accepted.
You may lose priority arguments if you miss the correct classification and documentation.
Disputes around currency, interest, set-off, security, or title documents must be positioned early.
Practical leverage (negotiation, settlement, recognition of security, recovery strategy) depends on how your claim appears in the schedule of distribution (sıra cetveli).

Turkish bankruptcy law is primarily regulated by the Enforcement and Bankruptcy Code (İcra ve İflas Kanunu, “EBL”), and it operates with strong procedural discipline. Foreign creditors enjoy equal procedural standing in principle; however, in practice, foreign creditors face three recurring obstacles:

Evidence and formalities (original documents, apostille/legalization, translations, authority documents).
Deadlines and notifications (service and publication methods, short objection windows).
Substantive classification (secured vs unsecured, privileged vs ordinary, contingent claims, interest limits).

This guide is designed to help you register, prove, and defend your claim effectively in Turkish bankruptcy proceedings—without surprises.

2) A Quick Roadmap of Turkish Bankruptcy (İflas) for Foreign Creditors

Although there are variations, most bankruptcy cases follow this general path:

Bankruptcy decision by the commercial court (Asliye Ticaret Mahkemesi).
Opening of bankruptcy and formation of the bankruptcy estate (iflas masası).
Public announcements calling creditors to register claims (often via official publication and sometimes direct notices).
Claim registration (alacak kaydı) with supporting documents.
Verification/examination by the bankruptcy administration/estate.
Preparation of the schedule of distribution / ranking list (sıra cetveli).
Objections to the schedule (complaints and lawsuits depending on the issue).
Liquidation of assets and distribution to creditors according to ranking rules.

For foreign creditors, the main focus is Step 3 to Step 7. Your recovery often depends more on procedural accuracy than on the size of the claim.

3) Who Is a “Foreign Creditor” Under Turkish Practice?

In Turkish practice, “foreign creditor” broadly means a creditor who is:

A foreign natural person or foreign legal entity, or
A creditor whose claim arises from a cross-border transaction, or
A creditor outside Turkey who may face service, translation, or evidentiary formalities.

Important note: Foreign creditors are not treated as “second-class” creditors merely because of nationality. The key issue is not status, but proof and procedure.

4) The Legal Basis: Key Concepts in the Enforcement and Bankruptcy Code (EBL)

While this article does not reproduce statutory text verbatim, it is based on core EBL mechanisms, including:

The collective nature of bankruptcy and creditor equality principles,
Claim registration calls and the mechanics of the bankruptcy estate’s verification,
The schedule of distribution (sıra cetveli) and its objection routes,
Rules on ranking/priority and secured claims,
The distinction between complaint-type remedies and lawsuit-type remedies in disputes.

Foreign creditors should also be aware of supporting legislation and practice sources, including:

Turkish Code of Obligations (contractual basis, interest, damages),
Turkish Commercial Code (commercial evidence, invoices, trade books),
International private law and procedural rules relevant for foreign documents (apostille/legalization, representation).

5) Step-by-Step: How to Register a Foreign Creditor’s Claim (Alacak Kaydı)

Step 1 — Track the Bankruptcy Announcement and the Registration Deadline

Claim registration deadlines in Turkish bankruptcy are typically triggered by:

Public announcements (official gazette / announcements), and/or
Direct notices where applicable.

Practical risk: Foreign creditors often learn about bankruptcy late—especially if they rely on informal communications rather than monitoring official sources. If you suspect insolvency, do not wait for perfect information; prepare a claim file proactively.

Best practice: As soon as bankruptcy is opened, treat the registration period as short and rigid, and assume that late filings will be contested or excluded.

Step 2 — Identify the Correct Recipient: Bankruptcy Estate / Administration (İflas Masası)

The claim is registered to the bankruptcy estate (iflas masası) or the administration handling the file. Your submission should be organized as a formal petition package, typically including:

Claim summary,
Legal basis,
Principal, interest, currency, and calculation method,
Security details (if any),
Attachments list and evidence map.

Tip: Foreign creditors often submit “a bundle of documents” without a structured narrative. In Turkish practice, structure matters. Think like a Turkish court file: “Claim → Basis → Evidence → Calculation → Ranking request.”

Step 3 — Prepare a Clear “Claim Statement” (What You Are Asking the Estate to Accept)

Your claim statement should specify:

Claim type:
- Trade receivable, loan, service fee, indemnity, guarantee payment, factoring receivable, etc.
Principal amount:
- Exact number, not a range.
Currency:
- TRY, EUR, USD, etc., and how conversion should be handled (see Section 8).
Interest:
- Contractual interest rate if agreed, default interest basis if not, start date, and whether compound interest is claimed (generally sensitive in Turkish practice).
Security and priority:
- Pledge, mortgage, retention of title, assignment, surety, bank guarantee, etc.
Costs:
- Contractual penalties, costs, legal fees (where applicable and provable).
Contingent or disputed components:
- Explain if part of the claim depends on future events or pending litigation/arbitration.

A well-written claim statement reduces the risk that the estate will classify your claim incorrectly or reject it due to “uncertainty.”

Step 4 — Gather and Format Evidence the Way Turkish Files Expect It

Foreign creditors usually prove the claim through a combination of:

Contract(s), amendments, and general terms,
Invoices and delivery records (bill of lading, CMR, airway bill, packing list),
Acceptance protocols, service completion reports,
Account statements, reconciliation letters,
Emails/letters confirming debt, default notices,
Payment records (SWIFT, bank receipts),
Security documents (mortgage deed, pledge agreement, assignment, guarantee),
Court judgments or arbitral awards (if any).

Evidence hierarchy tip: Turkish practice gives strong weight to clear written documents, especially those bearing signatures, stamps, corporate letterheads, notarizations, or official records. If the debtor’s acknowledgment exists (written admission, reconciliation, partial payment), highlight it prominently.

Step 5 — Handle Translations, Apostille/Legalization, and Authority Documents

This is where foreign creditors win or lose time.

1) Translations (Yeminli Tercüme):
Documents in a foreign language are typically expected to be translated into Turkish by sworn translators. Even if the estate initially reviews English documents informally, disputes later (objections/lawsuits) almost always require proper Turkish translations.

2) Apostille/Legalization:
If your documents are executed abroad (powers of attorney, corporate certificates, signatures, notarial acts), you may need apostille under the Hague Apostille Convention or consular legalization, depending on the origin country and document type.

3) Power of attorney (Vekâletname):
If you act through a Turkish attorney, ensure the POA is compliant with Turkish requirements and properly legalized/apostilled and translated.

4) Corporate authority and signatory evidence:
Foreign companies should include:

Certificate of incorporation / registry extracts,
Board resolutions authorizing the signatory or representative,
Signature circulars or equivalents.

Practical advice: Build a “formalities pack” as a standard module for all Turkey matters. It saves days when deadlines are tight.

Step 6 — Submit the Claim in a “Court-Ready” File Style

Even though claim registration is not initially a courtroom trial, you should submit it as if it will be litigated later. Use:

Numbered exhibits (Exhibit-1, Exhibit-2…),
A table of contents,
A claim calculation sheet,
A legal basis section (contract, delivery, default, damages),
A ranking request section (secured/privileged/ordinary).

This is especially important because the next battleground is often the sıra cetveli stage.

6) What Happens After You Register: Verification and Acceptance/Rejection

After registration, the bankruptcy estate examines claims and may:

Accept fully,
Accept partially (principal accepted, interest reduced; currency conversion adjusted; penalty denied),
Reject fully (lack of proof, disputed transaction, limitation, set-off claimed by debtor, etc.).

Foreign creditors should be prepared for these common rejection grounds:

“Insufficient proof” (especially if only invoices are submitted without delivery/performance evidence),
“Unclear calculation” (interest start date, rate, or currency conversion missing),
“Authority issues” (POA or corporate authority not clear),
“Security not perfected under Turkish law” (for pledges/mortgages affecting ranking),
“Contingent claim not properly characterized” (estate unsure how to list it).

If your claim is rejected or downgraded, the key is not to panic—it is to move quickly into the proper objection mechanism.

7) The Schedule of Distribution (Sıra Cetveli): Your Claim’s “Official Identity”

The schedule (sıra cetveli) is the estate’s list showing:

Which creditors are recognized,
Amount accepted,
Ranking/priority class,
Whether secured, privileged, or ordinary,
Notes on disputes or conditions.

For foreign creditors, the schedule matters because it determines:

Whether you are paid at all,
How much you receive,
Whether you can challenge competitors’ claims,
Whether you must sue to correct your own listing.

Strategic note: In many Turkish bankruptcies, distributions are limited. Recoveries often depend on being correctly placed in the highest defensible rank and preserving security rights.

8) Foreign Currency Claims, Interest, and Conversion: The Most Common Foreign Creditor Pitfalls

8.1 Foreign Currency Principal

Foreign creditors often hold EUR/USD claims. In Turkish bankruptcy, your claim may be listed as:

The foreign currency amount, and/or
The TRY equivalent as of a legally relevant date.

The legally relevant date can be controversial depending on the claim type and applicable rules. The estate may prefer a conversion date tied to the bankruptcy opening, or another procedural anchor used in practice.

Best practice: Provide:

The contractual currency clause,
The conversion method you request,
Alternative calculations (e.g., as-of bankruptcy opening date and as-of filing date) to avoid outright rejection for ambiguity.

8.2 Interest

Interest claims in bankruptcy are sensitive. Issues include:

Contractual interest vs default interest,
Start date (maturity, default notice, invoice date),
Whether penalty interest is enforceable,
Whether post-bankruptcy interest is limited in distribution logic.

Practical drafting tip: Separate your calculation into:

Principal,
Pre-bankruptcy interest (clearly calculated),
Costs/penalties (separately argued),
Any further interest claim as a contingent/secondary request.

8.3 Penalties and Liquidated Damages

Penalty clauses are frequently challenged. Foreign creditors should be ready to justify:

The clause’s contractual clarity,
The triggering event,
Why it is not excessive under Turkish standards (especially if Turkish law is applicable or used as a benchmark in disputes).

9) Secured Claims: Mortgages, Pledges, Assignments, and Their Ranking Effects

If you have security, your recovery chances improve—but only if the security is legally effective and provable.

9.1 Mortgage (İpotek)

A mortgage registered over Turkish real estate usually provides strong priority. Foreign creditors must provide:

Land registry proof,
Mortgage deed details,
Amount secured and scope.

9.2 Pledge over Movables / Commercial Enterprise Pledge

Pledges can be complex due to registry and perfection requirements. Foreign creditors should provide:

Pledge agreement,
Registry entries (if applicable),
Proof of possession where relevant,
Evidence of priority date.

9.3 Assignment of Receivables (Alacak Temliki)

Assignments are common in factoring and cross-border finance. Issues arise around:

Notice to debtor,
Scope of assigned receivables,
Competing assignments,
Whether proceeds are segregated or treated as estate property.

Practical advice: Treat assignments like security: prove chain of title, notice, and the receivable’s existence.

10) Set-Off (Takas) and Counterclaims: A Hidden Recovery Risk

Foreign creditors sometimes assume bankruptcy “freezes” everything, but set-off can still reshape the net claim.

The estate (or debtor’s counterparty logic) may argue:

You owe the debtor for returns, defects, price adjustments, or penalties,
You received advance payments,
The debtor has a counterclaim under the same contract group.

Best practice: Address set-off proactively:

Confirm net balance,
Submit reconciliations,
Explain why counterclaims are unfounded or unliquidated,
If arbitration/litigation is pending, describe status and attach filings.

11) Objections and Disputes: How Foreign Creditors Challenge Rejections or Ranking Errors

Once the schedule (sıra cetveli) is published/announced, creditors can challenge:

Their own claim’s amount or rank, and/or
Other creditors’ claims that reduce the pool or distort ranking.

Dispute pathways in Turkish practice generally fall into two categories:

Procedural complaints (when the issue is about process/administration), and
Merits-based lawsuits (when the dispute is about existence/amount of a claim, ranking, or substantive rights).

Foreign creditors should not treat “objection” as a single generic action. The correct remedy depends on whether you are arguing:

“The estate applied procedure incorrectly,” or
“My claim exists and must be recognized in this amount/rank,” or
“Another creditor’s claim is invalid or wrongly ranked.”

Critical: Objection periods can be short. Missing the correct window can lock in the schedule.

12) Pending Foreign Judgments or Arbitral Awards: Do They Help in Claim Registration?

Yes, but with nuance.

12.1 Foreign Court Judgments

A foreign judgment may support your claim. However, in Turkey:

A foreign judgment generally needs recognition/enforcement (tanıma/tenfiz) to be treated as directly enforceable domestically.
Even without recognition, it can still serve as persuasive evidence depending on context, but its weight is not identical to a Turkish judgment.

12.2 Arbitral Awards

International arbitral awards are often highly valuable evidence. If enforcement is required in Turkey, recognition/enforcement under relevant frameworks is typically needed. But for claim registration, the estate may still consider the award as strong proof—especially if final and properly documented.

Best practice: If you have an award/judgment, submit:

The full decision,
Finality certificate (if applicable),
Proper legalization/apostille,
Turkish translation,
A concise memo explaining enforceability and relevance.

13) Practical Documentation Checklist for Foreign Creditor Claim Filing

Here is a robust (not minimal) checklist you can use:

A) Identity and Authority

Passport/ID (for individuals)
Incorporation/registry extract (for companies)
Board resolution / authorization document
Signature circular or equivalent
Power of attorney for Turkish counsel (apostilled/legalized + translated)

B) Contract and Transaction Proof

Main contract + amendments
Purchase orders, confirmations
Invoices
Delivery/shipping documents (B/L, CMR, AWB)
Acceptance/service completion documents
Correspondence proving performance and default
Debt acknowledgment, reconciliation letters
Payment records (SWIFT, bank receipts)

C) Calculation Pack

Principal calculation (invoice-by-invoice or tranche-by-tranche)
Interest table (rate, period, start date)
Currency conversion approach (if needed)
Penalty/fees breakdown (separate line items)

D) Security Pack (if any)

Mortgage/pledge/assignment agreements
Registry proof and priority date evidence
Notices to debtor (for assignments)
Collateral valuation references (if relevant)

E) Dispute Pack (if any)

Pending lawsuit/arbitration filings
Expert reports (if already produced)
Settlement offers/failed negotiations timeline

14) Common Mistakes Foreign Creditors Make (and How to Avoid Them)

Mistake 1: Filing “Too Informally”

A simple email-style submission may be ignored or underweighted.
Fix: Submit a structured petition with numbered exhibits and calculations.

Mistake 2: Missing Translation/Legalization Needs

Later disputes become impossible without formal compliance.
Fix: Translate and legalize core documents early, at least the POA and main contract set.

Mistake 3: Claiming Interest Without a Clean Legal/Contractual Basis

Interest gets cut first.
Fix: Separate contractual interest and default interest; document start dates precisely.

Mistake 4: Ignoring Ranking/Security

Foreign creditors focus on “amount,” not “class.”
Fix: State explicitly whether you claim secured/privileged status and why.

Mistake 5: Sleeping on the Sıra Cetveli Stage

By the time you act, the window is gone.
Fix: Monitor announcements and be ready with objection drafts.

15) Strategy: How to Increase Recovery Odds as a Foreign Creditor

Front-load formalities: POA, apostille, translations—handle them before deadlines.
Prove performance, not just invoices: add delivery/acceptance proof.
Make the estate’s job easy: clear narrative + calculation tables.
Defend ranking aggressively: secured claims and privileges can be the difference between 0% and meaningful recovery.
Watch competitor claims: challenge inflated or poorly documented claims that dilute distributions.
Consider parallel actions: if recognition/enforcement of an award/judgment strengthens your standing, plan it early.
Use settlement leverage: bankruptcy often encourages pragmatic discounts—especially when documentation is strong.

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