Impact of Foreign Insolvency Proceedings on Enforcement and Seizure Actions in Turkey

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açık Ocak 15, 2026

1) Why Turkey Treats Foreign Insolvency Differently: Territorial Logic in Practice

In cross-border insolvency, there are two broad philosophies:

Universalism: one main proceeding controls assets everywhere, and other states generally cooperate by extending the stay and recognizing the foreign officeholder.
Territoriality: each state controls enforcement and insolvency effects within its borders; foreign proceedings may matter, but only through local legal channels.

Turkey’s system, in daily practice, behaves much closer to territoriality. This does not mean Turkey ignores foreign insolvency. It means Turkey tends to require that foreign outcomes be converted into Turkish-law effects before they can control Turkish execution actions.

That is why the most important strategic question is not “Is the debtor bankrupt abroad?” but:

“What enforceable Turkish-law mechanism exists today that forces execution offices, banks, registries, and third parties in Turkey to pause, release, or transfer assets?”

If you cannot answer that with a concrete Turkish instrument, enforcement often continues.

2) A Short Map of Turkish Enforcement and Seizure Tools (So You Know What You’re Fighting)

To understand the impact of foreign insolvency, you must understand what can happen on the ground in Turkey.

2.1 Main routes for collection

Non-judgment enforcement (ilamsız icra): a payment order is served; if the debtor objects, enforcement may pause while the creditor files follow-on proceedings to remove the objection.
Judgment enforcement (ilamlı icra): a final and enforceable title allows more direct enforcement steps.

2.2 Seizure (haciz) is flexible

Execution offices can seize:

bank accounts,
receivables owed by third parties (garnishment-style attachment),
movables, vehicles,
company shares and partnership interests (depending on structure),
certain registered rights, and in some settings, proceeds from sales.

2.3 Provisional attachment (ihtiyati haciz) is the speed weapon

Before a final judgment, creditors may seek a provisional attachment for monetary claims if statutory conditions are satisfied. This is often used where the debtor is foreign, the asset is mobile, or dissipation risk is high.

Why this matters:
Foreign insolvency officeholders often face Turkish enforcement at its strongest point: rapid attachments against easily reachable assets such as bank accounts and receivables. Once a seizure is in place, negotiations shift.

3) What a Foreign Insolvency Proceeding Does NOT Automatically Do in Turkey

A clear baseline avoids wasted time and expensive procedural mistakes.

3.1 It does not automatically impose a stay on Turkish enforcement offices

A foreign “automatic stay” is powerful where it is issued, but Turkish execution offices generally do not treat it as self-executing in Türkiye. Execution offices operate on Turkish-law triggers: a Turkish court order, Turkish insolvency moratorium, or a locally valid enforcement block.

3.2 It does not automatically cancel Turkish attachments already imposed

If assets were seized in Turkey before foreign insolvency action reached Turkish institutions, those attachments do not disappear by default. Releasing them typically requires a Turkey-valid mechanism, and often additional litigation or enforcement-court steps.

3.3 It does not automatically grant foreign trustees control over Turkish assets

Even if a foreign trustee is validly appointed abroad, using that authority in Turkey may require the trustee to prove standing and authority under Turkish law, often through a recognition step, and sometimes through local proceedings depending on the action sought (transfer, sale, registry changes, etc.).

4) The Three Levers That Can Actually Change the Situation in Turkey

When foreign insolvency meets Turkish enforcement, you typically need one or more of these levers:

Local Turkish Insolvency Protection
- Turkish bankruptcy opening effects (collective process, constraints on enforcement)
- Concordat moratorium (temporary/definitive moratorium with strong execution limitations)
Recognition / Enforcement of Foreign Decisions under MÖHUK (Law No. 5718)
- Recognition to give legal effect to a foreign decision in Turkish proceedings
- Enforcement to give executory power that execution offices must follow
Turkish Interim Measures
- Preliminary injunctions under Turkish civil procedure (to prevent irreparable harm)
- Provisional attachment strategy when the posture supports it
- Registry blocks, bank notifications, and protective orders designed for the specific asset category

Each lever solves different problems. Choosing the wrong one wastes time.

5) Recognition vs. Enforcement in Turkey: Why the Distinction Matters for Insolvency

Foreign insolvency documents come in many forms: opening decisions, trustee appointment orders, stay orders, sales approvals, distribution plans, restructuring confirmations. In Turkey, the legal effect depends heavily on whether you need recognition or enforcement.

5.1 Recognition (tanıma): “Turkey accepts the foreign decision as a legal fact”

Recognition is often used when:

you need the Turkish court to accept that a bankruptcy exists,
you need to show the trustee has standing,
you want the foreign decision to bind parties as a prior determination.

Recognition is usually about status and legal consequences, not direct execution.

5.2 Enforcement (tenfiz): “Turkey gives executory force”

Enforcement is needed when:

you want a foreign order to operate like a Turkish executable title,
you want execution offices to act (or stop acting) based on that foreign judgment.

Foreign insolvency players often assume recognition is enough to freeze enforcement. Sometimes it is not. If you need execution offices to stop, release, or transfer assets, you typically need a mechanism with direct operational force—which may require enforcement or a Turkish interim order.

6) Can a Foreign Bankruptcy Order Be Given Effect in Turkey?

In practical terms, yes—sometimes—but the pathway is rarely “instant” and outcomes are fact-driven.

6.1 What Turkey will look at (typical issues)

When Turkish courts evaluate whether to give effect to foreign decisions, disputes commonly revolve around:

whether the foreign decision is final or meets Turkish criteria for being actionable,
whether there is a reciprocity expectation (especially in enforcement),
whether the debtor’s right to be heard was respected,
whether giving effect violates Turkish public order,
whether the matter falls into an area Turkey treats as tightly connected to local sovereignty or exclusive competence.

6.2 The “real world” limitation: time

Even when the legal route is available, recognition/enforcement proceedings take time. Meanwhile, Turkish attachments can be imposed quickly. That is why foreign trustees often use interim measures first, then pursue recognition/enforcement as the long-term stabilization step.

7) The Strongest Local Freeze: Turkish Bankruptcy Opening Effects on Enforcement

If a Turkish bankruptcy is opened against the debtor, the Turkish system shifts from “individual enforcement” to “collective liquidation,” and enforcement is heavily constrained.

From a practical standpoint:

Execution files typically stop progressing in the usual way.
Asset control tends to move into a bankruptcy estate logic.
Creditor equality becomes a central theme; the system tries to prevent one creditor from winning purely by speed.

For cross-border planning, the point is simple:

Foreign bankruptcy alone may not freeze Turkish enforcement.
Turkish bankruptcy (or concordat) creates Turkey’s own freeze mechanisms.

8) Concordat Moratorium and Enforcement: The Restructuring Lens

Concordat is frequently used in Turkey as a restructuring tool. It is not identical to bankruptcy, but it can produce a powerful moratorium effect.

In practice, during concordat moratorium periods:

many enforcement actions are halted,
new enforcement actions may be restricted,
the court and the commissioner supervise the process,
exceptions can apply depending on claim type and security.

From a strategy perspective:

For debtors: concordat can be the fastest way to obtain a court-anchored moratorium in Turkey.
For creditors: you must act quickly—either by protecting your secured position or by ensuring your claim is properly lodged and defended within the concordat framework.

9) How Foreign Insolvency Interacts with Provisional Attachment (İhtiyati Haciz) in Turkey

Provisional attachment is often the first place where foreign insolvency creates tension.

9.1 If foreign insolvency begins before the Turkish provisional attachment

The creditor may still pursue a provisional attachment in Turkey if Turkish statutory conditions are satisfied and there is no Turkish moratorium in place. The debtor may argue:

the claim should be handled in the foreign process,
enforcement violates the collective nature of bankruptcy,
fairness and public order concerns.

However, unless the debtor can present a Turkey-valid freeze mechanism, Turkish courts may still focus on Turkish attachment criteria: urgency, monetary claim nature, risk of non-collection, and the standard of proof required.

9.2 If the Turkish provisional attachment exists before the foreign insolvency reaches Turkey

This is the classic scenario: assets are already frozen in Turkey, and the foreign trustee demands release.

The trustee must typically do more than present foreign paperwork. They need a Turkey-valid basis to:

challenge the attachment,
seek release,
or channel the claim into collective treatment.

Often, interim measures and targeted lawsuits become necessary.

10) Already-Seized Assets in Turkey: Who Gets Paid and How?

Foreign insolvency stakeholders often ask: “If assets are seized in Turkey, can the creditor just get paid despite bankruptcy abroad?”

The honest answer is: it depends on timing, the type of asset, the type of seizure, the stage of sale, and whether a Turkish moratorium or court order intervenes.

10.1 Key timing points that shift leverage

Before seizure: debtor/trustee can still try to protect assets proactively.
After seizure but before sale: there may be procedural room to block conversion to cash through Turkish court action.
After sale proceeds are in the system: unwinding becomes harder, and remedies may shift toward restitution or clawback claims (depending on available causes of action).

10.2 Security vs. unsecured position

If the creditor is secured (pledge/mortgage), local Turkish rules on secured enforcement and priorities often grant stronger leverage compared to unsecured creditors. Foreign insolvency does not magically erase the secured status, but it can complicate the timing and forum where enforcement is permitted.

11) Third-Party Receivables and Garnishment-Style Seizures: The Cross-Border Hotspot

A very common Turkish enforcement technique is seizing receivables owed to the debtor by third parties (customers, tenants, platforms, counterparties). This is particularly attractive in cross-border cases because:

the debtor’s bank accounts may be outside Turkey,
but the debtor may have Turkish customers who owe money.

Foreign insolvency officeholders should treat this as a priority risk. If the debtor’s Turkish receivable streams are being garnished, the foreign process can lose meaningful value quickly.

Best practice: map the debtor’s Turkish commercial footprint early:

trade registry records,
known customers,
local distribution chains,
lease income,
payment processors.

Then deploy interim protection strategies before attachments proliferate.

12) Standing and Representation in Turkey: Foreign Trustee, Local Counsel, and Proof of Authority

Even if the foreign trustee is clearly authorized abroad, Turkish institutions often require:

clear documentary proof of appointment,
Turkish translations and formalities,
and, in contested settings, a Turkey-recognized standing basis.

If you plan to file recognition/enforcement or to seek interim measures, prepare early for:

certified documents,
formal translations,
and a coherent narrative proving both urgency and legal entitlement.

Delay here is expensive—because attachments do not wait.

13) Litigation vs. Enforcement: Foreign Insolvency’s Different Effects on Different Tracks

Foreign insolvency can influence:

lawsuits (civil and commercial actions), and
execution files (enforcement actions).

These tracks respond differently.

13.1 Lawsuits

Turkish courts may consider whether the claimant should pursue the claim in the foreign insolvency process, whether the claim has been admitted abroad, and whether continuing litigation serves legitimate purposes. Yet Turkish courts still apply Turkish procedural law and will look for a Turkey-valid reason to halt proceedings.

13.2 Execution files

Execution files are more mechanical. Execution offices rely on clear Turkish triggers. If you want them to stop, you usually need a Turkish court order, Turkish insolvency moratorium, or a recognized/enforced foreign decision with operational effect.

14) Avoidance, Clawback, and Asset Recovery: When Foreign Insolvency Wants to Undo Turkish Collections

A major cross-border pressure point is avoidance (clawback) of transactions or payments made shortly before insolvency. Many insolvency systems allow trustees to challenge preferential payments or undervalued transfers.

In Turkey, there is a developed set of tools aimed at undoing dispositions that harm creditors (often pursued through actions designed to render dispositions ineffective against creditors). Foreign trustees may try to use Turkish legal tools to target:

transfers of assets out of Turkey,
suspicious payments,
insider transactions,
and asset hiding structures.

Whether the foreign trustee can bring such actions in Turkey can depend on:

standing recognition,
the structure of the claim,
and the type of relief sought.

The key practice lesson: if you think a clawback fight is coming, secure evidence early (bank transfers, contract history, registry extracts, correspondence). Turkish courts heavily value documentary clarity in commercial disputes.

15) Strategy Playbook for Creditors: Enforcing in Turkey While Foreign Insolvency Exists

If you are a creditor, foreign insolvency is not automatically the end of your Turkish enforcement strategy. But you must proceed intelligently.

15.1 Immediate actions (first 72 hours mindset)

Identify the debtor’s Turkish-located assets and income streams.
Move quickly on attachable items that are likely to disappear (bank accounts, receivables, movable assets).
Consider provisional attachment if you lack a final title but have strong urgency indicators.

15.2 Protect against later attacks

Avoid aggressive steps that look like bad faith exploitation; keep your file clean.
Document the basis for urgency and risk.
Be ready to argue that your actions were legitimate under Turkish law at the time taken.

15.3 Don’t ignore the foreign case

Even if you enforce in Turkey, you may still need to file your claim in the foreign insolvency to preserve dividend rights. Cross-border strategy is rarely “one forum only.”

16) Strategy Playbook for Debtors: How to Actually Stop Turkish Seizures

If you represent the debtor, the critical task is to convert foreign insolvency into a Turkey-effective shield.

16.1 Your strongest tools

Turkish moratorium: bankruptcy opening effects or concordat moratorium
Turkish interim measures: court-ordered injunctions tailored to asset risk
Recognition/enforcement: building a path for the foreign insolvency order to matter locally

16.2 What not to do

Do not assume foreign stay language will persuade execution offices.
Do not wait until multiple attachments exist; the cost of release rises rapidly.
Do not rely on informal letters to banks or registries; without Turkish authority, they may not act.

17) Strategy Playbook for Foreign Trustees/Administrators: Asset Protection in Turkey

Foreign officeholders succeed in Turkey when they treat Turkey as a local battlefield with its own rules.

17.1 Step 1: secure interim protection quickly

Your first goal is not “final recognition.” Your first goal is preventing irreversible loss:

block transfers,
stop sales,
preserve bank balances and receivable streams.

17.2 Step 2: build a recognition/enforcement narrative

After stabilization, pursue the longer-term solution: recognition/enforcement mechanisms that let you act in Turkey with authority and predictability.

17.3 Step 3: decide whether a local Turkish insolvency process is necessary

If the asset pool is large and creditor pressure is strong, opening or coordinating a Turkish insolvency route may be more effective than fighting attachment-by-attachment.

18) Evidence and Documentation Checklist (Turkey-Ready)

To move effectively in Turkish courts and institutions, prepare:

proof of the foreign proceeding and its status,
trustee appointment documents,
finality/appeal status evidence (where relevant),
power of attorney and representation documents in proper form,
Turkish translations prepared to a standard acceptable in Turkish proceedings,
asset location evidence (registry records, bank identifiers, contracts showing Turkish receivables),
risk narrative: why immediate protection is needed (dissipation indicators, prior transfers, urgency).

A trustee who arrives with incomplete documents loses momentum—and momentum is everything in attachment disputes.

19) Common Mistakes That Cost Real Money

Assuming the foreign stay freezes Turkey automatically
In practice, you need Turkey-effective instruments.
Waiting to translate and formalize documents
Formalities are not cosmetic; they are the entry ticket.
Fighting only in one forum
Cross-border cases often require dual-track action: protect assets locally while managing recognition and claims globally.
Ignoring receivables
Bank balances are obvious; receivables are where value often hides.
Over-focusing on theory and under-focusing on execution mechanics
In Turkey, execution offices respond to concrete legal triggers. Give them triggers.

Conclusion: Control in Turkey Requires Turkish-Law Control

Foreign insolvency may be the “main story” globally, but in Türkiye, enforcement and seizure outcomes are shaped by local legal triggers. A foreign proceeding can influence Turkey, but not by mere existence. It influences Turkey when it is converted into Turkey-effective authority through recognition/enforcement, interim measures, or local insolvency protections.

For creditors, the message is strategic: Turkey can remain an effective enforcement forum even after foreign insolvency begins—if you act quickly and cleanly.
For debtors and trustees, the message is operational: if you want to stop Turkish seizures, you must build a Turkish-law barrier—fast.

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