Debt Collection and Debt Recovery Law in Turkey: A Practical Legal Guide for Creditors, Investors, and International Businesses (2026)
Turkey is a fast-moving market where trade credit, cross-border supply chains, service contracts, and bank financing are common—and so are payment delays. For creditors, the difference between a collectible receivable and a “paper claim” is usually not the contract itself, but how quickly and strategically you use Turkey’s enforcement mechanisms.
This guide explains how debt collection and debt recovery work in Turkey, from pre-collection strategy and interest calculations to court actions, enforcement proceedings (execution), asset attachment, provisional measures, insolvency tools, and cross-border enforcement. It is written in a business-friendly way, while staying grounded in the legal framework.
Important: This article is general information, not legal advice for a specific file. Debt recovery outcomes in Turkey depend heavily on evidence quality (contracts, invoices, delivery proof, ledger records) and timing.
1) The legal framework for debt recovery in Turkey
Debt collection in Turkey is primarily built on three pillars:
- Substantive debt law (what the debt is and how it arises): contracts, default, and interest—mainly under the Turkish Code of Obligations (TBK). The TBK regulates default interest principles and contractual limits (e.g., TBK Art. 120).
- Procedural & judicial route (how you sue and prove the claim): civil procedure rules (HMK) govern litigation structure, evidence, and interim legal protections. HMK provisions also frame temporary legal protection mechanisms (e.g., interim injunction/precautionary measures).
- Enforcement route (Execution / “İcra”): the Execution and Bankruptcy Law (İcra ve İflâs Kanunu, “IİK”) is the operational engine for collecting money through payment orders, attachments, and sales of assets, as well as bankruptcy and avoidance of fraudulent transfers.
In practice, most creditor strategies are a combination of (i) enforcement pressure plus (ii) litigation risk management, all shaped by the debtor’s asset profile and defense behavior.
2) The creditor’s strategic roadmap: choose the right track early
A well-run debt recovery file in Turkey generally follows a disciplined sequence:
Step A — Pre-collection and evidence hardening
Before filing anything, creditors should “audit” the receivable:
- Contract terms, payment dates, invoices, delivery/performance proofs
- Commercial ledgers and correspondence (email/WhatsApp/letters)
- Debtor identity verification, address for notification, signatory authority
- Collateral (pledge/mortgage), guarantees, or personal surety
- Interest clause: contractual rate, default interest rules, currency terms
This step is not bureaucracy. It determines whether the debtor can successfully delay the case with objections.
Step B — Decide the primary route
In Turkey, the main routes are:
- Enforcement-first (“execution-first”) approach
You launch enforcement proceedings and force the debtor to act (pay or object). This is often the fastest path if you have a clean receivable and expect the debtor to negotiate or fail to object properly. - Litigation-first approach
You sue first (especially where the debt is disputed, complex, or requires expert review). This may be necessary where enforcement risks immediate objection and time loss. - Provisional protection approach (asset freezing logic)
If there is a real risk of asset flight, you consider precautionary attachment (ihtiyati haciz) under IİK Art. 257 and following. This can be decisive in cases where the debtor is dissipating assets.
Step C — Pressure + settlement architecture
Successful debt recovery frequently ends in a commercial settlement. The legal process should be designed to:
- increase the cost of non-payment,
- preserve evidence and assets,
- keep negotiation leverage, and
- allow enforceable settlement terms.
3) Enforcement proceedings in Turkey: the core debt collection mechanism
The Turkish enforcement system is designed to let creditors pursue collection without first obtaining a court judgment in many cases. The debtor’s typical response is to object—so the creditor’s strategy must anticipate that.
A) “Ilamsız icra” (enforcement without a judgment)
This is the standard route for ordinary monetary claims (invoices, service fees, contract receivables). You file an enforcement request, and the execution office issues a payment order. If the debtor pays, the matter ends. If the debtor objects, the enforcement stops and the creditor must move to the next stage (usually litigation to remove/defeat the objection).
This mechanism is regulated within the IİK system and is widely used as the “first strike” tool.
B) “İlamlı icra” (enforcement based on a judgment or enforceable instrument)
If you already have a court judgment or an enforceable instrument, the debtor’s defensive space narrows and collection is often more direct. This is usually slower to obtain (because you must first litigate), but stronger once issued.
C) Negotiable instruments route (bills of exchange / “kambiyo”)
If the receivable is backed by a bill of exchange instrument (such as a promissory note), Turkish law provides a special enforcement track that can be more creditor-friendly. This path has technical requirements; errors in form, endorsements, or maturity language can be fatal.
4) If the debtor objects: your two main legal weapons
When the debtor objects to the payment order, the enforcement is typically paused and the creditor must choose the correct follow-up:
Option 1 — “Action for annulment of objection” (itirazın iptali)
This is one of the most common debt recovery lawsuits in Turkey and is frequently used for invoice-based and contract-based claims in commercial life.
A critical point: the creditor’s proof burden becomes central. Turkish high court practice emphasizes that if the debtor denies delivery/performance, the creditor must prove it (e.g., through delivery notes, service completion records, correspondence, and commercial ledgers).
Option 2 — Removal of objection (itirazın kaldırılması) where available
For certain document-based claims, the law allows a faster path to lift the objection without a full trial—depending on document quality and the specific enforcement category. This is a technical area; the right choice depends on the instrument type and the evidence set.
Strategic note: many files are lost not because the debt is not real, but because the creditor chose the wrong follow-up lawsuit or failed to “package” evidence correctly for Turkish courts.
5) Mandatory mediation: a key gatekeeper in commercial debt litigation
For many commercial receivables and monetary claims, Turkey has introduced mandatory mediation as a precondition to filing a lawsuit.
- The legal architecture for “mediation as a litigation prerequisite” is reflected in the Mediation Law (6325) provisions on “dava şartı arabuluculuk” (e.g., Art. 18/A).
- In commercial disputes, the Turkish Commercial Code’s structure includes mandatory mediation for certain monetary claims and debt-related actions (including objection annulment, negative declaratory actions, and restitution claims), as described in texts reflecting TTK Art. 5/A.
Practical consequence for creditors: if your case falls within the mandatory mediation scope and you skip it, you risk procedural dismissal. A professional debt recovery workflow therefore treats mediation as a strategic stage, not a formality—especially when you want to secure an enforceable settlement.
6) Interest and default: what creditors should know (and document)
Debt recovery is not only principal—it is also interest, default damages, and costs.
A) Default interest under Turkish law
The Turkish Code of Obligations provides the core framework for default interest principles and contractual limits (notably TBK Art. 120).
B) Statutory interest rates and updates
Turkey has a separate statute governing statutory interest and default interest settings (Law No. 3095).
Regulators and public institutions also publish updated rate tables. For example, a public rate table indicates that as of 28 December 2024, the statutory interest rate is shown as 24% where not determined by contract (with related notes on default interest).
Drafting tip: creditors should avoid vague “interest applies” language. Contracts should define:
- contractual interest rate,
- default interest rate,
- currency and conversion method,
- compounding (if any, within lawful boundaries),
- and cost allocation (collection costs, attorney fees, enforcement expenses).
7) Precautionary attachment (ihtiyati haciz): freezing leverage before judgment
In many Turkish debt cases, the most effective move is not the lawsuit itself—it is securing assets early through precautionary attachment.
Under IİK Art. 257, a creditor with an unsecured monetary claim that is due can request precautionary attachment over the debtor’s movable/immovable assets, receivables, and rights—subject to statutory conditions and the court’s assessment.
A key operational rule: if you obtain precautionary attachment before filing the main lawsuit or enforcement, you must start the main action/enforcement within a short statutory window, otherwise the attachment may fall.
When this tool is especially powerful
- debtor is rapidly selling assets or transferring property to relatives,
- debtor has no stable address and is avoiding service,
- creditor is dealing with high-value receivables and evidence is strong.
Risk note: wrongful attachments can create compensation exposure. IİK also addresses liability logic in this area in connection with precautionary attachment outcomes.
8) Fraudulent transfers and avoidance actions: when the debtor “empties” the balance sheet
Debtors sometimes attempt to defeat collection by transferring assets to relatives, controlled companies, or third parties. Turkey’s enforcement system includes mechanisms to challenge certain debtor transactions that harm creditors (often referred to as “avoidance actions” / “tasarrufun iptali” logic).
While these cases are evidence-heavy and fact-specific, they are a core part of professional debt recovery when:
- the debtor appears insolvent “on paper” but continues living/operating normally,
- assets moved shortly before enforcement,
- transfers were made without real consideration or at undervalue.
Practical success factor: you must trace the asset trail early (land registry, vehicle registry, bank signals, commercial registry data, invoice flows, logistics records).
9) Bankruptcy and restructuring tools: when collection becomes insolvency-driven
If the debtor cannot pay multiple creditors and is commercially distressed, the file may turn from simple enforcement to insolvency strategy:
- Bankruptcy-related enforcement concepts are structured within IİK’s system.
- Turkey also has restructuring mechanisms (such as concordat processes), and the ecosystem has been updated over time through legislative reforms (including those connected to broader commercial dispute policy reforms). For example, legal commentary and institutional publications discuss how reforms impacted enforcement/mediation/concordat practice.
For creditors, insolvency strategy means:
- choosing the correct proceeding type,
- protecting priority rights where possible,
- monitoring suspicious asset movements,
- coordinating with other creditors,
- and negotiating structured repayments where enforcement yields diminishing returns.
10) Special system for subscription receivables: centralized execution track (MTS)
For certain subscription-based receivables (utility-like or recurring invoiced services), Turkey introduced a specialized mechanism where enforcement can be initiated and carried out electronically through a centralized system within UYAP up to the attachment phase.
The law describing this is frequently referenced as Law No. 7155 and explains that enforcement proceedings for qualifying subscription receivables are initiated through the Central Follow-up System (Merkezî Takip Sistemi) and progressed electronically.
This is important for high-volume creditors (telecom, utilities, subscription service providers) who need scalable recovery with standardized documentation and workflow.
11) Cross-border debt recovery: enforcing foreign judgments and arbitral awards in Turkey
Foreign creditors often ask two questions:
- Can I enforce a foreign court judgment in Turkey?
- Can I enforce a foreign arbitral award in Turkey?
A) Foreign court judgments (recognition and enforcement)
Turkey’s Private International Law and International Civil Procedure Law (MÖHUK No. 5718) governs recognition and enforcement of foreign judgments, including core principles and court competence rules.
B) Foreign arbitral awards
Turkey is widely treated as an enforcement-friendly jurisdiction under the New York Convention framework in practice, with enforcement also operating through the MÖHUK procedural lens and court review mechanics. Recent practitioner materials also discuss the practical issues and documentary requirements for enforcement in Turkey.
Practical message for international creditors: cross-border enforcement is very document-driven. If you prepare the evidence and translations correctly, you often gain strong leverage against Turkey-based assets.
12) Evidence that wins debt cases in Turkey
In Turkish debt recovery, evidence is not “supportive”; it is decisive. The highest-leverage evidence categories include:
- signed contract + annexes (pricing, delivery/performance, payment terms)
- invoice set with consistent numbering + delivery notes + acceptance records
- bank transfer history and reconciliations
- commercial ledger records (where applicable)
- email and message confirmations of delivery/performance
- notarized notices (when needed to create a clean default timeline)
- debtor acknowledgments (partial payments, installment offers)
High-court reasoning commonly highlights that where delivery/performance is denied, the creditor must prove it—especially in invoice-driven disputes.
13) Creditor checklists: best practices for faster recovery
A) For companies selling goods/services in Turkey
- Use written contracts or confirmed purchase orders
- Use delivery notes signed by the receiving party
- Build “default packages”: interest clause + collection cost clause + dispute resolution clause
- Keep a clean commercial record trail (invoices, shipment, acceptance)
- Start enforcement quickly—delay empowers the debtor
B) For foreign creditors
- secure Turkish counsel early to map enforceability and assets
- verify the debtor’s Turkish addresses and corporate registry data
- consider precautionary attachment if asset flight risk exists
- if enforcing a foreign judgment/award, prepare certified documents and translations aligned with Turkish enforcement expectations
C) For high-volume creditors (subscription/recurring receivables)
- evaluate whether the claim falls within centralized subscription enforcement (MTS) logic
- standardize evidence and debtor identity verification
- implement a compliance-friendly collection communications policy
14) FAQ
How long does debt collection take in Turkey?
It depends on debtor behavior. If the debtor does not object and has attachable assets, enforcement can move quickly. If the debtor objects, the case becomes litigation-driven and time expands.
Can I start enforcement without a court judgment?
Yes, for many monetary claims Turkey allows enforcement-first action under the IİK system.
What if the debtor hides or transfers assets?
You may need precautionary attachment (ihtiyati haciz) and/or avoidance strategies to challenge harmful transfers. Precautionary attachment conditions are set out under IİK Art. 257 and following.
Is mediation mandatory before filing a commercial debt lawsuit?
For many commercial monetary claims, mandatory mediation can apply as a precondition (dava şartı). The mediation law’s Art. 18/A sets the procedural framework, and commercial dispute policy is described through the TTK Art. 5/A structure in practice.
Can a foreign company enforce a foreign judgment or arbitral award in Turkey?
Yes, subject to MÖHUK requirements for recognition/enforcement of foreign judgments and the enforcement logic for arbitral awards discussed under the New York Convention framework.
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