Debt Collection Procedures in Turkey

Introduction

Debt collection procedures in Turkey are primarily regulated under the Enforcement and Bankruptcy Law (Law No. 2004). Turkey operates a centralized enforcement system through specialized enforcement offices (İcra Daireleri), allowing creditors to pursue debt recovery either with or without a prior court judgment.

For foreign investors, exporters, banks, and international companies doing business in Turkey, understanding debt collection procedures in Turkey is critical for effective risk management. Unlike some jurisdictions where litigation must precede enforcement, Turkish law allows creditors in many cases to initiate enforcement directly—without first obtaining a court judgment.

This article explains the structure of the Turkish enforcement system, types of enforcement proceedings, objection mechanisms, asset seizure processes, bankruptcy procedures, and strategic risks.


1. Legal Framework

Debt collection procedures in Turkey are governed by:

  • Enforcement and Bankruptcy Law (EBL)
  • Turkish Code of Obligations
  • Turkish Commercial Code
  • Code of Civil Procedure

Enforcement proceedings are conducted before enforcement offices, not courts. Courts intervene only if objections or disputes arise.


2. Types of Debt Collection Procedures

There are three main enforcement mechanisms:

1️⃣ Enforcement Without Judgment (İlamsız Takip)

Most common method. Used when creditor does not have court judgment.

2️⃣ Enforcement With Judgment (İlamlı Takip)

Used when creditor has:

  • Court judgment
  • Arbitral award
  • Notarized debt acknowledgment

3️⃣ Bankruptcy Proceedings (İflas)

Applicable mainly to merchants and companies.

Each mechanism has different procedural dynamics.


3. Enforcement Without Judgment

This is one of the strongest features of debt collection procedures in Turkey.

Creditor may initiate enforcement by filing request with enforcement office.

Process:

1️⃣ Payment order issued to debtor
2️⃣ Debtor has 7 days to object
3️⃣ If no objection → enforcement becomes final
4️⃣ Seizure phase begins

No prior lawsuit required.


4. Objection by Debtor

Debtor may object within 7 days.

Objection automatically stops enforcement.

Creditor must then:

  • File lawsuit to remove objection
  • Or initiate action for annulment of objection

This transforms matter into court litigation.

Objection mechanism is frequently used as delay tactic.


5. Removal of Objection

If creditor possesses:

  • Signed written acknowledgment
  • Official document

They may apply for expedited removal of objection before enforcement court.

This is faster than full civil lawsuit.


6. Enforcement With Judgment

If creditor already has final court decision:

  • Enforcement proceeds directly to asset seizure.
  • Debtor cannot object to existence of debt.
  • Only limited objections allowed (e.g., payment).

This is more secure but requires prior litigation.


7. Asset Seizure (Haciz)

Once enforcement becomes final:

Creditor may request seizure of:

  • Bank accounts
  • Salaries
  • Real estate
  • Vehicles
  • Company receivables
  • Movable property

Turkey uses electronic systems for bank account attachment (e-haciz).

Asset investigation is critical.


8. Sale of Seized Assets

After seizure:

  • Assets are valued
  • Auction process initiated
  • Sale proceeds distributed

Priority order applies if multiple creditors exist.

Real estate sales follow specific auction procedures.


9. Precautionary Attachment (İhtiyati Haciz)

In urgent cases, creditor may request precautionary attachment before enforcement.

Conditions:

  • Strong evidence of debt
  • Risk of asset dissipation

Court may require security deposit.

This is powerful preventive tool.


10. Bankruptcy Proceedings

If debtor is merchant:

  • Creditor may initiate bankruptcy proceedings.

Bankruptcy leads to:

  • Collective liquidation
  • Appointment of trustee
  • Asset distribution among creditors

Bankruptcy is more complex and slower.


11. Foreign Creditors and Debt Collection

Foreign creditors may initiate enforcement in Turkey if:

  • Debtor has assets in Turkey
  • Turkish courts have jurisdiction

If creditor holds foreign judgment:

  • Recognition and enforcement required first.

Foreign companies must appoint Turkish attorney.


12. Timeframes

Debt collection procedures in Turkey may vary:

  • Simple uncontested enforcement: 3–6 months
  • Contested enforcement with litigation: 1–3 years
  • Bankruptcy: longer

Asset tracing often determines effectiveness.


13. Interest and Currency Issues

Foreign currency debts may be collected in:

  • Foreign currency
  • Turkish Lira equivalent

Interest rates must comply with Turkish law.

Exchange rate fluctuations may affect recovery.


14. Risks in Debt Collection

Creditors must consider:

  • Debtor insolvency
  • Asset concealment
  • Transfer to third parties
  • Bankruptcy protection
  • Lengthy objection litigation

Pre-contract risk assessment is crucial.


15. Criminal Liability for Bad Faith Debtors

Certain fraudulent acts may constitute criminal offenses such as:

  • Fraud
  • Asset concealment
  • Abuse of trust

However, criminal proceedings do not automatically ensure payment.


16. Strategic Recommendations for Creditors

Before initiating debt collection procedures in Turkey:

  • Conduct asset investigation
  • Evaluate debtor solvency
  • Consider mediation
  • Assess cost-benefit ratio
  • Review limitation periods

Fast action increases recovery probability.


17. Statute of Limitations

General limitation period:

  • 10 years for contractual debts
  • Shorter periods for certain claims

Enforcement must be initiated before limitation expires.


18. Comparison with Other Jurisdictions

Turkey’s system allows:

  • Direct enforcement without prior judgment
  • Fast bank attachment
  • Strong electronic enforcement tools

However, objection mechanism may prolong recovery.


Conclusion

Debt collection procedures in Turkey offer creditors powerful enforcement tools, particularly the ability to initiate proceedings without prior court judgment. The centralized enforcement office system, electronic seizure mechanisms, and structured priority rules create an efficient recovery framework.

However, debtor objections, insolvency risks, and litigation delays may complicate recovery. For foreign creditors, proper asset investigation, jurisdiction analysis, and strategic planning are essential.

Effective debt recovery in Turkey requires both procedural knowledge and proactive legal strategy. When properly managed, the Turkish enforcement system provides strong creditor protection and enforceable outcomes.

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