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 […]
1. The Nature of International Factoring Transactions International factoring usually involves three actors: the supplier (exporter), the debtor (importer), and the factor. Under the factoring agreement, the supplier assigns its receivables to the factor, either with or without recourse, in exchange for immediate cash or financing. In cross-border settings, a second (import) factor may intervene, […]
1) Introduction: Why “Assignment + Enforcement in Turkey” Is a High-Friction Combination Receivables move. In international trade and finance, a claim that originally belonged to a seller, contractor, lender, or service provider can be transferred to a third party—an affiliated group company, a factoring entity, a fund, or a special purpose vehicle. This transfer (assignment […]
1) Introduction: why the “foreign third party” factor is not a detail—but the whole case In Turkish enforcement practice, haciz ihbarnamesi (garnishment notices issued under İİK Article 89) are among the most effective tools to reach a debtor’s receivables or assets held by third persons. Many files are collected not by chasing the debtor directly, […]
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, […]
1) Why Receivable Attachment Is Often the Fastest Way to Collect from a Foreign Debtor Cross-border enforcement becomes difficult the moment the debtor is outside your physical and procedural reach. You may have a strong claim, a signed contract, even an arbitral award or judgment—yet collection remains uncertain if the debtor’s assets are abroad or […]
I. Introduction Foreign-currency claims are an indispensable element of modern commercial life in Türkiye, particularly given the country’s integration into global trade and finance. However, when such receivables reach the collection stage, creditors often face an invisible yet decisive obstacle: exchange rate risk. The volatility of the Turkish lira and the complex interaction between contractual […]
1) Why “Bankruptcy Spillover” Becomes a Cross-Border Problem Corporate groups are built to operate as a single economic organism while remaining multiple legal persons. That design is efficient: risk can be allocated, financing can be centralized, and operations can be optimized across jurisdictions. But in distress, the same design creates a pressure point: creditors experience […]
1) What “Seizing a Digital Account” Really Means in Turkish Law Clients often describe the goal as “seize the Instagram account,” “freeze the marketplace store,” or “take control of the debtor’s channel.” In Turkish enforcement practice, however, the account itself is rarely the collectible object. The collectible object is usually one of these: So “digital […]
1. Why “procedural discipline” decides the outcome for foreign creditors In Turkey, concordat (konkordato) is a court-supervised restructuring mechanism that can bind creditors under a confirmed plan. For a foreign creditor, the biggest mistake is to treat concordat as a purely substantive debt issue. In practice, concordat is a timeline-driven process: rights exist, but they […]