1. Introduction Concordat (composition with creditors) represents a vital mechanism in Turkish insolvency law, enabling financially distressed debtors to restructure debts and continue operations while ensuring equitable treatment of creditors. In recent years, the increasing participation of foreign creditors and cross-border contractual relations has introduced substantial complexities into concordat procedures, particularly concerning the admissibility, authenticity, […]
1. Legal Framework of the Turkish Concordat System 1.1. Purpose and Nature The concordat aims to restructure a debtor’s debts under the supervision of the court, allowing partial repayment while preserving business continuity. It operates as a collective enforcement mechanism, replacing individual execution proceedings with a structured, court-supervised repayment plan. The system protects both the […]
1) Why Foreign Currency Claims Become a “Core Issue” in Bankruptcy Foreign currency receivables—USD, EUR, GBP and others—are common in cross-border trade, shipping, construction, tech, and financing transactions connected to Türkiye. When the debtor enters bankruptcy, the creditor’s headline concern is no longer only existence of the debt, but also: Because FX movements can be […]
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 […]