Debt Collection Lawyer in Turkey

This page is for creditors with an unpaid receivable in Turkey: companies, individuals and foreign suppliers whose Turkish buyer has stopped paying. As a debt collection lawyer in Turkey, we review your documents and the debtor's position, send the demand letter, handle mediation where it applies, start enforcement proceedings, answer objections and follow attachment and sale through to payment.

Debt collection in Turkey runs mainly through the state enforcement offices (icra daireleri) under the Enforcement and Bankruptcy Law No. 2004 (İcra ve İflas Kanunu, İİK). No court judgment is needed to start. For the procedure in depth, see Debt Collection in Turkey: Legal Procedures Explained; this page explains how we run the file.

When Do You Need a Debt Collection Lawyer in Turkey?

Creditors most often come to us in these situations:

• Unpaid invoices or an open account balance: goods or services were delivered and the buyer keeps postponing payment.
• A bounced cheque or unpaid promissory note: you hold a negotiable instrument that is past due.
• An unpaid judgment or settlement: a court decision or mediation agreement exists, but the debtor does not pay.
• Foreign suppliers and exporters: the seller is abroad and every step is taken in Turkish.
• Signs that assets are being moved: property or bank balances are being transferred to relatives or new companies.
• A debtor in distress: talk of bankruptcy or a concordat application.

The last two are urgent. Days matter.

How Debt Collection Works in Turkey, Step by Step

A collection file usually moves from assessment to enforcement and, if the debtor resists, to court:

1. Assessment: we review your documents, check limitation and look at the debtor's trade registry records.
2. Demand letter: where useful, we send a formal notice through a Turkish notary (ihtarname). It is not mandatory, but where no due date was agreed it puts the debtor in default (Turkish Code of Obligations No. 6098, Article 117).
3. Choosing the route and filing: we file the enforcement request (takip talebi) with the competent enforcement office through UYAP, the national judicial network, stating principal, interest type and interest start date separately.
4. Payment order: the enforcement office serves a payment order, usually electronically on companies.
5. Objection stage: if the debtor objects in time, we apply to remove or annul the objection.
6. Attachment: once the proceeding is final, bank accounts, vehicles, real estate and receivables from third parties found through UYAP searches are attached (haciz).
7. Sale and distribution: attached assets are auctioned and the proceeds distributed by priority.

Which Enforcement Route Fits Your Claim?

The document behind your claim decides the route and how easily the debtor can stop it. The table below sets out the main differences.

A valid cheque or promissory note is usually the stronger starting point for a creditor. A note with a formal defect can still support an ordinary proceeding.

If the Debtor Objects: Removal, Annulment and Mediation

In an ordinary proceeding, a timely objection stops the file. If the claim rests on a document whose signature the debtor has acknowledged, a notarised document, or one of the official documents listed in İİK Article 68, we ask the enforcement court to remove the objection within six months of being notified of it. Otherwise, we file an action for annulment of the objection (itirazın iptali) before the civil or commercial court within one year (İİK Article 67).

Under Article 5/A of the Turkish Commercial Code No. 6102, mediation is a precondition for filing a commercial lawsuit for the payment of money. It is not required before starting an enforcement proceeding. In practice, and in the prevailing case law, a creditor with a commercial claim is expected to complete mediation before filing the annulment action. Our guide to mediation in Turkey explains how the application works.

If the annulment action succeeds and the amount was liquid, the court can order the debtor to pay enforcement denial compensation (icra inkar tazminatı) of not less than twenty percent of the claim, on the creditor's request. A creditor who pursued an unjustified claim in bad faith can face a similar award. For how objections are examined, see objection process and conditions in enforcement proceedings.

Missing the one-year period does not extinguish the debt: you can still sue until limitation runs out, but the original file cannot continue and the compensation is lost. Which route fits depends on your documents, the debtor's grounds and whether the claim is commercial; a lawyer can assess it in a short consultation.

Precautionary Attachment and Asset Searches

A precautionary attachment (ihtiyati haciz) freezes the debtor's assets before the enforcement or lawsuit is decided. Under İİK Article 257 it is, as a rule, available for a due monetary claim that is not secured by a pledge, on prima facie proof. The creditor is usually asked to provide security, except where the claim rests on a judgment. If the attachment is executed before enforcement starts, the creditor must as a rule start enforcement or sue within seven days, or the attachment lapses.

A final file brings no money if the debtor has no assets. Once proceedings are open, we search through UYAP:

• the land registry (TAKBİS) for real estate in the debtor's name,
• General Directorate of Security records for vehicles,
• social security (SGK) records showing the debtor's employer and salary,
• bank accounts, through electronic attachment notices sent to banks,
• receivables the debtor holds against third parties, and company shares.

Attachment must, as a rule, be requested within one year of service of the payment order (İİK Article 78). Sale must also be requested within the statutory periods, and earlier mortgages on real estate may be paid first, so we check the title deed before asking for a sale.

Debt Collection in Turkey for Foreign Creditors

A foreign company uses the same enforcement routes as a Turkish creditor. The paperwork differs:

• Power of attorney: signed before a notary and apostilled (or legalised where your country is not party to the Apostille Convention), or signed at a Turkish consulate. It should expressly grant special powers such as settlement, waiver and receiving collected funds.
• Authority to sign: an apostilled registry extract or certificate showing that the signatory can represent the company.
• Translations: foreign-language contracts and invoices need sworn translation.
• Tax number and security for costs: in practice a foreign company may need a Turkish tax identification number. Under the Turkish Private International and Procedural Law No. 5718 (MÖHUK), a foreign creditor can be asked to provide security; reciprocity or a treaty to which Turkey is a party may remove this.
• Foreign currency claims: the enforcement request shows the Turkish lira equivalent, and as a rule the creditor can ask for payment at the exchange rate on the actual payment date.

A foreign court judgment or arbitral award cannot be enforced directly. It first needs a recognition and enforcement decision from a Turkish court, which our arbitration and enforcement page covers.

Av. Kaan Karanfiloğlu works directly in English, French and Turkish. Russian- and Chinese-speaking clients are served through native-speaking advisors at our Istanbul office.

Documents We Need

These are usually enough for a first assessment:

• the contract, purchase order, or offer and acceptance correspondence,
• invoices, delivery notes and proof of delivery,
• an account statement and the related ledger entries,
• correspondence with the debtor, including balance confirmations,
• the original cheque or promissory note (the original is needed for that route),
• any judgment, or a mediation agreement bearing an enforceability annotation,
• the debtor's trade name, tax number, MERSIS number and known addresses,
• the power of attorney and, for companies, proof of signing authority.

How Long Does Debt Collection Take?

How long debt collection in Turkey takes depends on whether the debtor objects and what assets it holds. Stage by stage:

• No objection: the file becomes final once the objection period after service expires. Where bank accounts can be attached, money may start to come in within a few weeks.
• Mediation: commercial mediation usually ends within a few weeks.
• Removal of objection: the enforcement court decides on the documents, so this usually takes a few months.
• Annulment action: in Istanbul the first-instance stage can exceed a year in many files, and an appeal adds further time.
• Sale: valuation and auction can take several months, especially for real estate.

Court workload and expert reports move these estimates.

What We Do as Your Debt Collection Lawyer

Karanfiloglu Law Firm handles a collection file from first review to payment. We:

• assess the claim, the documents and limitation, and set out the recommended route in writing,
• draft the demand letter and represent you in mediation where it applies,
• prepare the enforcement request with the interest calculation and file it through UYAP,
• conduct removal and annulment proceedings and precautionary attachment applications,
• run asset searches, follow attachment and sale, and report to you regularly,
• handle the whole process remotely by power of attorney for clients abroad.

Court fees, the cost advance and service costs are explained at the outset. These amounts follow official tariffs updated every year, and enforcement costs are, as a rule, charged to the debtor. If the debtor obtains a concordat moratorium, enforcement generally stops; see our bankruptcy and concordat page and the guide on concordat and creditor rights. Drafting the contracts behind your receivables falls under our commercial law service.

Common Mistakes That Delay Collection

Most receivables are delayed by procedure, not by weak claims. In our practice at Karanfiloglu Law Firm, the most common problem is a creditor waiting months on payment promises while the debtor's assets quietly shrink.

• Waiting too long: every month of reminders gives the debtor time to transfer assets. Our article on debt recovery strategies in Turkey covers this.
• The wrong route: filing an ordinary proceeding while holding a valid cheque gives the debtor an objection that stops the file.
• Inflating the amount: overstated items invite objections and bad-faith compensation.
• Missing deadlines: letting the one-year annulment period lapse, or the short deadline after a precautionary attachment, costs real advantages.
• An incomplete power of attorney: without special powers, a new one is needed when funds are collected or a settlement is offered.

To discuss your receivable, send us your documents through our contact page. As your debt collection lawyer in Turkey, we first set out the strengths and weak points of the file, then the route we recommend.

Frequently Asked Questions

Do I need a court judgment to collect a debt in Turkey?

No, you can start an enforcement proceeding at the enforcement office without a judgment. The debtor receives a payment order and can object within seven days. A court becomes involved only if the debtor objects and you apply to remove or annul the objection.

Is mediation required before debt collection in Turkey?

Mediation is not required before starting an enforcement proceeding. It is a precondition for a commercial lawsuit for money under Article 5/A of the Turkish Commercial Code. If the debtor objects to a commercial claim, in practice mediation is completed before the annulment action is filed.

What happens if the debtor objects to the payment order?

The objection stops the proceeding but does not cancel the debt. Depending on your documents, you can ask the enforcement court to remove the objection within six months or file an annulment action within one year. If you succeed, the original file continues.

Can a foreign company collect a debt in Turkey without travelling?

Yes, as a rule a foreign company does not need to travel to Turkey. An apostilled power of attorney, or one signed at a Turkish consulate, lets the lawyer file and conduct the proceedings and lawsuits on its behalf. Supporting documents are translated by a sworn translator.

Can I enforce a foreign judgment or arbitral award against a Turkish debtor?

Yes, but not directly. The judgment or award first needs a recognition and enforcement decision from a Turkish court. Once that decision is obtained, it is enforced like a Turkish judgment through the enforcement office.

How do I find out whether the debtor has assets?

After proceedings start, your lawyer can search land registry, vehicle, social security and bank records through UYAP. Before that, as a rule, only public sources such as the trade registry are available. That is why the asset search is planned together with the filing.

What costs does a debt collection lawyer in Turkey explain at the start?

Court fees, the cost advance, service costs and any expert fees are explained before the file is opened. These follow official tariffs updated every year. Enforcement costs are, as a rule, charged to the debtor, but recovering them depends on the debtor's assets.