How Does Debt Collection Work in Turkey? Enforcement Proceedings, Objections and Attachment

Debt collection in Turkey begins with a demand for payment to the debtor; if no payment comes, it turns into forced collection through the enforcement office (icra dairesi). Depending on the document you hold, you choose enforcement proceedings without a judgment (ilamsız icra takibi), the attachment route specific to negotiable instruments (kambiyo senetlerine özgü haciz yolu) or enforcement based on a judgment (ilamlı icra). If the debtor objects, an application for removal of the objection (itirazın kaldırılması) or an action for annulment of the objection (itirazın iptali davası) follows; once the proceedings become final, the debtor's assets are attached and sold.

In this article we answer the question of how debt collection works, step by step. We wrote it both for Turkish companies and individuals and for foreign companies that cannot get paid by a company in Turkey. Choosing the right route, not missing time limits and calculating costs from the outset have a direct effect on the result.

What Routes Are Available for Debt Collection? A Comparison Table

The route to follow in debt collection depends on the document the claim is based on and on whether the debtor is likely to dispute the claim. The table below sets out the main options side by side.

These routes are not alternatives to one another but, more often than not, links in a chain. A warning letter can lead to enforcement proceedings, the proceedings to an objection, the objection to a lawsuit, and the lawsuit to enforcement based on a judgment.

Before Enforcement: Warning Letter and Mandatory Mediation

Sending a warning letter before starting enforcement proceedings is not a legal requirement, but it helps in many files. Where a debt has no fixed due date, the debtor is, as a rule, put in default by the creditor's warning (TBK Art. 117), and default interest starts to run from that date. If the due date is set in the contract, default occurs without the need for a warning. A warning letter sent through a notary provides official proof of the date of service.

In the warning letter, state clearly the source of the claim, its amount, the interest demanded and a reasonable time for payment.

Mediation must be considered separately. Under Article 5/A of Turkish Commercial Code No. 6102 (TTK), for commercial receivables and compensation claims whose subject is the payment of a sum of money, applying to a mediator (arabuluculuk) before filing a lawsuit is a precondition for suit. This precondition applies to lawsuits: you do not need to go to a mediator to start enforcement proceedings. However, if the debtor objects to the payment order and the dispute is commercial, applying to a mediator is also a precondition before an action for annulment of the objection: since 1 September 2023, TTK Art. 5/A expressly lists actions for annulment of an objection, negative declaratory actions (menfi tespit) and actions for restitution (istirdat). A lawsuit filed without first applying to a mediator is dismissed on procedural grounds. For more detail, see our article on the commercial receivable lawsuit, and for the general framework of commercial disputes, our commercial law page.

If an agreement is reached in mediation and an annotation of enforceability (icra edilebilirlik şerhi) is obtained on the agreement document, that document has the force of a judgment and can be put directly into enforcement as a judgment. Commercial mediation usually concludes within a few weeks. During mediation, limitation periods are suspended and time-bar periods do not run.

How Is a Debt Collected Through Enforcement Without a Judgment?

Enforcement without a judgment is the collection route most often used in Turkey by creditors who do not hold a court judgment. It can also be used for claims that are not based on a written document. Under the general attachment route set out in Article 42 et seq. of Enforcement and Bankruptcy Law No. 2004 (İİK), the process works as follows:

1. The request for enforcement is submitted to the competent enforcement office. Jurisdiction is, as a rule, determined by the debtor's place of residence or the place of performance of the contract; the request can also be filed electronically through UYAP, the judiciary's online system.
2. The advance fee and service costs are paid, and the enforcement office issues the Form 7 payment order (ödeme emri).
3. The payment order is served on the debtor. Service on companies is usually made to their electronic service address.
4. Within seven days of service, the debtor must pay the debt or file an objection (itiraz) with the enforcement office (İİK Art. 62). There is also an obligation to make a declaration of assets within the same period.
5. If no objection is filed, the proceedings become final, and the creditor can request attachment (haciz).
6. If an objection is filed, the proceedings stop; to overcome the objection, the creditor applies to the enforcement court or to a general court.

In the request for enforcement, the principal claim, accrued interest, the type of interest and its start date must be shown separately. An item claimed in excess becomes a ground for objection. Interest that is understated, on the other hand, cannot, as a rule, be increased later in the same proceedings. For unpaid rent, there is a separate type of proceedings that seeks both the rent and eviction: enforcement proceedings with a request for eviction.

Cheques, promissory notes and bills of exchange: the attachment route for negotiable instruments

If the claim is based on a cheque, a promissory note or a bill of exchange, the attachment route specific to negotiable instruments set out in Article 167 et seq. of the İİK is usually more effective. The debtor is sent a payment order on Form 10. The period for payment is ten days and the period for objection is five days, and the objection is made not to the enforcement office but to the enforcement court (icra mahkemesi) (İİK Art. 168). The key difference is this: the debtor's objection does not automatically stop the proceedings unless the enforcement court orders a stay. The instrument must meet the requirements of a negotiable instrument and must not be time-barred. For details, see our article on the attachment route specific to negotiable instruments.

If there is a court judgment: enforcement based on a judgment

If the claim has been established by a court judgment or a document with the force of a judgment, enforcement proceedings based on a judgment are started. The debtor is sent an enforcement order (icra emri). The debtor's options to object are restricted to limited grounds, such as the debt having been paid or having become time-barred. Judgments for the payment of money can, as a rule, be enforced without waiting for them to become final. The process is also explained in our article what is enforcement based on a judgment.

What Happens If the Debtor Objects to the Payment Order?

If, in proceedings without a judgment, the debtor objects to the payment order in time, the proceedings stop and the creditor has two main routes: removal of the objection at the enforcement court, or an action for annulment of the objection at a general court. Which one to choose depends on the document you hold.

Removal of the objection (İİK Art. 68)

If the claim is based on an instrument whose signature has been acknowledged or certified by a notary, or on a document issued by an official authority within its powers, the creditor can ask the enforcement court to remove the objection. The time limit for applying is six months from service of the objection on the creditor. The enforcement court decides on the documents and does not hold a full trial. For this reason, it usually takes less time. If the document does not meet the legal requirements, the request is rejected and time is lost.

Action for annulment of the objection and compensation for denial of enforcement (İİK Art. 67)

If the document does not meet these requirements, the creditor files an action for annulment of the objection at a general court within one year of service of the objection. In commercial disputes, the competent court is the commercial court of first instance (asliye ticaret mahkemesi). In this action, the claim can be proved by any kind of evidence; for which party has to prove what, our article on the burden of proof in receivable lawsuits offers guidance. If the action succeeds, the proceedings continue from where they stopped.

If the claim is liquid, that is, its amount is fixed or can be determined, the court, at the creditor's request, orders the debtor who objected without justification to pay compensation for denial of enforcement (icra inkar tazminatı) of not less than twenty per cent of the claim. If the proceedings were unjustified and in bad faith, compensation at the same rate can also be awarded against the creditor.

If the time limit is missed: an action for payment

Even if the one-year period is missed, the claim does not end. As long as the limitation period has not expired, an action for payment can be filed under the general rules; in that case, however, the existing proceedings cannot be continued and compensation for denial of enforcement cannot be claimed. We explain the lawsuit process in our article how to file a receivable lawsuit in Turkey. Which route suits your file depends on the nature of the document, the debtor's grounds for objection and whether the claim is commercial; a lawyer can assess this in a short meeting.

Precautionary Attachment: Securing the Claim Before Enforcement

Precautionary attachment (ihtiyati haciz) means temporarily seizing the debtor's assets before the proceedings or lawsuit are concluded, to prevent the debtor from disposing of them. Under İİK Art. 257, it can be requested for money claims that have fallen due and are not secured by a pledge. For a claim that has not yet fallen due, it is possible only if the debtor has no fixed place of residence, or if the debtor is preparing to conceal assets, to flee, or to carry out fraudulent transactions that infringe the creditor's rights.

The request is made to the court. The court must be satisfied as to the existence of the claim and the ground for attachment; full proof is not required, and prima facie proof (yaklaşık ispat) is enough. The creditor, as a rule, provides security in the amount set by the court. If the claim is based on a judgment, no security is required.

If precautionary attachment is carried out before enforcement proceedings or a lawsuit, the creditor must start proceedings or file a lawsuit within seven days of the attachment being carried out (or, if the creditor was not present when it was carried out, from service of the attachment report on the creditor). Otherwise, the attachment lapses automatically. If the debtor objects to the payment order in proceedings without a judgment started after a precautionary attachment, then, to preserve the attachment, the creditor must request removal of the objection or file a lawsuit within seven days of service of the objection on the creditor (İİK Art. 264); relying on the one-year period in İİK Art. 67 in this situation can cause the precautionary attachment to lapse. In commercial disputes, the effect of a mediation application within this period should be checked separately. The creditor may be liable for the debtor's loss caused by a precautionary attachment that turns out to be unjustified.

Attachment, Asset Searches and Sale

Once the proceedings become final, what determines the outcome of debt collection is the debtor's attachable assets. Final proceedings do not bring in any money on their own if the debtor has no assets. For this reason, the search should start before the proceedings.

After the proceedings are opened, searches are run through UYAP; the main sources searched are:

• land registry records (TAKBİS) and real estate registered in the debtor's name,
• vehicles in the records of the General Directorate of Security,
• SGK (Social Security Institution) records, that is, the debtor's workplace and wage information,
• deposits and accounts, through electronic attachment notices sent to banks,
• trade registry records, shareholdings in companies and the debtor's receivables from third parties.

As a rule, attachment must be requested within one year of service of the payment order (İİK Art. 78). Under İİK Art. 89, attachment notices are sent to banks and to third parties to whom the debtor is a creditor. A third party who does not object in time may face having to pay the debt as if it were its own. In a salary attachment, at least one quarter of the wage can be attached; the law, on the other hand, declares certain assets exempt from attachment.

A claim is not collected until the attached asset is sold. If the creditor does not request a sale within the statutory periods, the attachment lapses. The sale is made by public auction, which is also conducted electronically, after a valuation, and the proceeds are distributed according to the ranking table (sıra cetveli). For real estate, earlier mortgages and attachments may take their share first; for this reason, the land registry record should be examined before requesting a sale.

If the debtor is a merchant, the creditor can also consider bankruptcy proceedings instead of attachment. If the debtor has been granted a concordat moratorium (konkordato mühleti), proceedings are, as a rule, stayed and no new proceedings can be started. For the creditor's rights in this situation, see our article on the concordat process and creditor rights and our bankruptcy and concordat page.

How Do Foreign Companies Collect Debts in Turkey?

A foreign company can pursue its claim against a Turkish debtor through the same routes as Turkish creditors; the difference lies in the preparation of documents and in some procedural rules. In practice, the proceedings and lawsuits are conducted through a lawyer in Turkey, and company officers usually do not need to come to Turkey.

• Power of attorney: a power of attorney signed before a notary abroad receives an apostille in countries party to the Hague Apostille Convention; in countries that are not party, consular legalisation is required. In Turkey, the document is translated by a sworn translator and used with notarial certification. The power of attorney can also be signed at a Turkish consulate.
• Company documents: a current registry extract showing that the company exists and who its authorised signatory is must also be apostilled and translated. In practice, the foreign company may need to obtain a tax identification number in Turkey.
• Claims in foreign currency: a claim can be pursued in a foreign currency; the request for enforcement also shows its equivalent in Turkish lira (İİK Art. 58). If the debtor is in default, the creditor can ask for payment in Turkish lira at the exchange rate on the due date or on the actual payment date (TBK Art. 99).
• Security for costs: as a rule, foreign natural and legal persons who file a lawsuit or start enforcement proceedings in Turkey may be asked to provide security for court and enforcement costs (Law No. 5718 on International Private and Procedural Law, MÖHUK, Art. 48). Reciprocity or international conventions to which Turkey is a party may provide an exemption; practice may vary from court to court.
• Foreign court judgment or arbitral award: a judgment obtained abroad must be recognised and declared enforceable (tenfiz) by a Turkish court before it can be enforced in Turkey.

In the files we handle in Istanbul for foreign clients, the most common cause of delay is a power of attorney with incomplete authorities. The authority to start enforcement proceedings, to settle, to waive claims and to receive the money collected (ahzu kabz) must be stated expressly.

Interest, Limitation, Costs and Timing

Default interest

A debtor who does not pay a money debt on time pays default interest (TBK Art. 120). If the rate is not set in the contract, Law No. 3095 on Statutory Interest and Default Interest applies. In commercial matters, the creditor can claim commercial default interest, which in practice is based on the rate the Central Bank of the Republic of Turkey applies to short-term advance transactions. A different interest rule applies to claims in foreign currency. As rates change from time to time, the rate on the date of the proceedings should be checked separately.

Limitation periods

Proceedings can be started for a time-barred claim, but if the debtor raises the limitation defence, the claim cannot be collected. The general limitation period is ten years (TBK Art. 146). For periodic payments such as rent and interest, and for certain claims arising from agency, commission and commercial agency relationships, the period is five years (TBK Art. 147). For negotiable instruments, the periods are much shorter; for a cheque, for example, the limitation period is six months from the end of the presentation period. Enforcement proceedings interrupt the limitation period. For details, see our guide on limitation in receivable lawsuits.

Costs

In enforcement proceedings, the advance fee, the filing fee, the power of attorney copy fee and service costs are paid. If a lawsuit is filed, court fees and the costs of court-appointed experts (bilirkişi) and witnesses are added. Some fees are calculated in proportion to the amount of the claim, and the tariffs are set again every year; the current amounts should be checked in the tariffs of the Law on Fees (Harçlar Kanunu) and in the announcements of the Revenue Administration. If the proceedings or the lawsuit are won, the costs and the attorney's fee set under the Minimum Attorney Fee Tariff are charged to the debtor. If the debtor cannot pay, these items may not be collectable either.

Timing

There is no single answer to how long debt collection takes. In practice, the following picture is usually seen:

• In proceedings without a judgment where no objection is filed, the proceedings become final a few weeks after service.
• In commercial disputes, the mediation stage is mostly completed within a few weeks to two months.
• An application for removal of the objection is usually decided within a few months, depending on the workload of the enforcement court.
• An action for annulment of the objection, including the court-appointed expert's examination and the appeal stage before the regional court of appeal (istinaf), often takes one to three years, and sometimes longer.
• The attachment and sale stage can extend from a few months to more than a year, depending on the type of asset.

Common Mistakes in Debt Collection

Most losses in debt collection come not from a legal gap but from doing things in the wrong order. In the files we take on in Istanbul at Karanfiloglu Law Firm, the situation we see most often is that enforcement proceedings were started without any search of the debtor's assets.

1. Choosing the wrong enforcement route. A creditor holding a promissory note or a cheque who uses the general attachment route loses the advantage of the five-day objection period and of an objection that does not stop the proceedings. What to do: examine the document before starting proceedings.
2. Incurring costs without checking assets. If the debtor has no attachable assets, the costs of the lawsuit and proceedings are simply added to the claim. What to do: run the search together with the request for enforcement and, if necessary, start with a precautionary attachment.
3. Overlooking the mediation requirement or the one-year period. A commercial action for annulment of an objection filed without mediation may be dismissed on procedural grounds. What to do: draw up a calendar as soon as the objection is served.
4. Stating interest incorrectly. If the type of interest or its start date is wrong, the debtor objects to it and the proceedings drag on. What to do: tie the default date to a document.

In short, debt collection in Turkey depends on choosing the enforcement route that fits the document, not missing the time limits if there is an objection, and directing the proceedings at assets that can actually be collected; the result varies from file to file according to the debtor's ability to pay. Mediation for commercial claims, and the power of attorney and security for costs for foreign creditors, should be planned from the start.

Speak with a Lawyer in Istanbul

If you would like advice on your own situation, Karanfiloglu Law Firm is a registered law firm operating in Istanbul and serving foreign and Turkish clients across Turkey. You can reach us by phone or WhatsApp on +90 532 659 35 11, by email at karanfiloglu.lawyer@gmail.com, or visit us at Merkez Mah. Hasat Sk. No:12, 34384 Şişli, İstanbul. To discuss your situation, contact us.

Frequently Asked Questions

How is debt collection done in Turkey?

In Turkey, if the debtor does not pay, a debt is collected by starting proceedings at the enforcement office. Proceedings without a judgment are used for undocumented or invoice claims, the negotiable instruments route for cheques and promissory notes, and enforcement based on a judgment where there is a court judgment. Once the proceedings become final, the debtor's assets are attached and sold.

How many days is the time limit for objecting to a payment order?

In enforcement proceedings without a judgment, the debtor can object to the enforcement office within seven days of service of the payment order. In proceedings based on negotiable instruments, the objection period is five days and the objection is made to the enforcement court. If no objection is filed in time, the proceedings become final.

Is it mandatory to go to a mediator before starting enforcement proceedings for commercial claims?

No, mediation is not required to start enforcement proceedings. Mediation is required before filing a lawsuit for commercial money claims (TTK Art. 5/A). If the debtor objects and an action for annulment of the objection is to be filed, in commercial disputes applying to a mediator is also a precondition before that action (TTK Art. 5/A).

What is the difference between annulment of the objection and removal of the objection?

Removal of the objection is requested from the enforcement court within six months if the claim is based on an instrument certified by a notary or whose signature has been acknowledged, or on an official document. Annulment of the objection, by contrast, is a lawsuit filed at a general court within one year, in which any kind of evidence can be used.

How much is the compensation for denial of enforcement?

Compensation for denial of enforcement is set at not less than twenty per cent of the claim. In an action for annulment of the objection, if the claim is liquid, it is awarded at the creditor's request against the debtor who objected without justification. If the proceedings were unjustified and in bad faith, the creditor can also be ordered to pay the same compensation.

Can a foreign company start enforcement proceedings against its debtor in Turkey?

Yes. A foreign company can start enforcement proceedings by giving a lawyer in Turkey an apostilled and translated power of attorney. The claim can be pursued in a foreign currency. Whether security will be required in lawsuits and proceedings depends on reciprocity and international conventions.

Can a debt be collected if the debtor has no assets?

If the debtor has no attachable assets, nothing can be collected even if the proceedings continue. However, the proceedings interrupt the limitation period, and assets the debtor acquires later, their salary or their receivables can be attached. For this reason, the asset search should be repeated.

Is security required for a precautionary attachment?

As a rule, yes. A creditor requesting precautionary attachment provides security, in the amount set by the court, against the debtor's possible losses. If the claim is based on a court judgment, no security is required. The amount of security is decided by the court according to the particular features of the file.

About the Author

Av. Kaan Karanfiloğlu is the founder of Karanfiloglu Law Firm, a registered law firm based in Istanbul serving Turkish and international clients across Turkey. He is a lawyer registered with the Istanbul Bar Association (Registration No. 58270) and a member of the Union of Turkish Bar Associations (No. 133074); he has practised law in Turkey since 2017. He is also a registered mediator (Registration No. 41909). He graduated from Galatasaray University Faculty of Law in 2016 and advises clients in Turkish, English and French; the firm also serves Russian- and Chinese-speaking clients through native-speaking advisors who work at the office.

Legal notice: This article provides general information about Turkish law and does not constitute legal advice. Laws, regulations, official fees and procedures change over time, and every situation is different. Please consult a qualified lawyer for advice on your own circumstances. No liability is accepted for any loss that may arise from reliance on the information in this article.