DEBT COLLECTION IN TURKEY – CLAIM ENFORCEMENT
Germany has been one of Turkey's most important trading partners for many years. The two countries have had traditionally strong and diverse relations over several generations. A significant number and variety of German companies operate in Turkey. Many European businesses and individuals enter into business relationships with Turkish partners. However, it occasionally happens that not all claims are paid as agreed. In such cases, it is possible to assert outstanding claims through legal action. This can be done either through court proceedings in Germany (or any other country), or directly in Turkey. If the proceedings in Germany are successfully completed, the foreign judgment must be recognized by a Turkish court in order to be enforceable.
1. Recognition Proceedings in Turkey
Judgments and arbitral awards rendered in Germany cannot be directly enforced in Turkey; they must first go through a judicial recognition procedure. Recognition of a foreign judgment in Turkey requires three main conditions:
- The principle of reciprocity must be respected (i.e., the foreign judgment must not interfere with the exclusive jurisdiction of Turkish courts),
- The judgment must not contradict Turkish public order,
- The defendant’s fundamental right to be heard must have been preserved during proceedings.
Within a recognition procedure, Turkish courts may recognize judgments, default judgments, cost decisions, and arbitral awards, making them enforceable. In Turkey, the recognition lawsuit must be filed at the court where the defendant resides. If the defendant does not reside in Turkey, the case can be filed in Istanbul. Recognition proceedings generally take about 6 to 8 months. Therefore, from both a time and cost perspective, it may be more efficient to initiate legal proceedings directly in Turkey.
2. Payment Order Procedure under Turkish Law
Before initiating a lawsuit, it is possible to apply for a payment order under Article 42 of the Turkish Enforcement and Bankruptcy Law. This can be considered a one-step preliminary enforcement process and usually takes around 2 weeks. After service of the payment order, the debtor has 7 days to object. If no objection is raised, the payment order becomes final and enforceable. If the debtor does object, the creditor must then initiate legal proceedings in the enforcement court. If the objection is found to be baseless, the creditor may also claim damages.
3. Precautionary Seizure (Interim Attachment)
A precautionary seizure (interim attachment) may be requested even before any court or enforcement proceeding is initiated, especially when there is a risk that the debtor may hide or transfer assets, or flee the country. This type of order does not need to be served on the debtor. However, the creditor must:
- Prove that the debt is due,
- Provide a security deposit of 15% of the claim amount.
The seizure must be enforced within 10 days after issuance; otherwise, it becomes invalid. Moreover, within 7 days following the enforcement, the creditor must initiate a main court or enforcement proceeding. Precautionary seizure is considered a temporary legal measure under Turkish law.
4. Compulsory Enforcement
Enforcement of foreign judgments in Turkey can only take place after recognition and a declaration of enforceability by a Turkish court. Therefore, in many cases, it is more efficient to initiate the debt collection process directly in Turkey. In such scenarios, enforcement can begin immediately after the court judgment is finalized, without the need for lengthy and costly recognition proceedings.
Our law firm conducts local asset investigations in advance to evaluate the chances of success and legal risks for the client. For this, only the debtor’s contact information is required. Depending on the debtor's movable and immovable assets, we offer tailored legal advice and initiate the most suitable enforcement action.
Av. Sinem ORHAN (Dipl.-Jur.)
Av. Anıl COŞKUN, LL.M. (Mainz)
info@anil-coskun.com
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