Kocaeli Debt Enforcement
As is known, commercial and economic activities between Turkey and Germany are constantly increasing. Consequently, the commercial activities of companies in both countries contribute significantly to the national economies. For these contributions and commercial activities to reach higher levels, problems arising during these activities must be eliminated and commercial activities must be secured. One of the problems that arise during commercial activities is the collection of sales proceeds or receivables from German companies.
In this article, we will address the collection of sales proceeds or receivables through enforcement proceedings in Germany. In this context, we will provide brief information on initiating enforcement proceedings in Germany and the subsequent process.
I. Enforcement Proceedings
Notice and enforcement proceedings on behalf of foreign companies must be initiated with the competent court. For foreign companies without headquarters or branches within the Federal Republic of Germany, the competent court for notice proceedings in Germany is the Berlin-Wedding Court of Notification.
Initiating Enforcement Proceedings
The enforcement proceedings will commence upon the submission of the request to the competent court of notice. The warning request must include information such as the debtor's name, title, address, amount of the debt, the basis for the claim, and the amount of interest. The warning court will serve the debtor with a payment order prepared pursuant to the enforcement proceedings. From the date of service of the payment order, the debtor has two weeks to pay the debt or object to the payment order. If the payment order is objected to, the creditor must file a lawsuit to continue the seizure proceedings. Otherwise, the enforcement proceedings will be suspended.
2. Procedures in Case of Objection to the Payment Order
If the debtor objects to the payment order, the creditor will receive both the debtor's objection and a document detailing the fees required to be paid if a lawsuit is filed to continue the seizure proceedings.
Upon payment of the fees, the file will be forwarded to the relevant court. The competent court will review the enforcement proceedings and the basis for the complaint and make a decision on the case. If the debtor's objection is found to be unfounded and unjust, the enforcement proceedings will be continued.
3. Procedures if the Debtor Fails to Object to Enforcement Proceedings or the Court Declares the Objection Unjustified
If the debtor still hasn't paid their debt after the two-week period following the service of the payment order, or if the debtor's objection is deemed unjustified, enforcement proceedings will continue. The creditor must then apply to the admonishing court to obtain a seizure order.
If the creditor's seizure request is approved, the seizure order issued by the admonishing court will be served on the debtor. The debtor must pay the debt or object to the seizure order within two weeks of the notification. If the debtor objects to the seizure order, the enforcement file will be forwarded directly by the admonishing court to the general jurisdiction court where the case will be heard. If the competent court finds the objection unjustified or the debtor fails to object to the seizure order within the time limit, and the debt remains unpaid, the seizure order will become final, and seizure proceedings will commence. Once the seizure order becomes final, proceedings in the enforcement court conclude. For any further proceedings, an application must be made to the enforcement court.
4. Seizure Procedures
The creditor can apply to the enforcement court with the seizure order in hand, initiate seizure proceedings on all of the debtor's movable and immovable assets, and collect the receivable.
II. Conclusion
Companies acting in bad faith use their presence abroad as an opportunity to avoid paying the sales prices they are required to pay, using various excuses. The fundamental principle here is that companies in Türkiye cannot or will not engage in enforcement proceedings in Germany. Contrary to this belief, creditors must defend their rights and attempt to collect their receivables. Furthermore, before initiating cautionary proceedings, investigating whether the debtor company is still operating or is in bankruptcy proceedings is crucial for collecting the receivable. Conducting prior research on the debtor's assets and activities will prevent both unnecessary enforcement costs and loss of time.
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Atty. Anıl Coşkun, LL.M.
ANC Partners Law Firm
info@anil-coskun.com
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