Enforcement and Bankruptcy Law in Turkey: Complete Guide for Foreign Clients
Enforcement and Bankruptcy Law is a part of private law dealing with the enforcement of debts and distribution of a debtor’s assets in favor of creditors. Enforcement and bankruptcy procedures under Turkish law are dealt with under the Enforcement and Bankruptcy Law No. 2004. The system permits the creditor to recover the debt from the debtor through the authority of the state and encompasses both individual and collective enforcement procedures.
Enforcement and Bankruptcy Law deals with commencing enforcement procedures on an individual basis, confiscation of the debtor’s movable and immovable properties, bankruptcy petitions, suspending bankruptcy, prohibiting the debtor from disposing of properties, and other complaint procedures. In particular in Istanbul, the assistance of an enforcement lawyer is important in complex commercial relations so that the process goes properly.
We provide services for Debt Collection in Turkey and Bankruptcy Lawyer Turkey and offer solutions for clients from abroad who might be experiencing difficulties under Turkish law.
Moreover, our English-speaking and Russian-speaking lawyers also guide clients from abroad through the legal procedures in a seamless and proficient manner without any communication trouble.
Table of Contents
HOW TO START ENFORCEMENT PROCEEDINGS IN TURKEY?
The question “How to start enforcement proceedings in Turkey?” is the first and most critical step in the debt collection process. This legal process begins when the creditor applies to the relevant enforcement office to initiate debt recovery proceedings under Turkish law.
Enforcement proceedings in Turkey can be initiated in two main ways:
Non-Judicial Enforcement: This enforcement starts without a court ruling and is used most often as a means of recovering debts owed in Turkey. It has a high popularity rate because it is quick and easy.
Judicial Enforcement: This method relies on a legally binding court ruling or a document legally equivalent thereto. It’s generally utilized if the creditor has a court judgment or deed already.
Properly initiating enforcement proceedings in Turkey means drafting the application as per the requirements of the law, serving the payment order on the debtor, and dealing with objection periods or objection cancellations in strict time limits. Mistakes at this level can hold up the process or risk spoiling successful collection.
For avoiding any such complexities, employing a seasoned Istanbul enforcement lawyer is recommended. A professional makes sure the procedures align according to Turkish Enforcement and Bankruptcy Law No. 2004 and guides creditors in a cost-effective manner on how they can enforce their rights.
As a part of our English speaking debt recovery lawyer Turkey services, we also provide assistance for the enforcement of foreign court judgments, notarized contracts or bills of exchange in Turkey. Foreign creditors may also be served through our Russian-speaking enforcement attorneys in Istanbul who can assist Russian-speaking clients in enforcement procedures in Turkey without any communication issues.
How to Object to Enforcement Proceedings in Turkey
Knowledge of objections against enforcement procedures in Turkey is of paramount importance for individuals and companies who are subject to debt recovery procedures. The rights and procedures for objections under various types of enforcement procedures make it crucial to approach a lawyer who handles enforcement in Turkey to evade possible law pitfalls.
If the enforcement procedure is judicial—that is, on the basis of a court decision—it cannot be objected to directly. Rather, the debtor will have to initiate a proceeding to invalidate the enforcement decision on grounds set out under specific law. Conversely, non-judicial enforcement proceedings instituted without a court decision give the debtor an opportunity for an objection within a legally established time limit.
Its enforcement and these boundaries must be carefully reviewed through the law. An Istanbul enforcement lawyer will make sure the objection is well-founded and timely so wrongful or inflated debts will not be enforced.
Enforcement via Bills of Exchange: Objections and Legal Remedies
Bills of exchange enforcement is a standard method of debt collection in commercial transactions under the Turkish Enforcement and Bankruptcy Law. Under this mechanism, creditors move for enforcement based on valuable documents like checks, promissory notes, or bonds.
Debtors who would like to object against enforcement in this manner must make their objection to the Enforcement Court within five days from when they received the payment order. Failing this will mean that the enforcement will be concluded and the proceeds seized.
If you are subjected to enforcement by negotiable instruments in Turkey, it’s strongly recommended that you hire a seasoned Turkish enforcement lawyer who specializes in commercial law and financial disputes in order to secure your rights and your property.
Seizure of Movable and Immovable Property and Freezing of Bank Accounts
If a debtor has not paid their debt, the creditors may petition for seizure of both moveable and immoveable properties for the satisfaction of their claims. These may be properties, cars, or even personal effects.
Furthermore, bank accounts can be electronically frozen (also known as an “e-freeze”) via enforcement agencies in order to secure debts owed. Successful as they may be, they are extremely sensitive—any minor administrative or procedural mistake will invalidate the enforcement action. So as to effectively apply the seizure of assets and freezing of bank accounts, working with a trained bankruptcy and enforcement lawyer in Istanbul is imperative. At our firm, we guide our overseas clients through enforcement procedures and provide services in Russian and English in order to bridge linguistic gaps and provide a seamless legal experience.
Action for Negative Determination and Recovery of Payment in Turkey
Once the enforcement process has concluded in Turkey, if the debtor feels that the debt in question doesn’t actually exist at all, they’re legally entitled to initiate a negative determination action. This lawsuit has the function of legally verifying the non-existence of the debt and avoiding wrongful enforcement. This action is particularly crucial for individuals or businesses incorrectly subjected to debt collection in Turkey. Hiring a seasoned Istanbul enforcement lawyer guarantees precise case filing and powerful legal defenses in such disputes.
Enforcement and Legal Action Against Non-Payment of Cheques
Cheques form a very important part of Turkey’s commercial transactions. When a cheque is dishonored or not paid by the debtor party, the creditor party has the right under law to initiate enforcement proceedings on the cheque. A criminal case might also be instituted on the party issuing the dishonored cheque under Turkish law. Both of these legal remedies—civil enforcement and criminal complaint—enable creditors quicker recovery of debt. Under the able guidance of a debt collection lawyer in Turkey, the same can effectively be handled in order to reduce risk and delay.
Rescission of Transactions (Cancellation of Fraudulent Transfers)
Debtors who try to evade debt collection through the transfer of their properties or belongings to third parties or their relatives may be pursued by creditors through an action for rescission of transactions or fraudulent transfer cancellation. The action allows the creditor either to invalidate fraudulent transfers or seize those properties in a lawful manner. It’s a potent weapon under Turkish Enforcement and Bankruptcy Law and may well depend on utilizing the services of a good bankruptcy lawyer in Turkey who has experience dealing with fraudulent tactics of this kind.
The Need for an Istanbul Enforcement Lawyer: Preventing Costly Errors
Enforcement and bankruptcy procedures in Turkey call not just for technical expertise but also for meticulous compliance with deadlines and documents. Typical missteps—like utilizing the incorrect file numbers, failing to meet crucial deadlines, or making invalid seizure requests—can lead to dire legal and financial consequences.
For an urban center like Istanbul where enforcement procedures are complex and time-sensitive, having a trained Istanbul enforcement lawyer on hand will be necessary in order to reduce risk and maintain procedural correctness. A professional lawyer guarantees all the steps—from starting procedures to seizure of the assets—done properly under the law in Turkey.
We offer English-speaking debt recovery lawyer services at our firm in Turkey to guide our foreign clients through debt collection procedures, enforcement procedures, and bankruptcy procedures. Our team consists of Russian-speaking lawyers who offer personalized legal services and assist our international clients in overcoming linguistic barriers and completing lawful procedures smoothly and efficiently.
Contact Us
For a fast, reliable, and legally compliant Turkish citizenship application, feel free to contact our team. Our experienced lawyers in Istanbul are ready to provide you with personalized support and effective solutions tailored to your goals.
Phone: +90 530 182 85 98
Email: info@partnersasb.com
Useful Links About Enforcement and Bankruptcy Law in Turkey
Explore official legal resources and government portals related to Turkish Enforcement and Bankruptcy Law:
- Enforcement and Bankruptcy Law No. 2004 – Official Legislation (Mevzuat.gov.tr)
- Turkish Ministry of Justice – Judicial Procedures and Enforcement Units
- Directorate General of Enforcement Offices (İcra Daireleri) – Official Portal
- E-Government (e-Devlet) – Enforcement File Inquiry and Services
- Revenue Administration (GİB) – Tax Debt and Enforcement Information
Frequently Asked Questions (FAQ)
What is Debt Collection and How to Start It?
Debt collection is the process of recovering a debt from a debtor using state authority. It can be initiated in two ways:
- Judicial Enforcement: Initiated based on a court decision.
- Non-Judicial Enforcement: Initiated directly by applying to the enforcement office without a court decision.
- Details: A payment order is issued and served on the debtor. It is recommended to work with an Istanbul enforcement lawyer to ensure the process is carried out correctly.
How to Object to Enforcement Proceedings?
- For enforcement without a court order: The debtor may object to the enforcement court within 7 days after the payment order is served.
- For enforcement with a court order: Direct objection is not possible; however, a ‘lawsuit for cancellation of enforcement proceedings’ may be filed.
- Important: If the objection period is missed, the proceedings become final and seizure proceedings begin.
What can be done if the debtor absconds?
If the debtor transfers his property to third parties, the creditor may file a ‘Tenzil-i İşlem Davası (Haciz Yoluyla İptal Davası)’ (Action for Cancellation of Transaction) to have these transactions cancelled. This action is a critical tool for protecting the creditor’s rights.
What are Cheque Collection and Protested Cheques?
Enforcement by Cheque: For unpaid cheques, both enforcement proceedings can be initiated and a criminal case can be filed due to ‘non-payment of a cheque’.
Protest Process: If a cheque is not paid, it must be protested through a notary public. This is necessary for criminal penalties.
Is it necessary to go to court to start enforcement proceedings in Turkey?
No. For non-judicial enforcement proceedings in Turkey, it is not necessary to go to court. Creditors can initiate debt collection directly by applying to the Enforcement Office without a court judgment. However, legal guidance is highly recommended to avoid procedural errors.
Can I file both an enforcement proceeding and a criminal case for a dishonored cheque in Turkey?
Yes. In Turkey, you can initiate an enforcement proceeding to collect the unpaid amount and simultaneously file a criminal complaint for the dishonored cheque. Both legal actions can be pursued together under Turkish law.
I paid my debt, but enforcement is still ongoing what should I do?
If you have paid your debt but the enforcement process is still active, you should submit proof of payment (such as a bank receipt or signed declaration) to the relevant enforcement office. You may also file an action for recovery of payment to officially close the case and prevent further legal action.
What is the bankruptcy postponement process in Turkey?
It is a legal process that allows a company facing financial difficulties to delay bankruptcy by submitting a recovery plan to the court. If approved, bankruptcy is suspended and a trustee is appointed to monitor the business.
Whether you’re initiating debt collection, filing for bankruptcy, or objecting to enforcement proceedings in Turkey, our experienced legal team is ready to support you. We offer strategic, multilingual legal solutions for both individuals and businesses—ensuring reliable representation in every step of the process.