Debt collection in Turkey requires a strategic assessment of the debtor, the legal basis of the claim, available evidence, and the most efficient procedural route. For foreign creditors, the process may involve enforcement proceedings, mandatory mediation, litigation, or a combination of these methods.

The previous version of this article mainly explained enforcement, mediation, litigation, and the security deposit issue for foreign creditors. The renewed version below presents the same subject in a clearer and more client-oriented structure.

Main Methods of Debt Collection in Turkey

Under Turkish law, creditors generally have two main options for recovering debts:

1. Enforcement proceedings before the Enforcement Office
2. Filing a lawsuit before the competent court

In commercial disputes involving monetary claims, mandatory mediation may also be required before filing a lawsuit. Since 2019, mediation has been a prerequisite for many commercial receivable disputes in Turkey.

Enforcement Proceedings Without a Court Judgment

A creditor may initiate enforcement proceedings directly before the Enforcement Office without first obtaining a court judgment. After the application, the Enforcement Office sends a payment order to the debtor.

If the debtor does not object within the statutory period, the proceeding becomes final and the creditor may request seizure of the debtor’s assets. If the debtor objects, the creditor must take further legal action to overcome the objection.

This route may be useful where the debtor is active, traceable, and has assets in Turkey.

Litigation for Debt Recovery

In some cases, filing a lawsuit may be more appropriate than starting enforcement proceedings. Litigation may be especially relevant where the debt is disputed, the contractual relationship is complex, or the creditor needs to request interim measures.

A lawsuit may also allow the creditor to request precautionary measures against the debtor’s assets, provided that the creditor can demonstrate the risk of non-collection.

Mandatory Mediation in Commercial Debt Claims

For many commercial monetary claims, the creditor must apply to mediation before filing a lawsuit. If the parties reach an agreement, the dispute may be resolved without court proceedings. If no agreement is reached, the creditor may proceed with litigation.

Failure to complete mandatory mediation where it is required may result in dismissal of the lawsuit on procedural grounds.

Security Deposit Requirement for Foreign Creditors

Foreign individuals and foreign legal entities may be required to deposit security when filing a lawsuit or initiating enforcement proceedings in Turkey. This requirement is generally linked to the principle of reciprocity and international agreements. Article 48 of the Turkish Private International and Procedural Law is commonly cited as the legal basis for this issue.

However, foreign creditors may be exempt from this obligation if there is a treaty, legal reciprocity, or factual reciprocity between Turkey and the creditor’s country.

Importance of Evidence

Before starting debt collection in Turkey, the creditor should collect and review all relevant evidence, including:

• Contracts
• Invoices
• Delivery records
• Correspondence
• Payment records
• Acknowledgments of debt
• Cheques, promissory notes, or notarized documents

The strength of the evidence directly affects the choice between enforcement proceedings, mediation, and litigation.

Asset Investigation and Practical Assessment

A successful debt collection strategy should not only focus on the legal claim but also on the debtor’s financial condition. If the debtor has no attachable assets, is inactive, or has ceased operations, the practical chance of recovery may be limited.

In suspicious cases involving fraud, fake companies, or deliberate non-payment schemes, criminal law options may also need to be considered separately.

Conclusion

Debt collection in Turkey requires a case-specific strategy. Enforcement proceedings may provide a fast route where the debtor does not object, while litigation may be necessary in disputed or complex cases. For commercial receivables, mandatory mediation must also be carefully considered before filing a lawsuit.

Foreign creditors should also take into account the possible security deposit requirement, the debtor’s asset position, and the evidentiary strength of their claim before initiating proceedings in Turkey.