Debt Collection in Turkey

Turkey's Enforcement and Bankruptcy Law (EBL) provides creditors with two main enforcement tracks and a judicial track, all of which can be initiated independently of the claim amount.

Formal demand letter (via notary). Although not legally mandatory, a demand letter is strongly recommended and in practice essential. It must be issued and delivered through a Turkish notary and drafted in Turkish (with certified translations of any foreign-language supporting documents). Delivery of the letter places the debtor in default (mora) and allows interest to be claimed from that date. It also opens the possibility of a negotiated payment plan, which can be formalised before a notary and made directly enforceable.

Enforcement without judgment (icra takibi without ilamli). The creditor files an execution request with the local enforcement office. The office issues a payment order to the debtor. The debtor has 5 days (for claims based on a bill of exchange) or 7 days (for general claims) to oppose or pay. If no opposition is filed, the order becomes enforceable and the enforcement officer can attach the debtor's bank accounts and assets immediately. This is the fastest route for undisputed claims.

Lawsuit to annul the debtor's opposition. If the debtor opposes the payment order, enforcement is suspended and the creditor must file a lawsuit within 6 months to have the opposition annulled. These proceedings typically take 12 to 36 months. Commercial record books, invoices, contracts, and correspondence will be examined by the court. If the court finds the debtor's opposition was in bad faith, it may impose an additional penalty of up to 20% of the disputed amount.

Mandatory pre-litigation mediation. For commercial debt claims (as well as labour claims and rent disputes), Turkish law requires a mandatory mediation attempt before any court filing. The creditor applies to the mediation offices at the relevant court, identifying the dispute and the debt amount with supporting documents. A mediator is appointed to facilitate two rounds of negotiations. Only if mediation fails is the creditor entitled to file a lawsuit, after obtaining the final mediation report confirming no settlement was reached.

Provisional attachment (ihtiyati haciz). A creditor who fears the debtor will dissipate assets can request a provisional attachment order from the court. The creditor must post a security bond of 15% to 115% of the claim, depending on the court's assessment. The attachment must be executed within one week of the court decision; failure to do so causes automatic revocation.

If the debtor does not oppose the enforcement payment order, bank account funds can be attached and transferred within days of the payment order becoming final. This is the most efficient scenario.

If the debtor opposes, the entire process extends significantly. The lawsuit to annul the objection typically takes 12 to 36 months, depending on the complexity of evidence, court workload, and whether the debtor raises counterclaims or procedural defences.

Turkey's judicial system is generally considered slow. The Turkish Ministry of Justice publishes court performance statistics showing that commercial first-instance courts in major cities (Istanbul, Ankara, Izmir) handle large caseloads, which contribute to delays. This makes the pre-litigation enforcement track and amicable resolution the preferred strategies for foreign creditors.

Yes, but with significant formality requirements that foreign companies must plan for in advance.

Security bond requirement. Foreign creditors must generally deposit a security bond before initiating legal proceedings in Turkey, unless a reciprocity treaty between Turkey and the creditor's home country explicitly exempts them. EU countries have such agreements in some cases; legal advice should be sought to determine applicability.

Power of attorney. A power of attorney signed in the creditor's home country must be notarised, apostilled (or legalised at the Turkish consulate), and then translated into Turkish by a certified sworn translator (yeminli tercuman) and authenticated in Turkey before it can be used.

Document requirements. All documents submitted to Turkish courts must be in Turkish. Foreign-language documents require certified translation. Importantly, the invoice relied upon to prove the debt must appear in the creditor's own commercial accounting books. Claims exceeding TRY 33,000 (approximately EUR 850) must be substantiated by documentary evidence such as written contracts or bills of exchange; witness testimony alone is not sufficient.

Representation by a Turkish-qualified lawyer, while not always legally mandatory, is in practice indispensable for foreign creditors given procedural complexity, language requirements, and strict deadlines imposed by Turkish procedural law.

If the enforcement officer cannot locate attachable assets after a payment order becomes final, the proceedings are suspended but the enforceable title remains valid. Enforcement can be reopened at any time if assets are subsequently discovered.

Corporate insolvencies in Turkey have risen sharply: in 2024 there was a 20% increase in insolvencies compared to 2023, with nearly 15,000 companies ceasing operations in the first seven months of the year. Restructuring proceedings (similar to a court-supervised reorganisation) more than doubled in the first nine months of 2024, reaching over 1,200 cases. This trend underscores the importance of conducting pre-action due diligence on a Turkish debtor's financial position before investing in litigation.

In insolvency proceedings, creditors must file proofs of claim. Turkish bankruptcy is governed by the EBL, which provides for both liquidation (iflas) and court-supervised restructuring (konkordato). Ordinary creditors are frequently recovered at a fraction of their original claim in liquidation.

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Q: Does the mandatory mediation requirement apply to all commercial debt claims in Turkey?

A: Yes. Since 2019, mandatory pre-litigation mediation applies to all commercial disputes, including straightforward invoice debt claims between companies. Mediation is conducted through the mediation offices attached to Turkish commercial courts. Only after obtaining the final mediation failure report can a lawsuit be filed.

Q: Can a Turkish court judgment be enforced abroad?

A: Enforcing a Turkish judgment abroad depends on bilateral enforcement treaties. Turkey has such treaties with a limited number of countries. In the absence of a treaty, recognition of Turkish judgments abroad requires a separate recognition and enforcement procedure before local courts in the destination country, based on national private international law rules.

Q: What if the debtor pays only part of the amount during enforcement?

A: Partial payment does not terminate the enforcement proceedings. The creditor can continue to pursue the remaining balance through the enforcement office. The debtor's partial payment is credited against the debt and the enforcement officer continues to pursue the remainder. 

Q: Is a contract signed by a company employee (not the legal representative) enforceable in Turkey?

A: Generally no, or only if the employee had specific written authorisation (power of attorney) from the legal representative. Turkish courts typically consider contracts signed by unauthorised employees as invalid. Before entering commercial relationships in Turkey, it is therefore important to verify that contracts are signed by the company's authorised signatory, as shown in the Turkish Commercial Registry.

Q: Can a foreign arbitral award be enforced in Turkey?

A: Yes. Turkey is a signatory to the New York Convention (1958). Foreign arbitral awards can be enforced through a recognition and enforcement (tenfiz) procedure before Turkish courts. This requires filing an application with the competent Turkish court, translating the award into Turkish, and demonstrating compliance with formal requirements. The process typically takes 6 to 18 months.