Debt Recovery from Turkish Companies

A foreign creditor can pursue an unpaid commercial debt in Turkey through negotiation, formal notice, enforcement proceedings, litigation, provisional attachment or settlement, depending on the documents, maturity of the debt, dispute level and available Turkish assets.

The practical question is not only whether the debt exists. It is whether the debt can be proved, whether the debtor is in Turkey, whether the correct procedure is available, whether interim protection is needed, and whether enforcement is commercially realistic.

Günser + Partners assists foreign creditors in assessing and pursuing receivables connected with Turkish companies, Turkish debtors, Turkish assets or Turkish court and enforcement procedures.

This service may include:

• Reviewing contracts, invoices, purchase orders, delivery documents and correspondence
• Assessing whether the claim is suitable for direct enforcement, litigation, arbitration or settlement
• Sending legal notices and negotiating payment
• Initiating Turkish enforcement proceedings where appropriate
• Responding to debtor objections
• Filing commercial lawsuits where the debt is disputed
• Seeking provisional attachment where the legal requirements are met
• Coordinating recognition or enforcement if the creditor already holds a foreign judgment or arbitral award
• Reporting the practical risks, likely stages and document requirements to foreign counsel or company decision-makers

The service is designed for foreign companies and individuals who are owed money by a Turkish counterparty or who need to enforce a commercial claim against assets in Turkey.

Debt recovery in Turkey is not a single procedure. It is a set of legal routes used to convert a receivable into payment or enforceable pressure.

A claim may be based on a contract, invoice, delivery of goods, service agreement, loan, settlement, judgment, arbitral award or another legal basis. The appropriate route depends on whether the debt is documented, due, disputed, secured, time-barred, subject to arbitration or already confirmed by a court or tribunal.

A creditor may sometimes start enforcement proceedings without first obtaining a Turkish court judgment. However, if the debtor objects, the creditor may need to take further court action to remove or overcome that objection. Where the claim is complex or heavily disputed, a lawsuit or arbitration may be the proper route from the start.

Debt recovery may involve several areas of Turkish law:

• The Turkish Enforcement and Bankruptcy Code for enforcement proceedings, objections, attachment and collection steps
• The Turkish Code of Obligations for contractual receivables, default, interest and limitation issues
• The Turkish Commercial Code for commercial transactions, companies, commercial books and negotiable instruments
• The Turkish Code of Civil Procedure for lawsuits, interim measures, evidence and jurisdiction
• Law No. 5718 on Private International and Procedural Law where a foreign judgment, foreign party, foreign law clause or cross-border element is involved
• The New York Convention and Turkish arbitration legislation where a foreign arbitral award is involved

The legal basis must be identified before action is taken. Filing the wrong type of proceeding can waste time, increase cost and give the debtor an avoidable procedural defence.

In practice, Turkish debt recovery is document-heavy. Courts and enforcement offices focus on the legal basis of the claim, proof of maturity, proper notification, debtor objections, authority of representatives and whether the requested enforcement step matches the underlying document.

A creditor should not assume that a foreign invoice or contract will automatically lead to collection in Turkey. The creditor may need to prove delivery, acceptance, payment due date, interest, authority of signatories, applicable law, jurisdiction, arbitration arrangements and the debtor’s identity.

A judgment or enforcement order is not the same as actual recovery. Collection depends on the debtor’s assets, bank accounts, receivables, movable or immovable property, conduct of the debtor and the legal steps taken after attachment.

The main practical debate in commercial debt recovery is whether the creditor should move quickly through enforcement pressure or first build the evidential foundation through litigation, settlement negotiation or interim protection.

Speed matters, especially where the debtor may dissipate assets. But speed without proper documents may create a weak file. Conversely, an overly slow approach may allow the debtor to transfer assets or use procedural delays.

Another recurring issue is the use of foreign-law contracts. A contract may choose foreign law or foreign courts, but enforcement against Turkish assets may still require Turkish procedural steps. The foreign-law clause must therefore be read together with the dispute resolution clause and the practical enforcement target.

Before choosing a debt recovery route, the following points should be reviewed:

• Who is the legal debtor?
• Is the debtor a Turkish company, branch, shareholder, guarantor or individual?
• Is the debt due and payable?
• Is there a written contract, invoice, delivery note, account statement or acknowledgment?
• Is there an arbitration clause or foreign court jurisdiction clause?
• Has the debtor objected to the goods, services, amount or payment date?
• Are there known Turkish assets?
• Is the claim secured by a guarantee, pledge, mortgage or negotiable instrument?
• Has the limitation period expired or is it close to expiry?
• Is immediate interim protection necessary?

A debt recovery file should not be assessed only by the invoice amount. The enforceability of the claim and the collectability of the debtor are separate issues.

Time limits depend on the legal basis of the claim, the document type and the procedure selected.

Some receivable claims are subject to limitation periods under the Turkish Code of Obligations or the Turkish Commercial Code. Enforcement proceedings also create procedural deadlines, including short periods for debtor objections and creditor responses. If a payment order, court notice or objection has already been served, the exact notification date becomes critical.

Foreign creditors often lose time because they try to negotiate informally while procedural time limits are running. Once a Turkish notice, payment order or court document has been served, the deadline must be checked immediately.

The competent authority depends on the route selected.

Debt enforcement proceedings are handled through Turkish enforcement offices. Disputed commercial claims may fall before commercial courts, civil courts or other competent courts depending on the nature of the claim and the parties. Some commercial disputes may require mandatory mediation before filing a lawsuit.

If the creditor already holds a foreign judgment, recognition or enforcement proceedings may be needed before execution in Turkey. If the creditor holds a foreign arbitral award, enforcement may require proceedings under the New York Convention and Turkish law.

Jurisdiction clauses, arbitration clauses and debtor domicile must be reviewed before filing.

The claimant generally bears the burden of proving the receivable, its maturity and the debtor’s obligation to pay.

Useful evidence may include:

• Signed contracts
• Purchase orders
• Invoices
• Delivery records
• Bills of lading or transport documents
• Customs documents
• Payment records
• Account statements
• Email and messaging correspondence
• Acknowledgments of debt
• Settlement discussions
• Commercial books and records
• Security documents
• Prior judgments or arbitral awards

Foreign documents may require apostille, legalisation, notarisation or sworn translation depending on their origin and intended use. Failure to prepare documents properly can delay the case or weaken the claim.

The first practical question is whether the debtor can pay. A strong legal claim against an empty debtor may produce a judgment but not actual recovery.

The second question is whether urgent action is needed. If the debtor is transferring assets, delaying delivery, closing operations or avoiding contact, interim or enforcement measures may be more important than extended correspondence.

The third question is whether the dispute is genuinely legal or primarily commercial. Some debts are resolved faster through structured settlement if the creditor has a strong file and the debtor has a reason to avoid proceedings.

Günser + Partners reviews the documents and procedural position before recommending whether to send a notice, negotiate, file enforcement proceedings, commence litigation, seek provisional attachment or use another route.

Common mistakes include:

• Starting proceedings against the wrong legal entity
• Relying only on invoices without proof of delivery or acceptance
• Ignoring arbitration or jurisdiction clauses
• Assuming a foreign judgment can be directly enforced without Turkish proceedings
• Waiting too long while informal negotiations continue
• Failing to preserve evidence of default and correspondence
• Claiming interest without checking the contractual and legal basis
• Sending incomplete foreign documents without apostille or translation
• Treating a judgment as if it automatically means collection
• Filing before assessing whether the debtor has assets in Turkey

Debt recovery in Turkey should be treated as a collection project, not only as a legal claim. The creditor needs to know whether the claim is provable, whether the debtor is reachable, which forum is available, whether interim protection is possible and whether the cost of action is proportionate.

In many cases, the strongest first step is not immediately filing a lawsuit but building a clean evidential file, identifying the correct debtor, checking the dispute resolution clause and determining whether the debtor has attachable assets in Turkey.