Foreign individuals or legal entities who do not hold Turkish citizenship can enter into debt relationships as a result of their business and transactions in Turkey. In this case, questions such as “How can I collect my debt in Turkey?”, “How can foreigners collect their debts in Turkey?”, and “Can individuals without Turkish citizenship collect their debts in Turkey?” arise. In this article, prepared by our expert team in international law and enforcement and bankruptcy law, we will try to answer these questions.
Foreign nationals and foreign-origin companies who are unable to collect their debts can collect them in accordance with the Turkish legal framework through enforcement or legal action.
Debt Collection of Foreign Nationals Through Enforcement Proceedings
In Turkey, enforcement proceedings are divided into two main categories: proceedings based on a court judgment (ilamlı takip) and proceedings without a court judgment (ilamsız takip).
Enforcement Based on a Court Judgment: The basis of enforcement based on a court judgment may include court rulings, admissions made in the presence of the court, amicable settlements, documents containing unconditional acknowledgment of money debt executed by notaries, enforcement guarantees, appeals guarantees, decisions by consumer arbitration boards for amounts not exceeding certain limits, credit promissory notes issued by agricultural credit cooperatives, settlement minutes prepared according to Article 35/A of the Attorneyship Law, and settlement minutes prepared by mediators. These documents are deemed as judgments and are subject to enforcement.
Procedure for Enforcement Based on a Court Judgment: As a general rule, it is not required for court judgments to become final in order to initiate enforcement proceedings. Exceptions to this rule include decisions concerning real estate, family and personal law, recognition and enforcement of foreign judgments, declaratory and restitution claims, decisions related to ships regardless of their flag and registry, and decisions by the Court of Accounts. These decisions cannot be subject to enforcement proceedings until they become final. Upon the enforcement request, the appropriate enforcement office will prepare a payment order and notify the debtor. The enforcement will become final after a 7-day period from the notification. During this period, no objection to the debt can be raised; only an objection based on inconsistency with the judgment or claims of prescription and payment can be made. If a decision can be enforced before it becomes final, the debtor may deposit a guarantee to delay the enforcement until the decision becomes final. Otherwise, enforcement measures will begin once the decision becomes final. These measures may include garnishment of the debtor’s bank accounts, receivables from third parties, movable and immovable properties, and in principle, 1/4 of the debtor’s salary.
Enforcement Without a Court Judgment: Enforcement without a court judgment includes general enforcement, enforcement based on commercial paper (bonds, promissory notes), eviction of leased real estate, and enforcement through the sale of pledged property.
- General Enforcement: This method is applied only for money and collateral debts, where the debt is not secured by a pledge. A creditor whose debt is secured by a pledge generally cannot initiate general enforcement, unless the pledged amount is insufficient to cover the debt. Precious metals like gold or silver are considered valuable property, and enforcement should follow the procedure for judgment-based enforcement.
- Enforcement Based on Commercial Paper (Bills of Exchange, Promissory Notes): In this method, the underlying instrument is a bill, check, or promissory note. The original bill or promissory note, or a copy of the check, must be submitted to the enforcement office. The procedure follows the general enforcement method, and after the payment order is issued, the debtor has 5 days to object at the enforcement court. If no objection is made within this period, enforcement proceeds, and garnishment measures will be applied.
- Eviction of Leased Real Estate: If a lessor is unable to receive the rental payments, they may request the eviction of the tenant along with the payment of the due rent. The creditor (lessor) must have a valid lease agreement. If the debtor does not object to the payment order and does not pay the rent within the prescribed period, the enforcement becomes final, and the creditor may request the garnishment of the tenant’s belongings and eviction. The landlord must apply for eviction within one month after the lease term expires, or within the time stipulated in a written eviction agreement.
- Enforcement Through the Sale of Pledged Property: If the debt is secured by a pledge, the enforcement office will issue a payment order indicating the sale of the pledged property if the debt is not paid within the designated period. The debtor has 7 days to object, and if no objection is raised, the pledge is considered valid, and the pledged property will be sold.
Why Us?
The collection of foreign nationals’ debts in Turkey is a sensitive matter that requires detailed legal knowledge and various legal procedures. As Güneş & Güneş Law Office, we provide comprehensive support to our clients in the collection of debts arising from international commercial relations, with our team of experts in international law and enforcement and bankruptcy law. We strive to protect our clients’ rights and interests in the most effective way possible.
Foreign nationals have several legal routes available to collect their debts in Turkey, including enforcement proceedings, filing lawsuits, and precautionary garnishment. Following the correct legal procedures in Turkey will accelerate and increase the effectiveness of the collection process. In addition to Turkish legal procedures, adherence to international law norms is crucial for the protection of foreign investors’ rights and for identifying potential risks in the collection process.
Güneş & Güneş Law Office, with 25 years of experience and a team of proficient lawyers speaking Russian, German, English, and Turkish, offers clients seamless support in managing the debt collection process. Our expert team closely follows every stage of the process, providing strategic solutions in both debt collection procedures and lawsuits, ensuring professional representation throughout. With in-depth knowledge of the Turkish legal system, we effectively manage the collection of foreign clients’ debts in a swift and efficient manner.
