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Debt collection Turkey: we recover your unpaid invoices
Do you have an outstanding claim in Turkey and have you almost given up hope that it will ever be paid? Then it is past time to engage an expert in Turkish debt collection.
Collection Company works with the best lawyers, attorneys, and bailiffs in Turkey for the debt collection procedure in Turkey. This way we make sure that you get what you are entitled to.
- Nationwide coverage in Turkey
- One dedicated English speaking contact
- Proven track record
- Tailor-made services for each case
- Expert advice and a transparent process
- 24/7 online access
Specialized in debt collection in Turkey
In Turkey, different business traditions apply, different legislation is in place, and a different language is spoken. This naturally poses challenges when dealing with non-paying clients. How can you recover your money? What are your rights?
Collection Company specializes in international debt collection. We work with an extensive network of local lawyers and bailiffs that assist us in collecting your money if your debtor does not pay voluntarily.
During the debt collection process, you will have one dedicated English speaking contact, so you don’t have to keep in touch with the various involved local parties yourself. You will be able to monitor the progress of the debt collection continuously through our Online Cockpit.
Submit your debt collection case
Do you have outstanding debts in Turkey? Please submit your contact information and one of our specialists will get in touch with you as soon as possible to discuss your case.
Why Collection Company for your debt collection in Turkey?
- Global coverage
- One dedicated English speaking contact
- Experienced debt collection specialists with knowledge of Turkish legislation
- Broad network with local lawyers and bailiffs
- Seamless connection from extrajudicial to judicial action
- Effective local approach
- 24/7 tracking through your own Online Cockpit
How does debt collection in Turkey work?
Like in most other countries the first step in the Turkish debt collection procedure is usually an extrajudicial or amicable collection, where we send payment reminders and contact your debtor.
If that doesn’t have the desired effect, we can initiate legal proceedings. The legal process for debt recovery deviates significantly from what you are accustomed to in many European countries. While in most countries we would have to go to court in such cases, in Turkey, we can file an action of debt with a bailiff first.
Below, we explain how both the amicable and judicial collection works in Turkey.
- Upload your invoice online
- We'll start your case
- We'll start with the debt collection process
- Together we decide the best strategy for collecting your debts
- Monitor the status of your case 24/7
- Any questions? Your personal accountmanager will answer them all!
- Your invoice is payed
Amicable debt collection in Turkey
Amicable or judicial debt collection is the process in which we try to collect your claim out of court. This procedure involves sending payment reminders (in our name) and contacting your debtor by phone and SMS. We inform your debtor that they are in default due to the late payment.
We make 16 contacts over a period of three weeks with your debtor, gradually increasing the pressure. Ultimately, we will inform them that legal action will be taken if the invoice is not paid within the specified time frame.
The advantage of the amicable process is that it does not immediately damage the relationship with your customer. If your debtor simply forgot to pay the invoice, they have the opportunity to settle it without immediately being taken to court.
Based on our experience, most debtors decide to pay after an extrajudicial collection process. Therefore, this is the most efficient way to collect your outstanding claim.
Judicial proceedings in Turkey
But what if your debtor refuses to pay? Then there is no choice but to file a lawsuit. What this process looks like in Turkey depends on whether your debtor disputes the claim. Do they question the legitimacy of the debt or do they simply not respond?
Undisputed claims
If your debtor does not contest the invoice but simply does not pay without responding, this is considered an undisputed claim. In that case a fast track payment order procedure can be filed with an official bailiff. This process is called ilamsız icra takibi (execution without judgment) in Turkish.
The debtor will be informed of our request for a payment order and will then have 7 days to pay the outstanding amount or file an objection.
If the objection is not filed in time (and if the debt is not paid voluntarily), the bailiff can immediately seize your debtor’s assets (including bank accounts) to repay the debt to you as the claimant.
Mandatory mediation
If the debtor disputes the claim, since January 1, 2019, mandatory mediation applies. We must request this process at one of the mediation agencies designated by the Ministry of Justice. The mediation agency will assign a mediator who will attempt to bring both parties closer together.
If the parties reach an agreement, the agreement will be officially recorded. The mediation agreement is enforceable in the same manner as a court judgment (if your debtor still does not pay after the mediation agreement, a bailiff can seize assets).
If mandatory mediation does not provide a solution, the mediator will state this in his report. Subsequently, a judicial procedure can be initiated for the case.
Disputed claims
To initiate a judicial procedure (ilamlı icra takibi), we need to file the case with the court of first instance and notify your debtor accordingly. Your debtor then has two weeks to submit their defense.
Typically, contracts, terms of sale, and invoices are submitted to the court. If these were originally drafted in a language other than Turkish, they must be translated into Turkish (by a certified translator) and notarized.
Both the claimant and defendant can provide evidence, and a hearing will follow, where both parties can substantiate their views. The judge will make a decision based on this.
Turkey debt collection: enforcement proceedings
Once an order for payment, a judgment from the court, or a mediation agreement is reached, the decision or agreement becomes enforceable. This means that a bailiff can enforce payment if the debtor does not pay voluntarily.
The judgment from the court is immediately enforceable, even if your debtor appeals against the court’s decision. Your debtor can ask the court to suspend the enforcement order while the appeal is pending, but in doing so, they will have to deposit a guarantee equal to the amount owed plus 90 days’ interest.
A bailiff can seize assets belonging to your debtor. The most common form of seizure is an attachment on income or bank accounts, but it is also possible to seize real estate or other property. The seized assets are then sold in a public auction, and you, as the creditor, will be paid from the proceeds.
Interim measures
Civil law in Turkey provides the opportunity to impose interim attachment on the assets of your debtor. Interim attachment is intended to secure these assets so that they cannot disappear during the legal proceedings. The request for this temporary attachment can be made at the beginning of the judicial procedure.
Once the court grants the request for an interim attachment, the attachment must be in place within a week. In the application, we must convince the court of the necessity of these protective measures.
As a result, most debtors will pay the outstanding debt to get rid of the attachment.
Bankruptcy of your debtor
If your debtor has not paid the outstanding debt within 7 days after the issuance of a payment order, you can apply for the bankruptcy of your debtor. This must be done at the civil court in the district where the payment order procedure was initiated.
If the court declares your debtor bankrupt, a Bankruptcy Office (Iflas Ofisi) coordinates the settlement of the bankruptcy. The Bankruptcy Office may, among other things, sell assets of the bankrupt to pay the creditors. However, the assets to be sold must represent a certain value before the Bankruptcy Office is allowed to sell them.
More information?
Submit your contact details and one of our debt collection specialists will contact you immediately!
Legal areas of debt collection in Turkey
Do you have a claim in Turkey? At Collection Company we collect unpaid invoices, damage claims, rental arrears, overdue salaries, or claims related to purchase or sale. We specialize in claims within the following legal areas:
- Construction law
- Rental and leasing
- Buying and selling
- Labor law
- Agency agreement
- Transport
- Damages and wrongful acts
In addition, we not only provide debt collection services directly to creditors, but also to intermediaries such as lawyers and accountants.
Anything else we can help you with in Turkey?
- Reliable advice on contracts and terms
- Credit information on companies in Turkey
- Disputes regarding retention of title and right of reclamation
- Mediation in reaching private agreements and settlements
File your claim immediately
Submit your claim directly to us via the debt collection registration form. Would you prefer to first consult with one of our debt collection specialists? Leave your details or call us at 070 – 762 0330.
Free advice on debt collection in Turkey
Submit your contact details and one of our debt collection specialists will contact you immediately!
FAQ: Frequently Asked Questions about debt collection Turkey
FAQ: What do we need for debt collection in Turkey?
Do you have an outstanding claim in Turkey and are you wondering what we need to collect the debt? We kindly request as many documents as possible relating to the agreement. This may include contracts, invoices, and email correspondence.
Are any of these documents missing? No problem. You can discuss with our international debt collection specialist which documents (or other types of evidence) you have to support your claim.
To recover the debt, we kindly request (copies of) the following documents:
- Contracts or agreements, emails discussing the arrangements, a fax confirmation, etc.
- A summary of the made agreements
- Invoices
- Reminders
- Terms and conditions
- Proof of delivery
FAQ: Is a retention of title valid in Turkey?
It is possible to agree on a retention of title in Turkey. A retention of title is an additional condition in the purchase agreement, where ownership only transfers to the recipient upon fulfillment of an additional condition (usually payment of the agreed amount).
The retention of title must be recorded by a notary in Turkey in the location where your customer is established to be legally valid. If your customer goes bankrupt before paying, you can easily retrieve your delivered goods with a retention of title
FAQ: When should I submit my claim at the latest?
Generally speaking, you must file your claim within 10 years (with a bailiff’s office or the court). If you do not do so within that period, your claim will expire. However, some claims have a shorter limitation period (in some cases, the statute of limitations is only 2 years). The time spent on the mandatory mediation process is not included.
FAQ: Why use Collection Company for debt recovery in Turkey?
The advantage of collaborating with an international debt collection specialist like Collection Company is that you don’t have to search for reliable local collection agencies, bailiffs, and a Turkish law firm yourself. We have an extensive network of local experts that we can deploy for your case.
In addition, you will communicate with one dedicated English speaking contact person, so you don’t have to worry about a language barrier and cultural obstacles to recover your debt.
Why 40.000 customers have gone before you
- The #1 collection company in the Netherlands and abroad
- Regional & local specialists
- Years of experience with international invoices
- Your own personal contact
- Extensive advice on the legal process
- Monitor the status of your case 24/7
Meet our specialized legal team
Joost Konings LLMLaw expert- May Leung LLMLaw expert
- Wesley Boeters LLMInterim lawyer
