Debt Collection / Debt Recovery

Debt Collection in Turkey for Businesses and Individuals

Unpaid invoices and outstanding debts often place a significant financial burden on businesses and individuals. They tie up liquidity, increase administrative workload, and may strain business relationships. We therefore represent creditors in the enforcement of claims against debtors in Turkey – both out of court and through enforcement and court proceedings.

The approach is determined by the nature of the claim, the debtor’s situation and the available evidence, and the procedure follows the steps below.

The Debt Collection Process – Step by Step

1. Written Payment Reminder (Dunning Letter)

Before initiating legal action, we send the debtor a written payment reminder. This letter sets a clear payment deadline and warns of potential legal action if payment is not made.

2. Telephone Contact

If the debtor does not respond to the written reminder in a timely manner, we establish direct telephone contact. The aim is to reach a payment agreement and avoid unnecessary legal proceedings.

3. Payment Plans and Settlement Agreements

If the debtor is willing to settle the claim but is unable to make full payment at once, or if a settlement is required, we assist in drafting payment plans and settlement agreements to ensure structured debt repayment.

4. Initiation of Enforcement Proceedings

If out-of-court communication fails, we apply to the competent enforcement office (İcra Dairesi) for a payment order.. This is an official demand for payment, giving the debtor one last opportunity to settle the claim.

If the debtor objects to the payment order, judicial clarification is required. In this case, a lawsuit must be filed to overturn the objection. Our team handles the entire litigation process and represents your interests in court to obtain a legally binding judgment and an enforceable title. If the debtor does not object within the statutory period, the proceedings become final and attachment can be initiated directly; if the debtor objects, attachment can only follow once the objection has been lifted or annulled.

5. Enforcement Measures

If the debtor still does not pay once the proceedings have become final, we implement effective enforcement measures, including:

• Attachment of wage and salary
• Attachment of bank accounts
• Registration of a security mortgage
• Seizure of movable property

Our aim is to enforce your justified claims vigorously, making full use of all available legal options.

International Debt Collection – Cross-Border Recovery of Claims

Debt collection can be particularly challenging in cross-border cases, as different legal frameworks, language barriers and cultural differences must be considered. For claims against debtors abroad, we provide support in coordination with the country offices of the Schindhelm Alliance and local colleagues.

This also includes the recognition and enforcement of foreign court judgments in Turkey.

Focus Areas in Debt Collection and Receivables Management

• Out-of-Court Debt Collection
• Written Payment Demands & Dunning Letters
• Customized Payment Plans & Settlement Negotiations
• Legal Dunning Procedure
• Prejudgment Attachment
• Mediation
• Action for Annulment of Objection / Action for Debt Collection
• Execution & Enforcement Measures
• International Debt Collection
• Consulting on Debt Management & Risk Minimization

Detailed information on this area can be found in the Expertise articles Recognition of Foreign Judgments in Turkey and The Position of Creditors in Court-Approved Debt Restructuring Proceedings.

Articles on legal issues in this area can be found on the Automotive and Machinery sector page.