Enforcement and Debt Collection Law

Enforcement and Debt Collection Law

Failing to collect your receivable on time is not merely a financial loss — it can become a serious legal problem that threatens your commercial relationships, cash flow, and plans. Waiting for a debt to be paid can sometimes lead to the receivable becoming entirely worthless; the debtor's assets may be eroding, being transferred, or passing to third parties over time.

As Keleş Law and Consultancy Office, we provide legal support at every stage of enforcement and debt collection law on behalf of individuals, companies, and foreign nationals — from identifying and recovering receivables to enforcement proceedings, from seizure to objection processes and insolvency actions.

Important Reminder: Limitation periods in debt claims and enforcement proceedings must be followed with great care. These periods vary depending on the type of receivable and, once elapsed, result in the permanent loss of the right. We recommend seeking legal assistance without delay to avoid missing deadlines in the collection of your receivables.

Our Services in Enforcement and Debt Collection Law

Non-executory enforcement proceedings, which can be initiated without a court judgment, are the most commonly used collection method for commercial receivables, rent arrears, invoice amounts, and monetary claims arising from contracts.

A payment order is sent to the debtor through the enforcement office. If the debtor does not raise an objection, the proceedings become final and the seizure stage begins. If an objection is raised, the routes of annulment of the objection or setting aside of the objection are pursued.

Our services:

1. Initiating non-executory enforcement proceedings and following up on service of the payment order
2. Investigating the debtor's assets through digital systems
3. Finalising proceedings and applying for seizure
4. Strategically determining the fastest enforcement route based on the type of receivable

Where a receivable is based on a negotiable instrument such as a cheque, promissory note, or bill of exchange, enforcement proceedings specific to negotiable instruments may be initiated upon the instrument's maturity going unmet. This route produces results far more quickly than non-executory enforcement proceedings and significantly restricts the debtor's right to object.

Our services:

1. Initiating negotiable instrument proceedings and following up on service of the payment order
2. Managing dishonoured cheque and protested promissory note processes
3. Refuting objections to negotiable instrument proceedings before the enforcement court
4. Simultaneous proceedings against all parties liable in the chain of endorsements

Where a final court judgment, arbitral award, or approved mediation agreement exists, executory enforcement proceedings may be initiated. Under this route, the debtor's right to object is very limited and the seizure process is completed far more quickly.

Our services:

1. Placing a judgment into enforcement and serving the enforcement order
2. Enforcing domestic and foreign court judgments
3. Enforcing arbitral awards and mediation agreements
4. Refuting objections to enforcement orders before the courts

When a debtor objects to non-executory enforcement proceedings, the proceedings are stayed. At this stage, the creditor has two options: applying to the enforcement court for the objection to be set aside, or bringing an action before the general courts for the objection to be annulled.

Since a one-year peremptory period runs from service of the objection, it is critically important that these actions are brought without delay.

Our services:

1. Bringing and pursuing annulment of objection and setting aside of objection actions
2. Claiming enforcement denial compensation against the debtor where the receivable is liquidated
3. Legally refuting the grounds of objection
4. Finalising proceedings and re-initiating the seizure process

Once proceedings have been finalised, the debtor's assets may be seized. A successful seizure process requires accurate identification of the debtor's assets, prioritising seizable assets, and conducting all steps without procedural defects.

Where a third party's property is seized during enforcement proceedings, the true owner of that property may protect their rights by bringing an opposition to seizure action. On the other hand, the creditor may also seize the debtor's receivables held by third parties (under an Article 89 notice pursuant to the Enforcement and Bankruptcy Law). In both cases, it is of great importance that the process is conducted in accordance with the law and that no statutory deadlines are missed.

Our services:

1. Investigating the debtor's movable and immovable assets through UYAP and relevant registries
2. Seizing bank accounts, salaries, vehicles, and real property
3. Seizing receivables held by third parties (Article 89 EBL notice)
4. Rescission of fraudulent asset transfers action against collusive asset-stripping transactions
5. Following up on valuation and sale of seized assets
6. Bringing and pursuing an opposition to seizure action where third-party property is seized during enforcement

Transfers, donations, and collusive sales made by the debtor with the intent of hiding assets from creditors may be set aside by way of a rescission action. While this action is an extremely powerful tool for protecting the creditor's rights, it requires serious technical knowledge and experience.

Our services:

1. Identifying transactions made by the debtor with intent to conceal assets
2. Bringing and pursuing a rescission of fraudulent asset transfers action
3. Recovering assets transferred to third parties
4. Formulating an evidence strategy to prove the allegation of collusion

A person against whom enforcement proceedings have been initiated may claim that they did not incur the debt in question or that the debt never arose. In such cases, an action for declaratory relief may be brought to establish that the debt does not exist.

Where it becomes apparent after payment that the payment was made without justification, a recovery action becomes relevant.

Our services:

1. Bringing a declaratory relief action against unjust enforcement proceedings
2. Recovery action for reimbursement of amounts paid without justification
3. Managing urgent processes together with applications for interim injunctions and provisional seizure

Before a case is filed or enforcement proceedings are initiated, a provisional seizure order may be requested from the court to secure the debtor's assets. Provisional seizure is the most effective interim legal measure to guarantee the collection of the receivable, especially where the debtor is at risk of concealing assets, transferring real property, or emptying bank accounts.

When a provisional seizure order is granted by the court, a legal freeze is placed on the debtor's assets before the case concludes or enforcement proceedings become final. This measure prevents the debtor's assets from being eroded and secures the collection process.

For a provisional seizure application to be accepted by the court, it must be shown, to an approximate degree of proof, that the receivable exists and that there is a risk of losing the right if action is delayed. For this reason, preparing the application with correct grounds and supporting documents directly affects the outcome.

Our services:

1. Preparing the provisional seizure application and following it up before the court
2. Determining the legal strategy in cases where a security deposit is required
3. Implementing the provisional seizure order and notifying the enforcement office
4. Defending against the debtor's objection to provisional seizure
5. Initiating the main action or enforcement proceedings following provisional seizure

We simultaneously handle both debt collection and eviction proceedings against tenants who do not pay rent or refuse to vacate. Determining the right strategy for the landlord is decisive both in terms of the speed of eviction and the collection of rental arrears.

Our services:

1. Initiating non-executory enforcement proceedings for rental arrears
2. Pursuing eviction through enforcement proceedings where rent has not been paid
3. Sending a notice to the tenant and managing contract termination processes
4. Following up on service and enforcement of the eviction order

Collecting companies' commercial receivables — covering invoice amounts, current account receivables, contractual compensation, and receivables arising from letters of guarantee — requires a systematic and swift approach. Since 2023, mediation has become mandatory before filing a lawsuit in commercial debt cases. For this reason, the debt collection process is now planned in two stages: mandatory mediation first, then litigation or enforcement proceedings if no agreement is reached. Our office also conducts mandatory mediation proceedings, managing the negotiation strategy and the subsequent enforcement process in an integrated manner. We provide comprehensive services to our corporate clients in bulk management, prioritisation, and follow-up of receivable portfolios.

Our services:

1. Collecting receivables arising from commercial contracts
2. Managing mandatory mediation proceedings and negotiation strategy
3. Initiating enforcement proceedings for invoice receivables
4. Identifying and collecting receivables in current account disputes
5. Encashing letters of guarantee
6. Bulk receivable portfolio management

Where the debtor has lost solvency, enforcement proceedings through bankruptcy or a bankruptcy action may be initiated. On the other hand, early-stage legal representation as a creditor in concordat proceedings is of great importance to securing your rights.

Our services:

1. Initiating bankruptcy enforcement proceedings against the debtor and requesting a declaration of bankruptcy
2. Representing creditors in concordat proceedings
3. Registering and following up the receivable claim with the bankruptcy estate
4. Correspondence with the bankruptcy administration and determination of the ranking of the receivable

Foreign nationals or foreign companies that are creditors in Turkey may pursue their receivables under Turkish enforcement law. Similarly, it is also possible for court judgments obtained abroad to be recognised and enforced in Turkey. For more detailed information on debt collection procedures in Turkey and the legal rights of foreigners, you can review our article on debt collection and legal processes for foreigners in Turkey.

Our office conducts these proceedings in Turkish, English, Arabic, Russian, and Persian.

Our services:

1. Initiating enforcement proceedings in Turkey on behalf of foreign national clients
2. Recognition and enforcement of foreign court judgments in Turkey
3. Debt collection in international commercial disputes
4. Receivable portfolio management for foreign-invested companies

Debtor's Rights in Enforcement Proceedings

Enforcement and debt collection law is relevant not only to creditors but also to debtors. Enforcement proceedings initiated unlawfully or in breach of procedure may be stopped by way of objection and cancellation.

Principal rights you have as a debtor:

1. Right to object within 7 days of service of the payment order in non-executory proceedings
2. Right to object on grounds of signature and debt within 5 days of service of the payment order in negotiable instrument proceedings
3. Right to object to defective service
4. Right to protection of exempt assets (a home appropriate to one's circumstances, a portion of pension income, etc.)
5. Route of complaint against seizure actions
6. Option of payment undertaking and instalment arrangement

If unjust or procedurally defective enforcement proceedings have been initiated against you, we recommend seeking legal assistance immediately.

How Does the Debt Collection Process Work?

1. Assessment of the receivable and documents The type, basis, and available documents of the receivable are examined; the fastest and safest collection route is determined.

2. Notice and negotiation A formal notice is sent demanding payment of the debt. Reaching an agreement at this stage is the most efficient course in terms of time and cost.

3. Mediation (mandatory in commercial debt cases) Mediation is mandatory before filing a lawsuit in commercial debt cases. If no agreement is reached in mediation, litigation or enforcement proceedings are initiated.

4. Provisional seizure (where necessary) If the debtor poses a risk of concealing assets, a provisional seizure order is obtained before proceedings begin to secure the assets.

5. Initiating enforcement proceedings If payment is not made, an application is submitted to the enforcement office, proceedings are initiated, and a payment order is served on the debtor.

6. Objection stage If the debtor raises an objection, the route of annulment or setting aside of the objection is pursued.

7. Seizure and asset investigation Once proceedings are finalised, the debtor's assets are investigated and seizable assets are taken into custody.

8. Sale and collection Seized assets are put up for sale, and the proceeds are paid to the creditor.

Frequently Asked Questions

Do I need a court judgment to collect my receivable? No. Non-executory enforcement proceedings may be initiated by applying directly to the enforcement office without a court judgment. A court judgment may only be required in an annulment of objection action if the debtor raises an objection.

What happens if the debtor objects? Where an objection is raised, proceedings are stayed. An action for annulment or setting aside of the objection must be brought within the one-year peremptory period running from service of the objection. If this period is missed, the right to bring an action is lost.

What can I do if the debtor has no assets or is hiding them? The debtor's assets can be queried through UYAP and relevant registries. If there is a suspicion of asset concealment, a rescission of fraudulent asset transfers action may be brought to set aside the transfers. A provisional seizure order may be obtained before proceedings begin to freeze the debtor's assets.

What is provisional seizure and when is it used? Provisional seizure is an interim legal measure requested from the court to secure the debtor's assets before a case is filed or enforcement proceedings begin. It may be applied for in any situation where the debtor is at risk of concealing, transferring, or emptying their assets.

Is mediation mandatory before filing a lawsuit for a commercial debt? Yes. Since 2023, mediation has been mandatory before filing a lawsuit in commercial debt cases. If no agreement is reached in mediation, a lawsuit may be filed. However, mediation is not mandatory in order to initiate enforcement proceedings directly.

Why should I prefer negotiable instrument enforcement proceedings? For receivables based on a cheque, promissory note, or bill of exchange, negotiable instrument enforcement proceedings produce results far more quickly. The debtor's right to object is extremely limited, meaning the seizure stage is reached much more quickly.

How long does it take to initiate enforcement proceedings? After the application to the enforcement office, the payment order is sent out to the debtor within a few days. The total duration of the process varies depending on the debtor's conduct, whether assets can be identified, and the type of proceedings.

Unlawful enforcement proceedings have been initiated against me — what should I do? An objection must be raised within 7 days of service of the payment order in non-executory proceedings and within 5 days in negotiable instrument proceedings. These periods are peremptory; once missed, the proceedings become final. We recommend seeking legal assistance immediately.

Can a court judgment obtained in a foreign country be enforced in Turkey? Yes. A recognition and enforcement action must be brought before the Turkish courts for foreign court judgments to be recognised and enforced in Turkey. Once this action is concluded, the judgment may be placed into enforcement in Turkey.

Can rent arrears and eviction be pursued simultaneously? Yes. Non-executory enforcement proceedings for rent arrears and an eviction action through enforcement proceedings may be conducted simultaneously.

Why Keleş Law and Consultancy Office?

Debt collection is a dynamic process that requires correct timing, an effective strategy, and the swift identification of the debtor's assets in order to seize them. Every day of delay increases the risk of the debtor eroding or transferring their assets.

1. Experience across a wide range of matters, from individuals to large-scale corporate receivables
2. Fast investigation of the debtor's assets through digital systems
3. Determining the most advantageous enforcement route based on the type of receivable and available documentation
4. Effective representation in provisional seizure, annulment of objection, rescission of fraudulent asset transfers, and declaratory relief actions
5. Management of mandatory mediation proceedings and integrated planning of litigation strategy
6. Ability to work with foreign national clients in Turkish, English, Arabic, Russian, and Persian
7. Meticulous monitoring of limitation and peremptory periods
8. Specialised expertise in rent collection, commercial debt, and international recovery proceedings

Our office serves clients from Ankara, Istanbul, and Antalya, with the aim of collecting our clients' receivables in the shortest possible time and with minimum loss.

Appointment and Contact

Contact us today for the collection of your receivable or to object to enforcement proceedings initiated against you. We recommend seeking advice without delay, bearing in mind limitation and objection periods.

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