How to Collect a Debt in Turkey: A Practical Guide for Foreign Exporters

Doing business in Turkey offers significant opportunities — a large domestic market, strategic location, and growing demand for imported goods. However, like in any jurisdiction, commercial transactions sometimes result in unpaid invoices. Understanding how debt collection in Turkey works is crucial, especially for foreign exporters seeking to recover money from Turkish buyers.

1. Understanding the Legal Framework

Debt collection in Turkey is primarily regulated by the Enforcement and Bankruptcy Law No. 2004. The process can be divided into two main stages: amicable (out-of-court) collection and judicial (court) proceedings. While the Turkish system provides efficient legal remedies, the first step is always to attempt an amicable resolution, as litigation can be time-consuming and costly.

Foreign creditors should note that Turkish courts generally require all documents (contracts, invoices, correspondence) to be translated into Turkish by a certified translator before submission. Having a properly drafted contract governed by Turkish law or containing a clear dispute resolution clause will significantly simplify future enforcement.

2. The Amicable Collection Phase

Before starting legal action, creditors are strongly advised to pursue amicable debt collection in Turkey. This typically involves:

• Sending a formal demand letter in Turkish, specifying the outstanding amount, due date, interest, and a short payment deadline (usually 7–10 days).
• Engaging a local debt collection agency or Turkish lawyer to negotiate payment. Turkish buyers often respond faster when approached by a domestic professional familiar with the system.
• Considering payment arrangements or settlements to maintain the commercial relationship if future cooperation is expected.

An amicable approach often succeeds in Turkey, as business reputation and ongoing relationships are highly valued.

3. The Legal (Judicial) Collection Phase

If amicable efforts fail, the creditor can initiate formal enforcement proceedings through the local Enforcement Office (İcra Dairesi). There are two primary procedures:

1. General enforcement proceedings (ilamsız icra): Used when the debt is based on commercial documents such as invoices or contracts. The debtor has seven days to object. If they do not, the enforcement becomes final.
2. Enforcement with judgment (ilamlı icra): Used when the creditor already holds a court judgment or arbitral award.

If the debtor objects to the claim, the creditor must file a lawsuit before the Commercial Court of First Instance to lift the objection. The court process can take several months to a few years depending on the complexity and workload of the court.

4. Enforcement of Foreign Judgments and Arbitral Awards

Foreign exporters who already possess a judgment or arbitral award from their home country must apply for recognition and enforcement in Turkey under the Private International Law and Civil Procedure Act No. 5718. Turkish courts will examine whether there is reciprocity between Turkey and the foreign country, and whether the judgment respects due process and public policy.

Once recognized, the foreign decision has the same force as a Turkish judgment and can be executed through the Enforcement Office.

5. Practical Recommendations for Foreign Exporters

To increase the chances of successful debt collection in Turkey, foreign companies should:

• Include clear payment and jurisdiction clauses in contracts, ideally specifying Turkish courts or international arbitration.
• Maintain detailed documentation, including signed purchase orders, delivery notes, and correspondence confirming the debt.
• Work with a local lawyer who understands both Turkish commercial practices and international trade law.
• Act quickly: delay can make recovery harder, as debtors may transfer assets or close operations.
• Consider professional debt collection services in Turkey that specialize in cross-border claims.

6. Conclusion

While recovering unpaid debts abroad can seem complex, debt collection in Turkey is supported by a well-structured legal system and professional enforcement agencies. The key to success lies in timely action, thorough documentation, and collaboration with experienced local counsel. For foreign exporters, understanding these procedures and integrating preventive measures into contracts can greatly reduce financial risk and improve recovery prospects when dealing with Turkish buyers.

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