Execution Proceedings in Turkey

Execution Proceedings in Turkey

Execution proceedings are regulated under the Enforcement and Bankruptcy Law No 2004 in Turkey. When a creditor’s receivable is not paid by the debtor, creditors may initiate execution proceedings in Turkish execution offices.

Execution proceedings in Turkey can be examined under three categories which are proceeding with judgement, proceeding without judgement and foreclosure proceedings.

Proceeding with Judgement

For the creditor to initiate proceedings with judgement, there must be a court decision in favor of the creditor. With this decision, the creditor can apply to the execution office directly and the office can send an enforcement order to the debtor. The difference between proceedings with judgement and proceedings without judgement is that the debtor’s objection to the payment order will not suspend the execution proceedings right away. If the debtor wishes to suspend the proceedings, the debtor must submit a collateral or a letter of bank guarantee to the execution office.

Proceeding without Judgement

The creditor can initiate proceedings for the unpaid debt by submitting a request to an execution office depending on the jurisdiction to be applied to the dispute. Upon the creditor’s request, the competent execution office will send a payment order to the debtor. The debtor has seven days as of receiving the payment order to submit his or her objection. Following the debtor’s objection made in due time, the execution procedure is suspended ipso jure. In this situation, the creditor must file a case for the cancellation of the objection within one year. Additionally, if the creditor has certain documents listed in Article 68 of the Enforcement and Bankruptcy Law, the creditor can apply to the execution courts for the lifting of the debtor’s objection within six months.

Proceedings of Foreclosure

If a debt is secured by a pledge, the creditor may request the foreclosure of such pledges from the execution office. If the subject pledged property belongs to a third party, the execution proceedings are started on both the debtor and the owner. In case the debtor does not object to the execution order within seven days and is unable to pay, the pledge will be sold and the debt will be collected from the sale amount.

In conclusion, if the creditor wishes to collect receivables in Turkey, the proceedings to be followed depends on the documents, evidence and rights of the creditor. In order to reach an effective solution, the creditor should work with an experienced and competent legal team. For more information on Turkish Law, please visit our other blog posts or reach us via e-mail and telephone.