Debt collection in Turkey
Türkey debt, company right,
More and more European companies and private individuals enter business relations with Turkish business partners in Turkey. Unfortunately, sometimes the business dealings do not run as requested and it demands stay open, in spite of all juridical preventive actions. What is to be done if a debtor with headquarter in Turkey does not pay?
In this case remains as the only way to assert judicially the open demands. The judicial steps can be carried in your country or in Turkey, depending to the isolated case.
If one liked to assert an open demand in Turkey judicially, it is recommendable to carry out this about a local solicitor in Turkey. The advantage above all is that one can pursue the enforcement in Turkey immediately after the successful end of the lawsuit and come faster to the money. By contrast another cost-costly and time-consuming judicial recognition procedure in Turkey must be carried out after a successfully finished lawsuit in your country.
After Turkish Insolvency Act and enforcement law one can apply in Turkey- prior to legal actions- a default summons. The debtor has 7-day time from delivery to file a protest against the default summons.
If the debtor hasn’t file a protest against the default summons in this period, the default summons become effective and thereby executable. If he has protested on time, the believer must sue and justify his demand in the lawsuit. If the debtor inserts quite past all reason objection, he can be condemned to a claim for compensation independent of fault at the rate of up to 40% of the demand.
In case of the successful conclusion of the lawsuit the opposition can appeal against the judgment within 15 days from delivery of the written judgment. However, this judgment is already executable, although it has not become effective yet. The debtor / defendants can stop the enforcement only if he deposits the whole demand amount with the court cash desk or deposits as a security.
In Turkish law there is a special possibility beyond the default summons procedure in the approach of a lawsuit or measure of execution: The Arrest seizure. If the danger insists that the debtor conceals his legal estate up to the end of a well-arranged default summons procedure or lawsuit, transfers into three parts or flees, an arrest distress warrant can be applied in Turkey. For the decree of the arrest distress warrant one needs no delivery to the debtor. Therefore, the believer on the one hand must make the maturity of the demand plausible and on the other hand offer a guarantee at the rate of 15% of the demand amount.
According to the decree of the arrest distress warrant the arrest seizure must be executed within 10 days. At the end of this period the decision about the arrest seizure becomes ineffective. Because the arrest seizure has been regulated in the Turkish right as a temporary measure, the measures of execution in the central issue must be initiated after the enforcement of the arrest seizure warrant within 7 days.