Enforcement of Money Claims In Turkey

Enforcement of Money Claims Under Turkish Law

Turkish law provides for two types of proceedings for the enforcement of money claims referred to as “special execution proceedings” and “general execution proceedings” respectively.

Both types of enforcement proceedings are initiated by a creditor (or a private individual/ company claiming to be a creditor) filing an enforcement request with the competent debt enforcement authority and asking for issuance of a payment summons to the debtor.

Special execution proceedings are often directed against private individual debtors. They also serve to reach the realization of a collateral or mortgage for the benefit of a single creditor.

General execution proceedings are mostly directed against companies and individuals. All creditors jointly participate in the realization of the debtor’s asset. Turkish law provides for two types of general execution, i.e. bankruptcy and debt restructuring proceedings.

Procedural Requirements for Creditors to Start Enforcement Proceedings

Both types of enforcement proceedings are initiated by a creditor (or a private individual/ company claiming to be a creditor) filing an enforcement request with the competent debt enforcement authority and asking for issuance of a payment summons to the debtor. This payment summons is issued without the authority assessing the substance of the alleged claim. With the payment summons the debtor is ordered to file an objection within 7 days or pay the sum claimed within 7 days. If the debtor files an objection, the creditor must refer to the competent court. If the creditor has already obtained an enforceable judgment against the debtor or is in possession of a written acknowledgement of debt signed by the debtor, he may apply for summary proceedings to overcome the debtor’s objection. If the creditor does neither hold an enforceable judgment against the debtor nor a signed acknowledgement of debt, he must initiate full court proceedings within one year of service of the payment summons in order to assert his claim and set aside the debtor’s objection. If the debtor has not filed an objection upon receipt of the payment summons or once the objection has been set aside, the creditor may request continuation of the enforcement proceedings with the competent debt enforcement authority. This request either leads to seizure of certain of the debtor’s assets or the opening of bankruptcy or debt restructuring proceedings.

By |2018-02-26T11:50:48+00:00February 26th, 2018|Debt Recovery|Comments Off on Enforcement of Money Claims In Turkey