Debt Collection in Turkey and The Collection Process 

Learn about Turkey’s unique debt collection process, its Turkey’s Debt Collection Office system, how to collect a debt owed to you in Turkey and what to do if a Debt Collection Order is filed against you… 

The Turkish legal system provides a framework for creditors to collect what is owed to them. In Turkey, debts are pursued through a Debt Collection.There is a Debt Collection Office in every city. Debt collection proceedings are initiated at the Debt Collection Office in the debtor’s district and can apply to both individuals and companies.

The Debt Collection Office follows a standard process that begins when one party submits a Debt Collection Request to the Debt Collection Office. If the claim is not contested or if the debtor’s objection is dismissed by a judge, the Debt Collection Office may then attempt to recover the debt. As it is easy to initiate debt collection proceedings, it is advised that recipients of a Debt Collection Request do not accept it unless they are genuinely in debt to the relevant creditor.

The Debt Collection Process 

The exact process of debt recovery will depend on the nature of the debt, whether it is contested and how it can be recovered. If the debt is contested, the process will include legal action. An outline of the procedure is below:

  • The creditor submits a Debt Collection Request form to the Debt Collection Office in the debtor’s place of residence. The fee for this service depends on the size of the debt
  • The Debt Collection Office issues the debtor with a Demand for Payment
  • If the debtor wishes to contest the Demand for Payment, they can send an Objection to the Debt Collection Office within peremptory term of receiving it. If the creditor obtains can a court order which states that the debtor owes the debt, the Objection Notice will be dismissed
  • If the debtor does not contest the Demand for Payment within peremptory days, they have technically agreed to pay the debt along with the Debt Collection Office’s administration fee. If they cannot pay the debt, the creditor may submit a Request for Continuation to the Debt Collection Office, and the Debt Collection Office will begin to collect the debt 

Asset Seizure, Bankruptcy, and Debt Restructuring

If a court has established that the debt must be paid and a Request for Continuation has been completed by the creditor, the Debt Collection Office In Turkey will collect the debt. The debtor can pay the original debt and any other sums resulting from the process at the Debt Collection office. If this is not possible, the Debt Collection Office can, with a court order, begin bankruptcy proceedings or seize assets equivalent to the value of the debt. If property, such as a house, is held against the debt, the Debt Collection Office may also seize it.

Debts can also be settled between individuals without bankruptcy or asset seizure if the two parties can reach an out-of-court settlement. In these cases, debt restructuring agreements can be used to schedule part-payments.

In certain circumstances, it is possible for the Debt Collection Office or a private debt collection agency to seize assets before a court judgment is made.