Debt Collection in Turkey (Türkiye) from Abroad

The court with subject-matter jurisdiction over an action for a declaration of enforceability (tenfiz) is the court of first instance. The competent court is the court of the place of residence in Turkey of the person against whom enforcement is sought; if that person has no place of residence in Turkey, it is the court of the place where the person actually resides. If the person has neither a place of domicile nor a place of actual residence in Turkey, the action may be filed in one of the courts in Ankara, Istanbul, or Izmir (Law No. 5718 on Private International and Procedural Law, Art. 51).

The original of the foreign judgment, duly certified by the authorities of that country, or a certified copy of the judgment issued by the judicial body that rendered it, along with a certified translation, shall be attached. A letter or document duly authenticated by the authorities of that country, indicating that the judgment has become final, along with its certified translation, must also be attached (Law No. 5718 on Private International and Procedural Law, Art. 53). The petition must include the parties’ information, the court that rendered the judgment, the date and number of the judgment, and a summary of the judgment (same Law, Art. 52). Since the form of certification may vary depending on the state where the judgment was rendered, the documents are reviewed prior to filing the petition.

Foreign arbitral awards that have become final and enforceable, or that are binding on the parties, may be enforced. Enforcement is requested by filing a petition with the court of first instance of the location agreed upon in writing by the parties. If no such agreement exists, the petition is filed with the court of the place of residence in Turkey of the party against whom the award was rendered; if there is none, the court of the place where that party actually resides; and if neither exists, the court of the place where property subject to enforcement is located (Law No. 5718 on Private International and Procedural Law, Art. 60). Enforcement may be refused on limited grounds, such as the absence of an arbitration agreement, the award being contrary to public policy, the party not having been informed of the selection of arbitrators, or the party having been deprived of the opportunity to defend itself (same Law, Art. 62). The provisions of the New York Convention (Convention on the Recognition and Enforcement of Foreign Arbitral Awards), to which Turkey is a party, are also taken into account.

The debtor may file an objection with the enforcement office within seven days of the service of the payment order; the objection suspends enforcement proceedings (Enforcement and Bankruptcy Law, Art. 62). The creditor may file a lawsuit to have the objection set aside within one year of the service of the objection (same Law, Art. 67). If the debt is based on a document bearing the debtor’s signature or on documents listed in the law, a request for removal of the objection (itirazın kaldırılması), by which the enforcement court lifts the debtor’s objection, may also be filed. If the court rules in an action to set aside the objection that the debtor’s objection is unfounded, the debtor shall be ordered to pay damages of not less than twenty percent of the amount awarded, upon the other party’s request. The same principle applies to a creditor found to have acted unjustly or in bad faith during the enforcement proceedings. In commercial disputes, mandatory mediation before filing the action is also required.

When a judgment (whether issued by a Turkish court or a foreign judgment for which enforcement has been granted) is submitted to the enforcement office, a writ of execution is served on the debtor. The writ states that the debt must be paid within seven days at the latest, and that if it is not paid, compulsory enforcement will be carried out (Enforcement and Bankruptcy Law, Art. 32). During this period, the debtor may only assert—by filing a petition with the enforcement court—that the debt has been barred by the statute of limitations or has been extinguished through payment or by other means (same Law, Art. 33).

Unless otherwise provided by law, every claim is subject to a ten-year statute of limitations (Turkish Code of Obligations, Art. 146). For periodic obligations such as rent, principal and interest, and fees, as well as certain claims arising from lodging, food and beverage services, small craft work, mandate agreements, commissions, agency, and contracts for work, the statute of limitations is five years (same Code, Art. 147). The statute of limitations is interrupted—meaning the period begins anew—in cases such as when the creditor files a lawsuit or an arbitration claim, initiates enforcement proceedings, or the debtor acknowledges the debt (same Code, Art. 154). Since the period varies depending on the type of claim, it must be examined in conjunction with the relevant documents.

The claim for enforcement shall specify the amount of the debt in Turkish currency. If the debt is in foreign currency, the claim shall specify the date of the exchange rate used to convert the debt into Turkish currency, as well as the interest (Enforcement and Bankruptcy Law, Art. 58). If the contract does not specify payment in the foreign currency itself (payment of the debt in the agreed foreign currency) or contain a phrase with the same meaning, the debt may also be paid in Turkish lira at the prevailing (market) exchange rate on the payment date. If the debt is not paid on the due date, the creditor may demand payment either in the foreign currency itself or in Turkish currency at the prevailing exchange rate on the due date or the actual date of payment (Turkish Code of Obligations, Art. 99).