Debt Enforcement and Bankruptcy Law

Debt Collection Services in Turkey

Navigating debt collection in Turkey can be challenging, especially for foreign creditors dealing with Turkish companies or individuals. At Payas & Payas Law Office, we offer specialized legal services to ensure efficient debt recovery and protection of your interests throughout the process.

Our Comprehensive Debt Collection Services

1. Ensuring the Enforcement of Court Verdicts

We provide expert legal support to enforce court verdicts effectively. This involves:

  • Execution of Judgments: Ensuring that court decisions are implemented, including attaching assets and pursuing enforcement actions.

2. Collection of Commercial and Individual Credits

Our services include:

  • Credit Collection: Handling the collection of both commercial and individual credits, including managing guarantees and realizing these guarantees to secure payment.
  • Protection of Rights: Safeguarding our clients’ rights during execution proceedings and preventing any harm that may arise during the collection process.

3. Restructuring of Credits/Debts

For companies facing financial difficulties, we offer:

  • Credit Restructuring: Assisting in the restructuring of credits and debts in the event of bankruptcy. This includes improving financial situations and ensuring effective reorganization of companies.

4. Risk Management in Company Sales

When selling part or all of a company, we:

  • Define Risks: Identify and manage risks associated with the sale of company assets or shares, ensuring that all potential liabilities are addressed.

5. Bankruptcy/Concordatum Planning

Our expertise in bankruptcy/concordatum includes:

  • Drafting Bankruptcy/Concordatum Plans: Preparing comprehensive draft bankruptcy/concordatum plans at both the preparation and acceptance stages of the bankruptcy/concordatum process, ensuring a structured and legal approach to managing insolvency.

Steps for Debt Collection in Turkey

1. Negotiation

The initial step in debt collection involves negotiation with the debtor. On behalf of our clients, we:

  • Contact the Debtor: We reach out to the debtor to discuss the debt and propose a payment commitment. This may include securing any checks or bonds issued by the debtor.
  • Advantages of Signed Commitments: A signed payment commitment is highly beneficial as it provides strong evidence in subsequent legal proceedings. If the debtor refuses to provide a significant payment or commitment, we may issue demand letters.
  • Document Responses: Any responses from the debtor will be recorded and used as evidence in future legal steps. Obtaining a signed payment promise early on can accelerate the debt collection process and facilitate enforcement.

2. Applying for Debt Enforcement Procedure

If negotiation does not result in payment or a satisfactory commitment, we proceed with the formal debt enforcement procedure:

  • Initiating the Procedure: We apply to either the execution office or the court, depending on the specifics of the case. This involves presenting and proving the legal grounds for the debt with necessary documentation, such as invoices, agreements, and written correspondence.

  • Debt Enforcement Options: There are two primary methods for pursuing debt collection:

    A. Filing a Lawsuit: We file a legal action in court to recover the debt. We present evidence and argue our case. If successful, we then apply to the execution office to enforce the court's decision.

    B. Direct Application to Execution Office: Alternatively, we can directly apply to the execution office to issue a payment order to the debtor. If the debtor does not object within 7 days, we can proceed with attaching the debtor’s assets. If there is an objection, we must apply to the court to resolve it. A signed payment commitment can expedite this process. If the debtor unjustly objects, the court may grant compensation of up to 20% of the debt amount. The debtor will also be responsible for covering court and execution fees upon successful collection.

Why Choose Payas & Payas?

Payas & Payas Law Office provides comprehensive debt collection and credit management services, including:

  • Expert Legal Support: Ensuring effective enforcement of court verdicts and protection of your interests throughout the debt collection process.
  • Credit Restructuring: Assisting companies in restructuring their debts and improving financial stability.
  • Risk Management: Identifying and managing risks in company sales and bankruptcy scenarios.
  • Efficient Processing: Prompt and effective handling of all debt collection matters, from negotiation to enforcement.

Contact us today to learn more about how our legal services can assist with debt collection and credit management in Turkey. Let us help you secure the outcomes you need and protect your interests.