Debt Recovery in Türkiye: A Practical Q&A Guide for Foreign Creditors

As of 25 February 2026

Executive summary

Debt recovery in Türkiye can be efficient when you choose the right track early: identify the correct debtor (individual vs corporate), verify where they are and whether they have reachable assets, and test viability before committing significant time and cost. Where the debt is liquidated (clearly quantifiable), the “payment order” route under Turkish enforcement law often provides fast leverage: the debtor has a short objection window (commonly seven days from service), after which attachment steps can follow. If the debtor objects, the creditor typically must pursue removal or annulment of the objection and, where appropriate, seek compensation for bad‑faith objections (often discussed around a 20% range, depending on conditions and the court’s findings). For urgent cases, precautionary attachment can help preserve assets but usually requires security and careful timing. Interest, foreign‑currency mechanics, and costs/fees are strategically important and time-sensitive; we address them in the Q&A format below:

A. Debtor identification and recovery viability

1.Who exactly is the debtor: an individual or a corporate entity?

Q: Why does the debtor type matter so much in Türkiye?

A: The enforcement path, service mechanics, asset tracing, and even the “pressure points” differ depending on whether you are dealing with an individual or a company. Misidentifying the debtor (wrong legal name, wrong entity, wrong address) is one of the most common reasons an otherwise solid claim becomes slow and expensive.

Q: What should we confirm for an individual debtor before we escalate?

A: We typically focus on three points: identity, serviceability, and collectability.

·      Identity: the correct legal identity of the person you contracted with (and whether the “real payer” is someone else).

·      Serviceability: a usable address for lawful service. Enforcement deadlines and objection periods run from service, so an outdated address can derail timelines.

·      Collectability: whether there is a realistic target for attachment (bank accounts, receivables, salary where applicable, vehicles, real estate, or ongoing business income).

Q: What should we confirm for a corporate debtor?

A: Corporate recovery starts with establishing the company’s legal existence and status.

·      Exact registered name and registration details: small variations matter.

·      Current status: active trading, dormant, in liquidation, merged, or otherwise reorganised.

·      Authority and signature: who had authority to bind the company when the debt arose (a common dispute point).

·      Commercial footprint: whether there are operating assets or receivables in Türkiye that can be reached through enforcement.

2.Why do residency and status checks matter?

Q: If the debtor is outside Türkiye, can we still recover?

A: Potentially, but strategy changes. The practical question becomes: where are the attachable assets? If the debtor’s assets are located in Türkiye, Turkish enforcement can still be effective even if the debtor resides abroad. If assets are abroad, Turkish proceedings may have limited leverage unless there are cross-border enforcement routes available.

Q: What “status” issues should we watch for?

A: For individuals, typical red flags include frequent address changes, “paper employment,” or no clear asset footprint. For companies, insolvency signals and formal restructuring/liquidation status can change the economics of enforcement dramatically.

3.What is “pre-due-diligence,” and why do we treat it as a separate stage?

Q: What do we mean by pre-due-diligence in a Turkish debt recovery file?

A: It’s a targeted viability check before committing to full enforcement. Done correctly, it answers one core question: Are we likely to collect enough to justify the enforcement and litigation spend?

Q: What does a practical viability check cover?

A: It commonly includes: confirmation of debtor identity and status, address/serviceability checks, a preliminary asset visibility review, and a review of the creditor’s evidence strength (contract, invoices, acceptance, delivery/performance, correspondence, payment history).

Common pitfall: skipping viability and moving straight to “hard enforcement,” then discovering the debtor is insolvent or asset‑light—turning a recoverable claim into “good money after bad.”

B. Which law applies and can foreign decisions be enforced?

1.Does Turkish law apply to the underlying debt?

Q: Is Turkish law always the governing law if we recover in Türkiye?

A: Not always. The underlying contract may be governed by Turkish law or a foreign law depending on the contract clause and conflict‑of‑laws rules. However, enforcement against assets in Türkiye is carried out through Turkish procedural and enforcement mechanisms regardless of the contract’s governing law.

Practical tip: Don’t confuse “governing law” with “enforcement forum.” Even with a foreign governing law clause, you may still pursue effective enforcement in Türkiye if assets are there—provided you have the right enforceable instrument.

2.Can we enforce a foreign court judgment in Türkiye?

Q: Can a foreign judgment be used directly at an enforcement office?

A: Generally, no. Foreign judgments typically require a Turkish court process for recognition/enforcement under Türkiye’s private international law framework (commonly referenced as Law No. 5718). The details depend on the judgment’s origin, finality, due process/service, public policy considerations, and reciprocity‑type factors.

Q: What documents are commonly needed?

A: As a baseline: a certified copy of the foreign judgment, proof it is final/binding where issued, and Turkish translations prepared to local formal standards. If any element is missing (especially finality or proper service), the process can slow materially.

3.Can we enforce a foreign arbitral award in Türkiye?

Q: Are arbitral awards easier to enforce than foreign judgments?

A: Often, but not always. Foreign arbitral awards generally still require a Turkish court recognition/enforcement step. Türkiye is commonly treated as an enforcement-friendly jurisdiction when the arbitration clause and due process are clear, but enforcement can still be contested on recognised grounds (for example, jurisdiction/notice/public policy-type arguments).

Practical tip: In cross‑border contracts with Turkish counter‑parties, a well‑drafted arbitration clause and a clean documentary record can materially improve enforceability.

C. Pre‑action settlement attempts without a power of attorney

What can we do before signing a Turkish power of attorney?

Q: Can we start recovery without a Turkish PoA?

A: Yes—at the pre‑action stage. We can typically initiate and manage structured settlement attempts through calls, emails, and demand letters without formal representation filings.

Q: What should a pre‑action demand include to be effective in Türkiye?

A: Clarity and evidence. We typically include: debtor identification, the legal basis (contract/invoices), amount breakdown, due date/maturity, interest position (if applicable), and a deadline. The goal is to reduce “manufactured disputes” and set up the file for fast escalation if ignored.

Common pitfall: sending a generic demand to the wrong entity (or to a trading name rather than the registered company) and losing weeks before formal service even starts.

D. Power of attorney requirements and apostille formalities

When is a PoA required?

Q: At what point do we need a PoA to proceed in Türkiye?

A: Once we move from negotiation into formal steps—filing at enforcement offices, applying to courts, submitting binding petitions, requesting attachments, attending hearings—a Turkish‑usable PoA is typically required for counsel to act procedurally.

How can a foreign creditor issue a PoA usable in Türkiye?

Q: What is the standard cross‑border PoA route?

A: For many foreign creditors, a common pathway is:

·      execute a PoA before a competent authority/notary in the creditor’s jurisdiction

·      obtain an apostille (Türkiye is part of the 1961 Apostille system)

·      courier the original to Türkiye

·      arrange Turkish translation and notarisation in Türkiye so the document is accepted in local proceedings

Q: What PoA drafting issues cause delays?

A: Missing powers are a frequent issue. If the PoA does not clearly authorise enforcement steps, settlement authority, attachments, or receipt/collection acts as needed, we may have to re‑issue it—adding time and cost.

Q: Is it possible to issue the PoA directly under Turkish formalities?

A: Yes. In addition to the apostille route, a PoA can also be issued in a way that is immediately usable in Türkiye:

·  Before a notary in Türkiye:The foreign creditor (or its authorised signatory) can attend a Turkish notary in person and execute the PoA directly in Turkish. This avoids apostille and translation steps.

·  At a Turkish consulate abroad:Many Turkish consulates overseas can issue a PoA that is valid for use in Türkiye. The document is prepared in Turkish and executed before a consular officer. A Turkish translator is typically present if the principal does not speak Turkish.

Both routes can be more efficient in certain cases, particularly where timing is critical or where apostille procedures in the creditor’s jurisdiction are slow.

E. Payment order (“statutory demand”) route and the seven‑day objection window

1.How does the payment order process work for a liquidated debt?

Q: What is the typical fast track for an undisputed money debt?

A: For many liquidated receivables, the creditor can start execution without a judgment through an enforcement office, resulting in a payment order served on the debtor. A key feature is the short objection window, which creates early leverage.

Q: How long does the debtor have to object?

A: Commonly seven days from service for standard objections in this route. If the debtor does not object within time, the claim generally becomes enforceable through attachment steps.

2.What if the debtor objects within seven days?

Q: Does an objection stop the process?

A: Typically, yes. A timely objection usually halts the enforcement track until the creditor takes further legal action.

Q: What are the two main creditor responses?

A: The next step usually depends on the documentation:

·      Removal of objection: used where the creditor holds documents that qualify for this procedure (documentation standards matter and can be technical).

·      Annulment of objection: a court action where the creditor proves the debt and seeks an order that neutralises the objection and allows enforcement to continue.

Practical tip: Strategy selection is evidence-driven. If we choose the wrong route, we can lose momentum and increase cost.

3.Can we claim compensation for bad‑faith objections?

Q: Is there a penalty if the debtor objects without a genuine defence?

A: Turkish enforcement law contains mechanisms that can allow compensation where an objection is found to be in bad faith or unjustified. In practice, this is often discussed at around a 20% level as an approximate benchmark, but it is not automatic and depends on the court’s findings and the procedural route used.

Common pitfall: assuming compensation is guaranteed. It usually requires a proper request, a suitable procedural pathway, and a judicial finding supporting bad faith or unjustified objection.

4.How long do contested cases usually take?

Q: If the debtor disputes the debt, what timeline should we expect?

A: For a genuinely contested file, a typical first‑instance timeframe is often around 12–24 months, depending on complexity, evidence, expert review needs, and court workload. Appeals can extend this further.

F. Precautionary attachment and urgent asset protection

1.What is precautionary attachment and when is it used?

Q: When should we consider asset‑freezing measures?

A: If there is a credible risk of asset dissipation—transfers, closures, moving funds, stripping receivables—precautionary attachment can be a powerful lever. It is often used alongside (or just before) the main enforcement/litigation steps.

Q: Do we need to provide security?

A: Often, yes. Courts commonly require a security deposit/guarantee to protect the debtor against losses if the attachment is later found unjustified. The security amount is case‑specific and should be treated as an early budgeting item.

Common pitfall: missing strict follow‑up timing. Precautionary measures usually require prompt progression into the main proceedings; delay can undermine the protection.

G. Costs, fees, interest, and foreign‑currency debts

1.What costs and fees are most relevant in Turkish debt recovery?

Q: What fee concepts should creditors understand upfront?

A: Costs generally fall into three buckets:

·      Court fees (money claims): often proportional to the claim amount, typically in the mid single‑digit percentage range overall (approximate), with payment mechanics that may split fees between an initial stage and later stages.

·      Enforcement fees: collections through enforcement often carry proportional collection fees, frequently low‑to‑mid single digits early in the process and higher later (approximate).

·      Hard costs: translations, notarisation, apostille logistics, service costs, experts/appraisers, and enforcement sale expenses.

Time‑sensitive note (25 February 2026): Turkish official fee tariffs and certain default interest rates can change; we treat fee percentages as approximate and confirm the applicable tariff when filing.

2.What fee arrangements are commonly used?

Q: Is “no win, no fee” possible in Türkiye?

A: Pure “no win, no fee” structures can be restricted by professional rules. In practice, cross‑border matters often use fixed fees, phase‑based fees, and/or fixed + success fee structures.

Q: Is there a cap on success fees?A: Success/contingency components are commonly discussed as subject to caps under Turkish attorneyship rules (often referenced around 25% as a ceiling). Where the cap or structure is uncertain for a specific arrangement, we treat it as unspecified until reviewed against the current rules and the proposed engagement model.

3.When does interest start running on non‑payment?

Q: Does interest start automatically on the due date?

A: Not always. Interest start depends on the contract and the nature of the debt:

·      If the contract sets a clear due date, default may start once that due date passes.

·      If maturity is not clear, default may start after a formal notice/demand is served.

·      In commercial settings, there are also rules that can make interest run from maturity even without a detailed notice, depending on the relationship and documentation.

Practical tip: A correctly drafted and provable demand notice is often a low‑cost step that strengthens both settlement leverage and later claims for interest.

4.What about foreign‑currency debts?

Q: Can we claim in foreign currency in Türkiye?

A: Often yes, but the mechanics matter. Turkish obligations law contains rules that can allow payment in Turkish currency at relevant exchange rates unless “effective payment” in foreign currency is contractually required. For enforcement strategy, we usually decide early whether to pursue the claim in the foreign currency, in Turkish currency, or with alternative pleadings—based on the contract wording and the enforcement practicality.

Common pitfall: leaving currency and exchange‑rate methodology ambiguous. That can invite objections and slow enforcement.

H. Criminal complaints as a recovery lever

1.When does a criminal complaint help in debt recovery?

Q: Is non‑payment a crime in Türkiye?

A: Usually, non‑payment alone is a civil matter. Criminal procedures become relevant when the facts show genuine criminal behaviour—commonly fraud/scams, deception to obtain money/services, forged documents, or similar conduct.

Q: Which criminal concepts are most commonly relevant?

A: Fraud-type allegations under the Turkish Penal Code (commonly discussed around the fraud provisions) are typical where there is evidence of deception, false identity/authority, or a pattern consistent with scam conduct.

Q: How can criminal action support recovery without replacing civil enforcement?

A: Properly grounded criminal complaints can increase pressure, preserve evidence, and deter ongoing misconduct. They do not replace civil enforcement and should be used carefully—filing criminal allegations without strong factual support can backfire strategically.

I. Comparison table: choosing the right track

Track	Typical actions	Pros	Cons	Approximate time/cost implications
Pre‑action steps without PoA	Calls/emails; evidence pack; demand letter; settlement plan; debtor identification checks	Fast start; low cost; may secure voluntary payment; strengthens later interest/default position	Debtor may ignore to delay; limited coercive power	Days to a few weeks; relatively low hard costs
Formal enforcement with PoA	Issue Turkish‑usable PoA; file payment order/execution; serve debtor; request attachment; pursue removal/annulment if objection	High leverage; structured deadlines; attachment tools available	Requires formalities; objections can push into court timelines	Weeks to start; contested matters often 12–24 months (approx.); proportional fees + hard costs apply
Precautionary attachment	Court application for asset freeze; provide security; follow promptly with main proceedings; convert into enforcement attachment where possible	Preserves assets; prevents dissipation; increases settlement leverage	Security requirement; strict timing; higher initial legal complexity	Can be fast if urgent; higher upfront cost (security + filings)

J. Mermaid timeline: from demand to enforcement

1.     Demand & evidence pack(Pre-action settlement)

↓

2.     Payment order / execution filing

↓

3.     Debtor objects within 7 days from service?

o   If No:→ Request attachment (asset freeze / seizure steps)→ Enforcement sale / collection & distribution

o   If Yes:→ Removal of objection or annulment lawsuit→ Attachment after objection resolved→ Enforcement sale / collection & distribution

4.     Urgent risk scenario (parallel path):

o   Precautionary attachment (usually with security)→ Then proceed to attachment stage (asset freeze / seizure steps)→ Enforcement sale / collection & distribution

K. Practical tips and common pitfalls

1.What practical steps reduce delay and improve recovery odds?

Q: What should we do before sending the first demand?

A: Confirm debtor identity, confirm a serviceable address, and organise an evidence bundle that can withstand an objection. A strong first package reduces “manufactured disputes.”

Q: What are the most common pitfalls we see in Turkish cross‑border collections?

A: The patterns are consistent:

·      pursuing the wrong debtor entity (group company confusion)

·      ignoring service/address realities (deadlines hinge on service)

·      unclear currency/interest methodology

·      incomplete PoA powers that force re‑issuance

·      starting strong enforcement without viability checks, especially against insolvent debtors

Suggested internal reading for context

For readers who want a broader overview alongside this focused Q&A, we suggest internal links to: [Debt Collection in Turkey: Methods and Processes], [Debt Collection in Turkey: Legal Remedies for Businesses], and [Debt Collection in Turkey: Solutions for Foreign Individuals and Entities].

L. Closing perspective

CCS Law specialises in corporate and commercial law and closely observe regulatory and interpretation changes in Türkiye's dynamic business environment. However, debt recovery in Türkiye is rarely about “one magic step.” Results typically come from sequencing: identify the debtor correctly, verify viability, choose the right enforceability route (Turkish enforcement vs recognition/enforcement of a foreign judgment or arbitral award), and use urgency tools like precautionary attachment only when the facts justify them. Where the sums are material, a short viability review and evidence audit at the outset often clarifies the fastest and most economical route—before costs and timelines start to compound.