Types of Enforcement Proceedings and Application Processes in Turkey

Enforcement proceedings in Turkey provide creditors with a legal means to collect unpaid debts. Governed by the Turkish Execution and Bankruptcy Law (Law No. 2004), these proceedings are divided into different types based on the nature of the debt and whether a court judgment exists. This guide explains the main types of enforcement proceedings and the application processes involved.

Enforcement with a judgment refers to situations where the creditor has obtained a court ruling (judgment) recognizing their claim. In such cases, the creditor can directly apply to the enforcement office to initiate the process of debt recovery. The main steps include:

• Application: The creditor applies to the enforcement office with the court judgment.
• Payment Order: The debtor is served with a payment order and given a specified period (usually 7 days) to comply.
• Enforcement: If the debtor fails to pay or object, the creditor can move forward with asset seizure or garnishment to recover the debt.

This type of enforcement applies when the creditor does not yet have a court ruling but still seeks to recover a debt, such as unpaid loans, rent, or invoices. The steps are as follows:

• Application: The creditor submits a claim to the enforcement office.
• Payment Order: The debtor receives a payment order and has 7 days to either pay or file an objection.
• Objection: If the debtor objects, the creditor may need to file a lawsuit to prove the debt, turning the process into a legal case.
• Execution: If no objection is made or the objection is overruled, the creditor may proceed with asset seizure to recover the debt.

Promissory notes, such as checks or bonds, allow for a faster enforcement process. Key steps include:

• Application: The creditor applies to the enforcement office with the promissory note.
• Payment Order: The debtor is served with a payment order and given a period of 10 days to pay.
• Objection: Unlike other proceedings, objections in promissory note cases must be made on limited legal grounds and are less likely to halt the process.
• Enforcement: If no valid objection is raised, the enforcement process proceeds quickly, including asset seizure or garnishment.

Bankruptcy proceedings apply to commercial debtors (such as companies) that cannot meet their financial obligations. The creditor can file for bankruptcy if the debtor fails to meet a payment order. Steps include:

• Filing for Bankruptcy: The creditor initiates the process by filing a bankruptcy claim with the court.
• Bankruptcy Declaration: If the court determines that the debtor is insolvent, it declares bankruptcy.
• Liquidation: The debtor’s assets are liquidated to pay off creditors, and the business may be shut down.

Enforcement proceedings in Turkey provide a structured legal framework for creditors to recover debts, whether through court judgments, promissory notes, or bankruptcy filings. Understanding the different types of enforcement and their application processes is essential for both creditors and debtors. Each process has specific steps, deadlines, and legal requirements that must be followed to ensure the proper collection of debts.