İzmir Debt Collection Lawyer

Timely and complete collection of receivables is vital for the sustainability of commercial life. As an İzmir execution attorney, we provide legal support to our clients in execution without judgment, execution with judgment, execution proceedings based on negotiable instruments (checks/promissory notes) and precautionary seizure processes.

Enforcement law is the field that turns a right existing on paper into a practical result. Even if you hold a contract, invoice, cheque, promissory note or court judgment, choosing the wrong route or missing the short statutory deadlines makes collection considerably harder. For this reason, at the very outset of a file we examine the basis of the receivable, whether it has fallen due, its limitation status and the debtor's assets; the route is then determined according to that analysis.

İzmir's execution offices and execution courts operate with heavy file traffic within the courthouse campuses. Drafting the proceeding request correctly, claiming interest and ancillary amounts accurately from the start and serving notifications in accordance with procedure prevent most of the delays that arise later. Alongside execution and bankruptcy files, you can see the other fields we work in on our practice areas page.

Types of Execution Proceedings

Depending on the source of the receivable, execution without judgment, execution with judgment or attachment through negotiable instruments (checks, promissory notes, bills of exchange) is initiated, the debtor's assets are investigated and the collection process is carried out.

Depending on the document the claim is based on and the nature of the claim, different enforcement proceeding paths are followed; the table below summarizes the main proceeding types and their general operation.

Execution With Judgment and Enforcing Court Decisions

A creditor holding a court judgment, or a document treated as equivalent to one, uses the route of execution with judgment. The proceeding begins with service of the enforcement order on the debtor, requiring compliance with the judgment within the period set by law. The most important difference from execution without judgment is this: a simple objection filed with the execution office does not stay the proceeding. The debtor may only request a stay of execution by showing, through a document of official character, that the debt has been paid, postponed or become time-barred.

The documents treated as equivalent to a judgment are listed in the law. Foremost among them are settlements and acknowledgements made before a court, deeds drawn up by a notary containing an unconditional acknowledgement of a monetary debt, and mediation settlement documents bearing an enforceability annotation. A creditor holding such a document may start execution with judgment directly, without filing a lawsuit, which shortens the process considerably. That is precisely why, when drafting a notarial deed, it matters that the text amounts to an unconditional acknowledgement of debt.

An appeal or cassation application does not by itself stay enforcement. If a stay is sought, a decision postponing enforcement must be obtained by providing security in the manner set by law. Enforcing judgments other than monetary claims (delivery of a child, eviction from an immovable, performance of an act) is subject to separate procedures. Judgments must also be taken to enforcement within the limitation period set by law; once that period is missed, the judgment obtained may in practice become ineffective.

Proceedings Specific to Negotiable Instruments (Cheque, Promissory Note, Bill of Exchange)

Cheques, promissory notes and bills of exchange are the documents the law treats as negotiable instruments. A creditor relying on them may use the attachment route specific to such instruments, which moves faster than execution without judgment. The payment order grants the debtor the short periods laid down by law to pay the debt and to object. In this route an objection does not, as a rule, stay the proceeding by itself; the debtor must additionally apply to the execution court and obtain a decision staying it.

Whether the instrument genuinely qualifies as a negotiable instrument is decisive. If one of the mandatory elements required by law is missing, the document loses that quality and this special route cannot be used, which may lead to the proceeding being annulled. Before initiating a proceeding, therefore, the formal requirements of the instrument, its maturity, the chain of endorsements and the claimant's standing as lawful holder must be examined closely. The same examination is carried out on the debtor's side: a proceeding based on an improperly issued instrument can be stayed through a timely objection.

The presentment period for a cheque is a critical threshold that can cause loss of rights: a cheque must be presented to the drawee within the period laid down by law, which differs according to whether it is payable in the place where it was drawn or elsewhere. Missing the presentment period, or the limitation period applicable to notes, removes this special instrument-based route; the receivable can then only be claimed on the basis of the underlying relationship (sale, service, loan and so on). For dishonoured cheques, the sanctions provided by law may additionally come into play.

Annulment of Objection, Removal of Objection and Negative Declaratory Actions

In execution without judgment, if the debtor objects to the execution office within the short period set by law from service of the payment order, the proceeding stops automatically. At this point the creditor has two distinct routes, and the choice depends on the nature of the document held. Choosing the wrong one costs not only time but also litigation expenses.

Removal of objection is the faster route, heard before the execution court and available only on the basis of documents listed in the law. Deeds whose signature has been acknowledged or notarised, and documents issued by official authorities within their powers and in due form, fall within this scope. The request must be made within the period set by law from notification of the objection. Where the debtor denies the signature on the instrument, the procedure for provisional removal of the objection applies.

The action for annulment of objection, by contrast, is heard before the general courts, allows proof by any kind of evidence, and must be filed within the period set by law from notification of the objection. If the objection proves unjustified, and where the conditions are met, the debtor may be ordered to pay execution denial compensation of not less than the rate set by law over the principal claim; equally, if the proceeding turns out to have been unjustified, the creditor may face compensation. In commercially natured annulment actions, applying to mediation before filing is a condition of action. For the details of the process, see our guide on the action for annulment of objection.

On the other side of the coin stands the negative declaratory action. A person claiming not to be indebted may file it before or after the proceeding, seeking a declaration to that effect. As a rule, a negative declaratory action filed after the proceeding has started does not stay it automatically; however, upon providing security under the conditions set by law, an injunction may be sought preventing the money in the execution treasury from being paid to the creditor. If, after the debt has been paid, the payment turns out to have been unjustified, the amount is reclaimed through an action for restitution. It should not be forgotten that this action must be brought within the period set by law following payment.

Salary, Bank and Real-Estate Attachment: Limits and Objection Remedies

Once the proceeding becomes final, the creditor may request attachment over the debtor's assets. The most frequently used types in practice are attachment of salary and wages, of bank accounts, of vehicles, of immovable property, and of rights and receivables held by third parties. Attachment is applied to the extent needed to cover the claim and its ancillary amounts. The law provides the debtor with clear protection against attachments that exceed this measure or breach procedure; these protections must be invoked within short deadlines.

For salaries and wages, the law sets both a floor and a ceiling for the portion that may be attached once the amount necessary for the livelihood of the debtor and their family has been set aside; no more than the portion laid down by law may be attached, and where that limit is exceeded a complaint may be filed. The applicable limit should be taken from the current text of the Execution and Bankruptcy Law. Alimony receivables fall outside this limitation. As for retirement pensions, social security legislation prohibits attachment as a rule; alimony debts, the institution's own receivables and the debtor's express consent are the principal exceptions.

In bank account attachment, the balance at the moment the attachment writ reaches the bank is blocked. By contrast, an objection remedy remains open for salary accounts at minimum-wage level, accounts into which retirement pensions are paid, and payments the law deems unattachable. Household goods necessary for the debtor and their family to live, and the tools and equipment essential for practising their profession, are likewise unattachable by law. Which income is protected, and to what extent, is frequently confused; we address these distinctions with examples in our article on objecting to salary and bank attachment.

Attachment of immovable property is applied by annotating the land registry. This annotation does not entirely remove the owner's power of disposition, but subsequent transfers cannot be asserted against the creditor. After attachment, a valuation is carried out and the sale stage begins; the sale must be requested within the period set by law from attachment, failing which the attachment lapses. Requests concerning the valuation and the annulment of the auction must be submitted to the execution court within the short periods set by law. Sales are conducted through an electronic auction system, and the debtor is also given the opportunity to sell the attached asset voluntarily under the supervision of the execution office. In disputes concerning ownership of the immovable, the assessment on the real estate law side is carried out in parallel; a third party's ownership claim is pursued through the recovery (istihkak) route, while procedural irregularities are pursued through complaint.

Collecting Commercial Receivables and Precautionary Attachment

In commercial receivables the decisive factor is usually how early action is taken. Keeping invoices, contracts, delivery notes, current account statements and confirmed correspondence in order from the outset markedly lightens the burden of proof in any later proceeding or action. Once the receivable falls due, default is first established through a formal notice; if that brings no result, the enforcement route follows. When a company's contractual infrastructure and collection policy are handled as a whole, the number of problem files falls; we carry out this work within the scope of our corporate legal advisory practice.

If there is a risk that the debtor will place assets beyond reach, a precautionary attachment order may be sought even before a proceeding or lawsuit is filed. The order is granted, as a rule, against security, and lapses automatically if its execution is not requested within the short period set by law. Where the precautionary attachment was obtained before the proceeding, a proceeding request must be filed or an action brought within the short period likewise set by law; failure to observe this renders the order ineffective. The debtor's right to object to the order is likewise subject to a similarly short period. Precautionary attachment is among the principal tools for keeping a receivable secured, yet it loses its function entirely once the timetable is missed.

In commercial receivable and compensation actions whose subject matter is the payment of a sum of money, applying to mediation before filing is a condition of action; by contrast, no mediation requirement applies to initiating an enforcement proceeding. Because the default interest rates applicable in commercial matters change periodically, the interest claim in the proceeding request must be framed according to the rate current at that moment. Limitation periods also differ by the type of receivable: the Code of Obligations lays down a general period, while shorter periods apply to periodic obligations such as rent. We address the details in our article on collecting commercial receivables and under the heading the conditions of an action for debt.

Precautionary Seizure and Injunction Decisions

We provide legal support to our clients in obtaining precautionary seizure and precautionary injunction decisions for securing receivables, implementing these decisions and defending against objections. Particularly in commercial cases, the protection of evidence and prevention of the debtor's assets from being transferred are of critical importance.

Concordat and Debt Restructuring

For debtors who cannot pay their debts when due, or who face the risk of being unable to, concordat is a restructuring route conducted under court supervision. The process begins with a concordat project and the documents required by law submitted to the commercial court. The court first grants an interim moratorium, whose duration is laid down by law and which may be extended within the limits the law sets. If the conditions are satisfied, the process moves to a definitive moratorium, which runs longer and may be extended in difficult circumstances. The durations should be taken from the current text of the Execution and Bankruptcy Law.

During the moratorium, as a rule no new proceedings may be brought against the debtor and those already started are stayed; the exceptions listed in the law, such as employee receivables and alimony, are reserved. Although secured creditors may initiate proceedings, no protective measure may be taken and the pledged asset may not be sold. Throughout the process a concordat commissioner appointed by the court supervises the debtor's activities, and certain transactions require the court's permission. If the project is accepted by the creditors and ratified by the court, the concordat becomes binding on all creditors within its scope.

Where concordat is not possible, bankruptcy comes onto the agenda. For debtors subject to bankruptcy, the distinction between bankruptcy through proceedings and direct bankruptcy matters; the bankruptcy action is heard before the commercial court. With the bankruptcy decision the debtor's assets form the bankruptcy estate and are distributed among creditors according to the ranking schedule. The certificate of insolvency issued to a creditor who cannot collect serves to evidence the receivable and to pursue assets acquired later. From a company management perspective, assessing in good time which route to take at the first signs of payment difficulty is decisive.

Bankruptcy and Concordat

We provide consultancy on bankruptcy processes for companies and individuals who are unable to pay their debts, ensuring equal distribution among creditors, filing concordat applications and following up on precautionary decisions.

Debt Restructuring and Settlement Processes

We provide legal consultancy services in the resolution of disputes between debtors and creditors through out-of-court methods, preparation of installment agreements and debt restructuring processes. We also represent our clients in the preparation of concordat projects, participation in creditors' committee meetings and follow-up of court processes.