Against this background, any strategy for debt collection for foreign creditors should assess the enforcement track according to the nature of the claim, the assessment of recoverability, the debtor’s options to object to the payment or enforcement order, mandatory mediation and the litigation stage in resolving an objection, collection through attachment and electronic sale, and, for foreign creditors, the security deposit and collection following enforcement of a foreign judgment should all be assessed together.
TurkeyLitigation, Mediation & Arbitration
I. Introduction
Debt collection for foreign creditors in Turkey is carried out primarily through enforcement proceedings conducted under the Enforcement and Bankruptcy Law No. 2004. Enforcement proceedings begin with the creditor’s application to the relevant enforcement office and are subject to different procedures depending on whether the claim is based on a court judgment or on a document treated as equivalent to a judgment. For foreign creditors in Turkey, the process may involve additional steps and obligations under Act No. 5718 on Private International and Procedural Law, in particular a security deposit requirement and the enforcement of foreign court judgments.
Commencing enforcement is, of course, not in itself enough to recover a debt. The recoverability of the claim has to be assessed, and the steps needed to obtain payment once the proceedings become final must be carried through as well. That assessment of recoverability turns not only on commencing proceedings but on
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