Collection of Commercial Receivables and Enforcement
Commercial receivables not paid on time directly affect a company’s cash flow, and waiting often reduces the chances of collection. We pursue formal notices, enforcement proceedings, precautionary attachment and actions to set aside objections to collect your commercial receivables, and monitor and report on your receivables portfolio regularly.
What are enforcement proceedings?
Enforcement proceedings (icra takibi) are the route for collecting a debt through the coercive power of the state, even without a court judgment. In enforcement without a judgment, the creditor applies to the enforcement office and a payment order is sent to the debtor. If the debtor does not object within seven days, the proceedings become final and the debtor’s assets can be attached.
If the debtor objects, the proceedings stop. The creditor may bring an action to set aside the objection within one year of being notified of it; if the debt is liquidated and the debtor’s objection is found unjustified, the debtor is also ordered to pay compensation for bad-faith denial. Claims based on negotiable instruments such as cheques and promissory notes have a special, faster enforcement route.
What is precautionary attachment?
Precautionary attachment (ihtiyati haciz) is a temporary attachment order obtained from the court for a due monetary claim that is not secured by a pledge, to prevent the debtor from moving assets. It can also be requested for claims not yet due in the cases listed in the law, such as where the debtor is preparing to move assets. The order is usually granted against security and gives the creditor significant protection until the enforcement proceedings or lawsuit are concluded.
Scope
- Conducting formal notices and pre-litigation collection negotiations
- Initiating and conducting enforcement proceedings without a judgment, based on negotiable instruments and based on judgments
- Preparing requests for precautionary attachment
- Actions to set aside objections and reporting on the receivables portfolio
How We Work
- Reviewing the claim and supporting documents; identifying the fastest route to collection
- Investigating the debtor’s assets and assessing the need for precautionary attachment
- Initiating enforcement proceedings; in case of objection, mediation and an action to set aside the objection
- Carrying out attachment, sale and collection
- Regular reporting on the status of the receivables portfolio
Team
Frequently Asked Questions
Can we start enforcement proceedings directly for an invoice debt?
Yes, enforcement proceedings without a judgment can be started. However, if the debtor is likely to object and the amount is large, obtaining precautionary attachment before the proceedings or bringing a debt action directly may be more effective. The choice depends on how strongly the claim is supported by documents.
Is mediation mandatory before an action to set aside an objection?
For commercial claims for payment of a sum of money, yes. Applying to a mediator is a precondition of the action, and the time spent in mediation is not added to the one-year period for bringing an action to set aside the objection.
What happens if the debtor has no assets at all?
If no assets sufficient to cover the debt are found during attachment, the creditor is given a certificate of insufficiency (aciz vesikası). This allows enforcement to be resumed if the debtor later acquires assets and, in some cases, a request to set aside dispositions made by the debtor.
What happens to enforcement if the debtor applies for a concordat?
When the court grants the debtor a concordat moratorium, as a rule no new enforcement proceedings can be brought against the debtor during the moratorium and existing proceedings are stayed. In that case the claim must be registered in the concordat process and the process followed on the creditor's side.
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