Recovering an Unpaid Commercial Debt from a Turkish Company: A Turkish Lawyer's Guide for Foreign Creditors (2026)

TL;DR

• Yes, a debt owed by a Turkish şirket to a foreign business is collectable. Turkey has a fast, creditor-friendly enforcement system (icra takibi) in which foreign creditors have equal standing, need no prior court judgment for undisputed debts, and can freeze assets before the debtor reacts. What determines speed and success is the instrument you hold: a signed company cheque or promissory note unlocks a fast track; a plain invoice does not.
• Move early and freeze first. The single most decisive move is a precautionary attachment (ihtiyati haciz) that freezes bank accounts and receivables before the debtor hides assets or files for konkordato (court-supervised composition), which halts all enforcement overnight.
• You never need to travel to Turkey. A notarised, apostilled power of attorney (vekaletname) plus sworn Turkish translation lets a Turkish lawyer run the entire recovery remotely.

Key Findings

1. The instrument dictates the route. A cheque (çek), promissory note (bono) or bill of exchange (poliçe) lets me use the negotiable-instrument fast track (kambiyo senetlerine özgü haciz yolu, İİK art. 167 et seq.), where the debtor's objection does not stop enforcement. A plain invoice or contract goes the ordinary route (ilamsız icra), where a simple written objection freezes everything and forces me into a lawsuit.
2. A bounced company cheque is criminal again in 2026. Issuing a cheque that bounces ("karşılıksız çek") is a criminal offence under Cheque Law No. 5941 art. 5 — a judicial fine of up to 1,500 days per cheque, no less than the unpaid amount, convertible to prison if unpaid. This is real leverage on the people behind the company.
3. Limited liability is real but not absolute. Against a limited şirket (LLC) or anonim şirket (JSC) you pursue the entity, not the owners. Piercing the corporate veil is exceptional and reserved for proven abuse/fraud.
4. Konkordato and iflas are the landmines. A konkordato filing triggers a moratorium (mühlet) that halts all enforcement; bankruptcy (iflas) converts individual enforcement into a collective process where a foreign unsecured creditor ranks last.
5. The law is in flux. A Draft Compulsory Enforcement Law (Cebri İcra Kanunu Taslağı) published in July 2025 would reshape konkordato and abolish the very fast tracks this recovery strategy relies on — but it is not yet law as of mid-2026.

Details

1. Verifying a Turkish company (due diligence you can do)

Trade Registry Gazette (Türkiye Ticaret Sicili Gazetesi, TTSG). This is the official publication of record for corporate events — incorporation, capital changes, board/manager appointments, mergers, dissolution (terkin). A filing is not legally effective against third parties until it appears here. Searchable at ticaretsicil.gov.tr; basic searches are free.

MERSIS (Merkezi Sicil Kayıt Sistemi / Central Registry System). The Ministry of Trade's centralised database that assigns every company a unique 16-digit MERSIS number. Free public profiles show company name, MERSIS number, registration date, trade registry number, tax office, entity type, registered address, capital, and basic board information.

Confirming status. Cross-check TTSG for a dissolution/liquidation (tasfiye/terkin) entry, and note that konkordato and iflas announcements are published officially (ilan.gov.tr / TTSG). This solvency check is the essential first step — it changes the entire strategy.

Signature circular (imza sirküleri). The notarised document showing who can legally bind the company. Combined with the TTSG record of authorised signatories, this confirms both the right defendant and the right signatory.

Limited şirket vs. anonim şirket. Both are capital companies with limited liability — shareholders are liable only up to their subscribed capital. Minimum capital was substantially raised effective 1 January 2024 by Presidential Decree No. 7887 (Official Gazette 25 Nov 2023, No. 32380): the limited şirket minimum is now TRY 50,000 (up from TRY 10,000) and the anonim şirket minimum is TRY 250,000 (up from TRY 50,000; registered-capital A.Ş. TRY 500,000). Note also that Law No. 7511 (29 May 2024) added TTK Provisional Art. 15 requiring existing companies still below the new thresholds to increase their capital by 31 December 2026 or be deemed dissolved — a live signal to watch when checking a counterparty. In all cases you pursue the company, not the individuals behind it.

Piercing the veil (tüzel kişilik perdesinin kaldırılması). Not codified; developed by Court of Cassation case law under the good-faith principle (Civil Code art. 2). Applied narrowly and only on proven abuse — commingling of company and personal assets, undercapitalisation, or use of the company as a sham to defraud creditors. A close relationship between companies does not by itself justify piercing; intent to harm creditors is the key element. Separately, directors of a JSC/LLC can bear personal liability to creditors under TTK arts. 553 and 549–561 for culpable breach of statutory duties, and the individuals who sign a bounced cheque bear personal criminal liability regardless of the corporate veil.

2. The instrument you hold, and how it sets the route

The cheque/note fast track (kambiyo senetlerine özgü takip, İİK 167–176). If your claim rests on a çek, bono or poliçe, you get a special, accelerated enforcement track. Its power lies in one feature: an objection does not automatically stop the proceeding. The debtor gets a payment order (ödeme emri, "Örnek No: 10") with a 10-day window to pay, and only 5 days to object at the enforcement court (icra mahkemesi). Critically, that objection halts only the sale step — attachment (haciz) can still proceed. Time limits: a bono/poliçe must be pursued within 3 years of maturity; a cheque within 3 years of the end of its presentment period (TTK art. 814 — the old 6-month period was raised to 3 years by Law No. 6273 in 2012).

A signed company cheque or promissory note is gold. It unlocks this fast track. The mere existence of the instrument is presumptive proof of the debt, so the debtor carries the burden and can only object on narrow, document-based grounds.

Bounced cheques are criminal in 2026 — with recent history. The law swung back and forth: imprisonment until 2012, then decriminalised (administrative/judicial fines only), then recriminalised in 2016 (Law No. 6728, effective 9 August 2016). During COVID, Law No. 7226 (26 March 2020) suspended execution of sentences for offences committed before 24 March 2020 and gave debtors instalment options — but this did not abolish the offence. As of 2026, issuing a bad cheque remains a crime under Cheque Law No. 5941 art. 5: a judicial fine (adli para cezası) of up to 1,500 days per cheque, which cannot be lower than the unpaid cheque amount, and which converts directly to imprisonment if unpaid. A cheque/account ban (çek düzenleme ve çek hesabı açma yasağı) is also imposed. The holder must complain to the enforcement criminal court (icra ceza mahkemesi) within 3 months of the "karşılıksızdır" (dishonour) processing, at most within 1 year. For a company cheque, criminal responsibility falls — under art. 5/2 — on "the member of the management body assigned to run the entity's financial affairs; absent such designation, the natural persons constituting the management body"; avalists and endorsers bear no criminal liability (personal-culpability principle, TCK art. 20). The bank is also obliged to pay the holder a statutory minimum per cheque leaf: exactly TRY 16,350 per TCMB Communiqué No. 2026/4 (Official Gazette No. 33152, 29 Jan 2026, in force 30 Jan 2026; up from TRY 12,650), with a transitional TRY 14,200 for cheque leaves printed before the communiqué took effect.

Plain invoice or contract. No fast track. You use ordinary enforcement (below). If the debtor objects, you must prove the debt in a receivable action (alacak davası) or an action to annul the objection (itirazın iptali davası).

3. Enforcement proceedings (icra takibi) against a company

Three tracks:

• İlamlı icra (judgment-based): you already hold a court judgment or equivalent enforceable title (ilam).
• İlamsız icra / genel haciz yolu (without judgment): for money claims; no document is even strictly required to start. This is the most common route for invoices.
• Kambiyo track (above): for cheques/notes.

Step by step (ordinary/ilamsız):

1. File a takip talebi (enforcement request) at the İcra Dairesi (enforcement office) — for a company, at its registered seat.
2. The office issues a payment order (ödeme emri) served on the company.
3. The company has 7 days to object (itiraz) in the ordinary track (5 days in the kambiyo track).
4. If no objection, the proceeding becomes final (kesinleşme) and I move to attachment (haciz).

İcra Dairesi vs. İcra Mahkemesi. The İcra Dairesi (enforcement office, run by an icra müdürü) is the administrative engine — it issues orders, records objections, executes attachments. The İcra Mahkemesi (enforcement court) is the judicial body that hears complaints (şikayet), objection-removal requests, and disputes about the office's actions.

4. The disputed vs. undisputed fork (the itiraz mechanism)

Ordinary track — objection stops everything. In ilamsız icra, a timely 7-day objection automatically stays the proceeding. To break it I have two options:

• İtirazın iptali davası (action to annul the objection, İİK 67): a full lawsuit in the general courts, filed within 1 year of the objection. I prove the debt with any evidence. If I win, the objection is annulled, the debt is confirmed, and I can also claim icra inkar tazminatı (a bad-faith/denial indemnity of at least 20%). Slower but flexible on evidence.
• İtirazın kaldırılması (removal of objection, İİK 68/68-a): a faster, document-only procedure at the enforcement court, within 6 months of the objection. Available only if I hold a qualifying document (a signed acknowledgment of debt, notarised deed, official document, etc.).

Kambiyo track — objection does NOT stay enforcement. This is why the cheque/note track is structurally stronger. The debtor's 5-day objection at the enforcement court does not stop attachment; only the sale is suspended, and only if the court so decides. The debtor who wants to genuinely stop the process must obtain a court decision or file a negative-declaratory action (menfi tespit davası) — the burden is on them.

A practical hurdle — compulsory commercial mediation. Since 2019 (and broadened by Law No. 7445, effective 1 September 2023), a monetary commercial claim requires mandatory mediation (dava şartı arabuluculuk) as a precondition to filing a lawsuit — this now expressly covers itirazın iptali and negative-declaratory actions. Enforcement proceedings (icra takibi) themselves do not require prior mediation; the mediation requirement bites only when you must go to court (e.g., after an objection). Commercial mediation runs ~6 weeks, extendable by 2.

5. Precautionary / interim attachment (ihtiyati haciz)

What it is. A pre-judgment asset freeze under İİK arts. 257–268, obtained from the court — usually ex parte (without notice to the debtor) — to freeze bank accounts, receivables, vehicles, and real estate before the debtor moves them. It is the single most consequential tool in cross-border recovery.

Requirements. The claim must be monetary and (in principle) due; if not yet due, you must show the debtor has no fixed domicile, is dissipating/hiding assets, or is preparing to flee. The creditor must post security (teminat) — typically 10–15% of the claim — to cover the debtor's damages if the attachment proves unjustified. After obtaining the freeze, the creditor must file the main enforcement/lawsuit within statutory deadlines or the attachment lapses; and an unjustified attachment exposes the creditor to a damages claim (İİK art. 259).

Why speed matters. A company that senses a creditor closing in empties bank accounts, reroutes receivables, or files konkordato. An ex parte freeze obtained before the debtor is alerted is what converts a paper claim into recovered money.

6. Attaching a company's assets (haciz)

Where the value sits: bank accounts, receivables owed to the company by its own customers (third-party receivables), vehicles, real estate, machinery, and stock/inventory. Shareholdings and IP are also reachable.

Bank accounts. Once enforcement is final, the office issues seizure notices to banks; a bank holding funds places a block up to the debt amount and reports back — quick, and no auction needed.

Third-party receivables (İİK art. 89). One of the most effective tools against an active business: the office serves a "haciz ihbarnamesi" on the company's own debtors (its customers), requiring them to pay the enforcement office instead of the company. This reaches the debtor's cash flow, not just static assets.

Asset tracing (UYAP). Enforcement offices query the national UYAP system to identify the debtor's registered assets — bank accounts, vehicles, real estate — without expensive private investigation. "The company has no money" is rarely the whole story; receivables and inventory usually exist. The full mechanics — valuation, auction, distribution and clawback — are on my page on seizing a Turkish debtor's assets.

7. The landmines — restructuring and insolvency

Konkordato (court-supervised composition, İİK 285–309). Re-introduced by Law No. 7101 (March 2018) after "postponement of bankruptcy" was abolished, and amended by Law No. 7327 (in force 19 June 2021). A distressed debtor applies to the Commercial Court of First Instance. On a complete application the court grants a temporary moratorium (geçici mühlet) of 3 months (extendable by 2, max 5) and appoints a commissioner (komiser); if the plan looks viable, a definitive moratorium (kesin mühlet) of up to 1 year (extendable by 6 months). The effect on creditors is drastic: the moratorium imposes an automatic stay — pending enforcement is suspended and no new proceedings can be started. Foreign creditors have equal standing but must register claims promptly (a short window set by the commissioner); a missed deadline weakens the voting position. A court-ratified plan (binding via a double majority under İİK 302) binds dissenting unsecured creditors. Note too that a konkordato moratorium suspends the debtor's cheque-related criminal liability for the period — another reason to freeze assets before a filing.

Konkordato reform in flux (2026). A Draft Compulsory Enforcement Law (Cebri İcra Kanunu Taslağı) was published by the Ministry of Justice's Directorate General of Legislation on 24 July 2025 (comparison table added 14 Aug 2025), drafted by the İcra ve İflas Kanunu Bilim Komisyonu chaired by Prof. Dr. Selçuk Öztek, and opened for public comment with a deadline of 31 January 2026. It proposes a fixed 4-month temporary moratorium with the extension option removed, a flexible definitive moratorium ("not less than 6 months, up to 1 year," extendable once by up to 3 months), tighter commissioner oversight, dedicated bankruptcy courts (iflas mahkemeleri), and anti-abuse/anti-forum-shopping rules. As of mid-2026 this remains a draft — not enacted, and not yet debated in Parliament (TBMM). The binding regime is still İİK arts. 285–309 as amended by Laws 7101/2018 and 7327/2021; commercial courts in March 2026 were still granting the old 3-month moratorium. (See Caveats — the same draft would also abolish the kambiyo fast track and the itirazın kaldırılması procedure this strategy relies on.)

Bankruptcy (iflas). Converts individual enforcement into a collective process. A trustee/bankruptcy administration takes over, individual enforcement is stayed, assets are liquidated, and creditors are paid in the statutory ranking of İİK art. 206 — which cannot be contracted around. In order: estate/administration expenses first; then secured creditors from their pledged/mortgaged asset (art. 185); then privileged ranks (employee wages/severance, certain public claims); and finally ordinary unsecured creditors (adi alacaklılar), who share pro rata in what is left. A foreign unsecured trade creditor sits in that last tier — which is exactly why moving before iflas matters. Foreign creditors register claims on the same footing as domestic ones.

Asset stripping / muvazaa — the clawback action (tasarrufun iptali davası, İİK 277–284). Where a company has been emptied of assets (transfers to relatives/affiliates, sham sales at a fraction of value), a creditor holding a certificate of insolvency (aciz vesikası — including a haciz record showing no attachable assets) can sue to annul the fraudulent conveyance and reach the asset in the third party's hands. The action must be filed within 5 years of the transaction; İİK art. 278 covers gratuitous transfers in the prior 2 years, art. 279 certain acts within 1 year, art. 280 transfers made with intent to harm creditors. Where the 5-year window has passed, a general simulation (muvazaa) action under Code of Obligations art. 19 remains available without an aciz vesikası.

Why moving early is decisive. Every tool above weakens once konkordato or iflas begins. The creditor who froze assets first, or who already has a finalised attachment, is in a fundamentally stronger position than one who arrives after the moratorium.

8. Enforcing a foreign judgment or arbitral award (brief pointer)

Foreign court judgments — tenfiz (MÖHUK No. 5718, arts. 50–59). A foreign court judgment has no automatic force in Turkey; it must be recognised (tanıma) and enforced (tenfiz) by a Turkish court before it can be executed. Requirements include finality in the country of origin, no conflict with Turkish public order, and — for enforcement — reciprocity (treaty-based, statutory, or de facto). There is no re-trial on the merits. Uncontested tenfiz typically takes 6–10 months at first instance; contested cases run longer.

Foreign arbitral awards — New York Convention. Turkey is a party to the 1958 New York Convention (with reciprocity and commercial reservations). Foreign awards are enforced under the Convention, with MÖHUK arts. 60–63 as backup; refusal grounds mirror Convention art. V. Arbitral awards generally travel through a more predictable regime than court judgments.

(My dedicated page on enforcing a foreign judgment in Turkey covers tenfiz in full — this is only a pointer; this page is one spoke of my debt collection in Turkey hub.)

9. Acting for a foreign creditor remotely

You do not need to come to Turkey. You authorise me through a power of attorney (vekaletname) that must specifically list the powers granted (debt collection, enforcement, litigation, settlement). Routes:

• Turkish consulate/embassy abroad — issued directly in Turkish, no apostille needed (fastest, cheapest).
• Local notary + apostille — Turkey is a party to the Hague Apostille Convention (since 1985); the notarised POA is apostilled in your country, couriered to Turkey, and sworn-translated into Turkish.
• Chain (consular) legalisation — for non-Hague countries.

For a corporate grantor, the signatory must be an authorised representative, usually evidenced by a board resolution and signature circular/company extract, themselves apostilled and translated. Supporting documents (contracts, invoices, foreign judgments) generally require certified Turkish translations too.

10. Cost and time realities

What drives cost and time. The instrument (cheque/note vs. invoice), whether the debtor objects, whether a lawsuit and mediation become necessary, the debtor's solvency and asset location, and whether konkordato/iflas intervenes.

A clean cheque case resolves faster because the objection does not stay enforcement — attachment can proceed while the debtor litigates. A contested invoice can add mandatory mediation (~6–8 weeks) plus an itirazın iptali lawsuit (months to well over a year at first instance, longer on appeal).

Fees. Court and enforcement fees are largely proportional to the claim value. Attorney fees have a floor set annually by the Union of Turkish Bar Associations minimum tariff (Avukatlık Asgari Ücret Tarifesi), published in the Official Gazette (the 2025–2026 tariff took effect in November 2025); actual fees depend on complexity and are often agreed as a mix of fixed fee and success element. A losing debtor is typically ordered to pay a statutory attorney-fee component and costs.

Indicative timeline (no guarantees): pre-enforcement demand a few days; objection window 7 days (5 for cheques); an uncontested enforcement can reach attachment within weeks; a contested invoice moving through mediation and a lawsuit can run 4–12+ months before enforcement resumes.

Recommendations

Stage 1 — Before you spend anything (days 1–5).

• Send me the instrument you hold (cheque, note, contract, invoices, delivery/acceptance proof, correspondence).
• I run a MERSIS + TTSG check to confirm the company is active and not already in konkordato or iflas. This single check reshapes the whole strategy.
• Sign and apostille the vekaletname and arrange sworn translation, so I can act the moment we decide.

Stage 2 — Secure assets (immediately, if there is any risk signal).

• If there is any sign the company is in trouble or moving assets, apply for ihtiyati haciz to freeze bank accounts and receivables before the debtor is alerted. Be ready to post 10–15% security. Speed here is worth more than anything else.

Stage 3 — Enforce.

• Hold a cheque/note? Start the kambiyo track. The objection won't stop you; press attachment and, in parallel, use the criminal "karşılıksız çek" complaint as leverage on the signatory.
• Hold only an invoice/contract? Start ilamsız icra. If the debtor objects, proceed to mandatory mediation and then itirazın iptali (or itirazın kaldırılması if you hold a qualifying document).
• Hold a foreign judgment/award? Begin tenfiz and pair it with an ihtiyati haciz.

Stage 4 — If the company is being emptied or goes insolvent.

• Pursue tasarrufun iptali against fraudulent transfers (obtain the aciz vesikası).
• If konkordato/iflas is declared, register your claim within the deadline and protect your voting position.

Thresholds that change the plan. (a) A konkordato or iflas announcement → switch immediately from individual enforcement to claim registration and clawback strategy. (b) The debtor holds a cheque/note → always prefer the kambiyo track. (c) Evidence of asset dissipation → escalate to ihtiyati haciz first, questions later. (d) Debtor genuinely asset-less on UYAP but with live customer receivables → deploy İİK art. 89 third-party receivable seizure.

Frequently Asked Questions (the way foreign creditors actually phrase them)

Real B2B problem-phrasing, to shape an on-page FAQ. These mirror the natural-language questions foreign creditors ask.

• "How do I recover a debt from a Turkish company?"
• "Can I collect an unpaid invoice from a Turkish supplier?"
• "Is a debt from a Turkish company even collectable?"
• "A Turkish company owes my business money — what can I do?"
• "My Turkish supplier took a deposit and never shipped the goods."
• "The Turkish company gave me a cheque and it bounced — what now?"
• "Do I have to go to Turkey to sue a Turkish company?"
• "How long does debt collection in Turkey take?"
• "Can a foreign company enforce a debt in Turkey without a Turkish court judgment?"
• "The Turkish company says it has no money / has filed konkordato — is my debt lost?"
• "Can I go after the company's owner/director personally in Turkey?"
• "How much does it cost to recover money from a Turkish company?"

Caveats

• Law in flux — and the draft cuts deeper than konkordato. The July 2025 Draft Compulsory Enforcement Law would materially change konkordato (fixed 4-month temporary moratorium, no extension; tighter commissioner rules; dedicated bankruptcy courts). Critically for this strategy, the published draft would also abolish the negotiable-instrument fast track itself — folding cheque/note enforcement into ordinary ilamsız takip ("Kambiyo Senetleri ve Banka Alacaklarına İlişkin Takip Usulleri kaldırılmakta") — and abolish the itirazın kaldırılması procedure, replacing it with itirazın iptali. If enacted, the core speed advantage a cheque currently gives you would disappear. As of mid-2026 the draft is not enacted and the current İİK regime governs, but this is the single most important development to monitor.
• Cheque criminal law has a history of reversals. It is currently a crime (2016 recriminalisation), but this area has changed repeatedly; verify current state at the time of action.
• Statutory monetary thresholds and tariffs (bank cheque minimum TRY 16,350; minimum-capital thresholds; attorney-fee tariff; mediation thresholds) are updated at least annually and in a high-inflation environment shift fast — treat all figures as indicative and verify at filing.
• Reciprocity for tenfiz is assessed case-by-case (and, for the US, state-by-state). Confirm before relying on a foreign judgment.
• This is general information, not legal advice on your specific matter; outcomes depend on facts, documents, and the debtor's real financial position.