In the ordinary course of commercial life, when buyers and sellers fail to fulfill their primary obligations to each other, either partially or completely, it is possible to resort to legal enforcement measures. Firstly, the debt relationship entails the right of the creditor to demand from the debtor and the obligation of the debtor to fulfill the debt, which is a legal relationship.
Before resorting to the legal enforcement route, which is the execution process in the collection of debts, it will be the fastest method for resolving disputes and collecting debts to call for the debtor regarding collection and send a notice and engage in reconciliation negotiations. However, if reconciliation is not possible in certain debt relationships, resorting to the enforcement route is the most appropriate path. Execution proceedings can be initiated through the Enforcement Directorates located in the jurisdictionally competent court.
Execution proceedings are primarily divided into:
• Judgment execution
• Non-judgement execution
In non-judgement execution, although there is no need for any document in principle, documents such as invoices, contracts, bills of exchange, etc., related to the cause of the debt are attached to the basis document of the execution. Non-judgement execution types include:
• General attachment through non-judgement execution
• Execution method pertaining to commercial papers and bills
• Eviction of leased real estates.
In general, after the initiation of enforcement proceedings by expert lawyers in non-judgement execution cases, a payment order is issued to the debtor by the Enforcement Directorate, and the notice is served to the debtor via PTT (Turkish Post and Telegraph Organization). In cases where the notice cannot be served, depending on whether the debtor is an individual or a company, the lawyer requests re-service of the notice in accordance with the relevant articles of the Notification Law. Diligent monitoring of the notification process will also expedite the execution process.
Upon receiving the notification, the debtor must object at the relevant enforcement office or through their representative within 7 days (5 days in the case of execution method pertaining to commercial papers and bills) to lodge an objection. If no objection is lodged within the specified period, the enforcement process is finalized, and seizure procedures against the debtor can commence.
In cases where the debtor objects to the enforcement proceedings, a lawsuit for the cancellation of the objection or the removal of the objection must be filed according to the specific dispute. As a result of this lawsuit, the non-judgement execution process is transformed into a judgment execution.
On the other hand, for the initiation of judgment execution, one must possess a judgment or a document deemed equivalent to a judgment. A debtor subject to judgment execution does not have the right to object to the enforcement order. They can only object on grounds such as mistake of fact, statute of limitations, or the payment of the debt. The only action the debtor can take here is to request the postponement of the enforcement order by indicating their application to the higher court (suspension of enforcement).
Seizure procedures are carried out once the payment order becomes final. Upon finalization, the creditor informs the Enforcement Directorate of the seizure request. Seizure annotations are made on the movable and immovable properties of the debtor identified during the asset search. At the same time, seizure procedures to be carried out at the debtor’s address are also executed physically. There is no obligation in seizure procedures to inform the debtor or send a warning letter.
For the fastest possible collection of your receivables and for this collection to be carried out in compliance with the law, it is important to work with a lawyer specializing in enforcement and bankruptcy who can ensure that necessary objections and petitions are made within legal deadlines.
