Istanbul holds a special position in the collection of foreign receivables, as it is one of Türkiye’s most active centers in terms of finance, trade, and international business relations. Foreign individuals, international companies, and investors often collect their receivables arising from commercial relationships with persons or institutions in Türkiye through legal processes based in Istanbul.
In foreign-related receivables, issues such as applicable law, competent court, enforcement mechanisms, and the validity of international judgments in Türkiye play a decisive role in ensuring a sound and effective process.
What is a foreign receivable?
A foreign receivable arises when the creditor is a foreign national, the debt relationship contains a foreign element, or the receivable originates from an international legal transaction. Such receivables typically arise from:
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International commercial contracts
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Sales of goods and services
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Transportation and logistics activities
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Construction and project contracts
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Partnership and investment relationships
As Istanbul is at the center of these legal relationships, a significant portion of foreign receivable collection cases is conducted there.
Methods of collecting foreign receivables in Türkiye
The legal method to be followed for collecting foreign receivables varies depending on the basis of the claim and the debtor’s situation. In practice in Istanbul, the most commonly used methods include:
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Collection through enforcement proceedings
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Filing a receivables lawsuit
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Recognition and enforcement of foreign court judgments
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Enforcement of arbitration awards
Each method has its own procedural rules and time limits. Therefore, choosing the correct legal path at the outset is of great importance.
Collection of foreign receivables through enforcement proceedings in Istanbul
Under Turkish law, enforcement proceedings are an effective and fast method of collection for foreign creditors as well. If the debtor’s residence or assets are located in Istanbul, enforcement proceedings may be initiated before the Istanbul enforcement offices.
If the debtor objects to the enforcement proceedings, the process may turn into a receivables lawsuit. Therefore, establishing a proper legal basis for enforcement proceedings directly affects the collectability of the claim.
Collection of foreign receivables through receivables lawsuits
If the receivable is disputed or an objection is raised to enforcement proceedings, a receivables lawsuit must be filed before the competent and authorized courts in Istanbul. In such cases, particular attention is paid to:
Determining the applicable law
Whether there is a choice-of-law clause in the contract between the parties is one of the key factors determining the course of the case.
Assessment of jurisdiction and competence
In foreign-related disputes, the court’s jurisdiction is frequently subject to objection. Therefore, the lawsuit must be filed before the correct court.
Proper submission of evidence
Translation of foreign documents, apostille procedures, and the form of evidence submission can directly affect the outcome of the case.
Recognition and enforcement of foreign court judgments
In order for a court judgment rendered in a foreign country to have legal effect in Türkiye, a recognition and enforcement lawsuit must be filed. Istanbul is among the leading cities where such cases are most frequently heard.
The court examines whether the judgment violates Turkish public order, whether the right of defense has been infringed, and whether procedural requirements have been met. If enforcement is granted, the receivable becomes collectible through enforcement proceedings in Türkiye.
Enforcement of arbitration awards in Istanbul
If an international commercial contract contains an arbitration clause, collection is carried out through the enforcement of the arbitration award. Istanbul is a key practice center for the enforcement of international arbitration awards.
As the enforcement of arbitration awards involves technical and procedural complexities, the process should be handled with professional expertise.
Disputes between foreign creditors and Turkish debtors
In practice, the most common challenges faced by foreign creditors include identifying the debtor’s assets, jurisdictional objections, and prolonged proceedings. In collection processes conducted in Istanbul, taking swift and accurate legal steps is critical to ensuring effective recovery.
Legal support in the collection of foreign receivables
Collecting foreign receivables in Istanbul is not limited to initiating lawsuits or enforcement proceedings. Legal and strategic evaluations must be carried out at every stage of the process.
In this context, Attorney Esra Aslan provides legal consultancy and representation services for both foreign creditors and Turkish parties in enforcement, litigation, recognition, and enforcement processes related to the collection of foreign receivables in Istanbul.
Frequently asked questions
Can a foreign person file a receivables lawsuit in Türkiye?
Yes. Foreign individuals and legal entities have the right to file receivables lawsuits before Turkish courts.
Can enforcement proceedings for foreign receivables be initiated in Istanbul?
If the debtor’s residence or assets are located in Istanbul, enforcement proceedings may be initiated before the Istanbul enforcement offices.
Can collection be made in Türkiye based on a foreign court judgment?
Yes. However, the recognition and enforcement lawsuit must first be finalized.
How long does the collection process take?
The duration varies depending on the nature of the receivable, the debtor’s attitude, and the chosen legal method.
Is it mandatory to work with a lawyer in foreign receivable cases?
It is not mandatory; however, due to the technical and procedural nature of the process, working with an experienced lawyer provides significant advantages.
