Legal Enforcement and Lawsuits

The following information is provided to briefly outline the legal debt collection process in Turkey.  Each case is unique and ARS Consultancy recommends first exploring all available options and services that we offer.

Should legal debt collection become necessary, our legal team of solution partners is ready with ARSlegal services, the best advice and legal skill available in Turkey.

ARS Consultancy is with you, through each step of the process, guiding and advising you.  Business owners know that ARS Consultancy has eliminated the guesswork in choosing the best legal representation for their specific case.  ARS Consultancy is your one contact for all debt collection issues. We are the only recommendedcompany for Turkey as the legal expert within the field of ‘Debt Collection’, at the website of Global Law Experts (GLE) which is the premier guide to leading attorneys throughout the world.

Law Enforcement in Turkey

The following information is provided to briefly outline the judicial process in Turkey. Firstly, A Payment Order is sent by Enforcement office to the post address of the debtor. This Payment Order allows debtor to respond in 7 working days starting from the date of delivery. If debtor does not object, then this allows our lawyers to start seizure on the assets of the debtor. If debtor objects to the Payment Order, then the lawsuit for ‘The Annulment of the Objection’ is filed. There is a great room for objection in and in %95 of the cases debtors file an objection just to prevent seizure, to gain time and let creditor to file a lawsuit by paying court fees.

Filing this lawsuit, on the other hand, allows our solicitors to collect an ‘unjustified objection fee’ which is around %20 of the principal claim at the end of the judicial process in addition to the interests on top of the principal debt amount. Please be noted that judicial process does not prevent a settlement during ARSlegal and this is why we include our lawyer and consultancy fees into the commission which becomes payable after recovery and from the total recovered amount.

ARSlegal may take up to min of 8 months and to 4-5 years depending on the developments and the commands of the judge. There is a min of 2 months period between two court hearings and creditors themselves do not have to be present during court hearings. Our lawyers and our legal team of solution partners will be representing the creditors and defending their rights on behalf of creditor with the Power of Attorney executed prior to ARSlegal.

Procedural Requirements for Legal Enforcement in Turkey;

1) Power of Attorney (POA); A Power of Attorney is a written authorization which enables our appointed lawyers to perform specified acts for creditor’s behalf. We provide the Power of Attorney in double languages (both in English and Turkish) which will be granted to our solicitors with a limited authority on debt collection. The POA will be sent to creditor by email. It should be signed and stamped by creditor authorized signatory. In order to prepare the POA, we need to know the following:

  • Creditor Full Name
  • Creditor Country of Origin and Full Addres
  • Authorized Signatory Name and Title

IMPORTANT: According to the Hague Convention, the POA must be verified by the Foreign and Commonwealth Office in order to enable it to be used in Turkey. FCO Legalization (also referred to as ‘Apostille’, the legal term for the legalization certificate) is accepted in countries, including Turkey, which has signed the 1961 Hague Convention. Countries which are not a member of the Hague Convention will often still require an Apostille but will also need further legalization via their embassy. Please contact with the Turkish Consulate in your country to know more about the exact authorities and procedures about Apostille. After the POA is apostilled, the original document should be sent to our address by post.

2) Evidences; Supporting documents are critically important to build a strong case. Therefore all evidences should be gathered in due diligence and a copy of documents should be sent to us together with the Apostilled POA (as stated above). There is no need to send the original documents until the judge asks for them.

3) Brief History and the Content; A summary of the relation between creditor and debtor should be chronologically outlined in an A4 paper.

The reason of the debt and all supporting documents should be explained in detail.

Financial Requirements for Legal Enforcement in Turkey;

  • Legal Fees: he Turkish court asks for a proportional application fee which is equal to %4 of the principal claim. To start with, we ask for all legal fees to be paid in advance including the following; proportional application fee, notary fees, delivery costs, translation fees, export reports (X3) and all other out of pocket expenses (i.e. while traveling to attend court hearings). Please contact us to know about the total legal fees in your debt collection claim in Turkey.
  • Commission: All lawyer and consultancy fees are subject to a commission rate which is calculated from the total recovered debt. Please contact us to know about the total legal fees in your debt collection claim in Turkey.

ARSlegal – Pre Sue report;

Each case is unique and ARS Consultancy recommends first exploring all available options and services that we offer.  Should legal debt collection become necessary, our legal team of solution partners is ready with ARSlegal services, the best advice and legal skill available in Turkey. Therefore, with our ARSlegal Pre-Sue reports which are prepared specific for each case provides a detailed case & document analysis. We check the legal basis of all legal documents and provide a report on estimated time-span, expenses and the legal opinion of our solution partners which are composed of lawyer firms and lawyers in each legal field.

Please contact us to place a debt collection inquiry and we will share our opinion to find the best Solutions to proceed in your case.

Legal Advisory and Consultancy Services;

ARSlegal is composed of dedicated full-service lawyers whom we operate at the same office with our solution partner law firm. We provide consulting services to our global clients and support them in their legal needs at daily transactions and recommend business solutions regarding to the strategic issues. Our ARSlegal team is bilingual and has in-depth local knowledge and experience on cross-border transactions and disputes.

The New Turkish Commercial Code (new TCC) effective as of 1 July 2012, introduces new principles and changes for merger transactions which facilitate the merger process in commercial companies. Please see below the areas of law whom we assist our international clients via our solution partner law firm;

  • Commercial Code, Foreign Capital Law,
  • Company Branch and Liaison Office Establishment
  • Legal Guidance in the Re-structuring of the Companies
  • Consultancy in company mergers and liquidations
  • Preparation of Board of Directors and General Assembly Meetings
  • Tax Law and giving written legal opinion on tax matters
  • Compliance According to the Turkish Commercial Code
  • Company Secretarial  and Legal Due Diligence

International Agreements in Turkey;

The expansion of global trade has resulted in an increasingly high degree specialization in international contract practices. Via our ARSlegal services and specialized team of lawyers, we draft contracts, provide legal opinions, represent clients in negotiations as well as in court and extrajudicial proceedings, and provide consultations in other matters related to the law of obligation, including obligations not governed by contracts.

Our dedicated full-service lawyers whom we operate at the same office, we defend the interests of our client and draft the necessary documents (contracts, cooperation agreements, minutes of meetings, etc.). The back office support gives clients a sense of security that possible risks related to their transaction have been mitigated.