Debt Collection

Real and legal persons may have difficulties in collecting their debts from time to time. For this reason, there are regulations regarding receivables in the Execution and Bankruptcy Law. According to the law, there are four different types of receivables. Real and legal persons have the right to initiate enforcement proceedings for receivables arising from contract-invoice, check-policy, mortgage and ilam. If a debt arises as a result of the legal agreement between the two parties, enforcement proceedings can be initiated for this. Foreign exchange bills such as checks and bills are definitive proof according to civil procedure law. Especially in commercial transactions, debts arising from these bills are frequently encountered. As a result of showing another property as collateral for the collection of a receivable, the so-called mortgage occurs. Islam refers to the final decision made by the court. “How does debt collection arising from all these receivables take place?” Questions such as were answered by law.

   What Is The Process of Debt Collection?

In order to collect a debt arising from legal means, the creditor’s application to legal means will speed up the process. In this context, Turkish law has determined two different ways, such as filing a lawsuit and initiating enforcement proceedings. For the debts that are due (payable) and possible to be paid (executable), a performance lawsuit can be opened. Since payment is possible in debts associated with money, the debtor will be sentenced at the end of the case. Following the decision of the court, enforced proceedings are initiated. Thus, by means of foreclosures and enforcement, the debtor’s goods are converted into money and receivables are collected.

In some cases, it may not be possible to perform the debt or this performance may not be fully realized. In such cases, the creditor may request the debtor to remedy his loss. The creditor may have suffered both material and moral damages and can file for damages for this. It is not an imperative to form a court order for the receivables. The ilamsiz way of execution is also open for money and collateral receivables. There is no obligation to file a lawsuit for this.

Debt Collection With Executive Proceeding

The process of the creditor initiating executive proceedings for the debtor is a short and fairly easy process. With a proper follow-up request, executive proceedings can be initiated by applying to the Enforcement Department. Although the costs at this stage are paid by the creditor in the first stage, these amounts are then collected from the debtor. However, the process that starts with the follow-up of the receivables after the executive proceedings has started can be long and difficult. Therefore, it may be necessary to work with lawyers who are successful in executive proceedings in this process. Working with a good lawyer will be a more profitable deal for the creditor in the long run, especially in the areas of tracking and collecting large sums.

Throughout the society, there is an idea that “only execution proceedings are initiated for high amount receivables”. However, enforcement proceedings can be initiated in the same way for small debts. There are a few more steps following the initiation of the debt collection made with executive proceedings After the follow-up request, the payment order becomes final. Afterwards, foreclosures and sales transactions take place. The revenue after sales reaches the required places at the last stage.

No matter how much you need to collect, you can collect debt as soon as possible by using legal means. Thanks to the experienced lawyers of Marhan Law, you can accelerate the follow-up processes and collect high amounts in a short time.