It always happens that the counterparty, partner, or any other company is not fulfilling financial obligations. Legal entities in Turkey are not an exception, hence, it is necessary sometimes to collect the debts. So what do you need to know about the debt collection in Asia, and, especially in Turkey?
Firstly, there are several options to recover the debt in the country, amicable collection and enforcement debt recovery via litigation. In order to return finances, you should follow the terms of legislation, especially the terms of Code of Obligations, Code of Commerce, and Bankruptcy Law regulations if necessary.
The pre-trial option of debt collections is rather simple, however, if it is performed by a non-professional agency, it might have no effect on the returning of finances. Usually, the pre-legal procedure consists of the request, which is sent to the debtor. It requires the company to make the payment within the specified time period. It is possible to request to pay part of the money or the whole amount. Nevertheless, it is necessary to fix everything in writing, using the outbound letters of demands.
Additionally, according to the Turkish legislation, if the debtor fails to cover the debt and does not fulfill its obligations to make the payment, the creditor can request an order of peremptory payment, in which case the debtor is obliged to pay the debt/part of the debt in 10 days.
Litigation on enforcement debt recovery contains a big number of requirements, which have to be followed. The litigation should be handled by the attorney, which practices in Turkey. Moreover, the guarantee of the repayment cannot be also provided due to a big number of bankruptcies and liquidations, which became a nationwide problem.