Istanbul Bankruptcy Lawyer

Commercial debt collection, asset attachment, corporate insolvency, and debt restructuring in Istanbul are governed by the Enforcement and Bankruptcy Law No. 2004 (İcra ve İflas Kanunu — İİK) and the Turkish Commercial Code No. 6102 (TTK). Coordinated by Attorney Enes Nergiz (Antalya Bar Association Reg. No: 6281), Kalem Law Office represents international creditors, foreign exporters, banks, and corporate debtors before the Istanbul and Istanbul Anatolian Enforcement Directorates (İcra Müdürlükleri), Enforcement Courts (İcra Hukuk Mahkemesi), and Commercial Courts of First Instance (Asliye Ticaret Mahkemesi).

1. Statutory Debt Recovery, Attachment & Insolvency Procedures in Istanbul

2. Freezing Debtor Assets in Istanbul via Precautionary Attachment (İhtiyati Haciz — İİK Art. 257)

When a commercial debtor in Istanbul shows signs of dissipating assets, transferring real estate to third parties, or dishonoring checks and promissory notes, waiting for a standard payment order to become final allows the debtor 7 to 10 days to empty bank accounts. Under İİK Article 257, we petition the Istanbul Commercial Court of First Instance for an urgent Precautionary Attachment (İhtiyati Haciz) order against matured unsecured debts (or unmatured debts where the debtor has no fixed domicile or prepares to conceal assets). Once granted against a statutory court security bond (typically 10% to 15% of the claim, or waived/reduced for dishonored checks and notarized instruments), we immediately freeze the debtor’s bank accounts across all Turkish banks via UYAP and place attachment liens on their Istanbul title deeds and vehicles.

3. Concordat (Konkordato — İİK Art. 285–309) & Creditor Protection in Istanbul

Following the enactment of Law No. 7101, the former institution of "bankruptcy postponement" (İflasın Ertelenmesi) was completely abolished under Turkish law and replaced by Concordat (Konkordato — İİK Art. 285–309). We represent both:

• Creditors of Companies in Concordat: Registering domestic and foreign claims with the court-appointed Concordat Commissioner (Konkordato Komiseri) within the strict 15-day creditor announcement period (İİK Art. 299), auditing the debtor’s financial feasibility project, voting at the creditors’ quorum (which requires more than 50% of creditors and 50% of receivables, or 25% of creditors and two-thirds of receivables under İİK Art. 302), and petitioning the court to lift the moratorium and declare immediate bankruptcy if the debtor acts in bad faith.
• Financially Distressed Companies Seeking Restructuring: Preparing the Preliminary Concordat Project (Konkordato Ön Projesi), independent audit reports, and court petitions to secure protection against execution attachments under Temporary and Definitive Moratorium orders.

Frequently Asked Questions — Istanbul Bankruptcy & Debt Recovery Lawyer

How quickly can a foreign creditor initiate debt collection against a company in Istanbul?

If the claim is based on commercial invoices, contracts, or wire transfer records, we can initiate an Ordinary Enforcement Proceeding (İlamsız İcra Takibi) electronically through UYAP at the competent Istanbul Enforcement Directorate on the same day the Power of Attorney is received. If the claim is backed by a dishonored Turkish check or promissory note (Bono), we apply immediately for a Precautionary Attachment (İhtiyati Haciz) to freeze the debtor’s bank accounts before notice is served.

What happens if the Istanbul debtor objects to the Payment Order within 7 days?

Under İİK Art. 62 and Art. 66, a timely objection within 7 days temporarily halts the ordinary enforcement proceeding. To overcome the objection, we initiate mandatory commercial mediation (TTK Art. 5/A) and file an Action for Annulment of Objection (İtirazın İptali Davası) under İİK Art. 67 before the Istanbul Commercial Court. When the court rules that the debtor’s objection was unfounded, the debtor is ordered to pay the principal debt, commercial default interest, legal costs, and a mandatory bad-faith execution denial penalty (İcra İnkar Tazminatı) of at least 20% of the debt.

Does ’bankruptcy postponement’ (İflasın Ertelenmesi) still exist in Turkish law?

No. Bankruptcy postponement was abolished by Law No. 7101 and replaced by the Concordat restructuring regime under Articles 285–309 of the Enforcement and Bankruptcy Law No. 2004 (İİK). Any company in Istanbul seeking judicial protection against creditor attachments must now apply for Concordat before the Commercial Court of First Instance.

What can a creditor do if a debtor in Istanbul transfers property to relatives to avoid paying debts?

Under Articles 277–284 of the Enforcement and Bankruptcy Law No. 2004, we file an Action for Annulment of Fraudulent Conveyance (Tasarrufun İptali Davası) before the Istanbul Civil Court of First Instance to set aside sham transfers, donations, or undervalued sales made to relatives or third parties within the statutory look-back period, allowing the creditor to seize and auction the transferred property directly.

Can foreign court judgments or foreign arbitral awards be enforced against a debtor’s assets in Istanbul?

Yes. Under the Turkish Private International and Procedural Law No. 5718 (MÖHUK Art. 50–63) and the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, we file an Enforcement Lawsuit (Tenfiz Davası) before the competent Istanbul court alongside an urgent Precautionary Attachment request so that the foreign judgment or arbitral award is executed with the full force of a Turkish court judgment.

Related Istanbul Commercial Guides: Istanbul Lawyer & Legal Services Hub | Istanbul Company & Commercial Lawyer | Business Partnership & Shareholders Agreements.