Receivable Lawsuit

When money that was lent is not repaid, when payment for completed work cannot be collected, or when a payment obligation arising from a contract is not fulfilled, the main legal route available to the creditor is a receivable (debt collection) lawsuit. A receivable lawsuit is filed so that the debtor is ordered to pay and the resulting judgment can be collected through enforcement proceedings.

However, filing a lawsuit right away is not always the most suitable path for every receivable. The type of receivable, the documents at hand, the debtor's assets, and whether the parties are merchants determine which route will produce a faster and safer result. Every case is unique; the specific circumstances must be assessed separately on the basis of the documents.

Before the lawsuit: default and formal notice

Under the Turkish Code of Obligations, the debtor of a debt that is due (muaccel), meaning its payment date has arrived, falls into default upon the creditor's notice. If the parties have agreed on a specific due date for payment, the debtor falls into default once that date passes, without any need for notice. Default matters because it is the point at which late-payment interest begins to accrue.

In practice, a formal notice sent through a notary both documents the date of default and gives the debtor one last opportunity to pay. The notice should clearly state the basis of the receivable, its amount, and the period granted for payment. In some disputes, the notice is also used to put on record facts that could later become contested.

Gathering the documents that will prove the receivable, before filing a lawsuit or enforcement proceeding, is also part of this stage:

• The contract, order form, offer and acceptance correspondence,
• Invoices, delivery notes, delivery records, and current account statements,
• Bank receipts and transfer records whose description shows the debt,
• Emails, messages, and written statements in which the debtor acknowledges the debt,
• Any promissory note, check, or surety document.

Where documents are lacking, evidence such as witnesses and expert examination may be used; however, relying on witness testimony is limited in cases where the law requires proof by written instrument.

Interest claim

A debtor who falls into default in paying a monetary debt is obliged to pay default interest. If the parties have not set an interest rate in the contract, the legal interest under Law No. 3095 on Statutory Interest and Default Interest may apply in ordinary transactions, and the advance (avans) interest rate regulated in the same law may apply in commercial transactions. Because these rates change periodically, calculations should be made using current rates; for a preliminary estimate, you can use our interest calculation tool.

Is mediation a prerequisite for filing suit?

In some receivable disputes, applying to a mediator before filing a lawsuit is mandatory. These include, first and foremost, commercial cases concerning a sum of money such as receivable, compensation, annulment of objection, negative declaratory, and restitution actions, most disputes heard by consumer courts, and disputes arising from lease relationships. If a lawsuit is filed directly in a dispute where mediation is a prerequisite, it is dismissed on procedural grounds. In an ordinary debt relationship, by contrast, a lawsuit can generally be filed directly. Because of changes in legislation, the scope must be checked separately for each case.

Competent and authorized court

The court with subject-matter jurisdiction is determined by the nature of the dispute:

• Civil court of first instance: The court of general jurisdiction; ordinary receivable lawsuits are heard here.
• Commercial court of first instance: Hears cases relating to the commercial enterprise of both parties, as well as commercial cases listed in the law.
• Consumer court: Has jurisdiction over disputes arising from consumer transactions.
• Civil court of peace: Hears disputes arising from lease relationships, including rent receivables.

As for territorial jurisdiction, the general rule is that the lawsuit is filed at the court of the defendant's place of residence. Lawsuits arising from a contract may also be filed at the court of the place where the contract is to be performed. Since monetary debts are, as a rule, to be performed at the creditor's place of residence, the creditor can in most cases also file suit at the court in their own place of residence. For a creditor residing in Bakırköy, this may mean the case can be heard at the Bakırköy Courthouse.

Statute of limitations and proof

Unless the law provides otherwise, every receivable is subject to a ten-year statute of limitations. Certain receivables listed in the law, such as rent, interest on principal, and other periodic performances, are subject to a five-year limitation period. The court does not take the statute of limitations into account on its own; it must be raised by the debtor. Even so, filing a lawsuit for a time-barred receivable carries serious risk. The limitation period is interrupted by acts such as the debtor's acknowledgment of the debt, partial payment, the filing of a lawsuit, or the initiation of enforcement proceedings, and it starts running anew from the moment of interruption. For this reason, in older receivables, it must be checked one by one, using the documents in the file, which act may have interrupted the period.

As for proof, legal transactions exceeding a certain amount must be proven by written instrument. This monetary threshold is redetermined every year. It is therefore important to keep evidence such as a written document, a transfer with a bank description, or correspondence when lending money or expecting payment in return for a service. Where the amount of the receivable cannot be determined precisely when filing, an action for an indeterminate receivable is also an option.

Alternative routes: enforcement proceedings and precautionary attachment

1. Enforcement proceedings without a judgment: A payment order is sent through the enforcement office without filing a lawsuit. If the debtor does not object, the proceeding becomes final.
2. Action for annulment of objection: If the debtor objects, this action can be filed within one year from the notification of the objection.
3. Precautionary attachment: For a monetary receivable that is due and not secured by a pledge, a precautionary attachment order can be requested from the court against the risk of the debtor hiding assets.

Which route to choose depends on how well the receivable is supported by documents and on the likelihood of the debtor's objection. If the receivable arises from a tort or an accident, our page on material and moral compensation lawsuits can also serve as a guide.

Our firm's support

Our firm handles the process on behalf of the creditor or the debtor, from reviewing the documents that form the basis of the receivable and preparing the formal notice, through mediation talks, to the lawsuit and enforcement stages. The goal is to resolve the dispute by the most suitable route possible and without any loss of rights.