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DEBT COLLECTION
Our law office in Istanbul, Turkey, can offer comprehensive debt collection services thanks to its contracted solution partners all over Turkey.
What is Debt Collection Consultancy?
In commercial life, receivables are subject to exchange notes (check notes, policies) or invoices from selling products and services. Due to the nature of relationships between individuals or legal entities, debts may sometimes not be collected in commercial life. The collection of these receivables may be the subject of litigation or enforcement proceedings.
The collection of these receivables, subject to legal remedies, may be extended due to reasons arising from the debtor or aggravating the follow-up process. For this reason, the receivables subject to follow-up must be evaluated within the scope of the debt collection consultancy. So, what is debt collection? How does debt collection work?
What is Debt Collection?
Debt collection is a comprehensive concept that includes negotiation, mediation, litigation, and enforced enforcement processes and procedures. Collecting receivables is possible by negotiation and reconciliation before resorting to legal remedies.
The collection of receivables that the debtor cannot collect in this way is only possible through legal means, enforcement offices, execution proceedings initiated by the creditor, or a lawyer/attorney assigned by proxy.
How Does Debt Collection Work?
A warning can be sent to the debtor by the creditor in the receivable collection, primarily to put the debtor in default. Enforcement proceedings are initiated if the debtor does not make the payment within the period given after the warning. Before applying for legal remedies for the collection of the receivable;
- In addition to the information given by the creditor about the debt and the debtor, research is made from open sources.
- If it is impossible to collect it from the debtor by negotiation, it is collected through enforcement proceedings.
- The debtor is notified via PTT or Registered Electronic Mail (KEP) if the enforcement proceedings are initiated.
- In case of objection to the enforcement proceedings, the objection made with the action for the annulment of the objection or the action for removing the objection is canceled/removed, and the enforcement proceedings are finalized.
- If the debtor does not make payment upon the finalized enforcement proceedings, the foreclosure and sale of movable and immovable assets begin.
- If the debtor has collusive transfers, the cancellation of these transfers is requested.
What Are The Services Provided in The Scope of Consultancy For Receivable Collection?
Services provided within the scope of debt collection consultancy are as follows;
- Investigation of ways to collect the debt before the court or execution,
- Searching for means of reconciliation or resolving disputes between the creditor and the debtor,
- Pre-trial collection of receivables,
- Preparing the documents of the receivables in the execution proceedings,
- Following the procedures of receivables in execution proceedings,
- Collection of receivables through court,
- Providing legal support according to the demands of the creditor,
- Analyzing the receivable case and creating a road map,
- Taking initiatives to resolve disputes before, during, and after the court,
- Performing the debt collection service within the framework of laws or regulations.
What Are MGC Legal’s Debt Collection Services in Turkey?
MGC Legal provides services with a dynamic team in the receivables collection in Turkey. It supports its clients with lawyers & attorneys who are experts in their fields to collect their due receivables as soon as possible. All kinds of technological opportunities are used in these debt collection services in Turkey.
A result-oriented process is operated in the debt collection attorney service, provided within commercial intelligence, economic borders, and current legal decisions. Support is provided to creditors in line with their needs and expectations in processes such as; developing a strategy for debt collection, mediation, claims, and court and enforcement proceedings.
MGC Legal has years of expertise in debt collection in Turkey.
MGC Legal’s Debt Collection Services in Turkey
In some cases, a Turkish firm is unable or unwilling to pay its obligations, causing its subcontractors to have difficulty paying their commitments to other business associates.
Lenders may employ a variety of ways to get debtors to compensate for breaking the vicious cycle. Debt collection companies or legal firms might seek an agreeable solution or a judicial process using the Code of Obligations, Code of Commerce, and Bankruptcy Law.
Debt collection agencies are usually more geared to the first way, while legal offices prefer the second; international investors embroiled in a debt collecting scenario may seek help from our English-speaking Turkish debt collection attorneys.
Further Reading: Basics For Debt Collection in Turkey For Foreign Entities and Real Persons.
