International Debt Collection

What Should One Do When They Have Receivables from a Foreign Company?

“When we have receivables from firms or individuals abroad, what should we do?” is one of the most frequently asked questions to international law firms. If you have receivables arising from a commercial relationship and face issues in collection, it is essential to make the necessary applications correctly. The nature of any contracts between the parties, and the rules of Turkish and foreign legal systems concerning dispute resolution should be carefully examined. Although each country’s legal procedures and regulations differ, general principles of international trade are crucial in resolving commercial disputes. If you have receivables from a foreign company, you can provide us with a power of attorney to monitor and collect these receivables abroad, while managing the process from Turkey.

What is the Difference Between Receivables from Foreign and Domestic Parties?

The primary distinction in pursuing international receivables is that one of the parties is “foreign.” When seeking to collect from a foreign debtor, the legal process usually starts in a foreign country, and the legal rules of that country will apply. DG Law Office ensures that these legal processes are completed as quickly and successfully as possible in collaboration with partner law firms abroad.

How Can I Collect Receivables from Foreign Debtors?

DG Law strives to resolve international receivables as swiftly and cost-effectively as possible, preferably through methods other than litigation. If these methods fail, the process will be initiated through enforcement offices or directly in courts to secure the client’s receivables. Depending on the nature of the work and the agreement between the parties, the process can be initiated from Turkey. If this is not feasible, the receivable can be claimed through legal applications directly abroad.

Can I Collect My Receivable Without Filing a Lawsuit?

Our law office first obtains the debtor’s contact details and initiates a written or verbal notice process according to the needs of the case. During this process, the debtor will be warned to pay the debt, with a notice that enforcement proceedings or a lawsuit will follow if payment is not made. The costs and additional burdens of this process will be reminded to the debtor to ensure the receivable is collected as quickly as possible.

What Happens if a Foreign Debtor Does Not Settle the Debt Through Settlement?

If a foreign debtor fails to settle the debt, the receivable will be pursued through enforcement proceedings or a claim in court, depending on the nature of the case. It is important to determine which country’s laws will apply to the enforcement or claim. Our specialized legal experts will decide which country’s legal route is most suitable and determine the appropriate method accordingly.

How Can I Grant Power of Attorney While Living Abroad?

For someone residing abroad to be represented in a legal case in Turkey, they need to grant power of attorney to a lawyer in Turkey. Being abroad does not prevent you from granting power of attorney. You do not need to come to Turkey to provide the power of attorney; you can complete this process through the Turkish consulates in your current country or relevant authorities in the foreign country you reside in.

How Can I Grant Power of Attorney for a Receivable Abroad?

For tracking a foreign receivable, it is possible to issue a power of attorney according to general procedures valid in Turkey. If the process involves our foreign partner legal team, the content of the power of attorney will be communicated to you by DG Law, and the preparation of the power of attorney will be expedited on your behalf.

Can I Collect Receivables from a Foreign Debtor by Filing a Lawsuit in Turkey?

Collecting receivables from a foreign debtor through a legal process initiated in Turkey is possible but requires considerable expertise. If it is decided to start the collection process in Turkey based on the nature of the case, the state’s coercive measures can be used to secure the debt. However, it is often the case that foreign debtors do not have assets in Turkey to cover the debt. In such cases, the debt that is finalized in Turkey must be claimed before foreign legal authorities. Sometimes, the fastest way to collect the receivable might be to start the process in Turkey and conclude it abroad. The best approach based on the nature of your debt relationship should be determined through discussions with DG Law.