Debt Collection
- Pre-judicial receivables follow-up
- Applying for prosecution without judgment and obtaining an enforcement order
- Collection of receivables with execution orders
- Declaration of debtors' bankruptcy
- Consultation on debt and receivable management
- Creditworthiness checks of debtors
- Purchasing the receivable
- Follow-up procedures
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Pre-judicial receivables follow-up:
Although the creditor person/company has notified the debtor, if the debtor has not made payment and is in default, the creditor can apply to an incasso company and request to secure its receivable. Pre-judicial inkasso is the least costly for both the debtor and the creditor party, and debt collection is one of the main tasks and general activities of inkasso companies where they are most successful. In pre-judicial inkasso, the inkasso company first sends a new warning letter to the debtor for a receivable file it has received, explaining that it is the representative of the creditor and reminding that it has not paid its debt. If the debtor pays his debt after this notice, the incasso service ends. In cases where the debt is paid to the account of the inkasso company, the inkasso company deducts its own expenses from this amount and transfers the remaining amount to the creditor. If the debtor does not pay, some inkasso companies visit the debtor and hold private meetings.
However, if the debtor does not comply with the warning letter, a second warning letter gives the debtor a final payment period (usually 7-14 days) and warns that legal action will be taken if he does not pay the debt. However, due to the aim of resolving the dispute before trial, it also offers different options to the debtor. These are options such as paying in installments, postponing the debt with a guarantee of payment, or reaching a compromise if it is possible to pay part of it. If the debtor is positive about any of these options and an agreement can be reached, the inkasso company notifies the client of the situation and exchanges information on how the procedure will be. If the creditor evaluates these offers and reaches an agreement for one of the solutions, the case is closed for the inkasso company. If an agreement has been made in the form of installment payment, the creditor can request the inkasso company to follow up on the debtor's payment of these installments and to apply the procedures applied in the first place in case the payment is delayed.
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Applying for follow-up procedure without judgment:
If the debtor does not want to reach an agreement in any way and it is determined that compromise will not provide a solution, the creditor may request legal proceedings. If the debtor does not make a payment or does not object within two weeks from the date of notification of the payment order, the proceedings become final and, depending on the creditor's request, the debtor may request an enforcement order to be issued within 6 months. If the debtor objects to the payment order within two weeks, the creditor may take the matter to court ex officio.
According to Turkish law, the payment order is the first enforcement proceeding. Enforcement proceedings without judgment, regulated in the Enforcement and Bankruptcy Law, begin with the request sent to the debtor and continue through foreclosure, conversion of the pledge into cash or bankruptcy, depending on the situation. In Turkey, debtors must object to the payment order within seven days.
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Collection of receivables for which there is an enforcement order:
As with the payment order, inkasso companies are given the license to follow up. With the execution order, the creditor is given the opportunity to obtain his receivables from the debtor. However, here again, the debtor is given the opportunity to object to the enforcement order within 14 days. If the debtor does not object, the creditor is independent about how he wants to carry out the enforcement process and can assign the inkasso company to the enforcement process. In Turkish law, an enforcement order is sent only in case of application for enforcement proceedings with a judgment. In enforcement proceedings with a judgment, the creditor files a lawsuit against the debtor, confirms that he is a creditor by a court decision, and with this decision, applies to the Enforcement Directorate, initiates the enforcement proceeding with a judgment, and becomes final when the enforcement order is notified to the debtor. Since enforcement proceedings can be initiated by a court order, the debtor does not have the right to object. However, the debtor always has the right to file a lawsuit with the Enforcement Courts regarding other objections.
Inkasso company determines the assets of the debtor with the final enforcement order and controls the enforcement procedures. However, if the debtor does not have assets, the debtor makes a sworn declaration stating that he cannot pay his debt and the transaction is closed without being able to collect the receivable. After the final enforcement order and the debtor's sworn declaration, Inkasso companies may be assigned by the creditor to pursue long-term follow-up for the re-collection of receivables in case the debtor regains assets or income at any time.
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Purchasing the receivable:
It is the acquisition of overdue receivables by inkasso company. Inkasso company assumes all credit risk, rights and obligations in such purchase files.