Necessary Steps for the Collection of Unpaid Invoice Receivables through Enforcement

How Do Unpaid Invoices Affect Cash Flow and What is the Most Effective Procedure to Follow?

One of the most frequently encountered issues across various fields, from SMEs to freelancers, and from commercial enterprises to real estate managers, is unpaid invoice receivables. The fastest and most direct way to collect these receivables is typically to initiate execution proceedings without a judgment (Sample 7 payment order). In Izmir, the process is conducted through the Izmir execution offices, based on the criteria of the debtor's residence and the place of performance; it is possible to expedite the collection process with the correct steps and documents.

What Legal Regulations Determine the Procedure?

• Execution and Bankruptcy Law (İİK): Regulates the execution proceeding procedure, jurisdiction, and Sample 7 payment order (e.g., İİK art. 50/1 jurisdiction rules; non-judicial enforcement procedures).
• Civil Procedure Code (HMK): Regulates jurisdiction rules and the relationship between invoices/commercial documents and proof (e.g., HMK art. 6 and art. 222).
• Turkish Commercial Code (TTK): Covers commercial book records, objection to invoices, and acceptance provisions (e.g., TTK art. 23/2, arts. 84-85).
• Turkish Code of Obligations (TBK): Contains provisions related to certain jurisdiction rules and statutes of limitations (e.g., TBK art. 89).

You can refer to the full text of the Execution and Bankruptcy Law for relevant legal texts: Execution and Bankruptcy Law (İİK) — Legislation.

Collection through Execution in Izmir: Step-by-Step Process

1. Preliminary Step: Written Notice (Recommended)

First, send a written notice to the debtor as the creditor. The notice should include the invoice date, amount, due date, and payment account information. The notice interrupts the statute of limitations and provides evidence in court.

2. Initiating Execution Proceedings (Sample 7)

• Necessary documents: original invoice or certified copy, request for enforcement petition, breakdown of receivables, debtor's identity/title and address information, power of attorney (if applicable).
• The enforcement request is submitted to the execution office at the debtor's place of residence. If the debtor's address is in Izmir, Izmir execution offices will be authorized (links to İİK art. 50/1 and HMK art. 6).
• The execution office issues a Sample 7 payment order based on the request and serves it to the debtor. Service is carried out by mail or through seizure.

3. Service of the Payment Order and Objection Process

• After being notified, the debtor has the right to pay or object within 7 days. If the period lapses, the proceeding becomes definitive.
• If the debtor objects, the execution proceeding is halted; the creditor must file a lawsuit for annulment of the objection (the competent court is usually the civil court of peace).
• In the annulment lawsuit, the invoice's nature as a commercial document and its evidential value are assessed according to HMK art. 222 and TTK provisions.

4. Finalization of the Proceeding and Seizure Actions

• If there is no objection or if the objection is rejected and the proceeding is finalized, the creditor may request seizure: seizure of bank accounts, salaries (wages), and processes related to the sale of real estate are possible.
• After the seizure, the debt is collected through the monetization of movable/immovable properties. After deducting the selling costs, the remaining amount is paid to the creditor.

Timeframes and Statutes of Limitations

• Invoice Issuance Period: An invoice must be issued within 7 days from the date of service/delivery.
• Objection Period for Payment Order: 7 days from notification.
• Statute of Limitations: The general period for commercial receivables is 5 years; it starts from the date the receivable becomes due. Sending a notice interrupts the statute of limitations and restarts it.
• Period for Filing a Lawsuit for Annulment of the Objection: Short-term procedural provisions come into play under İİK rules; in practice, processes with objections may take 6 months — 1 year or longer.

Estimated Timeframes and Practical Notes in Izmir

Depending on the workload of the execution offices in Izmir, non-judicial (uncontested) proceedings can often conclude within 3–6 months. In contested cases, the process can take 6–12 months or longer. The e-execution system and correct document organization can expedite the process; complete application, cost, and proper calculation of notifications are crucial.

Costs and Fees (Estimated Figures for 2026)

The figures below are updated estimated ranges for 2026 based on Ministry of Justice notifications and 2024–2025 data. Exact amounts will be approved by official Gazette notifications; for a detailed and up-to-date table, see official notifications.

• Enforcement Fee: Varies according to the amount of receivable; estimated range for 2026 is 1,500–7,000 TL (calculated on the minimum rate).
• Payment Order Postal/Service Cost: Approximately 80–150 TL.
• Seizure Fee (bank/property): 800–3,000 TL for each seizure.
• Sale Fee: 4.5% of the sale price (fixed rate according to notification).
• Attorney's Fee (estimated minimum market rate): 8,000–15,000 TL (varies based on the nature of the case; bar minimum fees and free market effects apply).
• Izmir Execution Office File Costs: Approximately 300–800 TL.

The total initial cost varies depending on the nature of the file and the actions to be taken; typical initial expenses for a small-medium business file can be expected to be between 2,000–5,000 TL. For exact figures and updates, review the fee notification in the Official Gazette: Official Gazette — Fee Notification.

Considerations Regarding Evidence and Documentation

• Original Invoice or Certified Copy: The invoice related to payment is the most fundamental document. According to TTK art. 23/2, if the merchant does not object to the invoice in a timely manner and records it in their commercial books, the invoice is deemed accepted.
• Contracts, Delivery/Receipt Documents, Correspondence: Documents proving the delivery of the service or goods are strong evidence against objections.
• Copy of Notice: Important for interrupting the statute of limitations and as official evidence of the debtor's payment call.
• Bank Statements and Accounting Records: Necessary to refute/prove claims of payment or partial payment.

Roadmap for Contested Cases

• When the debtor objects, the proceedings are halted; the creditor files for annulment of the objection.
• While waiting for the outcome of the annulment lawsuit, alternative solutions (settlement, installment) can be considered.
• If the court lifts the objection, the proceedings continue; if it rejects, the creditor may lose the options for collection through execution and will need to reassess the legal strategy.

How Do We Provide Support as Korkmaz Law Office?

Korkmaz Law Office offers comprehensive services in the collection of commercial receivables through execution based in Izmir. We provide legal consultancy at every stage of the process, from file preparation to preventing procedural errors, execution processes compliant with İİK/HMK/TTK provisions, and lawsuits for annulment of objections in civil courts of peace.

Our team of expert lawyers is particularly familiar with Izmir's execution practices; we strategize considering local execution office practices and judges' tendencies. This way, we aim to both increase the speed of collection and keep costs at a reasonable level.

Practical Recommendations (Specific to Izmir Execution Files)

• Send your notice via notary; this ensures evidential strength and notification documentation.
• Thoroughly compile the invoice and delivery documents at the beginning of the file.
• If the debtor's residence is not in Izmir, evaluate the place of performance and TBK/TTK provisions when determining jurisdiction.
• Utilize the e-execution system to expedite notifications and enforcement actions.

Conclusion

The collection of unpaid invoice receivables through execution is an effective and relatively quick solution when carried out with the correct procedures and documents. In Izmir, the jurisdiction of the case is based on the identification of the debtor's residence and place of performance; the provisions of İİK, HMK, and TTK form the backbone of the process. Accurately calculating costs and timeframes from the outset, interrupting the statute of limitations with a notice, and obtaining professional legal support enhance collection success.

Disclaimer: This article is prepared for general informational purposes and does not substitute individual legal consultancy. Please check official sources for accurate and up-to-date legislation and fee amounts and seek professional legal support for a concrete case.