Can a foreign creditor freeze a Turkish company’s assets before filing a commercial lawsuit? Learn the requirements for provisional attachment, preliminary injunctions, bank accounts, real estate, receivables, evidence, security and emergency applications in Turkey.

A foreign company may discover that a Turkish customer, distributor, supplier, business partner or contractual counterparty owes a substantial amount of money but is beginning to sell property, transfer funds, move assets to related companies or otherwise reduce the assets available for enforcement.

This creates a serious commercial problem.

Even if the foreign company eventually wins its lawsuit, a successful judgment may have little economic value if the debtor has no recoverable assets left by that time.

Turkish law provides provisional remedies that may, in appropriate circumstances, protect a creditor before the final judgment and sometimes even before the main commercial lawsuit is filed.

However, the expression “asset freeze” can be misleading. Turkish law does not provide one universal procedure allowing every claimant to freeze everything owned by a company merely because a commercial dispute exists.

The correct remedy depends primarily on what the claimant is trying to protect.

For monetary claims, one of the most important remedies is provisional attachment under the Turkish Enforcement and Bankruptcy Law.

For disputes concerning specific property or rights, a preliminary injunction under the Turkish Code of Civil Procedure may instead be appropriate.

Understanding this distinction is essential.

Can a Turkish Company’s Assets Be Frozen Before a Lawsuit?

Potentially, yes.

Turkish procedural and enforcement law permits certain protective measures before final judgment and, where the statutory conditions are satisfied, before commencement of the main proceedings.

But the creditor must establish the legal requirements for the particular remedy requested.

A court will not normally freeze corporate assets simply because the claimant says:

“The company owes us money and we are worried it will not pay.”

The claim, evidence, urgency, requested measure and statutory conditions must be presented properly.

Two Main Asset Protection Mechanisms

Foreign companies should generally distinguish between:

Provisional Attachment – primarily for securing monetary receivables

and

Preliminary Injunction – primarily for protecting disputed property, rights or the existing factual/legal situation.

These mechanisms have different legal requirements.

What Is Provisional Attachment?

Provisional attachment is an important temporary enforcement measure designed to secure monetary claims.

Article 257 of the Turkish Enforcement and Bankruptcy Law provides that a creditor holding an unsecured and due monetary receivable may obtain provisional attachment over the debtor’s movable and immovable property, receivables and other rights. (LEXPERA)

This remedy can be extremely valuable for foreign commercial creditors.

Example: Foreign Supplier Is Owed EUR 3 Million

Assume an Italian manufacturer supplies machinery to a Turkish company.

The Turkish company owes EUR 3 million.

Payment became due two months ago.

Despite repeated demands, nothing has been paid.

The foreign supplier discovers that the Turkish company has begun selling substantial assets.

Rather than simply filing a commercial lawsuit and waiting for judgment, the supplier should immediately consider whether the conditions for provisional attachment are satisfied.

If successful, assets can potentially be secured for eventual enforcement.

Requirement 1: There Must Be a Monetary Claim

Provisional attachment under Article 257 is fundamentally connected with a monetary receivable.

This distinction is important.

If the claimant’s objective is ownership of specific shares, machinery or property rather than collection of money, a preliminary injunction may be more appropriate.

Requirement 2: The Debt Is Generally Due

The basic Article 257 rule concerns monetary claims that have become due and are not secured by pledge. (LEXPERA)

For example, suppose an invoice provides:

Payment Due: 1 June 2026

and payment remains outstanding after that date.

The maturity requirement may be straightforward.

But if payment is not yet due, stricter conditions apply.

Can Assets Be Frozen Before the Debt Becomes Due?

Only in more limited circumstances.

Article 257 also provides grounds for provisional attachment concerning an unmatured claim where, among other statutory situations, the debtor has no fixed domicile or is preparing to conceal or remove assets, flee, or engage in fraudulent transactions prejudicing creditor rights in order to avoid its obligations. (LEXPERA)

This can be particularly important where evidence of deliberate asset dissipation exists.

Example: Company Begins Moving Assets Before Payment Date

A foreign seller is owed EUR 5 million payable in 30 days.

Before maturity, the seller discovers that the debtor is:

transferring machinery to affiliates,

selling real estate,

closing bank accounts,

and moving business operations.

The fact that payment has not yet matured does not necessarily mean the creditor must simply wait.

The special statutory grounds concerning unmatured debts should be examined immediately.

Requirement 3: The Claim Should Not Be Secured by Pledge

The ordinary Article 257 framework refers to monetary claims not secured by pledge. (LEXPERA)

Where adequate security already exists, the analysis can therefore differ.

Foreign lenders and suppliers should review all existing security before seeking provisional attachment.

What Evidence Is Required?

A creditor should not approach the court with unsupported allegations.

A commercial provisional attachment application should be supported with evidence showing the existence and amount of the claim.

Depending on the transaction, useful documents may include:

contracts,

invoices,

purchase orders,

delivery documents,

bank records,

account statements,

debt acknowledgments,

emails,

payment schedules,

notarial notices,

and relevant commercial correspondence.

The stronger the documentary record, the stronger the application can be.

Debt Acknowledgments Can Be Particularly Valuable

Suppose the debtor writes:

“We confirm that EUR 1.8 million remains outstanding and will be paid next month.”

That document can be significantly more useful than a situation where the debtor disputes the entire transaction.

Foreign companies should therefore preserve written acknowledgments carefully.

WhatsApp Messages and Emails

Digital communications can also become relevant evidence.

For example:

“We know we owe you the money, but we currently cannot pay.”

Such correspondence may assist in establishing the factual background.

Preserve original records rather than relying exclusively on screenshots.

Asset Dissipation Evidence

Where the application relies on conduct indicating asset flight or concealment, gather concrete evidence.

This might include:

recent property transfers,

rapid sales of machinery,

share transfers,

transfers to related companies,

unusual corporate restructuring,

closure of operations,

or communications discussing movement of assets.

General suspicion is weaker than documented conduct.

Which Assets Can Be Subject to Provisional Attachment?

Article 257 expressly refers to movable and immovable property, receivables and other rights of the debtor. (LEXPERA)

Depending on the debtor’s actual asset structure and applicable enforcement rules, commercially relevant targets may therefore include different categories of assets.

Bank Accounts

Bank accounts are frequently among the first assets creditors want to secure.

However, obtaining a provisional attachment decision and finding money in an account are two different issues.

A debtor may have multiple accounts, existing attachments or insufficient balances.

Asset investigation remains important.

Real Estate

A Turkish company may own:

factories,

offices,

warehouses,

commercial land,

investment properties,

or other real estate.

Real estate can provide substantial recovery value, although existing mortgages and earlier creditor rights must be investigated.

Vehicles

Commercial vehicles may also have recoverable value.

But ownership, leasing arrangements and existing encumbrances should be checked.

Machinery and Equipment

Industrial companies may own valuable production equipment.

However, creditors should determine whether machinery is:

owned outright,

leased,

pledged,

financed,

or claimed by third parties.

Physical possession does not always prove ownership.

Receivables

A company’s receivables from customers can be commercially significant.

A debtor may have little cash in the bank today but substantial amounts due from third parties.

An effective enforcement strategy therefore looks beyond physical assets.

Company Shares

If the debtor company itself owns shares in other companies, those rights may potentially have significant economic value.

Corporate group structures should therefore be investigated.

Preliminary Injunctions for Specific Assets

Not every commercial asset dispute concerns an unpaid monetary debt.

Suppose a foreign investor claims ownership of specific company shares.

The other party threatens to transfer those shares.

The investor’s objective is not merely to collect money.

It wants to preserve the disputed shares themselves.

This is where preliminary injunction rules become particularly important.

Article 389 of the Turkish Code of Civil Procedure

Under Article 389, interim protection may be ordered where a change in the existing situation could make realization of the claimed right substantially more difficult or impossible or where delay could create serious harm.

The preliminary injunction framework is therefore designed to preserve meaningful protection while the merits are being determined. (Celebi Legal)

Example: Disputed Shares

A foreign investor claims that it has contractual rights to acquire 40% of a Turkish company.

The seller announces that the same shares will be transferred to another investor next week.

A damages lawsuit filed months later may not adequately protect the foreign investor’s claimed rights.

A preliminary injunction concerning the disputed shares should therefore be evaluated immediately.

Example: Commercial Property

A foreign company claims ownership or contractual rights concerning a valuable property.

The counterparty attempts to transfer the property before litigation.

An appropriately tailored injunction may be necessary to preserve the disputed position.

Example: Machinery Ownership

A foreign supplier claims ownership of specifically identifiable industrial machinery.

The Turkish counterparty is allegedly preparing to remove or dispose of it.

An injunction may potentially be sought to preserve the disputed equipment while ownership is determined.

Can the Application Be Made Before the Commercial Lawsuit?

Yes, Turkish procedural law permits preliminary injunction applications before the main lawsuit under the statutory framework.

This is one of the most important advantages of provisional protection.

A foreign company facing an emergency does not necessarily have to wait until every aspect of a complex commercial complaint is completed before considering temporary protection.

But subsequent deadlines become critical.

Filing the Main Case After an Injunction

Where interim protection is obtained before the underlying proceedings, the applicant must comply carefully with the procedural deadlines for commencing or continuing the main proceedings.

A temporary order is not a substitute for the substantive lawsuit.

Failure to satisfy statutory procedural requirements can cause the protection to disappear.

Can the Court Freeze Assets Without Warning the Company?

Potentially.

Turkish procedural law allows preliminary protection without first hearing the opposing party where the circumstances require immediate protection.

This can be crucial in asset-preservation cases.

Imagine telling the debtor:

“Next week we will ask the court to stop you transferring this asset.”

If there is a genuine dissipation risk, that warning could undermine the entire purpose of the application.

However, obtaining protection without hearing the opposing party is not automatic. The applicant must demonstrate why immediate action is necessary.

Security Requirement

Foreign creditors should expect the issue of security to arise.

For preliminary injunctions, Article 392 generally requires the applicant to provide security for potential losses that the opposing party or third parties may suffer if the applicant is ultimately found unjustified. The court can dispense with security in specified circumstances, including where the request is based on an official document, other definitive evidence, or where circumstances justify doing so. (Celebi Legal)

Provisional attachment also has a specific security regime.

Under Article 259 of the Enforcement and Bankruptcy Law, a creditor requesting provisional attachment is generally responsible for losses caused if the attachment proves unjustified and must provide security; the statute contains particular treatment where the claim is based on a judgment or judgment-equivalent document. (LEXPERA)

How Much Security Will Be Required?

There is no sensible universal percentage that should be promised to every foreign claimant.

The amount can depend on the claim, evidence, requested measure and court assessment.

A foreign company should therefore budget for the possibility of security when planning emergency litigation.

Why Is Security Necessary?

Freezing company assets can cause serious commercial damage.

Imagine that a court temporarily restricts valuable assets and the claimant ultimately loses the underlying dispute.

The defendant may have suffered losses because of an unjustified provisional measure.

Security helps address this risk.

Speed After Obtaining the Order

Obtaining the order is only part of the process.

For preliminary injunctions, Article 393 requires the applicant to request implementation within one week from notification or service of the injunction decision. Otherwise, the injunction automatically falls away even if the main lawsuit was timely filed. (Celebi Legal)

This deadline is extremely important.

An emergency order that is not properly implemented may provide no practical protection.

Court Order Does Not Mean the Work Is Finished

After obtaining provisional relief, counsel must immediately coordinate implementation.

Depending on the asset, this can involve relevant enforcement authorities, registries or other institutions.

The practical implementation strategy should therefore be planned before filing.

Proportionality

A creditor should request protection proportionate to the claim.

Suppose the claim is EUR 500,000.

Requesting restrictions over EUR 50 million of assets may be difficult to justify without special circumstances.

The application should connect the requested protection to the commercial risk.

Can Every Asset of the Turkish Company Be Frozen?

Not automatically.

A claimant should avoid thinking in terms of:

“Freeze the whole company.”

Instead, determine:

the amount of the claim,

the nature of the right,

available assets,

existing security,

and appropriate legal mechanism.

Courts are not designed to destroy an operating company merely because it has a commercial dispute.

Existing Mortgages and Attachments

An asset may look valuable but already be heavily encumbered.

For example:

Factory value: EUR 10 million.

Bank mortgage: EUR 8 million.

Existing enforcement claims: EUR 3 million.

The apparent asset value may therefore provide little realistic recovery.

Asset searches should examine encumbrances, not merely ownership.

Related-Party Asset Transfers

Foreign creditors frequently become suspicious when assets move to:

shareholders,

directors,

family members,

sister companies,

parent companies,

or other related entities.

However, an asset transferred to another legal entity does not automatically remain attachable as though it still belonged to the debtor.

Separate remedies concerning suspicious or fraudulent transactions may need to be considered.

Do Not Ignore Fraudulent Transfers

If a Turkish debtor begins transferring assets after a commercial dispute arises, investigate immediately.

The appropriate response may involve provisional measures together with later enforcement-law remedies challenging transactions prejudicial to creditors.

Timing can be crucial.

Shareholder Assets Are Not Automatically Company Assets

Suppose a Turkish limited liability company owes EUR 2 million.

Its shareholder owns a luxury apartment.

The company’s creditor cannot automatically treat the shareholder’s apartment as company property merely because that individual owns the debtor company.

Separate legal personality matters.

Personal liability requires an independent legal basis.

Parent Company Assets Are Also Separate

Likewise, a Turkish subsidiary’s debt does not automatically permit attachment of assets belonging to its foreign parent company.

A parent guarantee, corporate guarantee or another independent basis for liability may change the position.

Corporate structure should therefore be investigated carefully.

Director Assets

The same principle applies to directors.

A company’s unpaid invoice does not automatically become the director’s personal debt.

Separate statutory or contractual grounds for director liability must exist.

Asset Investigation Before Filing

Foreign creditors should conduct an asset investigation before committing substantial resources to litigation.

The first question should not always be:

“How strong is our lawsuit?”

It should also be:

“What can we realistically recover if we win?”

Both questions matter.

Signs That Immediate Action May Be Necessary

Warning signs can include:

rapid sale of important assets,

transfer of property to affiliates,

unexpected management resignations,

closure of offices,

movement of machinery,

cessation of operations,

multiple creditor proceedings,

repeated dishonored payments,

sudden corporate restructuring,

or communications indicating imminent asset disposal.

One warning sign alone does not prove fraud, but several together may justify urgent investigation.

Do Not Wait Until the Assets Are Gone

Asset protection is fundamentally time-sensitive.

A creditor that discovers a serious dissipation risk should not wait several months merely to send repeated payment reminders.

Once valuable assets have been transferred through multiple transactions, recovery may become substantially more complicated.

Evidence Preservation

Create an organized evidence file containing:

Contract → Invoice → Delivery → Payment Due Date → Correspondence → Debt Acknowledgment → Default Notice → Asset Information → Transfer Evidence → Corporate Records → Chronology.

Emergency applications are much easier when evidence has already been organized.

Foreign Arbitration and Turkish Assets

A commercial contract may provide for arbitration outside Turkey.

That does not mean Turkish assets should be ignored.

If the debtor’s assets are located in Turkey, the creditor should examine what temporary protection can be obtained in Turkey while the substantive dispute proceeds through arbitration.

Cross-border dispute strategy should coordinate arbitration and local asset preservation.

Foreign Court Proceedings

Similarly, filing a lawsuit abroad does not automatically freeze assets in Turkey.

The foreign creditor may require separate Turkish proceedings or interim measures.

This should be analyzed before the debtor receives extensive warning of the litigation.

Contractual Asset Preservation Clauses

High-value contracts can include obligations preventing extraordinary asset transfers or requiring maintenance of specified security.

These clauses do not replace statutory provisional remedies, but they can strengthen contractual protection.

They are particularly useful in financing, acquisition and deferred-payment transactions.

Due Diligence Before Extending Credit

The strongest asset-protection strategy begins before the dispute.

Before extending substantial unsecured credit to a Turkish company, foreign suppliers should examine:

corporate identity,

financial capacity,

assets,

existing security,

credit structure,

and available guarantees.

A creditor that ships EUR 5 million of goods without security and only investigates the buyer after default has already accepted substantial risk.

Alternative Security Before the Transaction

Depending on the commercial relationship, consider:

bank guarantees,

parent company guarantees,

personal guarantees where appropriate,

pledges,

mortgages,

retention of title,

escrow,

letters of credit,

or advance payments.

Provisional attachment should be an emergency protection mechanism, not the creditor’s only credit-management strategy.

Practical Example: EUR 4 Million Unpaid Supply Contract

A British supplier delivers industrial equipment to a Turkish manufacturer.

EUR 4 million becomes due.

The buyer acknowledges the debt but does not pay.

The supplier learns that the manufacturer is selling real estate.

The supplier should immediately assess:

whether Article 257 conditions exist,

what assets are available,

what documentary evidence establishes the debt,

what security may be required,

and how quickly a provisional attachment order could be implemented.

Waiting for final judgment without considering asset protection could materially increase collection risk.

Practical Example: Debt Not Yet Due

A foreign supplier has a EUR 2 million receivable due in two months.

The Turkish buyer begins moving machinery and transferring assets under suspicious circumstances.

Because the claim is not yet due, the ordinary rule is insufficient by itself.

The creditor must examine the special Article 257 grounds applicable to unmatured debts, including qualifying conduct aimed at concealing or removing assets or prejudicing creditor rights. (LEXPERA)

Practical Example: Shareholder Dispute

A foreign investor claims rights over shares in a Turkish company.

The other party threatens an immediate transfer.

Because the dispute concerns specific rights rather than merely payment of money, a preliminary injunction under the Code of Civil Procedure may be more appropriate than provisional attachment.

Choosing the correct remedy is essential.

Practical Example: Defendant Has No Assets

A foreign company has an excellent EUR 10 million claim.

Investigation reveals that the contracting Turkish company owns virtually nothing.

Its business operations and valuable assets belong to other group companies.

This illustrates why corporate and asset due diligence should occur before litigation.

Winning against the wrong or assetless legal entity may produce little recovery.

Common Mistakes by Foreign Creditors

The most common strategic errors include waiting until final judgment to investigate assets, confusing preliminary injunction with provisional attachment, filing against the wrong corporate entity, failing to collect evidence of the debt, ignoring security requirements, requesting disproportionate protection, failing to implement an obtained order quickly and warning the debtor unnecessarily before emergency action.

Each mistake can reduce the effectiveness of asset protection.

Pre-Lawsuit Asset Freeze Checklist

Before seeking provisional protection against a Turkish company, determine:

Who is the debtor?

Is the claim monetary?

Has the debt matured?

Is it secured by pledge?

What evidence proves the claim?

Are assets being transferred?

Which assets exist?

Where are those assets located?

Is provisional attachment or preliminary injunction appropriate?

Will security be required?

Which court is competent?

How will the order be implemented?

When must the main proceedings begin?

This analysis should occur before the debtor’s financial position deteriorates further.

Frequently Asked Questions

1. Can I freeze a Turkish company’s assets before filing a lawsuit?

Potentially, yes. Turkish law provides provisional remedies that can operate before final judgment and, where the statutory conditions are met, before the main commercial proceedings.

2. What is the main remedy for an unpaid commercial debt?

For a qualifying monetary receivable, provisional attachment under Article 257 of the Turkish Enforcement and Bankruptcy Law is particularly important. (LEXPERA)

3. Does the debt have to be due?

The ordinary Article 257 rule concerns an unsecured, due monetary claim. Unmatured claims can qualify only under more limited statutory circumstances. (LEXPERA)

4. Can bank accounts be frozen?

Bank accounts can become relevant to provisional attachment and enforcement, subject to the applicable legal requirements and actual availability of debtor funds.

5. Can real estate be provisionally attached?

Article 257 expressly includes movable and immovable property within the provisional attachment framework for qualifying claims. (LEXPERA)

6. Do I need proof that the debtor is hiding assets?

Not necessarily for every due monetary claim under the basic Article 257 rule. For unmatured claims relying on asset-concealment or dissipation grounds, evidence of the relevant statutory circumstances becomes particularly important. (LEXPERA)

7. Will I have to provide security?

Security commonly arises in both provisional attachment and preliminary injunction proceedings. Article 259 regulates security for provisional attachment, while Article 392 governs security for preliminary injunctions. (LEXPERA)

8. Can I freeze a shareholder’s personal property for a company debt?

Not merely because the person owns shares. An independent basis for personal liability is generally required.

9. What if my contract contains an arbitration clause?

Arbitration does not mean that asset preservation should be ignored. Where assets are located in Turkey, Turkish interim protection should be considered together with the arbitration strategy.

10. What is the biggest mistake foreign creditors make?

Waiting too long. Asset protection should be considered when the first credible evidence of collection or dissipation risk appears, not only after years of litigation.

Legal Assistance for Freezing Company Assets Before Commercial Litigation in Turkey

For foreign companies facing a substantial unpaid commercial claim in Turkey, obtaining a judgment is only one part of the recovery strategy.

The other question is whether recoverable assets will still exist when the judgment becomes enforceable.

For qualifying monetary claims, Article 257 of the Turkish Enforcement and Bankruptcy Law permits provisional attachment of the debtor’s movable and immovable property, receivables and other rights under the statutory conditions. (LEXPERA)

Where the dispute instead concerns specific property, shares or other rights, preliminary injunction protection under the Turkish Code of Civil Procedure may be more appropriate. The choice between these mechanisms should be made according to the underlying right rather than simply requesting a generic “asset freeze.”

Fırat Fesih Kaya Law Office provides legal assistance to foreign creditors, investors, shareholders and international companies concerning provisional attachment in Turkey, preliminary injunctions, asset freezing, commercial debt recovery, Turkish company assets, shareholder disputes, enforcement proceedings, arbitration-related interim protection and emergency commercial litigation.

Legal assistance may include evaluating pre-lawsuit asset protection, investigating the appropriate provisional remedy, preparing provisional attachment and preliminary injunction applications, coordinating security and implementation requirements and pursuing subsequent commercial litigation or enforcement proceedings.

Phone: +90 312 434 22 22
Mobile / WhatsApp: +90 532 769 22 22
Email: info@firatfesihkaya.av.tr
Office: Mevlana Boulevard No:221, Yildirim Tower, Balgat, Cankaya, Ankara, Turkey

For a foreign creditor, the central rule is straightforward: do not wait until the commercial lawsuit is finished to investigate whether the debtor has assets. Where there is a genuine collection risk, asset investigation and provisional protection should be considered before the assets disappear.