Debtor Moves Money to Another Company in Turkey: Can a Foreign Creditor Trace and Recover It? – 2026 Updated Guide

Learn how foreign creditors can trace money transferred to another Turkish company, request provisional attachment, challenge fraudulent transactions and recover unpaid debts.

A Turkish debtor may transfer money, assets, customers or contracts to another company before or after a foreign creditor begins enforcement. This can make the debtor appear unable to pay while business activity continues through a related entity.

A transfer between companies is not automatically unlawful. Companies may make legitimate payments for goods, services, loans or ordinary business expenses. However, an unexplained transfer made to defeat creditors may be challenged through asset tracing, provisional attachment, recovery litigation and, in serious cases, criminal proceedings.

This 2026 updated guide explains how a foreign creditor can investigate and potentially recover money moved to another company in Turkey.

Is a Transfer to Another Company Automatically Fraudulent?

No. Turkish companies are separate legal entities and may conduct legitimate transactions with affiliated or independent companies.

The transfer becomes suspicious when it has no genuine commercial explanation, is made shortly before enforcement, involves an unusual price or moves funds to a company controlled by the debtor’s shareholders or directors.

The creditor should examine the amount, date, recipient, business relationship, supporting invoices, market value and financial condition of the debtor.

What Should a Foreign Creditor Do First?

The creditor should preserve evidence of the debt and the suspected transfer. Contracts, invoices, payment demands, account statements, emails, business messages and company records should be collected immediately.

The creditor should identify the debtor’s shareholders, directors, related companies, registered addresses, ongoing projects, customers and known assets.

If there is a serious risk of further transfers, the creditor should consider provisional attachment and other urgent measures before revealing unnecessary details of the investigation.

How Can the Money Be Traced?

A lawful asset-tracing review may examine commercial records, public company information, invoices, payment confirmations, related-party agreements and the debtor’s continuing business activity.

The foreign creditor may also request relevant bank records, accounting documents and third-party information through court proceedings where the evidence cannot be obtained directly.

The objective is to establish the movement of funds, the relationship between the companies and whether the transfer reduced the debtor’s ability to pay.

What Evidence Shows a Suspicious Transfer?

Important evidence may include bank statements, payment instructions, accounting records, electronic invoices, contracts, board decisions and correspondence between the companies.

The timing of the transfer may be significant. A large payment made after a demand letter, court warning or acknowledgment of debt may require closer examination.

Other warning signs include transfers without invoices, loans without repayment terms, payments at inflated prices, transfers to a newly established company and continued use of the assets by the original debtor.

Can a Court Request Bank and Accounting Records?

A foreign creditor may ask the competent court to request relevant records from banks, accountants, companies or other institutions.

The application should be specific. It should identify the suspected transfer, the date range, the bank or account if known, the recipient company and why the information is relevant to the debt.

A broad request for every financial record may be less effective than a focused application supported by invoices, payment evidence and proof of the relationship between the companies.

Can Provisional Attachment Be Requested?

A foreign creditor may request provisional attachment where there is a due monetary claim and a risk that collection will become difficult.

The request may concern the debtor’s bank accounts, real estate, vehicles, shares, inventory, customer receivables and other identifiable assets. If funds have already been moved, other assets or receivables may still be available.

The court evaluates the evidence, urgency and potential harm. Security may be required, and the measure is not automatic.

Can the Transfer to the Other Company Be Cancelled?

If the transfer was made to defeat creditors, the foreign creditor may consider an action to challenge the transaction and recover the transferred value.

The creditor may need to prove that the transfer harmed collection, that the recipient had a connection with the debtor or knew about the creditor’s position, and that the transaction lacked a genuine commercial basis.

The applicable remedy and filing period depend on the type of asset, timing of the transaction, relationship between the parties and legal status of the debtor.

Can the Related Company Be Sued Directly?

A related company is not automatically responsible for the debtor’s unpaid debt merely because it received money or shares the same owners.

Direct liability may be possible if the related company assumed the debt, received assets through a voidable transaction, participated in fraud or retained a benefit without a valid legal basis.

The creditor should establish the precise legal connection rather than relying only on common ownership or a shared business address.

Can Directors or Shareholders Be Held Personally Liable?

Directors and shareholders are generally not personally liable for company debts solely because they control the company.

Personal liability may arise where they gave a guarantee, instructed fraudulent transfers, misused company funds, concealed assets or independently caused damage through unlawful conduct.

A claim against individuals requires evidence of their specific actions and should be distinguished from ordinary business failure or a legitimate intercompany payment.

Can the Creditor Attach Money Owed to the Debtor?

Yes, receivables owed to the Turkish debtor by its customers, contractors or business partners may be important enforcement targets.

If the debtor continues operating through customer payments, project receivables or service contracts, third-party receivables may provide a recovery route even when the debtor’s own bank accounts are empty.

The creditor should identify the debtor’s ongoing commercial relationships and assess whether receivables can be legally attached.

Is a Criminal Complaint Possible?

A criminal complaint may be considered if the transfer involves fraud, breach of trust, false accounting, forged documents or intentional concealment of company assets.

A suspicious transfer is not automatically a crime. The criminal assessment depends on the evidence, the intent of the parties and the way the transaction was documented.

Criminal proceedings do not automatically return the money or cancel the transfer. Commercial and enforcement remedies may also be necessary.

What If the Debtor Is Insolvent?

If the Turkish debtor has stopped paying several creditors, the foreign creditor should assess bankruptcy, restructuring, claim registration and creditor priority.

A debtor may transfer business operations to another company while leaving liabilities behind. The creditor should investigate whether the transfer included customers, inventory, contracts, employees or assets.

Recovery prospects may depend on whether the transferred assets can be challenged and whether the debtor still has unencumbered property or receivables.

What Evidence Matters in 2026?

In 2026, digital bank records, cloud accounting systems, electronic invoices, corporate emails, online payment confirmations and business messages may be decisive.

The creditor should preserve original files, complete email chains, transaction confirmations, accounting exports and document metadata. Screenshots alone may be challenged.

A financial expert may help reconstruct the flow of funds and determine whether the transfers were ordinary business payments or deliberate asset diversion.

Can a Foreign Creditor Act from Abroad?

A foreign creditor does not always need to travel to Turkey. A Turkish lawyer may act under a power of attorney issued before a Turkish consulate or a local notary.

Depending on the issuing country, legalization, apostille and official translation may be required. Foreign corporate documents and debt records may also need certification and translation.

Lawyer Fırat Fesih Kaya assists foreign creditors with asset tracing, provisional attachment, fraudulent-transfer claims, commercial enforcement and recovery litigation in Turkey.

2026 Legal Considerations

A foreign creditor should not wait until all company accounts are empty. Debt evidence, asset tracing and urgent protection should be considered together.

The creditor should review current rules on enforcement, provisional attachment, fraudulent transfers, insolvency, evidence and procedural deadlines before filing.

The most effective strategy may combine court-requested financial evidence, attachment of available assets, enforcement against third-party receivables and a claim challenging the suspicious transfer.

Frequently Asked Questions (FAQ)

1. Can a Turkish debtor legally transfer money to another company?

Yes, if the transfer has a genuine commercial purpose and complies with applicable corporate and financial rules.

2. What makes a transfer suspicious?

Unusual timing, unexplained payments, common ownership, inflated prices, missing documents and transfers made after a debt demand may raise concerns.

3. Can a foreign creditor trace the transferred money?

Lawful investigation and court-requested bank or accounting records may help trace the transfer.

4. Can a fraudulent transfer be cancelled?

A creditor may seek appropriate remedies if the transfer was designed to defeat collection and the legal requirements are satisfied.

5. Can the recipient company be held responsible?

Potentially, if it assumed the debt, participated in fraud or received assets through a legally challengeable transaction. Common ownership alone is not enough.

6. Can the creditor freeze the debtor’s remaining assets?

A provisional attachment may be requested where the legal conditions are met and there is a risk to collection.

7. Can customer receivables be attached?

Receivables owed to the debtor by third parties may be subject to enforcement and can be important when bank accounts are empty.

8. Can directors be sued personally?

Personal liability may arise from guarantees, fraud, asset concealment or another independent legal basis.

9. Can a criminal complaint recover the transferred money?

A criminal complaint may support the investigation, but commercial and enforcement proceedings may also be required for recovery.

10. Can a foreign creditor start the process without traveling to Turkey?

In many cases, yes. A Turkish lawyer may act under a valid power of attorney.

This article is provided for general informational purposes only and does not constitute legal advice. We recommend consulting a lawyer about your specific circumstances to avoid any loss of rights.

Expert Legal Support for Foreign Creditors

Money transferred to another company does not necessarily disappear from legal reach. Asset tracing, provisional attachment, third-party receivables and fraudulent-transfer remedies may protect the foreign creditor’s recovery position.

Fırat Fesih Kaya Law Office provides professional legal support to foreign creditors in asset tracing, commercial enforcement, provisional attachment, related-company disputes and cross-border debt recovery.

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