What is the statute of limitations in debt collection proceedings?

1. What is the Statute of Limitations in Enforcement Proceedings?

Statute of limitations refers to the period during which a debt claim, if not asserted within a specified time frame, becomes impossible to collect through legal action or enforcement proceedings. While the claim itself may not be completely extinguished in a material sense, the moment the debtor invokes the defense of statute of limitations, the creditor's ability to recover the debt through enforcement proceedings or legal action effectively ends.

In enforcement proceedings, the statute of limitations applies not only to the underlying relationship from which the claim arose (e.g., a sales contract, a lease agreement, a tort); it also has consequences such as whether or not each step taken and each action performed in the enforcement process interrupts the statute of limitations. Therefore, when we talk about "statute of limitations in enforcement proceedings," the statute of limitations for the claim itselfand the statute of limitations arising from the failure to renew the procedures in the enforcement process .

2. The Difference Between Statute of Limitations and Forfeiture Period

One of the concepts frequently confused in practice is the statute of limitations versus the forfeiture period. Making the correct distinction between these two is crucial in enforcement proceedings

The statute of limitations does not affect the existence of the debt; it only prevents the debt from being collected by the state through coercion. If the debtor voluntarily pays the debt even after the statute of limitations has expired , this payment cannot be reclaimed on the grounds of unjust enrichment. The statute of limitations does not extinguish the debt; it provides the possibility of a defense against the creditor .
A forfeiture period extinguishes the right itself upon its expiration. If a forfeiture period has expired, the judge takes it into account ex officio; the parties do not need to raise it. As a rule, the statute of limitations is not considered unless raised by the debtor.

In enforcement proceedings, statutes of limitations often come into play; forfeiture periods are mostly exceptional cases regulated in special laws, requiring certain actions to be taken within a specific timeframe.

3. Legal Basis for Statute of Limitations in Enforcement Proceedings

The legal grounds for the statute of limitations in enforcement proceedings can be broadly grouped into two categories:

General and special limitation periods regulated in the Turkish Code of Obligations (TBK)
- Turkish Code of Obligations, Article 146: The general statute of limitations is 10 years.
- Turkish Code of Obligations, Article 147: A five-year statute of limitations applies to certain periodic obligations such as wages, rent, attorney fees, and hotel, restaurant, and transportation services.
- Turkish Code of Obligations, Article 72: 2 and 10-year periods for tort compensation.
- Articles 88 and subsequent articles of the Turkish Code of Obligations, concerning interest and ancillary claims, are evaluated in relation to the statute of limitations.
Special limitation and time limit provisions in the Enforcement and Bankruptcy Law (EBL)
- Although the Turkish Enforcement and Bankruptcy Law does not directly state "the statute of limitations for this claim is this,"
  - Drop in tracking,
  - Renovation,
  - The seizures continue
  - sales request periods
    are closely related to statutes of limitations and directly affect the enforceability of the receivable.

Therefore, when assessing the statute of limitations in enforcement proceedings, both the statute of limitations under the Turkish Code of Obligations (TBK) applicable to the underlying debt relationshipand the periods and their consequences stipulated in the Enforcement and Bankruptcy Law (İİK) should be analyzed together.

4. Statute of Limitations for Claims Subject to Enforcement Proceedings

Claims subject to enforcement proceedings can be based on a wide variety of legal relationships. Each of these relationships is subject to different statutes of limitations. Some of the most frequently encountered types of claims and their statutes of limitations are as follows (a general framework is outlined taking into account specific legal provisions and Supreme Court precedents):

4.1. General Claims (Turkish Code of Obligations, Article 146 – 10-Year Statute of Limitations)

If no specific limitation period is stipulated for a claim, the general 10-year limitation period applies according to the Turkish Code of Obligations. For example:

In debt law, general monetary claims include:
Certain receivables arising from a contract for work,
A significant portion of default interest receivables (depending on the nature of the underlying receivable),

This is evaluated within this context.

4.2. Claims Subject to Five-Year Statute of Limitations

The Turkish Code of Obligations (TBK) stipulates a five-year statute of limitations , particularly for claims related to ongoing relationships involving periodic obligations . For example:

Rent receivables,
Periodic obligations arising from an employment relationship, such as wages, salaries, bonuses, and overtime
Certain receivables relating to attorney's fees,
Periodic bill receivables based on subscription agreements for services such as electricity, water, natural gas, and telephone,

It is often assessed within the scope of a 5-year statute of limitations. In summary enforcement proceedings initiated based on such claims, when the debtor raises a statute of limitations objection, the enforcement court or general court determines whether the proceedings will continue, taking the relevant period into account.

4.3. Claims Arising from Tortious Acts and Unjust Enrichment

In tort compensation cases, the injured party must file a lawsuit and initiate proceedings within 2 years from the date they become aware of the damage and the liable party , and in any case within 10 years from the date the act occurred
In cases of unjust enrichment, the general statute of limitations applies , typically a short period of two years , with a maximum limit of ten years

If a final judgment (court decision) exists for these debts during the enforcement proceedings, then enforcement based on the judgment comes into play, and different time limits apply to the enforcement of judgments.

5. Statute of Limitations in Non-Judicial Enforcement Proceedings

Execution proceedings without a court judgment are when a creditor applies to the enforcement office based directly on their claim for debt, without possessing a court decision, judgment, or document equivalent to a judgment. In execution proceedings without a court judgment, the statute of limitations is examined at two levels:

Statute of limitations for the debt subject to enforcement: If the debt is time-barred at the time the enforcement request is made, the debtor raise a statute of limitations objection . If the debtor does not object within the time limit, the enforcement becomes final even if the time limit has expired; the statute of limitations is generally not considered ex officio.
The effect of actions in the enforcement process on the statute of limitations: The stages of notification of the payment order, objection, appeal against the objection, seizure and sale; each new action taken may have an effect that interrupts the statute of limitations.

5.1. Checking the Statute of Limitations During the Enforcement Request Process

The enforcement office does not automatically check whether a debt has become time-barred . The debtor must pay within the time limit after the payment order is served;

Objection to the debt,
Statute of limitations objection,
Jurisdiction challenge

The debtor may raise objections such as these. Unlike an objection to the debt itself, a statute of the enforceability . If the debtor has not raised a statute of limitations objection, the creditor may still be able to collect a time-barred claim through summary enforcement proceedings.

5.2. Statute of Limitations in Cases for Removal of Objections and Annulment of Objections

If the debtor objects to the payment order within the prescribed time limit, the enforcement proceedings are suspended. When the creditor seeks the dismissal of the objection (in the enforcement court) or its annulment (in the general court), they must also file the relevant lawsuit within the statute of limitations. In particular, in an annulment of objection lawsuit, if the underlying debt relationship has expired due to the statute of limitations, the court may dismiss the claim on the grounds of timeliness.

Furthermore, a decision rendered in favor of the creditor by winning the appeal against the decisionacquires the status of a judgment; after this stage, the debt is pursued according to the provisions of enforcement of judgments, and the statute of limitations applicable to judgments becomes 10 years .

6. Statute of Limitations in Enforcement Proceedings Based on Court Judgments

In enforcement proceedings based on a court judgment, the creditor applies to the enforcement office with a court decision, an enforceable mediation agreement , or another document considered equivalent to a court judgment under the law. At this stage, there are two important points regarding the statute of limitations:

Statute of limitations for judgments: Generally, the enforcement of judgments is subject to a 10-year statute of limitations. Even if the judgment has become final, if enforcement proceedings have not been initiated or renewed within the 10-year period, the debtor may raise the defense of statute of limitations.
The fact that seizure and sale procedures are subject to time limits during the execution of a judgment: Institutions such as the continuation of seizure, the time limits for requesting a sale, and the dismissal of the proceedings directly affect the assessment of the statute of limitations in enforcement proceedings based on a judgment.

6.1. Ten-Year Statute of Limitations for the Enforcement of Judgments

As a rule, the time limit for the enforcement of judgments the date the judgment becomes final . Within this 10-year period, the creditor:

You should initiate enforcement proceedings
They should exercise their rights to seize and sell property
The follow-up should be renewed when necessary.

Otherwise, even if the judgment is enforced, the debtor has the opportunity to protect themselves with the defense of statute of limitations. In this sense, if enforcement proceedings based on a judgment have been left inactive for a long time, in practice, both the dismissal of the proceedings and the statute of limitations discussions may arise in the same case.

7. The Relationship Between Statute of Limitations and Seizure, Sale, and Dismissal of Proceedings

In enforcement proceedings, it is important to remember that not only the statute of limitations for the debt itself but also the seizure of assets, the right to request a sale, and the outcome of the proceedings are subject to time limits. In this regard, the following institutions are particularly important:

7.1. Duration of Seizure

It is generally accepted that an attachment will be lifted if no action is taken for a certain period. In practice, the ruling that the attachment will be lifted if no sale is requested within a year often comes into play. The lifting of the attachment does not mean that the creditor has waived their claim; however, the creditor is obliged to request a new attachment.

When this situation is considered together with the statute of limitations, if the enforcement proceedings are left inactive for a long time, both the seizures may be lapsed and the defense of statute of limitations may be raised with regard to the judgment or underlying relationship on which the claim is based.

7.2. Sales Request Periods

The law stipulates specific time limits for requesting the sale of seized property. For example:

For movable goods, the warranty is generally 6 months.
1 year for real estate

Sales request periods come into play (special regulations, current changes and doctrine-Supreme Court practice should also be examined).

If no sales request is made within this period:

The seizure is lifted
The creditor will have to request a new seizure of assets
The longer the process, the greater the risk of the statute of limitations expiring.

7.3. Termination of Prosecution and Statute of Limitations

If no action is taken in an enforcement proceeding for a long period of time, the proceedings may be dismissed. Dismissal of proceedings:

It does not negate the legal consequences of previous proceedings related to the investigation; however
This requires the creditor to initiate collection proceedings again for the same debt.

In this situation, that the debt may be time-barred when the enforcement proceedings are restarted . Especially in summary enforcement proceedings, if the claim was initiated when it was already close to the statute of limitations and the proceedings subsequently failed, the debtor is likely to raise a time-bar objection in the restarted proceedings.

8. Reasons for Interrupting and Suspending the Statute of Limitations

The statute of limitations can be interrupted by certain legal actions or suspended due to specific events . In enforcement law, one of the most important aspects a creditor must consider is to systematically utilize actions that interrupt or suspend the statute of limitations throughout the course of the proceedings.

8.1. Actions that Interrupt the Statute of Limitations

The most common actions that interrupt the statute of limitations in practice are:

Filing a lawsuit against the debtor ,
Initiation of enforcement proceedings,
The debtor's acknowledgment of the debt (partial payment, request for installments, correspondence acknowledging the debt),
Certain notifications, such as a notice of default to the creditor (depending on the underlying relationship),
Enforcement actions in the case file , such as a new request for seizure or sale

When the statute of limitations is interrupted, the period starts running again. For example, if enforcement proceedings are initiated when a 10-year statute of limitations is nearing its end, the proceedings interrupt the statute of limitations, and the debt becomes enforceable within a new 10-year period.

8.2. Suspension of Statute of Limitations

In some cases, the statute of limitations either does not begin to run at all or, if it has begun, it is suspended. This situation is more common:

Minors and those with disabilities,
In a marriage, spouses,
Those in a guardianship and custody relationship,

This is encountered in protective relationships such as those mentioned. While the suspension of the statute of limitations has a relatively limited effect in terms of enforcement proceedings, this institution should not be ignored, especially with regard to the legal relationship on which the underlying claim is based.

9. Debtor's Statute of Limitations Defense and Timing of Raising It

The statute of limitations is, as a rule, a defense that must be raised by the debtor. The judge or enforcement court will not consider the statute of limitations ex officio unless the debtor raises it. Therefore:

In enforcement proceedings without a court order, the debtor must explicitly state "the debt is time-barred" when objecting to the payment order .
In an appeal against a decision to dismiss an objection, or in a debt collection case before a general court, the defense of statute of limitations must be raised before the deadline expires.
Even in enforcement proceedings based on a court judgment, if the 10-year period for execution of the judgment has elapsed, the debtor can seek protection by invoking the statute of limitations in the enforcement court or through a complaint.

The key point here is whether the defense of statute of limitations can be raised at any stage of the proceedings . In practice, within the framework of Supreme Court decisions and doctrinal opinions, the limits regarding whether the defense of statute of limitations should be raised at the earliest possible stage, or whether it should no longer be considered, are subject to debate. For this reason, it is important for debtors to raise the claim of statute of limitations at the initial objection stage.

10. Consequences of Enforcement Proceedings for a Time-Expired Debt

What happens if a creditor initiates enforcement proceedings for a debt that has become time-barred?

As a rule, the enforcement office does not examine whether the debt has become time-barred; it simply processes the request for enforcement.
If the debtor objects within the time limit and raises the defense of statute of limitations, the enforcement proceedings may be suspended or cancelled on this ground.
If the debtor does not object and the case becomes final, the creditor can collect the debt through seizure and sale. Since the statute of limitations is a defense in this case, it does not provide protection if it is not used
If the debtor later voluntarily pays the debt, they cannot reclaim the payment due to the statute of limitations; because the statute of limitations does not completely erase the debt from the legal system, it only prevents its compulsory collection through litigation and enforcement proceedings.

Therefore, while the statute of limitations poses a serious risk for the creditor, it is also a defense mechanism that, if not used effectively, can lead to the loss of rights for the debtor.

11. Statute of Limitations and Claims Secured by Pledge (Mortgage)

A common issue encountered in debt collection proceedings is the statute of limitations for claims secured by mortgages or other forms of collateral. The generally accepted approach is as follows:

In claims secured by a pledge, the right of pledge is not subject to limitation. This means that even if the claim becomes time-barred, the right of pledge generally continues to exist.
However, when a creditor initiates legal proceedings through the sale of the pledged asset, statute of limitations objections regarding the claim itself may also arise. At this point, both the nature of the pledge right and the underlying contract on which the claim is based must be examined.
In practice, particularly with mortgage loans, balancing the factors of both banks' collection strategies and the borrower's defense of statute of limitations is crucial.

When assessing the statute of limitations for secured claims, the precedents of the relevant chambers of the Supreme Court and the provisions of specific laws should be considered together.

12. Statute of Limitations, Interest, and Ancillary Claims

In an enforcement proceeding, in addition to the principal debt, interest, late payment interest, default interest, fees, and expenses may also be claimed. The following points should be considered regarding the statute of limitations:

If the principal debt has become time-barred, the interest accrued on it often becomes impossible to claim as well.
In some cases, a separate statute of limitations may be applicable to interest receivables . For example, a shorter 5-year statute of limitations might be invoked for periodic interest receivables.
In cases where no action is taken in an enforcement file for a long time, it may be debatable whether the accrued interest amounts create an unfair burden, especially in favor of the debtor; both the provisions of the Turkish Code of Obligations and established case law are taken into consideration at this point.

Practical implication for the creditor: Delaying the collection process increases the risk of the statute of limitations expiring, and may also make future claims for interest and expenses disputed.

13. Statute of Limitations and Multiple Debtors – Joint and Several Liability

There may be more than one debtor in an enforcement proceeding. For example:

A commercial company and its guarantor,
Joint debtors,
Joint account holders,

It can be tracked in the same file. The following points should be considered regarding the statute of limitations:

An action taken against one of the joint debtors may interrupt the statute of limitations for the other debtors as well. However, the scope of this interruption is assessed within the framework of the nature of the underlying debt relationship and the relevant legal regulations.
In some cases, particularly in suretyship relationships, shorter statutes of limitations may be stipulated in favor of the guarantor; this leads to the guarantor having a stronger defense in enforcement proceedings.
The defense of statute of limitations may need to be raised separately for each debtor; if one debtor does not raise the defense while another does, only the debtor who raised the defense can benefit from it.

Therefore, when initiating enforcement proceedings against multiple debtors, the statute of limitations periods must be calculated separately for each debtor, and different strategies may be determined when necessary.

14. Considerations for Creditors to Reduce the Risk of Statute of Limitations

For creditors, the risk of the statute of limitations expiring in enforcement proceedings often stems from the case file remaining untouched for years. To reduce this risk:

Determining the type of claim and the statute of limitations from the outset: When a contract is being drawn up or when the first dispute arises, it is important to determine which statute of limitations applies to the claim, such as whether it is 2 years, 5 years, or 10 years.
Making informed use of procedures that interrupt the statute of limitations:
- If the deadline is approaching, file a lawsuit
- To initiate debt collection proceedings,
- obtaining a written admission or payment from the debtor
  .
Not to leave the enforcement file idle:
- Request for seizure,
- Sales request,
- Renewal requests
  can be made at regular intervals to both keep the case alive and restart the statute of limitations.
Monitoring seizure and sale periods: Particular attention should be paid to the one-year period for real estate sales and the six-month period for movable property sales; otherwise, the seizures may be lifted and the proceedings dismissed.
In enforcement proceedings based on court judgments, don't forget the 10-year period: A creditor who has secured their claim through a court decision should not become complacent thinking "there's a judgment anyway," but should bear in mind that the 10-year period could expire at any moment.

15. The Importance of Effectively Utilizing the Statute of Limitations Defense from the Debtor's Perspective

Debtors often set aside enforcement orders without reviewing them in time, thinking, "nothing will happen anyway." However:

The debt time-barred .
The amount owed have been miscalculated .
Ancillary charges (interest, expenses, etc.) may be demanded illegally.

After the payment order is served, the debtor:

They must submit their statute of limitations objection and other objections within the prescribed time limit
If necessary, you should seek support from a lawyer specializing in enforcement law
The defense of statute of limitations must be reiterated when a lawsuit is filed to annul or dismiss the objection.

Otherwise, the defense of statute of limitations may become unusable, and the debtor may face seizure and sale proceedings even for a debt that has become time-barred.

16. Conclusion: Statute of Limitations in Enforcement Proceedings is an Institution Requiring Strategic Management

In enforcement proceedings, the statute of limitations is not merely a matter of a fixed period stipulated in the law; it is a strategic element that determines the balance between debts and receivables and directly affects the outcome of the enforcement proceedings.

From the creditor's perspective, failure to comply with deadlines can result in a lawsuit or enforcement proceeding that has been pursued for years becoming inconclusive simply due to the statute of limitations.
From the debtor's perspective, failing to raise a statute of limitations defense in a timely manner can mean an unnecessary payment of debt and a significant economic burden.

seizure, legal consultancy, enforcement law, statute of limitations for enforcement, bankruptcy, Enforcement and Bankruptcy Law, Istanbul lawyer, Supreme Court decisions

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