Bankruptcy Laws in Turkey: A Closer Look at the Insolvency Process

Bankruptcy is a well-established recourse for addressing insolvency in Turkey, offering a structured approach to ensure the equitable satisfaction of creditors while protecting financially distressed debtors from potential exploitation.

In Turkey, the concept of bankruptcy applies to both personal and commercial debts, primarily targeting individuals and entities legally categorized as “merchants” or “tacir” under the Commercial Code. This includes any individual or legal entity engaged in commercial activities, even on a partial scale.

Bankruptcy proceedings in Turkey fall into two main categories: bankruptcy initiated with a proceeding (takipli iflas) and bankruptcy initiated directly without a proceeding (takipsiz iflas).

Azkan Group can support you in your Employer of Record (EOR) and payroll requests (also called Umbrella Company) in Turkey. We can manage your HR requests even if you don’t have a legal entity in Turkey.