Closing an Execution File: What Are Collection and Waiver Fees?

Initiating a legal debt collection process (an execution file) requires paying upfront fees. However, many creditors and debtors are surprised to learn that closing the file—even if the debt is settled amicably outside of court—also incurs significant state fees. The state expects compensation for the legal infrastructure it provided to facilitate the resolution of your dispute.

Understanding the costs associated with concluding an execution proceeding is essential for negotiating settlements and accurately calculating the final net amount you will recover or owe. In this article, we explain the mechanics of "Collection Fees" and "Waiver Fees" required to officially close an execution file.

The Principle of State Compensation

When you open an execution file, the state acts as the enforcer. If the process is successful, the state takes a percentage of the recovered money as a fee for its services. This is a fundamental principle in execution law: the state charges for its coercive power.

The general rule is that the further along the execution process has progressed (i.e., the more effort the state has exerted), the higher the percentage fee will be.

1. The Collection Fee (Tahsil Harcı)

The Collection Fee is the standard charge applied when the debt is successfully recovered. Its percentage is determined by the specific stage of the execution process at the exact moment the payment is made.

While exact rates are defined by national fee tariffs and updated annually, they typically follow this tiered structure for standard (non-court order) debt collections:

Tier 1: Early Payment. If the debtor pays the debt immediately after receiving the initial payment order, before any assets are legally seized (foreclosed), the rate is at its lowest (e.g., 4.55%).
Tier 2: Post-Foreclosure Payment. If the execution office has officially placed a lien or seized the debtor's assets (bank accounts, vehicles, real estate) but has not yet sold them, the rate increases significantly (e.g., 9.10%).
Tier 3: Post-Sale Payment. If the state had to physically sell the seized assets at an auction to recover the funds, the rate reaches its maximum (e.g., 11.38%).

How is it Paid?

If the debtor deposits the owed money directly into the execution office's official bank account, the execution office automatically deducts the Collection Fee from that amount before transferring the remaining balance to the creditor.

2. The External Payment Scenario: Half Collection Fee

A very common scenario occurs when the debtor, facing an execution file, contacts the creditor directly and pays the debt into the creditor's personal bank account or in cash, bypassing the execution office's account. This is called an "External Collection" (Haricen Tahsil).

Even though the money did not pass through the state's hands, the state still demands its fee because the existence of the execution file facilitated the payment.
When the creditor informs the execution office that they have received the money externally and wish to close the file, the state charges a Half Collection Fee.

Example: If the standard fee at that stage was 9.10%, closing the file due to an external payment will require paying a 4.55% fee on the collected amount.
Who pays? Technically, the debtor is still liable for execution costs. However, because the creditor is requesting the file closure, the execution office will ask the creditor to deposit this fee. Creditors must remember to include this fee amount when negotiating an external settlement with the debtor.

3. The Waiver Fee (Feragat Harcı)

Sometimes, a creditor may decide to drop the case entirely, even if no money was collected. This could be due to a private settlement, a realization that the debtor is bankrupt, or simply a desire to stop pursuing the matter. This legal withdrawal is called a "Waiver" (Feragat).

To officially close a file via a waiver, a Waiver Fee must be paid.
Legally, a waiver is treated identically to an external collection. Therefore, the Waiver Fee is calculated at the exact same rate as the Half Collection Fee (half of whatever the standard collection rate would be at that current stage of the process).

The Silver Lining: Deducting the Advance Fee

When you initially opened the execution file (without a court order), you paid an upfront "Advance Fee" (typically 0.5% of the debt). The law prevents double taxation.

When it is time to pay the final Collection or Waiver Fee to close the file, the execution office will deduct the Advance Fee you already paid from the final fee calculation.

Example: You owe 4,550 in Collection Fees to close a file. You previously paid a 500 Advance Fee. You only need to pay the remaining 4,050 to officially shut the case.

Conclusion

Closing an execution file is rarely free. Whether you successfully collect the debt, settle externally, or simply walk away, state fees apply. Always factor in Collection and Waiver fees—and remember to deduct your initial Advance Fee—when calculating the true net value of your debt recovery efforts.

To simulate different fee rates based on the stage of your collection and estimate your final expenses, use our Execution File Expense Calculator.