Legal Opportunities to Collect Outstanding Debts

What are your legal opportunities in case you have expired outstanding debts?

  1. We request the invoices, contracts, other deeds that form the basis of the outstanding debt. In case the debtor is a company, we inspect its data in the company register available to our Law Office, from which we determine if there are any other cash claims against the company, its owners or executives filed by companies or authorities that are legally binding or have been reported to the register of claims. This information is extremely important when choosing the right procedure against the debtor.
  2. In case the debtor is a private individual, whose contact details are unknown or can not be accessed at the address last known, we collect the right address from the Registration Office (Közigazgatási és Elektronikus Közszolgáltatások Központi Hivatala). The fee charged by the Office is 3 500 HUF.
  3. We issue a demand note.
  4. If the demand note does not remedy the situation, a notary will be approached to issue a payment order. Cash outstandings below 1M HUF can only be enforced through a payment order in case the debtor has a known address in the territory of Hungary (domicile, seat or residence), and the expired outstanding is not originated from labour relations.
    The fee of the procedure (base case) is 3%, at least 5 000 HUF, at most 250 000 HUF.
    If the request is submitted electronically, the notary issues the payment order within 3 working days, in case there are no other provisions to be made.
    The debtor has 15 days to contest the payment order by challenge. If no challenge is made, the order becomes legally binding, and can be enforced immediately. This is the greatest advantage of the procedure besides its relaive speediness.
  5. If the payment order is challenged by the debtor, the procedure enters into litigation. Within 15 days from receiving the litigation starting notice, a litigation fee of further 3% of the debt needs to be paid.
  6. During the collection of outstandings against companies it is also possible - as a final tool or in case no other method could possibly solve the issue – to initiate a liquidation procedure against the company.
    The fee of the liquidation procedure is 50 000 HUF, while the publication fee is 25 000 HUF.

For further information and for considering the legal possibilities for the collection of your concrete outstandings please contact our Law Office!