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Debt Collection In Hungary

In this article, our colleagues Att. Dr. Kata Hidegard Nagy and Zülal San will mention debt collection in Hungary with all required steps and processes.

For both natural and legal persons, the collection method of the overdue debt may vary according to the amount of the debt.

If your receivable amount does not exceed 3 million HUF (Apprx. 9.000€) and both creditor and debtor reside in Hungary, debt collection is possible only through fizetési meghagyásos eljárás, i.e. payment order procedure (FMH for short). It is up to the notaries to carry out the procedure in question.

So far we have assisted over 400 companies.

Depending on the citizenship of the parties that do not reside in Hungary, there is the possibility of debt collection either through EU FMH or through filing a lawsuit in front of the courthouse.

The method of collecting the debt between the amounts of 3 and 30 million HUF (via FMH or by filing a lawsuit) depends on the decision of the creditor, whereas over 30 million HUF (90.000€), the only way is the courthouse procedure.

The tax of the FMH procedure is 3% of the debt, and the tax of the litigation procedure is 6% of the debt.

The advantage of FMH is that it is a fast procedure. FMH request is examined by a notary public within 3 days. If there are no deficiencies in the file or if the file does not need to be rejected, FMH is sent to the debtor by the notary public no later than the third day after admission.

After FMH obtained by the debtor, the debtor has 15 days to object the request, in whole or in part. If FMH does not reach the debtor, or if the debtor does not make any statements within 15 days, FMH will be finalized on the 15th day and can be enforced immediately.

In the case that the debtor opposes the request within 15 days, it is possible to file a claim by submitting a petition to the courthouse within 15 days after the disclosure is obtained. At this stage, the tax to be given must be completed to 6%. However, it is possible to request that both the FMH and the taxes and other expenses used in the court to met by the debtor. After the petition is filed, the proceedings continue as a civil lawsuit and are terminated by the court’s decision.