Debt Collection in Hungary

Hungary provides three main domestic routes for commercial debt recovery, each suited to different claim amounts and circumstances, alongside EU instruments available as Hungary is a Member State. 

Order for Payment procedure (fizetési meghagyás). This is administered by public notaries, not courts, and is the standard fast-track route. It is mandatory for claims under HUF 3,000,000 (approximately EUR 8,500) and available as an option for claims up to HUF 30,000,000 (approximately EUR 85,000). There is no minimum claim value. The notary issues the order and serves it on the debtor. If the debtor does not file an opposition within 15 days, the order becomes enforceable immediately. The filing fee is 3% of the claim, with a minimum of HUF 8,000 plus HUF 1,600 per party, capped at HUF 300,000.

Ordinary civil proceedings (peres eljárás). Required for claims exceeding HUF 30,000,000 (~EUR 85,000), and optional for claims over HUF 3,000,000. This is a full court action before the competent civil or commercial court. The litigation fee is 6% of the claim value, with a minimum of HUF 15,000 and a maximum of HUF 1,500,000. If the debtor opposes an Order for Payment, the case is transferred to the courts and continues as ordinary civil proceedings.

Liquidation proceedings (felszámolási eljárás). Available for claims exceeding HUF 200,000 against a corporate debtor (legal entity only). The creditor must hold a written, uncontested contract as the basis for the claim, and must have sent a formal demand letter before filing. The filing fee is HUF 80,000. If the liquidation fails to result in payment (e.g., because the debtor is insolvent), the liquidator issues a certificate of unenforceability. This route creates significant pressure on the debtor because an initiated insolvency proceeding harms the company's commercial reputation and can lead to actual dissolution.

European instruments. As an EU Member State, Hungary applies the European Payment Order (Regulation (EC) 1896/2006) for cross-border claims and recognises EU court judgments directly under Brussels Ibis Regulation without a separate recognition procedure.

The Order for Payment procedure, if uncontested, can produce an enforceable title within a few weeks. If the debtor opposes within the 15-day window, the case is transferred to civil proceedings, which typically take 6 to 18 months depending on complexity.

Ordinary civil proceedings for large commercial claims average 12 to 24 months at first instance. Complex multi-issue cases can take longer. Appeals add another 12 to 18 months.

Liquidation proceedings, once filed, create immediate pressure: the court sets a short deadline (typically 20 days) for the debtor to respond. If the debtor does not pay or dispute the claim, liquidation can be ordered relatively quickly.

Yes. Foreign companies can use all available Hungarian procedures. For the Order for Payment, legal representation is not mandatory but is strongly recommended. A power of attorney is required for the representative to act. For ordinary proceedings and liquidation, legal representation by a Hungarian-registered lawyer (ügyvéd) is necessary.

One important limitation: the Order for Payment procedure cannot be initiated if the debtor does not have a registered address in Hungary known for service of process. In that case, ordinary civil proceedings must be used.

EU judgment from another Member State is automatically enforceable in Hungary under Regulation (EU) 1215/2012 (Brussels Ibis). No separate recognition procedure is required.

Filing fees are recoverable from the losing party if the case is won. For the Order for Payment, the fee is 3% of the claim (capped at HUF 300,000). For ordinary proceedings, 6% (capped at HUF 1,500,000).

In commercial transactions (B2B), Hungarian law mandating compliance with EU Directive 2011/7/EU on late payments entitles the creditor to statutory late-payment interest plus a fixed EUR 40 minimum recovery contribution from the debtor, regardless of the actual collection costs. This fixed fee is claimable from the first day of default and can be claimed in addition to the principal debt and interest through any of the procedures above.

Lawyers' fees are generally recoverable through the losing party bearing reasonable, proportionate legal costs as determined by the court.

If the debtor is a legal entity and there are no attachable assets, the enforcement officer (végrehajtó) will issue an unenforceability certificate. At that point, if the debt exceeds HUF 200,000 and the underlying contract is written and uncontested, the creditor can file for liquidation.

Before starting proceedings, it is advisable to check the Hungarian Company Register (Cégbíróság) to verify whether the debtor company is still active, whether it has filed recent financial statements, and whether any insolvency or liquidation procedure is already pending. The Company Register is publicly accessible online.

It is also important to check the Hungarian pledge/mortgage register to identify any registered security interests over the debtor's assets, as secured creditors have priority over unsecured ones in insolvency.

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Q: What exactly does 'mandatory for claims under HUF 3,000,000' mean in practice?

A: It means that a creditor with a claim below that threshold cannot go directly to a civil court without first attempting the Order for Payment procedure before a public notary. Skipping this step and filing directly in court would result in the claim being inadmissible. The notary procedure must be attempted first; if the debtor opposes, the case then moves to the courts.

Q: Can I use the liquidation route to recover a disputed debt?

A: No. The liquidation procedure is only available for debts that are written, due, and uncontested. If the debtor disputes the claim, the creditor must first obtain a court judgment establishing the debt before liquidation can be initiated. Using the liquidation route as leverage for a disputed debt risks the court refusing the application.

Q: What happens to the Order for Payment if the debtor opposes?

A: If the debtor files an opposition within the 15-day window, the notary transmits the case to the competent civil court and the proceeding continues as ordinary civil litigation. The creditor does not need to re-file; the transition is automatic. Court fees for the litigation phase will apply.

Q: Can I claim my actual lawyer costs from the debtor?

A: In principle yes, as the losing party pays the winner's reasonable and proportionate legal costs. However, Hungarian courts may reduce the awarded amount if they find the requested costs disproportionate. For the Order for Payment procedure, where legal representation is not mandatory, the recoverable costs are more limited.

Q: Is arbitration a viable option for recovering a commercial debt in Hungary?

A: Yes. Hungary has an active arbitration system through the Permanent Arbitration Court attached to the Hungarian Chamber of Commerce and Industry. If the contract includes an arbitration clause, arbitration must be used. Arbitral awards are enforceable in Hungary and, as Hungary is party to the New York Convention, also in other signatory countries.