Your Hungarian customer or business partner is not paying? Hungarian law offers three well-trodden routes to enforce monetary claims – the payment order, the liquidation petition and litigation – with very different conditions, costs and timelines. Choosing the right one is where money is won or lost.
Little-known but crucial: under the Hungarian Civil Code, a written payment demand does not interrupt the limitation period. Claims generally lapse after 5 years, and only court/payment-order enforcement, acknowledgment by the debtor or a settlement interrupts the clock. Sending reminder letters for years is not a strategy.
1. The payment order (fizetési meghagyás) – fastest and cheapest
A fully electronic, notarial procedure for overdue monetary claims, issued without any examination of evidence, typically within 3 working days. For claims under 3 million HUF it is the mandatory first step; above 30 million HUF it is not available. The procedural fee is 3% of the claim (with statutory minimum and maximum). The debtor has 15 days to oppose: without opposition the order becomes final and enforceable like a court judgment; with opposition, the case automatically converts into litigation, and the fee paid is credited against the court fee. Refusing to collect the mail does not help the debtor – after two failed delivery attempts the order is deemed served.
2. The liquidation petition – the strongest pressure tool against companies
If the debtor is a Hungarian company, the creditor may petition for its liquidation based on insolvency. Strict conditions apply: a contractual claim exceeding 200,000 HUF that the debtor has not disputed, and a formal payment demand giving 20 days that went unanswered. Since liquidation threatens the company’s existence, a significant share of solvent-but-unwilling debtors pay upon receiving the petition or even the attorney’s warning. The risks: if the debtor is genuinely insolvent, the creditor joins the statutory ranking of claims and recovery may be low – the tool must be chosen case by case. A properly drafted demand letter is critical: courts scrutinise it strictly, and a defective one sinks the whole procedure.
3. Litigation – when the claim is disputed
If the debtor substantively disputes the claim, litigation is the route that leads to an enforceable judgment even on contested facts. Expect a court fee scaled to the value in dispute (roughly 6% for smaller claims), strict procedural rules where the case is largely decided at the front-loaded preparatory stage, and a first-instance timeline of 1–1.5 years. The winning party’s costs are, as a rule, borne by the loser. Interim measures to secure the debtor’s assets can be considered before filing.
Extras worth claiming
In business-to-business relationships, late payment automatically triggers default interest at the central bank base rate plus 8 percentage points, and a flat 40 EUR recovery cost per claim – no demand needed. For cross-border claims within the EU, the European order for payment procedure may also be an option. Success-fee arrangements are available for collection and litigation mandates.
Questions about your own case?
I advise clients in English and Hungarian, in person in Győr and Mosonmagyaróvár or by video call from anywhere in the world. The 20,000 HUF consultation fee is fully credited against my fee if you retain me.
This article provides general information and does not constitute legal advice. Fees, duties and thresholds are set by law and change from time to time; every case is different – please contact me about your specific situation.