Debt collection

Our Budapest law office recovers overdue debts from Hungarian debtors on behalf of companies and individuals — including creditors based abroad. We handle the whole process: attorney's demand letter, Hungarian order for payment (fizetési meghagyás), litigation where needed, and enforcement. We work in English, German and Hungarian, and most cases start online.

How debt collection works in Hungary

1. Attorney's demand letter. A formal letter on the law office's letterhead sets out the claim, the supporting evidence (contract, invoices, correspondence) and a payment deadline. Many debtors pay at this stage, because the next step is already a court-enforceable procedure.

2. Order for payment (fizetési meghagyás). A fast, non-contentious procedure conducted electronically before a Hungarian notary. For monetary claims up to HUF 3 million it is, as a rule, mandatory before going to court; claims above HUF 30 million go directly to court. The notary issues the order within days. The debtor has 15 days to object; if there is no objection, the order becomes final and enforceable like a judgment. The procedural fee is 3% of the claim (minimum HUF 8,000, maximum HUF 300,000), and it is added to the debtor's bill.

3. Litigation. If the debtor objects, the case turns into an ordinary civil lawsuit before the competent Hungarian court. We represent the creditor throughout.

4. Enforcement. With a final order or judgment, a court bailiff (végrehajtó) can seize bank accounts, wages, vehicles and real estate. We file the enforcement request and monitor the bailiff's work.

Interest, costs and deadlines

- Late-payment interest between businesses: the Hungarian central bank base rate plus 8 percentage points (Civil Code s. 6:155), plus a flat EUR 40 recovery-cost allowance per claim.
- Legal costs: the notary's fee, court fees and the attorney's fee are claimed from the debtor; the creditor advances them.
- Limitation period: five years as a general rule — but do not wait: a debtor company may be deleted from the register or enter liquidation long before that.

Foreign creditors with Hungarian debtors

If your company is based in another EU country, we can also use the European order for payment (Regulation (EC) No 1896/2006), which is issued by Hungarian notaries and enforceable across the EU. In every case we first check the debtor in the Hungarian company register — whether it still exists, whether it is under liquidation or enforcement — so that you do not spend money on a claim that cannot be collected. A power of attorney is enough to start; no personal visit to Budapest is required.

What we need from you

- the contract or order confirmation and the unpaid invoices,
- the correspondence with the debtor (reminders, promises to pay),
- the debtor's name and registered seat — we look up the rest.

Frequently asked questions

How long does it take to collect a debt in Hungary? A demand letter typically gives the debtor 8–15 days. An uncontested order for payment becomes final about a month after filing; enforcement then depends on the debtor's assets. A contested claim that goes to court takes considerably longer.

What does debt collection cost? The demand letter is a fixed fee; the order-for-payment fee is 3% of the claim (HUF 8,000–300,000); court and enforcement fees depend on the amount. You receive a written quote before we start, and the costs are claimed from the debtor.

Can you collect small claims? Yes — the order-for-payment procedure exists precisely for smaller claims, and for amounts up to HUF 3 million it is the only route before court.

Do I need to come to Budapest? No. We sign the power of attorney electronically, exchange documents online and report to you by e-mail.

What if the debtor disputes the invoice? Then the matter goes to court; we assess the evidence in advance and tell you frankly how strong the claim is.

Contact us with the details of your claim — we reply with a first assessment and a quote. Online case initiation is available.