1. DEBT COLLECTIONIN HUNGARYA presentation brought to you byBridgeWest.eu1

2. Debt Recovery in Hungary In order to avoid debt recovery situations, manycreditors grant longer terms of payment or use theprepayment method. If there are any uncovered debts, most of thecreditors use the help of the debt collection agenciesor law firms in Hungary.2 3. The Process of Debt Collectionin Hungary The process of debt collection in Hungary usuallystarts by verifying the nature of the claim and thesituation of the indebted. If the claim is real and can be proved with specificdocuments (such as invoice), the process of debtrecovery may begin.3 4. The Amicable Procedure inHungary In this phase the Hungarian debtor receives anotification regarding: the outstanding debt; the procedure of payment; the contact details of the agency; details regarding the last day when the paymentcan be made.4 5. The Legal Procedure inHungary >> If the amicable procedure doesn't have thedesired result, the legal procedure in Hungary canbe initiated. For this, the following documents are necessary: invoices and statements indicating payments; credit notes used to cover the outstanding monies; copies of the contract.5 6. >> The Legal Procedure inHungary Every document proving the connection between theparties is necessary. In certain cases, there is a hearing of witnesses whoparticipated at the negotiations between the Hungariancreditors and debtors. If the debtor is not disputing the decision of paymentin maximum 15 days after receiving it, the paymentbecomes enforceable.6 7. The Lawsuit in Hungary >> This phase usually starts with a written pre-procedure. The plaintiff and the defendant exchange opinions andproofs by letter until the judge considers there are sufficientrelevant information for pronouncing a decision. A hearing is scheduled and both parties must be present. After that, the judge will publish a final judgment, and theparties are informed about it in writing by the Court.7 8. >> The Lawsuit in Hungary If the parties don't agree on the decision, they canmake an appeal and the case is heard by a secondinstance. The standard duration of a legal process is between30 and 120 days if there is no appeal from theHungarian debtor.The court procedure may take around 1-3 months,depending on the complexity of the case.8 9. The Costs of Litigation inHungary The costs of the litigation in Hungary are usually 3%of the debt and 6% of the lawsuit debt. The judgments issued by the Courts of Appeal aregenerally 8% of the Hungarian debt. The losing party has to carry the costs of the legalprocedure.9 10. Solution for the Debt Recoveryprocess in Hungary When dealing with debt recovery in Hungary, it isadvisable to use the help of a law firm, which canprovide you with qualified legal advice on therespective matter. For assistance with the issues regarding debtcollection procedure in Hungary, you may contactour Hungarian lawyers.10 11. Thank you foryour attention!Please contact us for more information at:office@lawyershungary.comwww.lawyershungary.com(+44)203-287 040811