Debt Collection Agency Hungary: Fizetési Meghagyás & EU Enforcement
Debt Collection Agency Hungary: Payment Orders and Independent Bailiffs
The Hungarian Framework
Hungary combines EU enforcement instruments with a domestic system centred on the fizetési meghagyás (payment order) — a fast-track procedure that produces enforceable titles for undisputed claims without a court hearing. For EU creditors, Hungary's full EU membership means European Payment Orders and European Account Preservation Orders apply. But the domestic payment order, processed through the Magyar Országos Közjegyzői Kamara (Hungarian Chamber of Notaries), is often the faster route.
Hungary's position in Central Europe — bordering Austria, Slovakia, Romania, Croatia, Serbia, Ukraine, and Slovenia — makes it a hub for cross-border commercial disputes. Understanding the Hungarian system is essential for creditors with Central European exposure.
The Collection Process
Phase 1 — Felszólító levél (demand letter). Formal demand in Hungarian citing the contract, outstanding amount, and késedelmi kamat (default interest). Hungarian statutory commercial interest: the central bank base rate + 8 percentage points (under the Civil Code). The demand must provide a reasonable payment deadline.
Phase 2 — Amicable collection. Budapest concentrates approximately 40% of Hungarian GDP and most corporate headquarters. Business culture is direct and documentation-oriented. Recovery rates for claims under 12 months: approximately 50-60%.
Phase 3 — Fizetési meghagyás (payment order). Filed electronically through the notarial system. The közjegyző (notary) issues the payment order without a hearing. The debtor has 15 days to file an ellentmondás (objection). No objection? The order becomes enforceable. Timeline: typically 2-4 weeks from filing to enforceable title. For claims up to HUF 30 million (approximately €77,000), the payment order procedure is mandatory — the creditor cannot go directly to court.
Phase 4 — Végrehajtás (enforcement). Hungarian önálló bírósági végrehajtók (independent judicial bailiffs) handle execution. Like Czech executors, Hungarian bailiffs are independent professionals with a financial interest in successful recovery. They can seize bank accounts, garnish wages, attach movable and immovable property, and freeze business shares.
Key Parameters
Statute of limitations: 5 years for commercial claims (§6:22 of the Civil Code).
Currency: Hungarian forint (HUF). Not in the Eurozone — claims in foreign currency require conversion at the date of filing or judgment.
Language: All court and notarial proceedings in Hungarian. Documents require certified Hungarian translation.
Hungary's notarial payment order system, independent bailiffs, and mandatory fast-track for claims under HUF 30 million create an efficient framework for B2B debt collection in Central Europe.
