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Debt Collection Budapest:
recover unpaid invoices in Hungary
Are you dealing with a client in Budapest who hasn’t paid their invoice? Or do you have other outstanding debts in the Hungarian capital? Collection Company specializes in international debt collection and can recover all your unpaid invoices and other overdue payments for you.
We utilize our carefully curated network of local bailiffs, legal experts, and attorneys. They are uniquely knowledgeable about Hungarian debt collection laws and know exactly the best ways for quick and efficient debt recovery.
- Nationwide coverage throughout Hungary
- One dedicated English speaking contact
- Proven track record
- Tailor-made services for each case
- Expert advice and a transparent process
- 24/7 online access
Customized debt collection in Budapest
Unpaid invoices are the biggest fear of every entrepreneur, especially when clients are located abroad. What can you do if someone in Budapest doesn’t pay an invoice? How do you send a reminder in Hungary? Which authorities can you turn to?
Collection Company takes those worries off your hands. Transfer your claim to us, and we will ensure you receive what you are entitled to as quickly as possible.
How? Through a thoughtful debt collection strategy and the involvement of local specialists such as bailiffs and debt collection lawyers. They know exactly what your rights are and what debt collection procedures we can pursue to collect your money.
As a creditor, you do not need to maintain contact with the local parties. You will communicate with a dedicated English speaking contact person, who manages the specialists in Budapest. So you won’t have to deal with language barriers or cultural differences.
Through our Online Cockpit, you can monitor the progress of the debt recovery process 24 hours a day, 7 days a week.
Do you want more information or practical advice about the collection process in Budapest? Then request a free and no-obligation consultation.
Why Collection Company for debt collection in Budapest?
- Global coverage
- One dedicated English speaking contact
- Experienced debt collection specialists with knowledge of Hungarian legislation
- Broad network with local lawyers and bailiffs
- Seamless connection from extrajudicial to judicial action
- Effective local approach
- 24/7 tracking through your own Online Cockpit
Submit your claim now?
Do you have money owed by a delinquent payer in Budapest? Submit your details and we will contact you shortly to discuss your debt collection case.
How does debt collection work in Budapest?
Debt collection in Hungary is usually executed by a debt collection agency.
The process (adosságbehajtás) roughly consists of two overlapping phases: the extrajudicial process, where we attempt to collect your claim amicably without the intervention of a judge, and the judicial procedure in which we sue your debtor.
Below, we explain what these two processes look like in Hungary.
- Upload your invoice online
- We'll start your case
- We'll start with the debt collection process
- Together we decide the best strategy for collecting your debts
- Monitor the status of your case 24/7
- Any questions? Your personal accountmanager will answer them all!
- Your invoice is payed
Extrajudicial debt collection
We always start the collection procedure with extrajudicial collection. We send your debtor a reminder – in Hungarian and in our name – and make personal contact. Many delinquent payers are startled when they receive a demand letter from a debt collection agency and will immediately proceed to pay the outstanding amount.
In addition to sending the demand letter, we make personal contact with your debtor in Budapest. We do this, for example, through phone calls, WhatsApp messages, and emails.
This way, we gradually increase the pressure. In total, there are 16 contact moments with your debtor. In most cases, we are able to collect your claim during this phase.
If that’s not successful, you have the option to proceed to a judicial process.
Legal procedures
If your debtor refuses to pay voluntarily we can start court proceedings. The judge can compel your debtor to pay. After all, you have a right to your money. To achieve this, we need to file a lawsuit against your debtor. There are different legal processes in Hungary. The procedure we follow will depend on the amount of the claim.
Payment Order Procedure
For small claims (under 30 million HUF), there is a special order for payment procedure (fizetési meghagyásos eljárás) in Hungary. This is a quick and efficient process to collect your claim. The downside is that both parties must be officially based in Hungary. If you reside in another EU country (than Hungary) we can utilize one of the European procedures for collecting cross-border claims or initiate a legal procedure in the court in Budapest. You will find more information about that below.
If we can indeed use the payment order procedure, we need to submit your claim to a notary. The notary will review the claim and then issue a payment order. Your debtor has the right to contest this. If that happens, a regular court procedure will follow.
Legal proceedings
For outstanding claims over 30 million HUF (or if you do not reside in Hungary), we need to initiate a procedure in court. This also applies if your debtor disputes the claim. A judicial procedure (jogi eljárást) will follow.
We will file a case with the Budapest court and submit a dossier that includes, for example, the purchase agreement, invoices, reminders, statements, and email correspondence with your debtor.
Your debtor then has 15 days to contest the claim. If they do not, the claim will be automatically granted.
If your debtor does contest the claim, a written round will follow, during which both parties can present their positions and submit evidence. The court will then schedule a hearing. Both parties are required to attend.
After the hearing, the judge will issue a ruling. If the judge grants your claim, we can enforce the judgment against your debtor. Both parties have the option to appeal the judge’s ruling.
Cross-Border claims
If you live in another EU country than Hungary (or your business is based there) and your debtor is located in Budapest, it is sometimes possible to use one of the European procedures for cross-border claims. Within the European Union, there are various expedited procedures available to collect these claims.
European Small Claims Procedure
For small claims of 5,000 euros or less, there is a European Small Claims Procedure. This accelerated procedure is conducted entirely online. Here’s how it works: we submit your claim to the court in the country you reside. The court then notifies your debtor. Your debtor has the opportunity to contest the claim. If that happens, both parties can submit their evidence, and the judge will schedule a digital hearing. Ultimately, the judge will issue a ruling. This judgment is enforceable throughout the EU (except in Denmark).
European Payment Order (EPO)
Another option is to request a European Payment Order (EPO). This is possible when it comes to an undisputed claim. This means that the debtor does not contest the legitimacy of the claim but simply does not pay.
To obtain a European Payment Order, we need to submit your claim to the court in your country. The court will issue a payment order based on a few standard forms. Your debtor then has the opportunity to object to this. If they do not, we can place a lien on your debtor with the payment order.
How does the debt collection procedure work in Budapest?
Step 1
We begin your collection process with an extrajudicial procedure where we attempt to collect your claim amicably. We will send your debtor a reminder, giving them a chance to settle the outstanding invoice neatly. We will also reach out through various means, such as phone, WhatsApp, or email.
Step 2
This way, we gradually increase the pressure on your non-paying debtor. Ultimately, we will inform them that we will take legal action if payment is further delayed. We make it clear that there will be significant costs associated with this for your debtor.
Step 3
Ultimately, you have the choice of whether to proceed with the legal process. Our debt collectors will discuss the options and the likelihood of success with you.
Enforcement proceedings in Budapest
With an executory title (such as a payment order, EBB, or court judgment), we can place a lien on your debtor’s assets. For this, we need to engage a bailiff in Budapest. They will give your delinquent debtor one last chance to pay the debt themselves.
If your debtor fails to do so, the bailiff will proceed with the seizure of assets. A Hungarian bailiff can seize up to 33 percent of your debtor’s income, among other things. They can also confiscate personal property and real estate, which the bailiff is allowed to sell publicly. The proceeds from this sale can be used to pay off the debts.
Interim measures
Sometimes a debtor will try to withdraw all their money from the bank account and hide it or conceal other assets during or in the lead-up to the lawsuit. This way, the debtor tries to prevent the bailiff from seizing these assets once there is a court ruling.
To prevent this, we can impose an interim attachment prior to the legal proceedings. For this, we must submit a request to the Hungarian court. The judge will then decide whether such protective measures are necessary. If so, a bailiff will seize the designated assets. This attachment remains in effect until the judge has made a ruling.
If the judge rules in your favor, the seizure becomes executory. This means that you will be paid from the proceeds of the seizure.
Does the debtor claim they can't pay?
We regularly see that debtors claim they cannot pay the outstanding invoice. When that happens, we certainly don’t just give up. If the debt exceeds 200,000 HUF, we can file for bankruptcy of your debtor.
Going bankrupt is, of course, the last thing your debtor wants. In most cases, payment is made once a bankruptcy application is filed.
Once we have filed for bankruptcy of your debtor with the court in Budapest, your debtor has 120 days to pay off the debt or arrange a payment plan.
If that doesn’t happen, bankruptcy will be declared, and a trustee will be appointed. The trustee will attempt to pay all creditors as much as possible from the assets of your bankrupt debtor.
Advice about your case?
Fill in your details, and we will contact you immediately for a free consultation!
Legal fields of debt collection
When collecting debts, it often involves unpaid invoices, but that is not always the case. As an international debt collection specialist, we are also frequently called upon to claim compensation for damages or to recover funds, for example, in rental and purchase disputes abroad.
As an international debt collection agency, we operate within the following areas of law:
- Construction Law
- Rental and Leasing
- Purchase and Sale
- Labor Law
- Agency Agreements
- Transportation
- Damages and wrongful acts
Both creditors and intermediaries, such as law firms and accounting offices, can engage our services.
Other debt collection services
- Reliable advice on contracts and terms
- Credit information about companies in Budapest
- Disputes including issues like Retention of Title and right of recourse
- Mediating in reaching private settlements and agreements
Free consultation
You can submit your debt collection cases directly to us via our debt collection registration form. Would you like to consult with a collection specialist first? Leave your details or call us at 070 – 762 0330.
Submit your claim
Fill out your details and start collecting your invoices.
FAQ: Frequently Asked Questions about Collection Budapest
FAQ: What do we need from you to recover debts in Budapest?
When you submit your claim to us, we would like to receive as many supporting documents as possible. You might think of invoices, payment reminders, purchase agreements, and other correspondence related to the claim.
We understand that you may not always have all the documents available. That’s not a problem. You can simply submit your claim to us. Our debt collections specialist will contact you to discuss what evidence you have to support your claim.
If you have them, we would like to receive the following documents:
- A copy of the agreement
- Email correspondence with a confirmation
- A fax confirmation
- Your summary of what was agreed upon
- Invoices
- Reminders
- A copy of your general terms and conditions
- Possibly proof of delivery
FAQ: Do you need legal representation for a debt collection in Budapest?
In Hungary, it is not mandatory to hire a lawyer to pursue your claim, even for large outstanding claims. However, we will always engage a local lawyer if your case requires it. Our debt collection agency works with the best collection attorneys in Budapest, who will represent your interests if it comes to a lawsuit.
FAQ: What does a legal procedure cost in Budapest?
The costs of a judicial collection in Hungary depend on the amount of the claim. The court fees range from 3 to 6 percent of the total claim amount. An appeal costs 8 percent of the total amount claimed.
Additionally, there are costs for legal assistance and bailiffs. Generally, the losing party is ordered to pay the costs incurred by the other party.
FAQ: How long does debt collection take in Budapest?
Usually, a judicial procedure in Hungary lasts between 30 and 120 days. The payment order procedure can be completed in just a few days if you qualify for it.
FAQ: Is there a statute of limitations for my claim?
Do you have a claim that is somewhat old? If so, there may be urgency. There is a statute of limitations for claims. The general statute of limitations in Hungary is 5 years. However, for specific claims, such as those in the transportation sector, there are shorter time limits, for example, one year. Contact our international collections specialist to find out when your claim will expire.
FAQ: Why not hire one of the debt collection agencies in Budapest?
The downside of engaging a local debt collection agency in Budapest is that you quickly encounter a language barrier. Additionally, many debt recovery agencies can only handle the extrajudicial phase. If you want to initiate legal proceedings, you will need to find a lawyer and bailiff in Budapest on your own.
At Collection Company, all you need to do is submit your claim. Our international debt collection specialist will then manage the case effectively. This debt collection specialist oversees the local experts and serves as your point of contact.
Moreover, we can handle the entire collection process for you, from the amicable phase through the extrajudicial phase and the recovery. You can track the progress of the collection process yourself in our Online Cockpit.
Why 40.000 customers tried our services
- The #1 collection company in the Netherlands and abroad
- Regional & local specialists
- Years of experience with international invoices
- Your own personal contact
- Extensive advice on the legal process
- Monitor the status of your case 24/7
Meet our specialized legal team
Joost Konings LLMLaw expert- May Leung LLMLaw expert
- Wesley Boeters LLMInterim lawyer
