How to Collect a Debt from a Hungarian Company – What You Can Actually Do
A Hungarian company does not pay.
At first, it feels like a delay.
The payment is late.
The explanations still come.
For a while, it seems manageable.
Then at one point, it becomes clear:
This is no longer a delay.
This is a debt.
Meanwhile:
- you still have to pay your own suppliers
- you still have to run your business
- and your money is somewhere else
At this point, the situation changes.
The question is no longer why this happened.
The real question is: what can you actually do now?
This is not one step. It is a process.
Debt collection in Hungary does not start in court.
It follows a structured legal process.
Each step has a role.
And timing matters.
Step 1 – Check if your claim is enforceable
Before taking any legal action, one question matters: can your claim actually be enforced in Hungary?
You need:
- a contract or agreement
- an issued invoice
- proof of performance (delivery or completed service)
- communication with the client
If your documentation is weak, starting legal action too early can damage your position.
In many cases, this is where the outcome is already decided.
Step 2 – Payment reminder (business level)
The first step is often not legal, but practical.
A clear and structured payment reminder can already change the situation.
It should include:
- the exact amount
- the due date
- a short deadline
- a clear and professional tone
This is the last stage where the situation remains "soft".
After this, it becomes legal.
Step 3 – Lawyer's demand letter
If the reminder does not work, the next step is a formal legal notice.
This is usually the turning point.
A lawyer's demand letter:
- shows that the case is taken seriously
- creates legal pressure
- often triggers payment or negotiation
Many debts are resolved at this stage.
Step 4 – Payment Order Procedure in Hungary (Fizetési Meghagyás)
If there is still no payment, a formal legal step follows.
In Hungary, this is typically the payment order procedure (fizetési meghagyás).
This is a notarial, non-litigation procedure designed for debt collection.
Key facts:
- used for monetary claims
- mandatory below approx. EUR 7,500 (3 million HUF)
- available up to approx. EUR 75,000 (30 million HUF)
- initiated electronically
The official fee is: 3% of the claim, minimum approx. HUF 12,000
The debtor has 15 days to object.
If no objection is filed: the claim becomes legally enforceable.
This is the first point where real legal consequences appear.
Step 5 – What if the debtor objects?
If the debtor files an objection, the case turns into a court procedure.
This means:
- longer timeline
- more detailed legal work
- higher costs
This is why the early steps matter.
Step 6 – Enforcement
If you obtain an enforceable decision, enforcement can begin.
This may include:
- bank account seizure
- asset seizure
- salary enforcement
At this stage, one question matters: does the company actually have assets?
The reality of debt collection in Hungary
Most debt collection cases are not about complex legal issues.
They are about behaviour.
- companies delay payment because they can
- they expect no real consequences
- they react only when the process becomes structured
Also:
👉 legal success does not always mean actual recovery
👉 the financial status of the debtor is critical
👉 delay reduces your chances
Timing matters more than you think
Waiting too long rarely improves the situation.
Over time:
- recovery becomes harder
- your position weakens
- and in some cases, claims may become unenforceable due to limitation periods
This is something many foreign companies do not expect.
Conclusion
Debt collection in Hungary is not about choosing the strongest step.
It is about choosing the right step at the right time.
The goal is not to start a procedure.
The goal is to get your money back.
📩 Next step
If a Hungarian company does not pay your invoice, the situation will not resolve on its own.
In most cases, the issue is not the lack of legal options.
It is the lack of timely and structured action.
If you are unsure whether your claim is enforceable, or what the correct next step is, this should be clarified early.
During a short initial review:
- I assess your situation
- I explain your realistic legal options
- and I tell you clearly whether it is worth taking action
👉 Send your case and receive a clear answer within 24–48 hours.