If the EU Brussels Ia Regulation or a specific international treaty does not apply to the recognition and enforcement of a foreign judgment in Hungary, the provisions of the Hungarian Act XXVIII of 2017 on private international law („PIL Act”) shall be applied to third country judgment. In the following, we describe the procedural rules applicable to the recognition of third country judgments and its relation to enforcement.
It is often the case that a Hungarian company owes money to a foreign creditor. In such a case, the foreign creditor may have more legal options (for instance a litigation, liquidation proceedings), however, these procedures can be lengthy, and involve significant costs before a creditor can obtain an enforceable judgment. In this article, we will explain how to enforce a claim without the above procedures.
Considering that more and more Hungarian companies trade with foreign companies around the world, the number of cross-border disputes is also rising. Consequently, it is becoming common for a Hungarian company to be sued abroad. But how can you enforce the foreign civil law judgments in Hungary?
A potential plaintiff, who intends to initiate a civil law litigation against his debtor in Hungary, often aims to enforce the Hungarian judgment only in Hungary. However, a Hungarian judgment may be enforced also in other EU or EEA Member States without any intermediary procedure ('exequatur'). Moreover, a Hungarian Judgment may be also enforced in a third country which recognises the Hungarian Judgment.
Foreign creditors often come to us with saying that they have a debtor in Hungary, or that the debtor has assets in Hungary and intends to initiate legal proceedings against it. When analysing the initiation of a civil action, the question often arises whether the debtor can be sued in Hungary?
The aim of the liquidation procedure is to dissolve an insolvent debtor without legal succession and satisfy its credits, not to recover claims. However, creditors in Hungary use liquidation applications instead of or as well as classical court procedures (i.e., orders for payment and civil litigation) to recover monetary claims from debtors. How to recover a claim by way of a liquidation procedure and why to choose this procedure instead of the above-mentioned classical procedures?
If you, as a Hungarian company, want to recover your claim against your Hungarian debtor, there is a question of which proceedings to initiate against the debtor. In this short article we give 3 reasons why you should choose order for payment procedure for collecting claims in Hungary.
If you have a debtor in Hungary, there are more legal options to recover your claim. In this short summary we provide a brief overview of the most efficient legal ways of debt collection in Hungary.
In the recent years of crisis, it's becoming more and more common that your business partners fail to pay your invoices. After getting bored of their excuses or silences, there comes a time when you have to put pressure on your debtor. At that point, you either hire a law firm or turn to one of the many debt collection agencies offering “simple and cheap, yet efficient” solutions. But are the latter solutions really that effective? Is it worth entrusting a debt collection agency in Hungary? In our article, we bring up three reasons why you should hire rather a law firm in Hungary instead of a collection agency.
Measures taken due to the corona virus in recent weeks in Hungary affected the enforcement of securities over real estate, as well. The Governmental Decree regarding this matter provides more assistance to the Debtors who got into trouble due to State of Emergency to overcome the difficult period and may affect indirectly the enforcement proceedings started earlier, weakening the chances of creditors to satisfy their secured claims within reasonable time.
Can the unfairness of cross-border claim be reviewed ex officio in case of consumer contracts in such a simplified procedure, like the European order for payment procedure? In our article, we analyse the recent judgement of the Court of Justice of the European Union in the Bondora case and its possible effects on cross-border debt recovery, covering also the Hungarian legal regulations.