Debt Collection in Hungary

Debt Collection in Hungary

Does your company have to deal with debt collection in Hungary because a Hungarian customer has not paid your invoice? Our Hungarian debt collection specialists and lawyers will be happy to help you. We ensure that your outstanding invoices are paid quickly. Read here what we can do for you when you want to engage with a debt collection agency and recover debt from Hungary.  

"In Hungary, invoices are often not paid within the set payment term. In recent years, Hungary has experienced severe economic conditions. And that is reflected in the payment behaviour of companies".  

Submit your case before 16.00 pm and we will act today!

International debt collection in Hungary

When doing business with a Hungarian trading partner, you will be confronted with different trading traditions and customs than those you are used to. Moreover, in Hungary there is a different legislation than in in your own country. In addition, your customer often speaks a different language. This often makes debt collection in Hungary complicated and time-consuming. That is why you should call in our Hungarian specialists. They have the means to get your debtor to pay.

Payment behaviour of Hungarian companies

  • Statutory term of payment of invoices is 30 days  
  • Many Hungarian companies do not pay their invoice within the payment term  
  • A payment term of 14 days is customary in the case of reminders

Debt collection in Hungary

The payment behaviour of Hungarians has deteriorated considerably in recent years. It is therefore not surprising when your invoice is not paid on time by your Hungarian debtor. This is because the Hungarian economy has deteriorated significantly in recent years. Therefore, make sure you have a strong debtor's policy when doing business with Hungarian companies.

In addition, Hungary has also had to deal with a dichotomy in terms of business culture. Business life in the capital Budapest is fundamentally different from life outside the capital. While business in the capital is characterised by speed, those in the outskirts of Budapest often have a traditional business culture. Companies outside the capital mainly do business with a select group of close relatives and sometimes have a somewhat hostile attitude towards outsiders. Be aware of this when doing business with a Hungarian company.

Advantages of collecting in Hungary

  • Hungarian debt collection lawyers in your country 
  • Hungarian-speaking lawyers  
  • Highest success rates  
  • Collection throughout Hungary  
  • Always a single point of contact  
  • 24/7 online access to our portal 
  • No Cure No Pay debt collection

Hungarian lawyer in your country

For the collection of your invoice from a Hungarian debtor, it is best to contact a Hungarian lawyer or collection specialist. For this you don't have to go to Hungary, you can simply contact our specialists at Bierens. They have extensive knowledge and experience with the laws and regulations in Hungary. It goes without saying that they collect in Hungarian, their native language. This way we know how to make your Hungarian debtor pay quickly.

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Debt collection procedure in Hungary

The collection process in Hungary can be divided into two phases. In the extrajudicial phase we collect without the intervention of the court, in the judicial phase we do involve the court to get your Hungarian customer to pay. Because we are a law firm, we can assist you in both phases.

Extrajudicial debt collection

Prelegal debt collection

Our starting point is to always start the collection procedure in the extrajudicial phase. In this phase we try to avoid the intervention of the court. We will contact your Hungarian debtor to ensure that your debtor still pays. In the extrajudicial phase we have the following possibilities in Hungary:

Written demand letters and phone calls

We send the debtor a written reminder and contact the debtor by telephone, requesting the debtor to pay. The debtor is then given several days to complete the payment. Interest and costs will also be claimed.

Drawing up payment arrangements

In Hungary, it is often effective to set up a payment arrangement. To achieve the best results when negotiating, it is very important to show understanding towards your Hungarian trading partner.

Announcing legal proceedings

Often, the announcement of legal proceedings will convince your Hungarian debtor to pay your invoice. If your debtor refuses to pay in the extrajudicial phase, we can go to court in consultation with you. In order to do so, we do a credit check and analyse the financial situation of your debtor. This enables us to better assess your debtor's financial situation and determine whether legal proceedings are worthwhile. In addition, we will always inform you in advance on the possible costs, and we will only start working after receiving your permission.

Judicial debt collection


Would you like to start legal collection proceedings against your Hungarian debtor? Then the first question is in which country do you have to litigate: in your own country or in Hungary? This depends on the competent court, i.e. the court that is competent to rule on your debt collection case.

In your general terms and conditions, you can make agreements about the competent court in the event of a (payment) conflict. This is also called choice of forum. Have no agreements been made? Then the main rule is that the court in the country of the defendant has jurisdiction. In this case the Hungarian court. You must then go to Hungary to follow legal proceedings there.

In addition, the main rule is that the law of the country of the seller or service provider applies. Therefore, in this case the law of your country applies. We then get this difficult situation where the Hungarian judge must assess the case based on the law of your country. A legal system that he does not know. This is not a desirable situation, which is why our advice is to make agreements about this in your general terms and conditions. In addition, you can also agree that you can litigate in your own country, should a conflict arise.

Debt collection laws Hungary

Hungary's legal system is problematic. Costs are often high, and procedures are lengthy. Corruption also persists in some cases. Our Hungarian lawyers can advise you on the best legal procedure in your situation.

Order for payment procedure ("FMH")

When there is no discussion about the invoice, we speak of an undisputed claim. In that case, an "FMH" procedure can be initiated. With this procedure, an enforceable title is obtained quickly and efficiently. After the court has pronounced its verdict, our lawyer will immediately deploy the necessary means to execute this verdict. However, if the debtor contests your claim, more extensive proceedings on the merits will be initiated.

Ordinary civil proceedings

In the event of a dispute, if your debtor does not agree with your invoice, our lawyers can start ordinary civil proceedings against your debtor. Both parties will then have to present their points of view. In some cases, the judge will decide immediately, while in other cases a hearing will have to be scheduled. Depending on the details of your case, the lawyer will determine whether a procedure is applicable.

International collection laws

international collection laws

Besides the Hungarian collection laws, there are also a number of European measures that can be used when your Hungarian customer does not pay. For the European Union it is important that trade between European countries is stimulated. Therefore, complicated procedures abroad are unwanted. Besides the normal procedures, there are also two alternative procedures that can be used for foreign claims: the European Payment Order Procedure and the Small Claims Procedure.

Both procedures are relatively fast and cheap. A standard form must be filled in, which is then sent to the competent court. If you have not agreed on anything, this is usually the Hungarian court. The court then deals with the collection case and makes a judgement.

The small claims procedure is only suitable for small claims up to €5,000. The European Payment Order only applies to undisputed claims.

Debt collection procedure Hungary

  • Upload claim
    Upload your debt recovery case online
  • Start case
    We will process your case immediately
  • Send a demand letter
    We will immediately send a payment reminder to your debtor
  • How to approach debtor?
    Together we will determine our approach
  • Online portal 24/7
    View your case 24/7 through our online portal
  • Ask questions
    Questions? Your contact is always available to assist you
  • Get invoice paid
    Your unpaid invoice will be paid

Litigation in your own country

Have you agreed in the general terms and conditions that your court has jurisdiction? Then legal proceedings can also be started in your country. Depending on your specific situation, our lawyers will look at what is most beneficial for your organisation. If we start legal proceedings in your country against your Hungarian debtor, we can conduct ordinary civil proceedings. Both parties will be heard, after which the court will make a judgement.

Executing judgments in Hungary

When a verdict has been obtained in your country, this verdict has yet to be executed in Hungary. Within the EU, it is established that all verdicts obtained in the EU member states are also recognised in other EU countries. For the execution of a judgment in Hungary, your court issues a certificate. This is then sent to the bailiff in Hungary together with the judgment. The bailiff can then set to work immediately to ensure that the judgment is executed in Hungary.

Legal areas for debt collection in Hungary

Our Hungarian collection agency has been active for several years. During that time, we have helped many companies all over the world with their debt collection business in Hungary as well as several Hungarian companies, with all kinds of debt collection cases in various areas of laws:

  • Transport
  • Buying and Selling
  • Construction law
  • Rental and leasing
  • Agency and distribution agreement
  • Damages and unlawful acts

“Bierens is a highly effective and professional partner. Not only do they have a good debt collection procedure, they also give solid advice.”

Manuel Maas, Eneco

National coverage

Is your debtor in Budapest, Debrecen or Szeged? For our specialists it doesn't matter where your customer is located. We can assist you throughout Hungary. For the successful collection of your case, you do not need to call in a collection agency or lawyer in Hungary. You can simply transfer your case online. Our Hungarian specialists will then get straight to work. With a Hungarian department at our head office, we can effectively collect your claims in Hungary.

More than a debt collection agency

If you are looking for a debt collection agency, you are better off with a debt collection lawyer. Our Hungarian collection lawyers have more resources than a collection agency. Moreover, they work faster and are also more successful. That is beneficial for your organisation, as you will quickly have your money in your bank account.

Submit your case before 16.00 pm and we will act today!

No Win No Fee debt collection

no cure no pay

During the extrajudicial phase, we work based on the No Win, No Fee principle. If we do not collect, then you pay no legal fee. You only pay €150 for administrative costs. After all, an unpaid invoice causes enough frustration. We think it would be unfair if you were to be faced with all sorts of additional fees.

You only pay a fee if we can collect the claim. We try to recover this fee from the debtor as much as possible. Therefore, a successful collection case will cost you almost nothing! That is what we call justice.

Debt collection costs

If the collection is successful, we try to recover the collection costs as much as possible from the debtor. In that case your Hungarian debtor will pay the outstanding invoice, and the collection costs. This way you must pay as little collection costs as possible to our organization.

Our Hungarian specialists

Do you have an outstanding invoice with a Hungarian customer that has not been paid? Or do you have another conflict with your customer? Our collection specialists and lawyers will be happy to help you solve your payment conflict. Please feel free to contact us for more information. Do you no longer want to wait for your money? Then hand over your invoice immediately. Our specialists will then get straight to work for you.

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