If the conditions are right, an order for payment can be an effective way of recovering debts. It avoids civil litigation, which is not only more costly but also significantly more time-consuming.
When to use it?
An order for payment may be granted if both the debtor and the creditor are domiciled in Hungary and the amount of the claim does not exceed the limit set by law.
And if the amount of the claim is below the legal limit, the use of an order for payment is not only an option, but an indispensable step before the civil action is brought.
The payment procedure is not only time- and cost-efficient, but also efficient in terms of enforcement. The vast majority of payment orders issued are final and therefore have the force of a final court judgment, allowing for their effective enforcement.
If both the debtor and the creditor are domiciled in the European Union but not in the same country, the European order for payment can be used as a model for a payment order. The logic of the two types is the same, but the procedural rules are different, which requires a comprehensive knowledge of orders for payment.
Our law firm has extensive experience in both the order for payment and the European order for payment.
How do we work?
All our cooperation starts with a personal consultation, during which we review the circumstances of the case and the outstanding claims. On this basis, we will consider whether there is a possibility to initiate an order for payment procedure.
If the client chooses to work together, we will prepare the application for an order for payment or a European order for payment, taking into account the specificities of the case, and submit it to the notary. Once the order for payment has been issued, we assess the options open to the debtor in the light of any opposition and provide our client with detailed information on each step.
The procedure
- Consultation
In order to understand the circumstances, we will hold a preliminary consultation with the client to assess the options available to us and select the most effective solution. If the client wishes to continue working with us, the consultation fee will be credited against the overall case management fee.
- Preparation and submission of a payment order
On the basis of the information we have, we will prepare an application for an order for payment and submit it to the notary.
- Contradiction and the way forward
After the order for payment has been issued by a notary, the debtor may lodge an objection within the statutory time limit. If the debtor does not make use of this possibility, the order for payment becomes final and enforceable, thus enabling enforcement proceedings against the debtor to be initiated.
If the debtor lodges an objection within the time limit, the order for payment procedure is converted into a lawsuit, in which the claim can be enforced in court. If the client wishes to proceed by litigation, we will prepare the necessary documents and represent him in court and before other authorities.
We will keep you informed at all stages of the procedure and explain the possible legal action. Our services also cover the period after the issuance of the order for payment, whether enforcement proceedings or litigation, so that our clients receive full support in pursuing their claims.
What should you do if you receive a payment order?
If you receive an order for payment, contact us to arrange a consultation. In such cases, it is of paramount importance to respond quickly and professionally and to take the necessary action.
