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Insolvency law and debt collection

Nowadays the need to recover credits from debtors is constantly growing. Many companies have to deal with non-paying clients, situations that must be tackled to avoid liquidation or unsuccessful debt collection. Creditors can choose between various alternatives to enforce their claims and our firm is happy to assist clients in the various proceedings.

We offer our customers assistance for payment procedures and, if the order for payment is followed by a dispute, legal representation at the competent court. We can file liquidation requests on behalf of creditors, register claims at the liquidator and monitor their activities and, if necessary, file a request for judicial review. Furthermore, we are pleased to assist our clients in filing bankruptcy petitions and represent creditors in court for liquidation and bankruptcy proceedings

In case an insolvent company may have to be reorganized and saved from liquidation, we can also mediate between creditors, debtors and authorities. 

In case the liquidation cannot be avoided, we provide the management with the information on obligations and possibilities, civil and penal consequences, so as to support it during this difficult time. We also provide legal assistance to the stakeholders of companies under liquidation. 

The experience of our firm is based both on academic knowledge (since some of our lawyers have graduated in the field of Insolvency Law) and on the frequent activity of representation of companies that deal with bankruptcy trustees.

 At the request of the client, we draft the documents in multiple languages ​​or take over the translation task. We guarantee our customers a complete service that includes both legal and linguistic support. 

Legal assistance for debt collection in Hungary

Non-payments are increasingly one of the main problems for companies. 

In fact, insolvencies put the company’s cash flow at risk, regardless of whether they are a small or medium business or a more structured company.

There are several situations for which a debt recovery procedure can be initiated, which involve the following procedures:

  • Payment order
  • European order for payment
  • Civil trial
  • Bankruptcy filings
  • Creditor representation during liquidation and bankruptcy

We can provide debt collection procedures with injunction, civil proceeding or liquidation requests. If needed, we explore the solvency of the debtor by working with a private investigator as well. We represent creditors in liquidation and foreclosure proceedings. 

Debt collection is a delicate procedure in Hungary, where there is specific legislation and regulation, so if you need assistance on the matter you can rely on our law firm.

How debt collection works in Hungary

For debt collection in Hungary, there are two possible phases to be faced. The first is defined as an out-of-court phase, which can allow you to resolve the credit collection procedure quickly and without too many complications. In fact, no direct intervention by the court is necessary. The second, however, is the judicial phase, which requires a procedure that involves the intervention of the court aimed at finding a definitive solution to the debtor’s insolvency.

It is possible for the procedure to be resolved in the first phase, without there being a direct intervention of the Court. However, whatever the circumstances, our lawyers have a complete background in Hungarian law and they will assist you with professionalism and experience to ensure the recovery of your credits.

Legal assistance for insolvency proceedings in Hungary

Within the Lajos Law Firm you can also receive assistance for insolvency proceedings in Hungary.

In the majority of cases and in the hope of being able to easily find an agreement that pleases both parties, we consider it useful to send a letter of notice in which the debtor is solicited to settle his debts.

In case of a conciliatory solution, we offer the drafting of the necessary documents, such as payment agreements or the declaration of approval of the debt (in bilingual form upon request).

Companies may sometimes have to deal with these kinds of problems and manage the consequences of insolvencies, both on the part of the creditor and the debtor.

In addition to specialized training in the field of insolvency law in Hungary, our lawyers have an up-to-date knowledge of the rules regarding bankruptcy, liquidation and bankruptcy procedures, a series of essential notions to offer guarantees to the creditor.

Our team consists of 15 experienced professionals trained in a large number of Hungarian law areas (mainly business law) to offer you full legal assistance in Budapest.

We never try to avoid the most complicated cases, because exactly such challenges are the beauty of our profession. The foundation of our work is trust, which we have to gain day by day with an approach based on responsibility and professionalism.

Request a consultation with our lawyers to start building a long-term partnership based on trust.

Meet ITL Group’s partner!

Levente Lajos

Founding Partner at Lajos Law Firm

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