A fast and efficient means of recovering money owed.
This is a notarial procedure, so if you owe money, you can get it within a few weeks.
The claim can be enforced in court, but it is precisely to simplify the procedure that the order for payment procedure was created. Therefore, it is mandatory if the claim does not exceed HUF 3 million, is for the payment of money and is overdue, provided that it is not one of the excluded cases.
What is very important is: when is there no place for an order for payment procedure?
In the following cases:
2022:
- the parties (the creditor or the debtor) do not have a known domestic address for service (i.e. domicile, residence, registered office or representative office),
- the monetary claim is based on the provisions of the Labour Code I of 2012. Law on the Labour Code of 2012, civil servant, law enforcement administrative service, national defence employee, civil service, public employment, employment contract under the Sports Act, a legal relationship based on a vocational training employment contract, a legal relationship arising from a student employment contract under the National Higher Education Act, or a member employment relationship with a social cooperative or an employment cooperative, a legal relationship arising from the employment contract under the Public Administration Procedure Act 2017. I of 2017 (hereinafter referred to as the “Code of Administrative Procedure”) and the subject matter of the case is not the legal consequence of the creation, modification or termination of the legal relationship or the culpable breach of obligations arising from the legal relationship by the employee or the legal consequence of disciplinary misconduct,
- the amount of the claim exceeds HUF 30 million,
- the claim is based on a pledge,
- there are several claimants or several defendants in the proceedings and several (non-identical) claims are included among the main claims.
What does this process look like?
As a lawyer, I always look at unpaid invoices and contracts, and I also look at what the court’s position is likely to be if the case goes to court.
Submitting an order for payment involves filling in and sending the online form.
The acting notary will then issue the order for payment on the basis of the application submitted within 15 days of receipt of the application at the latest, or within 3 working days in the case of an application submitted electronically.
If the debtor acknowledges the claim of the creditor or does not declare it, the order for payment becomes final on the sixteenth day after receipt. If the debtor fails to pay despite the enforceability, the creditor may proceed to enforcement for the amount specified in the order for payment.
If the defendant does not admit the claim of the creditor, i.e. if he opposes it (even partially) in due time, the proceedings will be converted into a lawsuit for the part of the claim that is subject to opposition. The proceedings then fall outside the jurisdiction of the notary and continue as litigation before the court. The statement of opposition must be sent to the notary within fifteen days of receipt of the order for payment.
This is when the court phase starts.
Of course, there is also the possibility that, if there is no objection during the procedure before the notary, it will still become enforceable and enforcement will be sought.
What is important is that the procedure will either be enforceable or go to court.
