Hungary collection profile

Hungary-bnr

 

Collecting in Hungary

  • The conformity of domestic law with EU rules on late payment in business-to-business transactions unfortunately does not protect traders from the uncertain payment behavior of domestic companies with average payment term at over 35 days.

  • When considering legal action, it is worth keeping in mind that domestic courts are known for the lengthy and costly nature of their proceedings. In fact, commencing legal action in Hungary would be unreasonable in most cases and pre-legal collection efforts remain the only effective option.

  • Although domestic insolvency law aims at rescuing companies to increase the chances of recovering debts, it provides no limitations as to how much of the debt may be written off in restructuration negotiations and it is rare for unsecured creditors to recover from insolvent debtors in practice.

 

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    Hungary

    Hungary

    Collection complexity

    severe-2


    Collection relating to

    Payments
    $-3
    Court
    proceedings
    Gav-2
    Insolvency
    proceedings
    Arrow-4

     

     

    Publications about Hungary

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