The debt recovery process in Hungary can be shared into two phases. In the extrajudicial phase we recover the bad debt without the intervention of the court, in the judicial phase we recover the debt by involving the court to push your Hungarian customer to pay it back. We have associates all over Hungary, they can assist you in both phases.
EXTRAJUDICIAL DEBT RECOVERY
Our initial step is to start the collection procedure in the extrajudicial phase. In this phase, we try to neglect the interference of the court. We will make contact with your Hungarian debtor to make sure that the debtor still agrees to pay. In this process we have below possibilities in Hungary:
Step-1: Demanding debt in written form and phone calls
Step-2: setting payment arrangements
Step-3: starting legal proceedings
JUDICIAL DEBT RECOVERY
Are you OK with starting legal battle to collect your pending amount against Hungarian debtor? The first question involves that is in which country you want to litigate. The court that is capable to rule on your debt collection case.
You have an option of selecting the competent court in the event of a (payment) dispute. This is also known as choice of forum. Have no contract been made? In such condition basic rule is that the court in the country of the respondent has jurisdiction. You have to move to Hungary to follow legal proceedings there.
Moreover, basically rule is the law of the country of the service provider matters. In such case the law of your country applies. So we can take this matter to Hungarian judge who can assess the case on the basis of your country law. Legal system that he does not know exactly. This is not a reasonable situation indeed, which is why our suggestion is to make necessary agreements about this in your general terms and conditions. Furthermore, you can also get agree that you can implead in your own country, should a conflict arise.