Debt recovery in the EU

The European payment order procedure might be a practical and cost-effective legal solution for the collection of a monetary claim against a debtor with domicile or registered seat in countries of the European Union (except Denmark).

The request for the issue of the European payment order has to be filed with any Hungarian notary public exclusively only on paper using the standardised form determined for that specific purpose.

The rate of the procedural fee is 3% of the capital amount (or in case of multiply claims the aggregate capital amount is applicable), but at least HUF 5,000 and at the most HUF 300,000.

Following a preliminary, merely formal examination of the request, the notary public delivers the European payment order to the debtor in accordance with the law of the country of delivery.

The preliminary determination of the exact address of the debtor is essential, as an unsuccessful delivery due to incomplete address results the rejection of the request.

If the debtor fails to send a statement of opposition against the European payment order to the notary public within 30 days the notary public declares this fact by issuing a standardised form and states that the undisputed pecuniary claim has become enforceable.

The statement of opposition may be filed on paper or in any other form of submission - including electronic form - adopted by the state and the court of origin.

As a consequence of the debtor’s statement of opposition, unless the claimant requested the termination of the proceeding for this case, the procedure will be automatically converted to an ordinary civil litigation before the competent court of the EU country determined by law or the preliminary agreement between the parties on the jurisdiction. The claimant has to specify the competent court in the request.

The applicable law - in the lack of the prior agreement of the parties on this matter – shall be determined on the basis of the relevant international conventions.

Based on the enforceable European payment order, the enforcement may be initiated in the country where the debtor's assets suitable for execution are located. For the implementation of the enforcement the regulations of the Member State shall be applied where the enforcement is initiated.

If the conduct of the measures determined above are necessary for you against your foreign debtor, please contact our experts at Ecovis Hungary Legal.