We can help if you are experiencing difficulties with an invoice issued to your business partner. We can help if your invoice or part of it has not been paid, is being disputed, or your partner has disappeared and is not responding.
What should we do if someone owes us or our company money?
In such cases, we verify the details of the Hungarian partner company and send an attorney’s demand for payment. If the partner still fails to pay, depending on the specifics of the case, we either initiate liquidation proceedings, request the court to issue a payment order, or initiate legal proceedings.
There may be several reasons for a business partner to fail to pay an invoice. Most often, they are experiencing financial difficulties and are simply trying to buy time. In other cases, they disagree with the invoice and dispute the legitimacy of the debt, citing quality or other reasons. Therefore, before resorting to more costly measures, it is worth sending them a written reminder. If this does not work, it is advisable to consult a solicitor. Often, a solicitor’s payment reminder alone will solve the problem, as the other party will see what to expect if they continue to default on payment. If the non-paying partner does not agree with the demand, they will usually also consult a solicitor, and we can learn their legal position on the matter from the written response of the solicitor they have appointed. This greatly helps in making decisions about the case and in reaching a possible agreement.
If the partner does not respond to the request or no agreement can be reached, we may initiate payment order or litigation proceedings against them. Claims of less than three million forints can only be enforced through payment order proceedings.
Payment order
The order for payment procedure is a simplified debt collection procedure. It serves to compel the debtor to pay quickly and easily, instead of lengthy and expensive court proceedings.
Legal proceedings
The litigation procedure is no longer a simplified, formal procedure like a payment order, but provides the parties with an opportunity to fully explain and prove their positions.
Liquidation proceedings
In the event that the debtor is a business entity (e.g. a limited liability company), it is also possible to initiate liquidation proceedings against it.