In many cases, our contractual partner may not fulfil their obligations under the agreement. In the event that negotiations do not lead to a solution, there are number of possibilities to enforce the claim within the legal framework.
In some cases, even a properly worded attorney’s notice may be enough to enforce performance from the debtor.
If the debtor fails to comply within the deadline specified in the notice, it is worth considering other official legal forms of enforcement.
Order for payment procedure is a fast and efficient way to enforce pecuniary claims.
In certain cases, regulated by law, the choice of order for payment procedure as a means of enforcing a claim is mandatory instead of litigation before a court. In the following cases, an order for payment procedure shall be initiated instead of litigation:
- the amount of the claim does not exceed HUF 3 million;
- it is aimed at payment of money and has expired (the debtor did not pay it in part or in full within the payment deadline);
- it is not one of the cases excluded by law.
Order for payment is a non-litigious procedure under the competency of notary publics with short deadlines. The proceeding transforms into litigation and will continue before the court if the debtor objects to a duly received order for payment within the deadline.
In the absence of an objection submitted by the debtor within the deadline, the order for payment shall become final and enforcement proceedings may be initiated against the claim specified therein.
European order for payment proceedings follows the same principle, with the exception that it is used to enforce cross-border claims within the European Union.
Naturally, it is also possible to enforce claims by instituting litigation or winding-up proceedings.
If the court orders the debtor to pay the claim in the final decision, but they do not comply with it within the deadline specified in the decision, enforcement proceedings may be initiated.
Of course, in all cases, it is desirable to reach an agreement between the parties during the enforcement of claims, however in the absence of such an agreement and with knowledge of the details of the claim, I am able to suggest to you the most effective method of claim enforcement.
How can I assist you during claim enforcement?
- drafting of an official attorney’s notice;
- initiation of domestic and European order for payment proceedings;
- initiation of winding-up proceedings;
- drafting and reviewing of pre-litigation, litigation and out-of-court settlements;
- enforcement of a claim in litigation non-litigious proceedings;
- initiation of enforcement proceedings.