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Changes in the Payment Order Procedure

Changes in the Payment Order Procedure

Hungary
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The rules on the order for payment order procedure have changed significantly as of 1 October 2023. Many of the changes are related to the simplification and digitalisation of the procedure.

An order for payment procedure must be initiated for overdue monetary claims not exceeding HUF 3 million. Above this amount, an order for payment procedure may be chosen up to HUF 30 million, and above this amount the claim must be enforced in court.

For the initiation of the procedure, those obliged to use electronic means of communication (i.e. those who have "Cégkapu" access) could only initiate the signature of an order for payment by electronic means. However, as a result of the amendments, the order for payment will no longer be served on paper but electronically by sending it to the electronic storage site. These rules do not only apply to the order for payment, but to any document arising from the proceedings.

In particular, it is always worth paying attention when an order for payment is received in electronic storage because if the debtor does not object in due time, it will become enforceable and will have the same effect as the judgment.

Another change to the procedure is that from 1 October, the tax number will also be a mandatory element of the application for an order for payment. The rules for the European order for payment have also changed, with the paper-based procedure being replaced by an electronic application for those who have to communicate electronically.

By Bálint Éberhardt, Attorney at Law, KCG Partners Law Firm

Hungary Knowledge Partner

Nagy és Trócsányi was founded in 1991, turned into limited professional partnership (in Hungarian: ügyvédi iroda) in 1992, with the aim of offering sophisticated legal services. The firm continues to seek excellence in a comprehensive and modern practice, which spans international commercial and business law. 

The firm’s lawyers provide clients with advice and representation in an active, thoughtful and ethical manner, with a real understanding of clients‘ business needs and the markets in which they operate.

The firm is one of the largest home-grown independent law firms in Hungary. Currently Nagy és Trócsányi has 26 lawyers out of which there are 8 active partners. All partners are equity partners.

Nagy és Trócsányi is a legal entity and registered with the Budapest Bar Association. All lawyers of the Budapest office are either members of, or registered as clerks with, the Budapest Bar Association. Several of the firm’s lawyers are admitted attorneys or registered as legal consultants in New York.

The firm advises a broad range of clients, including numerous multinational corporations. 

Our activity focuses on the following practice areas: M&A, company law, litigation and dispute resolution, real estate law, banking and finance, project financing, insolvency and restructuring, venture capital investment, taxation, competition, utilities, energy, media and telecommunication.

Nagy és Trócsányi is the exclusive member firm in Hungary for Lex Mundi – the world’s leading network of independent law firms with in-depth experience in 100+countries worldwide.

The firm advises a broad range of clients, including numerous multinational corporations. Among our key clients are: OTP Bank, Sberbank, Erste Bank, Scania, KS ORKA, Mannvit, DAF Trucks, Booking.com, Museum of Fine Arts of Budapest, Hungarian Post Pte Ltd, Hiventures, Strabag, CPI Hungary, Givaudan, Marks & Spencer, CBA.

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