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