PAYMENT ORDER PROCEDURE
Fizetési meghagyás iránti eljárás (FMH)
What is a Payment Order Procedure?
The payment order procedure (fizetési meghagyás irántieljárás) is designed for the quick and efficient enforcement of smaller monetary claims. Claims up to 3 million HUF can be enforced through this
procedure. For claims between 3 and 30 million HUF, you can use either the payment order procedure or litigation. For amounts exceeding 30 million HUF, only court (litigious) proceedings are possible.
How does a Payment Order Procedure work?
The payment order procedure is generally a simpler andfaster solution compared to litigation. If the debtor, who is ordered to pay, does not dispute the claim, the claim can become enforceable within a few weeks, and the debt can be recovered. A final payment order is enforceable directly, without involving the court. The payment order procedure can be initiated by filling out a request form through a legal attorney (ügyvéd) or a public notary (közjegyző). It is often used, for example, to enforce claims such as unreturned loans, unpaid rent, wages, or other debts. Payment orders can only be used to enforce monetary claims. If someone has a non-monetary claim, they must turn to the court.
What can I claim?
With a payment order procedure, you can claim not only theprincipal debt but also accessory costs (such as interest) and procedural costs. For example, in the case of an unpaid loan, the principal amount is the main claim, but you can also claim contractual interest, default interest, attorney fees, and the costs of the payment order procedure from the debtor. However, it is important to note that only monetary claims may be included — even among the costs. For instance, claiming a physical object
or a company share will automatically result in the rejection of the request. A payment order procedure can be initiated for claims up to30 million HUF; for amounts above this, you must turn to the court.
When can a payment order procedure not be initiated?
A payment order procedure cannot be initiated in thefollowing cases:
- If the claim exceeds 30 million HUF (in such cases, you must go to court).
- If the debtor does not have a domestic residence, place of stay, registered office, or other suitable address for service in Hungary.
- If the claim has not yet become due.
- If the claim is based on a mortgage right and is to be enforced against the mortgagor.
- If the claim is non-monetary.
How soon can I get my claim?
If the notary handling the case finds everything in orderwith the application, the payment order will be issued within 3 working days for online applications. The debtor then has 15 days from receipt to either object tothe payment order or pay the amount. If they do not object, the payment order
becomes legally binding. At this point, the claimant can request the initiation of enforcement proceedings. If the debtor neither pays nor objects, the claimant cantypically receive their money within about one to one and a half months.
What happens if my claim is disputed?
If the debtor disputes the claim and files an objection within the deadline, the procedure turns into a lawsuit.The claimant will then receive a notice from the notary, which details what and wheremust be submitted to continue the procedure. If the claimant fails to comply with thisnotice by the deadline, the court will terminate the procedure.
How is a payment order enforced?
If the payment order has become final (at least in part), the entitled party may request its enforcement. Enforcement may only be requested from the notary public before whom the payment order became final. It is not necessary to request enforcement of the entire amount of the payment order; enforcement may be requested for an amount less than the amount that has become final. An order for enforcement is also subject to a fee, which the party requesting enforcement must pay upon filing the request. The fee is 1% of the amount of the claim to be enforced, calculated without surcharges (fee base), with a minimum of 12,000 forints and a maximum of 150,000 forints. If the party requesting enforcement simultaneously seeks an order for enforcement against jointly and severally liable debtors who are ordered to pay the same claim in the same payment order, the full fee need only be paid for one of them; for the additional jointly and severally liable debtors, the enforcement fee is only 12,000 – 12,000 HUF.
Please note:This is only the procedural fee for ordering enforcement. Additional procedural costs will be incurred by the enforcement officer, which the party requesting enforcement must pay in advance.
How much does it cost to initiate the procedure?
To submit a request to initiate a payment order procedure, aprocedural fee must be paid. This prcedural fee is 3% of the claim amount, with a minimum of 12,000 HUF and a maximum of 300,000 HUF. Additionally, the fee cannot be less than 1,600 HUF per party involved in the procedure. If the debtor disputes the claim and the procedure turnsinto a lawsuit, it is possible that additional court fees will apply. The amount of these fees will be specified in the notary’s decision. However, the procedural fee can be included in the paymentorder, meaning it can also be claimed from the debtor. If you are unsure about the amount of the procedural fee,you should ask the attorney/public notary handling the procedure for assistance.
The attorney’s fee for filing of the Payment Order application,is HUF 60,000 which includes an initial consultation to assess the legality and the amount of the claim. Legal representation before the court in a litigious procedure or the court bailiff during the enforcement procedure is invoiced on an hourly basis.