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12 Things About Ordering Payment – Legisly Podcast # 1

The order for payment procedure

If you’re happy with the credit and want your money to finally be with you, you might want to consider initiating a payment order process. In this video, we explain what we are talking about the order for payment and the procedure required to issue it.

You can read the text of our video below, and if you make a claim, our cooperating attorney partners will help you with that. You will find everything on this link !

Do they owe you? Enforce your claim quickly and easily with Legisly through the payment order process!

Throughout your life, you may often owe it to you or even you owe it to someone else. Whether the debt arises from a lease, loan agreement, or other legal relationship, recourse to the order for payment procedure is often the best solution under the law to enforce a claim quickly.

1. What is an order for payment procedure?

An order for payment is a non-litigious procedure within the jurisdiction of the notary, which ensures the quick and easy enforcement of certain claims. So if you have a claim against someone, you have the option of having the notary conditionally oblige the debtor to pay it at your request. It is conditional because if the debtor objects within the time limit, the order for payment procedure is terminated, it becomes a lawsuit, and further enforcement can take place in accordance with the rules of civil law. If, on the other hand, the objection is not challenged within the time limit, the order for payment becomes final and is enforceable to the same effect as the final judgment.

2. When is it obligatory to enforce a claim by means of an order for payment?

As a general rule, we are obliged to enforce our claim up to HUF 3 million in an order for payment procedure, so we cannot go to court immediately. In the case of a claim or debt between HUF 3 million and HUF 30 million, we can choose to initiate a lawsuit or an order for payment, but we are already obliged to initiate a lawsuit over HUF 30 million.

3. Do I have to prove the basis and legitimacy of the claim?

No, it’s not even possible. Evidence cannot be attached to an application for an order for payment, it can only be referred to. Evidence will only play a role if the debtor disputes the claim, but we will discuss this in detail soon.

4. When is it worth living with a payment order?

If I know the debt exists and I can substantiate it, so I have evidence, I can count on a good basis to get the claim quickly. In addition, if the debt is indeed present and legitimate, the debtor should not challenge the order for payment, as there is a good chance that he will have to pay more costs later.

5. What are the conditions for access to the procedure?

As the purpose of the procedure is to enable us to enforce claims quickly and easily, the law sets certain requirements for the speedy enforcement of claims.

Let’s take a look at:

  1. The claim must be for the payment of money and may not exceed the value limit of HUF 30 million – as we have already said.
  2. The claim must be overdue, so it is due
  3. Both the creditor and the debtor must have a domestic delivery address
  4. If the claim is in connection with an employment relationship or a similar legal relationship, the law precludes the use of the order for payment route in certain cases.
  5. The claim may not arise from a lien.

6. How do I submit an application for an order for payment?

As a general rule, electronically. With the help of Legisly’s platform, a legal representative will help you enforce your claim so you don’t have to worry about the details, the process is started electronically by a solicitor so it goes much faster. Otherwise, for those who are not required to apply electronically under the e-Administration Act, they can submit their application on paper or orally. However, this requires a personal presence and is a much more cumbersome solution, plus it is mandatory to use a form and the procedural deadlines are longer, so you will get your money slower.

7. Do more people owe me, is it just as easy to enforce a claim?

Such an application may be submitted by more than one person or against several persons. The details of this will be explained in detail at the request of a lawyer contacted through the Legisly platform.

8. Which notary is acting in the case?

As we have previously clarified, it is not the court but the notary who acts in this procedure. But which one? In the case of an electronic procedure, the system of the Hungarian National Chamber of Notaries automatically signs the case to a notary. In the case of a paper-based or oral application, the notary public to whom the holder has entered may, as a general rule, act.

9. What are the costs of an application for a procedure and who will pay them?

As with all procedures, there are costs involved. In our case, the procedural fee is 3% of the claim, but not less than HUF 8,000 and not more than HUF 300,000. The good news is that if our debt is thorough, this cost, as well as the cost of a legal representative, will be borne by the party in charge.

10. What happens if the debtor disputes the claim?

The debtor is, of course, entitled to contest the claim, or part of it. Otherwise, the party concerned shall have 15 days from the receipt of the order for payment. This is called a contradiction. In the event that you do not contest, the order for payment will be final and enforcement may be initiated. The obligated party may otherwise make a request for installment payment and deferment of payment, which may be authorized by the notary. Furthermore, it is also possible for the debtor to admit part of the claim and to challenge it only in part with a contradiction. In that case, the recognized part will become enforceable and the dispute will be prosecuted.

payment order
Order for payment and order for payment procedure

11. What is the contradiction?

An objection is a statement by the debtor contesting the claim. The debtor does not have to prove the truth in the contradiction, but a non-thorough contradiction may result in additional costs on the debtor’s side. Based on a conflict with the law, the order for payment procedure will be terminated and will be prosecuted. In this case, the notary will call on the claimant to bring an action before the competent court and this part of the procedure will end here.

12. What happens if the procedure goes to trial?

In the event of litigation, the claimant must provide evidence of the existence and extent of his claim. Of course, attorneys through the Legisly platform can provide more information on this.

You can find the law on the order for payment HERE .

enforcement of an uncontested claim
Uncontested claims can simply be enforced

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