Restrictions on enforcement proceedings in Hungary

Apr 22, 2020

The Government created Decree no. 57/2020. (III. 23.) in which the Goverment adopted regulations in enforcement procedures in order to reduce the spread of the COVID-19 virus and to mitigate the negative consequences of the virus.

According to the Government Decree, the bailiff must notify the debtor of the possibility of instalment payment at the beginning of the proceedings, and if the debtor requests it, the bailiff is obliged to establish the instalment even without the prior consent of the creditor.

It is also important that until the end of the current state of extreme danger, auctions, on-site procedures, or real estate evacuations cannot be carried out. The bailiff may only take action to deregister a seized vehicle or to auction the debtor’s residential property 15 days after the end of the state of extrame danger.

As the fulfillment of certain obligations may not be executed as a result of the extreme danger, a person who is unable to fulfill his or her obligation due to epidemiological regulations during the extreme danger shall not be penalized in the enforcement proceedings. In addition, if the debtor is placed in a life situation which is a justifiable circumstance due to the epidemic situation, enforcement proceedings may be suspended at his or her request.

The full text of the Government Decree is available (in Hungarian) via the following link: https://net.jogtar.hu/jogszabaly?docid=A2000057.KOR&dbnum=1

Please note that the above is for general information only, legal advice on individual cases can only be given in the context of an individual consultation, taking into account all the circumstances of the case.