Insolvency proceedings made simple and effective

– Advice to companies intending to invest or to companies wishing to acquire assets
– Advice and representation to creditors
– Advice and representation in liquidation and bankruptcy proceedings
– Advice and representation to creditors
– Establishment and registration of a system of security for debts
– Advice on the transfer of receivables
– Participation in the creditors’ committee
– Monitoring the activities of the person appointed to manage the assets
– Examination of the legality of the measures taken by the person appointed to administer the assets, contestation of such measures
– Examination of the proposal for the distribution of assets
– Assistance in reaching an arrangement with creditors
– Notification of a claim to the trustee
– Out-of-court proceedings to enforce a claim
o Checking company details in the commercial register
o Examination of invoices, sending of letters of demand for payment of debts
– Representation in court proceedings concerning the enforcement of a claim
– Representation in proceedings for an order for payment
– Representation in enforcement proceedings
– Representation in the conclusion of a settlement agreement
– Legal representation in related proceedings

In relation to debt recovery and enforcement of creditors’ rights, we are mandated to provide timely, cost-effective and efficient services through pre-litigation debt recovery. The procedure includes negotiations; preparation of debt acknowledgement statements, notices.

Our staff has up-to-date knowledge and years of experience in debt litigation, including representation before the authorities and the courts, monitoring the case through the various levels of court, including arbitration where appropriate, and providing representation and information during enforcement proceedings.

Our office also sends a final notice to the debtor. In the event of the notice being unsuccessful, we will initiate an order for payment procedure against the debtor. If the debtor does not admit the claim and objects to the payment order, we will consider whether it is worth pursuing the proceedings.

If the order for payment becomes final, enforcement proceedings will be opened.

If none of the above procedures is successful, liquidation proceedings may be initiated.

You have a claim or even a title against a Hungarian company. Katona and Partner Law Office are at your service. We are available abroad as well, by means of our German branch office in Nurnberg, even on the spot, if necessary.

Phases:

1. prevention – establishment of the agreement – securing claims
• Company register
• Address register
• Obtaining credit information
• Based on consultations with the debtor (the possible client) in the course of establishing the agreement
• Internet

2. consultancy regarding establishing the payment date agreements

3. payment conditions
Depending on the credit assessment of the contracting party, with payment upon issuing the invoice or upon delivery the following payment terms may be agreed upon:
• debt collection
• bank collection
• pre-performance
• advance or forfeit payment
• abatement to induce payment
• cash on delivery

4. securing debts by establishing agreement
Possible forms of securities:
a. retention of ownership
b. debt collection
c. security transfer
d. warranties
e. further securities
– mortgage
– security on movables

II. Demand notes – asserting of claims

Asserting of claims out of court by means of legal demand notes.
1. Asserting of claims in court
This road’s aim is achieving legal security, and obtaining a so called enforcement title, so that the valid claims may be asserted.

The in-court dunning procedures are often simpler, faster, cheaper, and suggested in the case of non-disputed claims.

Measure typical for Hungary Request for initiating a liquidation procedure in case of non-disputed obligation is due since at least 15 days.

III. Early monitoring and alarm system

The typical insolvency-signs at hand:
• changing the managing director
• changing bank contact data
• instead of the usual immediate payments, the long payment conditions are made use of
• ’Tactical’ warranty claims
• Dismissals at the debtor company
• Relocating the seat
• Especially: securities learned of