Szerző: Ügyvédi Iroda
Imagine one day you unexpectedly receive notification: your bank account has been frozen, or a significant amount has been deducted from your salary. What’s the reason? A debt you didn’t even know existed. Perhaps due to a move or change of registered office, you didn’t receive the letters, or proceedings were initiated over an old, disputed bill. You might even have been the victim of mistaken identity. Whatever the reason, the situation is frightening and frustrating.
This article provides detailed guidance on what to do if you find yourself in such a situation. You will learn about your rights, options, and how to defend yourself against a potentially unlawful claim. Whether you are already affected or want to prepare for a possible future problem, this guide will help you.
The Order for Payment Procedure in Brief
The order for payment procedure is a fast and cost-effective legal process created by the legislator to relieve the burden on courts and facilitate faster enforcement of claims. Its essence is that upon the creditor’s (entitled party’s) request, the notary public issues an order for payment against the debtor (obligated party) without examining the validity of the claim. This procedure is mandatory for all monetary claims under 3 million forints, but is also optional for higher amounts.
The effectiveness (and from the debtor’s perspective, the danger) of the procedure lies in the fact that if the debtor does not contest the claim, the order for payment becomes final and enforceable. However, to protect the debtor, they may raise an objection within 15 days of receipt, which automatically converts the procedure into litigation. It is important to know that the notary does not examine the validity of the claim, only formally checks the application. While this speeds up the procedure, it also carries the possibility of abuse, making it crucial for those involved to know their rights and obligations. During the procedure, service and the related rules have paramount importance, as these determine the time limit available for objection.
It’s worth noting that while this article primarily focuses on the Hungarian procedure, there is also the possibility of initiating a similar procedure within the European Union. We have detailed the rules and process of the EU order for payment procedure in another article, which you can access [by clicking here]. This option can be particularly useful for those who have cross-border claims within the EU.
The Role and Consequences of Objection
Objection is the debtor’s (obligated party’s) defense tool in the order for payment procedure. It can be submitted within 15 days of receiving the order for payment and essentially means contesting the claim, whether regarding its legal basis or amount. Filing an objection requires no detailed justification or special formal requirements, and it is fee-free.
The most important consequence of objection is that the procedure automatically converts to litigation, bringing the case before a court where both parties can present their positions in detail. If the obligated party does not raise an objection within the specified deadline, the order for payment becomes final and enforceable. This allows the entitled party (creditor) to directly initiate enforcement proceedings. Therefore, it is crucial for the obligated party to monitor their postal deliveries and respond in time if they wish to contest the claim.
The Problem of Presumption of Service
The presumption of service is one of the critical points of the order for payment procedure. Its essence is that in certain cases, the law considers the addressee to have received the delivery, regardless of actual receipt. This occurs when postal delivery fails twice and the item returns with a “not collected” notice, or when the addressee refuses to accept delivery.
The problem becomes apparent when the addressee actually does not learn about the order for payment, for example due to relocation or extended absence. In such cases, the order for payment may become final and enforceable without the obligated party knowing about it. The legislator created the institution of rebutting the presumption of service and extraordinary objection for this situation, which provide an opportunity for the addressee to subsequently contest the service or the claim. However, their application is subject to strict conditions and deadlines.
Extraordinary Objection: The Last Resort
Extraordinary objection is an exceptional legal remedy available when the order for payment has already become final and the obligated party missed the original objection deadline. This institution is truly the “last resort” for the obligated party to contest the claim and prevent enforcement.
Conditions for Extraordinary Objection
- The order for payment was served on the obligated party through presumption of service. This means that the obligated party did not actually receive the order for payment, but according to legal provisions, it is considered served.
- 15 days have not yet elapsed from the service of the enforceable document. This is the period calculated from the service of the enforcement order or the document with enforcement clause. If no such document has been served on the debtor, then the 15-day deadline must be calculated from the day when the debtor gained knowledge of the ongoing enforcement against them. For example, the day when their bank account was unexpectedly charged by the bailiff, or their employer transferred a reduced salary amount to them.
- The obligated party pays and proves the costs incurred during enforcement that were advanced by the entitled party. This is an important condition that ensures the entitled party does not suffer damage due to the costs of the already initiated enforcement procedure.
The Process of Extraordinary Objection:
- Filing the objection: The obligated party submits an objection to the notary who issued the order for payment. This must be done in writing and must include the obligated party’s identifying data and the case number of the order for payment.
- Payment and proof of costs: The obligated party is obliged to pay the costs incurred during enforcement that were advanced by the entitled party. They must prove this to the notary, usually with a certificate issued by the bailiff.
- Notary’s examination: The notary examines whether the conditions for extraordinary objection are met. They check the deadline, the existence of presumption of service, and the payment of costs. If all conditions are met, the notary accepts the extraordinary objection. Otherwise, they reject it.
- Termination of enforcement: If the notary accepts the extraordinary objection, they officially terminate the enforcement procedure.
- Conversion to litigation: With the acceptance of the extraordinary objection, the procedure automatically converts to litigation. The entitled party has 45 days to submit their statement of claim to the court.
It’s important to note that filing an extraordinary objection does not automatically mean the claim ceases to exist. This merely provides an opportunity for the obligated party to contest the claim in court. In the litigation, the entitled party must prove the validity of their claim, while the obligated party has the opportunity to present their defense.
The institution of extraordinary objection is therefore an important legal tool that provides protection for those who, through no fault of their own, could not respond to the order for payment in time. However, it is subject to strict conditions and is only available for a limited time, making it extremely important for the obligated party to act quickly and carefully if they learn of enforcement proceedings initiated against them.
Summary
Extraordinary objection is an exceptional legal protection tool that provides an opportunity for the obligated party to contest the claim even after the order for payment has become final and enforcement proceedings have begun. Although this is truly the “last resort,” with careful procedures and monitoring of official deliveries, it can be avoided that the situation deteriorates to this point.
The experienced professionals of our law firm are ready to assist you if you have questions regarding the order for payment procedure, objection, or extraordinary objection. Don’t let a missed deadline harm your legitimate interests – contact us with confidence!