Sending a lawyer’s letter of demand in Hungary: when it helps, what to include, what comes next

The invoice is overdue, your client is not paying, and reminders have not worked. The usual next step is a letter of demand from a lawyer. This article explains what such a letter achieves in Hungary, what it does not do, what it should contain, and what happens if the debtor still does not pay.

Do you have to send one?

No. Hungarian law does not require a letter of demand before applying for an order for payment. In practice, however, it is usually worth starting with one, because it has several useful legal effects.

What does a letter of demand achieve?

It sets the payment deadline. If your contract does not say when payment is due, the debtor must pay within thirty days of receiving your demand or invoice [Act V of 2013 on the Civil Code (“Ptk.”), section 6:130(1)]. The letter removes any doubt about when the debt became due.

It spells out the default interest. Interest runs from the day payment is late. The standard rate is the central bank base rate in force on the first day of the relevant half-year [Ptk. section 6:48(1)]; between businesses, it is the base rate plus eight percentage points [Ptk. section 6:155(1)]. A good letter states both the rate and the date from which interest is charged.

It makes the EUR 40 recovery fee due. Where one business pays another late, the creditor is also entitled to the forint equivalent of EUR 40. The claim must be made within one year of the delay, and – if the debtor does not pay voluntarily – it falls due on the date of the first demand for payment [Act IX of 2016 on the Flat-Rate Recovery Fee, section 3(1)–(2)]. A contract term excluding the fee or setting it below EUR 40 is void [section 3(5)].

It helps you on legal costs. If a debtor admits the claim in court without any defence and had given no reason for the lawsuit, the creditor has to pay the debtor’s legal costs [Act CXXX of 2016 on the Code of Civil Procedure, section 86(1)]. An unanswered letter of demand shows that the debtor had the chance to pay before you went to court.

What it does not do: stop the limitation clock

Claims generally become time-barred after five years [Ptk. section 6:22(1)]. The limitation period is interrupted only by the events listed in the Civil Code: the debtor acknowledging the debt, an agreed change to the obligation or a settlement, court proceedings ending in a final decision on the merits, or filing the claim in bankruptcy proceedings [Ptk. section 6:25(1)]. A simple letter of demand is not one of them.

So if the deadline is approaching, do not rely on a letter – start an order for payment or court proceedings in time. It is different if the debtor replies by acknowledging the debt in writing or agrees to a payment plan: both interrupt the limitation period [Ptk. section 6:25(1)(a)–(b)].

What should the letter include?

• the full name and address of the creditor and the debtor;
• the basis of the claim: the contract or order, and the invoice number, date and due date;
• a breakdown of the amount: principal, default interest (rate and start date) and, between businesses, the recovery fee;
• the payment deadline and how to pay, including the bank account number;
• a factual note that if payment is not made, the creditor will apply for an order for payment or go to court, and the costs may be charged to the debtor;
• a copy of the invoice or contract.

Send the letter in a way that lets you prove delivery, such as registered mail with proof of receipt or an electronic channel where delivery can be shown. Calculate the amount carefully: demanding too much, or something you are not entitled to, can count against you later.

Why a lawyer’s letter?

A lawyer’s letter of demand is sent by a lawyer on the creditor’s behalf. Before sending it, I check the basis, amount and limitation period of the claim, and whether you have the documents you would need for an order for payment or a lawsuit. It also signals to the debtor that you are prepared to take legal action.

What happens next?

• The debtor pays: the matter is closed.
• The debtor asks to pay in instalments: put the agreement in writing, with an acknowledgement of the debt and a clear schedule. Once the debt is acknowledged, it is up to the debtor to prove that it did not exist or was lower [Ptk. section 6:26].
• The debtor disputes the claim: the arguments need to be assessed on their merits before deciding on the next step.
• The debtor does not respond: up to HUF 3 million the next step is, as a rule, an order for payment; above HUF 30 million, a lawsuit; in between, the choice is yours. See the article The Hungarian order for payment, step by step for details.

How I can help

I prepare and send the letter of demand and, if it does not lead to payment, apply for an order for payment, represent you in court and apply for enforcement. Read more about this practice area on the Debt recovery page, and about expected costs in the fee calculator.

This article provides general information and does not constitute legal advice. Legal position as at October 2026. This English version is provided for information; in the event of any discrepancy, the Hungarian version prevails.