Seizure of assets is a manner in which a creditor can recover due amounts from a debtor. In some cases, the debtor is allowed to state which assets may be subject to the seizure process. When the process starts, the debtor is usually asked to provide a list of the assets to be seized and there is a requirement for delivering a truthful statement, with no omissions.
Individuals or companies dealing with debt collection in Hungary and are interested in the process of seizing assets can reach out to our agents who specialize in these measures. Below, we present the types of assets that can usually be subject to seizure as well as the effects of this process.
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Types of assets that can be seized
The following list includes the main types of assets that are subject to enforcement in Hungary:
- the debtor’s income: this can be made up of wages, pensions and other forms of income, although some limitations can apply.
- the funds: included here are the funds owned by the debtor which are managed by a financial institution (limitations do apply in case of natural persons).
- movable property: included here are valuable artwork, décor and furniture items but it cannot extend to essential living goods such as key clothing and furniture items.
- immovable property: real estate or land owned by the debtor, regardless of its type or current use.
- others: included in this category are any claims the debtor may have on third parties or business shares.
When the debtor is subject to enforcement, we will need to comply with the seizure of his assets and this means that he loses the fundamental right to dispose of the assets, included in the categories described above.
The effects of seizure
Following the seizure, the debtor loses his rights of possession.
The seizure of assets in Hungary is limited to those items whose value will cumulate to cover the payment of the debt as well as the usual costs for the enforcement, in some cases. The types of objects and rights that can be subject to seizure are only those that can be evaluated in monetary terms.
One of our debt collection lawyers in Hungary can help you with detailed information on the actual seizure of assets and the manner in which the debtor is expected to comply with the procedure.
Contact us if you are looking to enforce a decision that allows you to collect a due debt.