Electronic Bankruptcy and Liquidation proceedings
By Dr. Attila Kovács, Kovács Réti Szegheõ Attorneys at Law
AAs of 1 July 2015 Act XLIX of 1991 on Bankruptcy and Liquidation proceedings (Bankruptcy Act) in coordination with the rules of the Hungarian Act III of 1952 on the Code of Civil Procedure (CPC) provides for comprehensive changes in civil proceedings, including bankruptcy and liquidation procedures.
While electronic communication with the court of registration for companies was already institutionalised in 2008, and while the orders for payment procedures a have been handled electronically since 2009, the communication by electronic means in bankruptcy and liquidation proceedings as of 1 July 2015 will be the next step towards paperless legal procedures.
With special regard to bankruptcy proceedings, already effective as of 1 January 2015, communications between the court and the parties shall be maintained electronically in accordance with the above mentioned rules of the CPC. It has to be noted that in respect to natural persons, petitions and other official documents may be submitted, and delivered, on paper as well.
Concerning liquidation procedures, regardless of whether the company itself asks for its winding up or the procedure is initiated by a third person (creditor), the communication with the respective court by electronic means shall be mandatory as of 1 July 2015, at least for economic organisations and those parties represented by a legal counsel.
With this development, Hungary’s information society is set to become even bigger.
Dr. Attila KovácsKovács Réti Szegheõ Attorneys at Law, Budapest, Hungary
T: +361 275 27 85
Kovács Réti Szegheő Attorneys at Law, established in 1992, is one of the oldest independent Hungarian law firms. It is active in Hungarian, English, German and Italian and operates over a wide spectrum within the fields of civil and business law, for both domestic and international clients. Kovács Réti Szegheő Attorneys at Law has gained immersive experience in the fields of corporate law, mergers and acquisitions, construction law, real estate law, securities law, bankruptcy law, labour and employment, competition law and intellectual property law.
Attorney-at-law and senior lawyer, Dr. Attila Kovács graduated in 1996. After gaining professional experience in Hungarian and German law offices, he became a member of Kovács Réti Szegheő, and has been a Managing Partner since 2004. He speaks Hungarian, English and German and his primary areas of practice are bankruptcy law, real estate law and corporate law.
Published: September 2015 l Photo: Colourbox.de - Péter Mocsonoky