Restructuring and insolvency—Hungary—Q&A guide

The following Restructuring & Insolvency practice note provides comprehensive and up to date legal information covering:

  • Restructuring and insolvency—Hungary—Q&A guide
  • 1. What main legislation is applicable to insolvencies and reorganisations?
  • 2. What entities are excluded from customary insolvency or reorganisation proceedings and what legislation applies to them? What assets are excluded or exempt from claims of creditors?
  • 3. What procedures are followed in the insolvency of a government-owned enterprise? What remedies do creditors of insolvent public enterprises have?
  • 4. Has your country enacted legislation to deal with the financial difficulties of institutions that are considered ‘too big to fail’?
  • 5. What courts are involved? What are the rights of appeal from court orders? Does an appellant have an automatic right of appeal or must it obtain permission? Is there a requirement to post security to proceed with an appeal?
  • 6. What are the requirements for a debtor commencing a voluntary liquidation case and what are the effects?
  • 7. What are the requirements for a debtor commencing a voluntary reorganisation and what are the effects?
  • 8. How are creditors classified for purposes of a reorganisation plan and how is the plan approved? Can a reorganisation plan release non-debtor parties from liability and, if so, in what circumstances?
  • 9. What are the requirements for creditors placing a debtor into involuntary liquidation and what are the effects? Once the proceeding is opened, are there material differences to proceedings opened voluntarily?
  • More...

Restructuring and insolvency—Hungary—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to restructuring and insolvency in Hungary published as part of the Lexology Getting the Deal Through series by Law Business Research (published: June 2021).

Authors: Nagy és Trócsányi—Zoltán Varga; Zóra Lehoczki

1. What main legislation is applicable to insolvencies and reorganisations?

The main provisions concerning the insolvency of an economic operator are regulated in:

  1. Act XLIX of 1991 on Bankruptcy Proceedings and Liquidation Proceedings (the Bankruptcy Act);

  2. Act CXXXII of 1997 on Hungarian Branch Offices and Commercial Representative Offices of Foreign-Registered Companies;

  3. Act LXXXVIII of 2014 on Insurance Business Activity;

  4. Act I of 2012 on the Labour Code;

  5. Act V of 2013 on the Civil Code;

  6. Act CXXX of 2016 on the Code of Civil Procedure;

  7. Act XXXVII of 2014 on the Further Development of the Institutional System Promoting the Security of Certain Actors of the Financial Intermediary System;

  8. Act V of 2006 on Public Company Information, Company Registration and Winding-up Proceedings (the Companies Act);

  9. Act CCXXXVII of 2013 on Credit Institutions and Financial Enterprises;

  10. Act CXXXIX of 2013 on the National Bank of Hungary;

  11. 106/1995 (IX.8) Government Decree on the Requirements of Environmental and Nature Protection during Liquidation and Bankruptcy Proceedings;

  12. Act LVIII of 2020 on Transitional Arrangements Connected to the Cessation of the State of Emergency and on Epidemiological Preparedness; and

  13. Act XXVIII of

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