Hungary Wants To Become Creditor-Friendly

The Hungarian Ministry of Justice acknowledged the recent criticism aimed at the difficulties regarding the enforcement of monetary claims in the country and plans to amend the relevant laws to make creditors' lives easier. As currently envisaged, these amendments will in the near future change such fundamental laws as the Civil Code, the act on court enforcement, and the act on insolvency and bankruptcy proceedings. This article provides a summary of the envisaged amendments.

Civil Code

The current provision of the Civil Code stipulates that the security interest must be terminated in case of a transfer of the loan agreement, even if the security provider has given their consent. The amended law would foresee that the security interest does not terminate under any circumstances and the consent of the security provider will only be required if the debtor's position changes. It will be possible to implement a change in the creditor's position without the involvement