In most jurisdictions starting liquidation or bankruptcy
against a non-paying debtor might be the very last step after
having exhausted all other less threatening debt recovery methods.
Although the result of the liquidation is the total financial
destruction of debtor, this is a very popular debt recovery tool in
Hungary for those creditors who have solid claim and would like get
their money fast. We summarise details in this article.
Why should you start liquidation?
You should not start liquidation because you want to destruct
the debtor financially.
You should start liquidation because you have serious reasons to
assume that your debtor will do anything, including the payment of
your invoices, to save his business by escaping liquidation.
