As at 8 February 2018

By Zoltan Fabok
Counsel at DLA PIPER, Budapest

Proceedings Elements of the Directive already included into the national legislation
Main Features:
2 options
- conclusion of a composition agreement by the majority of the creditor's classes and approval by the court;
- opening insolvent liquidation proceedings ('felszámolási eljárás') if no composition agreement has been concluded or approved by the court.
- Art 5. Management remains partially in control (DIP) but supervised by the administrator ('vagyonfelügyelő').
- Art 6. Automatic stay applies (120 days but it can be extended up to 653 days).
- Art 7. (1)+(2) no duty to file and prevention of liquidation; (4)+(5) some protection; (6) basically compliant.
Art 8. (1) basically compliant; (2)+(3) no model plans.
Art 9. Basically compliant.
Art 10. (1) Confirmation by the court is needed in all cases; (2)+(3)+(4) partially compliant.
Art 14. Every creditors (except some protected groups) are affected by the confirmed agreement.
Art 15. (1)+(2)+(3) compliant.
Art 18. Mostly compliant.
'természetes személyek adósságrendezési eljárása' Some elements of the Directive are included but the socially motivated law, basically, is aimed at protecting natural persons (including entrepreneurs).