Revolut Bank Accounts Can Now Also Be Subject to Enforcement

Revolut Bank Accounts Can Now Also Be Subject to Enforcement

“We'll definitely transfer the money next week.” “We’re experiencing temporary liquidity issues.” “Please bear with us a little longer.” For most businesses, these phrases sound all too familiar. After the first missed payment deadline comes another promise, then another, while the outstanding debt continues to grow. Meanwhile, the creditor may find it increasingly difficult to meet its own financial obligations. Outstanding receivables are not merely an inconvenience, they can create serious cash flow problems.

 Many creditors feel they have no choice but to wait. In reality, however, the law provides several effective legal tools for enforcing monetary claims. Moreover, there has been an important development in enforcement proceedings: Revolut bank accounts are no longer beyond the reach of enforcement measures.

 So, what options are available to creditors seeking to recover unpaid debts?

1. Payment Demand

If no formal payment demand has yet been sent, this is usually the appropriate first step. A properly drafted payment demand clearly specifies the amount owed, grants the debtor an additional deadline for payment, and informs them of the legal consequences of continued non-payment. In many cases, this alone is sufficient to secure payment while preserving the business relationship. However, if the debtor still fails to pay after the additional deadline expires, further legal action becomes necessary.

2. Lawyer’s Demand Letter

It is not uncommon for debtors to take the same message much more seriously when it comes from a lawyer. A lawyer's demand letter not only carries greater weight but may also have significant legal importance. Before insolvency (liquidation) proceedings may be initiated in Hungary, the law requires that the debtor receive a payment demand containing specific statutory elements. Failure to comply with these formal requirements may result in the court rejecting the insolvency petition. Therefore, in cases involving substantial or long-overdue claims, it is advisable to ensure that this step is handled with particular care.

3. Order for Payment Procedure

If payment demands prove unsuccessful, the next step is generally an order for payment procedure. This is a fast and cost-effective procedure conducted by a Hungarian civil law notary, often resulting in an enforceable title without the need for court litigation.

The procedure is available where the claim does not exceed HUF 30 million and the debtor has a registered residence, registered office, or service agent in Hungary.

Where the debtor is domiciled or established in another Member State of the European Union, creditors may also initiate a European Order for Payment procedure. This uniform EU mechanism facilitates the enforcement of uncontested cross-border monetary claims.

Few people are aware that, for monetary claims below HUF 3 million, court proceedings cannot generally be initiated directly in Hungary. Instead, the order for payment procedure must first be exhausted.

4. Court Proceedings

If the debtor files an objection to the order for payment, the matter automatically proceeds to litigation. Likewise, claims exceeding HUF 30 million may only be enforced through court proceedings, as the order for payment procedure is not available in such cases.

The court will determine whether the claim is well-founded based on the available evidence. Contracts, invoices, certificates of performance, correspondence, and other documentary evidence become particularly important at this stage.

Court proceedings can involve considerable costs, including court fees, legal fees, and other litigation expenses. In addition, lawsuits may take years to conclude. It is worth noting, however, that the parties may reach a settlement at any stage of the proceedings. Once approved by the court, such a settlement has the same legal effect as a final judgment.

5. Enforcement Proceedings

If an order for payment becomes final and enforceable, or the court issues a final judgment, and the debtor still fails to comply voluntarily, enforcement proceedings may be commenced.

An enforcement officer may take several measures, including issuing a bank account garnishment order, attaching wages, seizing movable assets, or initiating enforcement against real estate.

For years, many debtors believed that maintaining funds in a Revolut account would keep them beyond the reach of enforcement. That is no longer the case.

The Hungarian branch of Revolut Bank UAB has now been integrated into the system used by Hungarian enforcement officers. As a result, enforcement officers are able to contact Revolut directly and, where appropriate, garnish funds held in Revolut accounts. Reports have already emerged of the first enforcement proceedings involving such accounts.

6. Insolvency (Liquidation) Proceedings

Where the debtor is a company that has become insolvent, creditors may also initiate insolvency (liquidation) proceedings.

Unlike enforcement proceedings, liquidation is not primarily a debt collection mechanism. Its principal purpose is the dissolution of an insolvent company without legal succession. Nevertheless, in practice, merely threatening to commence liquidation proceedings is often enough to persuade a debtor to settle the outstanding debt.

It should be noted, however, that the statutory requirements for initiating liquidation proceedings are strict. Among other things, the creditor must first send a payment demand that complies with the statutory content requirements mentioned above. Careful compliance with these legal formalities is therefore essential.

+1. Settlement and Instalment Agreements

Not every dispute needs to end in enforcement or litigation. Settlement remains an option at every stage of the debt recovery process, not merely as a last resort.

Where the debtor is cooperative and genuinely intends to pay, a carefully drafted settlement agreement or instalment payment arrangement may provide a mutually beneficial solution. Such agreements are often strengthened by appropriate legal safeguards, such as executing them in the form of a notarial deed.

Conclusion

In debt recovery, timing is one of the most critical factors. The longer a creditor waits, the greater the risk that the debt will ultimately become difficult – or even impossible – to recover. For this reason, it is important to select the appropriate legal remedy at an early stage, whether that involves sending a payment demand, initiating an order for payment procedure, commencing enforcement proceedings, or, where appropriate, filing for insolvency. The fact that Revolut accounts have become subject to enforcement in Hungary represents another important step towards making the lawful enforcement of creditors' claims more effective.