It is a recurring practical issue in insolvency proceedings how the creditor may prove that an invoice was duly communicated to the debtor. In a recent decision, the Hungarian court examined if screenshots taken from an electronic invoicing system suffice to prove delivery and awareness of an invoice, in the absence of traditional postal proof. In our article we analyse the decision.

1. Facts of the case

If a company faces a situation threatening insolvency, the satisfaction of creditors' claims is at risk. In such cases, the company's managers must prioritize the interests of the creditors, and for failure to do so, they are subject to civil and/or criminal liability, which we describe in this article.

Overview

In Hungary, many creditors choose liquidation procedure instead of classic court procedures (i.e. order for payment and civil litigation) in order to recover their claims. A recent decision has once again demonstrated that liquidation proceedings can in many cases be a simpler solution for creditors to recover their claims. In this article following an introduction to the relevant rules of the liquidation procedure we will examine this decision.

1. Liquidation procedure in nutshell