Csődeljárás (bankruptcy proceedings)

Bankruptcy proceedings are initiated by the debtor company itself, to agree a rescheduling of its debts with creditors under the protection of a payment moratorium. During the proceedings the company uses its name with the suffix „csődeljárás alatt” („cs.a.”).

If the settlement is reached and the court approves it, the company carries on; if not, the proceedings typically convert into liquidation. Contrary to the colloquial "went bankrupt", these proceedings exist precisely to avoid ceasing.