Plovdiv lawyer, company formation, contracts, property disputes

Collection of outstanding debts in Bulgaria, debt recovery procedure

Debt collection against individuals and legal entities is a process that can be formally divided into two stages from the point of view of the type of legal actions that can be taken towards collection of a debt.

The first stage is often underestimated by creditors. This is the time when the debtor is in default of payment of a debt or default in fulfilment of some other obligation (for example transfer of property) In this phase, it is not possible yet to proceed with legal means against the debtor's property to satisfy the creditor’s claim as the debtor still has in his favour the formal right to dispute the claim. It is important to note that, in case there is sufficient convincing evidence, it is possible to secure an interim order issued by court in favor of the creditor against debtor’s assets. This provides a limitation of the debtor's ability to perform actions endangering the creditor's right / preventing the debtor from ordering bank payments, transferring property etc./ . Therefore, it is advisable that at this stage the creditor contacts an experienced lawyer for a legal advice on the documents /or other type of evidence/ on which the claim is based. Payment of the debt at this stage may be also settled via mediation and signing accessory agreements while the interim order is in force.

The second stage of debt recovery occurs in the presence of an enforceable judicial act, after which the claim is no longer in dispute. This is the stage of enforced collection. On the basis of the enacted judicial act, a writ of execution is issued in favor of the creditor, according to which the creditor is entitled to take enforceable actions over debtor's property / including collecting sums from bank accounts, or public sale of debtor’s property.

Our services in debt collection include research of debtors financial status, consultation on the legal force of the documents, mediation, obtaining interim orders against debtors’ assets, representation in court proceeding and in enforced debt collection procedure