Bulgarian companies or individuals dealing with financial issues may find themselves incapable to pay their debts. Business owners who deal with debt collection in Bulgaria are advised to seek specialized help in order to perform all the necessary legal procedures for recovering their debts.
Our Bulgarian lawyers can represent you or your company if you need to take legal actions for existing debts.
The National Revenue Agency is the Bulgarian authority responsible for debt collection in this country. The first step in debt collection, as set forth in the procedures issued by the relevant authorities, is to convince the debtors to pay their debts by withholding certain benefits from them if they do not pay their dues (for example, withholding the necessary documents for obtaining bank loans).
Legal steps for debt collection in Bulgaria
The debt collection process in Bulgaria contains a few steps, starting with simple procedures and ending, if necessary, with legal procedures. Regardless of the manner in which the debtor is approached, the persons or companies conducting the debt collection process need to have complete access to all the necessary documentation related to the debtor:
- the debtor’s identification details.
The first step is to contact the debtor and inform him of the payments that need to be made. If the debtor does not pay voluntarily, the next step is to send an official letter. The debtor has approximately ten days to respond to the request for payment.
If the debtor agrees to pay, the parties will then agree upon a payment scheme, establish the instalments and a certain period of time during which the debt must be paid in full. These pre-legal procedures take place in order to avoid the more complicated debt recovery through legal actions.
If the debtor does not respond to the pre-legal debt recovery procedures, the final option is to take legal actions. This process usually has two phases: a non-litigation phase and a litigation phase, when a petition if filed to the authorised Bulgarian court.