Bankruptcy Law in Bulgaria
Bankruptcy Law in BulgariaUpdated on Thursday 07th September 2017
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The Commercial Act is the main resource for the Bankruptcy Law in Bulgaria. There are two possible outcomes once the bankruptcy has commenced: the liquidation of the Bulgaria company or the rescue of the company, as per a pre-established reorganization plan.
The Bankruptcy Law in Bulgaria is largely focused on the liquidation phase. Investors who are interested in subsequent steps, such as the reorganization process after the liquidation phase or the judicial implications of this reorganization can talk to one of our lawyers in Bulgaria.
Bankruptcy procedure in Bulgaria
The Bulgarian Bankruptcy Law offers specific guidelines for the bankruptcy proceedings commenced for companies that can no longer pay their creditors.
The prerequisites for bankruptcy are the company’s inability to pay its creditors and, subsequently to institute insolvency. This is initiated under a court order if the company is insolvent or is in debt to a high extent (this situation may also be referred to as balance-sheet insolvency). Because the bankruptcy proceedings are initiated via court order, there will be some restrictions on the transactions that can be made after the proceedings are open.
The help of an attorney in Bulgaria can be useful during this step, not only for the purpose of ensuring that the legislation is being observed but also for a transparent communication with the creditors during the judicial process.
Other judicial provisions for bankruptcy in Bulgaria
The Bulgarian Commercial Act offers a possible salvation of a company that is in financial difficulty and is facing bankruptcy: judicial reorganization. However, this is only available for businesses that are insolvent and not to those that are at risk of becoming insolvent. One of our lawyers in Bulgaria can provide you with clarifications on this matter, according to the reorganization possibilities of the company.
Our team of lawyers in Bulgaria can help you with all matters related to bankruptcy, insolvency, and debt restructuring.
Contact our law firm in Bulgaria for more information on the steps required in bankruptcy cases and the legal provisions for companies in financial difficulty.