Insolvency law in Bulgaria

Bankruptcy and insolvency in Bulgaria is governed by the provisions of Part IV of the Bulgarian Commerce Act that were initially introduced in 1994.

Some believe that the general Bulgarian insolvency law is in “high compliance” with international standards (EBRD 2009 Insolvency Law Assessment). According to others “Bulgaria’s corporate insolvency law has not provided efficient mechanism for resolution of companies’ financial difficulties in a way that does not unduly prejudice creditor rights” (World Bank 2003 Financial Sector Assessment Program).

Any bankruptcy ignites a myriad of conflicting and interdependent interests with one focal point – satisfaction from the debtor’s assets. This is why, as a rule, bankruptcy/insolvency rules are intrinsically complicated and are aimed at the hardly achievable objective of the universal creditors’ satisfaction. In addition to the natural legal intricacies of bankruptcy/insolvency rules, it appears that Bulgaria has conceived its provisions in certain respects cumbersome and inefficient. To make things worse, the courts are not sufficiently predictable and in many instances the administrators (trustees) lack knowledge and credibility.

Delchev & Partners’ bankruptcy lawyers possess thorough knowledge of every aspect of bankruptcy law coupled with the perspective achieved from representing virtually every type of client in bankruptcy/insolvency procedures and litigation. Delchev & Partners lawyers have acted for creditors in bankruptcy/insolvency procedures as well as have defended insolvent companies (and companies that are attacked in court as purportedly insolvent). Delchev & Partners also employs lawyers who are capable of becoming administrators (trustees) of bankrupt/insolvent companies.