OUT-OF-COURT SETTLEMENT PROCEDURES

 

The Bulgarian litigation procedure helps the creditor in collecting the debt from the debtor who fails in non-performance. Usually it starts with lodging a litigation claim which the court serves to the defendant, but in our practice, before reaching court, we often perform attempts to reach voluntary out-of-court settlement of the dispute between our client and the opposite party.

The out-of-court settlement procedure gives the arguing parties a cost-effective path to resolve their disputes avoiding litigation in court and usually refers to performance of negotiations between the parties for finding the best solution for their interests and settling the case.

In particular situations, according to the local Laws, there is a specific out-of-court settlement attempt that we perform prior litigation. It involves serving a “letter before action” to the debtor, with embedded request to perform concrete obligation (usually to pay a debt, to answer to late payment demand, or to perform contractual obligation) and a final warning that if he/she still fail to perform, then the legal dispute will be officially brought to court.

In our own practice, the most used letters before action are the debt collection letters. But we use to prepare and serve via the notary public also the other types of letters before action in Bulgaria – letter before claim, demand letter, late payment demand, court action informative letter, etc.

All of these types of letters before claim in Bulgaria serve couple important roles: Firstly, it notifies the other party that there is a fault, or non-performance, or tort done on their side towards the sender. Secondly, it informs the debtor that fulfilling their obligation is expected. Third, it warns the debtor that if they continue their non-performance, or fail to answer/comply with/ the request in the letter, a litigation proceeding may be initiated (where if the debtor loses the lawsuit, his situation will gets worse, because he/she will have to compensate the claimant also for the expenses made in relation to the lawsuit.

This is why preparation of letter before action in Bulgaria should be done by a litigation specialist lawyer. We are capable to do it because we know that well prepared letter of demand could take disciplining effect on the debtor – i.e. to reach the pursued goals and to avoid litigation proceedings and more costs.

In addition, any statements, made by the sender within the letter of demand, could later be used against them by the recipient, during prospective litigation lawsuit in court.

So if you need to appoint a Bulgarian solicitor in relation to letter before claim, letter of demand or debt collection letter /by notary letter of invitation or telepost with certified content/, do not hesitate to contact us – http://lexsofia.com/contacts/

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