Debtors Bulgaria

Debtors in Bulgaria and how to collect your money

February 11, 2019

You have debtors in Bulgaria?

You have done your best to complete your contract, but the opposite party does not correspond to followits obligations, respectively it owns you money?

Unfortunately, irrespective of how good contract you have signed from a legal point of view, it is always presumable for the other party to breach the agreement and stop fulfilling their own obligations. The clauses of the contract can’t provide enough securities to you against people or companies, who have eventually stopped performing their contract obligations.

Once it is confirmed that you can’t expect a proper execution of the contract by the opposite party, you have to think about how to recover your losses in the most effective way, or at least how to reduce them.

If you have debtors in Bulgaria, our law office can offer you the full scope of legal services, related to debt collection and litigation procedures. No matter whether you are a foreign individual or a company, or a local Bulgarian natural or juridical person, the steps for debt recovery are the same and based on the related provisions of the Bulgarian legislation.

If you are a creditor who needs to collect overdue payments from their debtors, you have two options for performing and completing the debt repayment:

1) You can choose to resolve the issue out of court by negotiating with your debtor, or

2) You can start a court procedure for collection of the due amounts.

Yosifova, Ivanov and Petrov Law Office is specialized in providing debt collection legal services, where you can request from us assistance during each of the above options.

No matter how hard it is to work with your debtors in Bulgaria and even if the communication has reached a stage, where it is no longer possible to have normal conversation and negotiations with them, we always advise our clients to seek as a first step out-of-court resolution of the problematic situation.

Sometimes, by making one last attempt for solving the issues (with assistance and representation by a lawyer to speak and negotiate with the other party) you can save yourself money and time.

In the option for out-of-court resolving  ofissues, we perform the following legal activities on behalf of our clients:

• Contacting your debtors in Bulgaria: This serves merely as a first and friendly reminder that a payment is overdue and you are looking towards receiving it in the near future.

• Sending an official notification (notarized invitation) to the address of your debtors in Bulgaria. If your debtor is a company, the notary invitation sent to the official address of registration of the company according to the entry in the local Bulgarian Commercial Registry.

*The invitation is sent through a local Bulgarian Notary and can be used by you in a lawsuit as strong evidencefor your attempts to solve the issue out of court, if you decide at a later stage to proceed with court actions and litigation claim.

• Holding negotiations and meetings with your debtors in Bulgaria in order to find the best possible solutions for our clients’ interests and rights. 

Our practice in the field of debt collection in the latest years shows that in 70% of the cases debtors refuse to pay voluntarily. It becomes a practice, debtors in Bulgaria to register their companies at addresses, which have nothing to do with the actual office address of the company, which makes it difficult to find them. If your Bulgarian debtor refuses to pay during the extrajudicial phase, our law office can provide you with the full list of services related to going to court.

As far as starting a court case against a debtor in Bulgaria is concerned, we always follow these steps:

• Examining the structure of the debt and advising the client about the possible outcome of court proceedings against the debtor – what the likelihood of success in your debt recovery matter is, what additional documents you should obtain at your end ???, what the possible expenses in terms of court and legal fees, etc. will be;

• Preparation of a bill of claim and all attachments;

• Submission of the claim and performing all court procedures before the competent Bulgarian court;

• Obtaining a writ of execution against your debtor and initiating enforcement proceedings for collecting the debt with the assistance of the local bailiff;

„Yosifova, Ivanov & Petrov Law firm“ is specialized in providing debt collection legal services before all courts in Bulgaria, including all arbitration courts (if you have included in your contract with the debtor an arbitration clause, choosing in advance the competent arbitration court that will resolve on any future issues related to the specific contract).

If you have already initiated a litigation lawsuit against your Bulgarian debtor in your country in compliance with the EU Regulation 1896 (2006), and if you have already obtained an „European payment order“ against your debtor, then our law office can provide you assistance on enforcing the European Payment Order in Bulgaria for effective collection of the debt.

If you have issues with debtors in Bulgaria and if you are wondering whether it is possible to collect your money and how to do it, please do not hesitate to contact us using the Contacts section of our website.

Comments

comments

COPYRIGHT LexSofia© / 2014

designed by DBUGG / image by Sebastien Wiertz