Collection of debts and collateral of future claims

The debt is a right of one person, called a creditor, to demand from another person, called a debtor, a certain amount of money, required by virtue of a contract concluded between them /commercial, bond, invoices, etc./ or on the basis of other legal facts – unfounded enrichment, conducting someone else’s work without a power of attorney and etc. There are two ways in which a creditor can collect his debt – voluntary/extrajudicial or judicial. The aim of the out-of-court agreement is to settle the relations between the creditor and the debtor without the intervention of state bodies. The main goal is through negotiations mutual concessions, acceptable to both parties, to settle an agreement. In case the debtor does not voluntarily pay the claimed amount, the creditor has no other opportunity exept to initiate legal proceeding. The purpose of these proceedings is to obtain an enforcement basis, and then with the help of a bailiff to enforce his claim against his debtor.

Judicial proceedings are a general claim process and let’s say lighten court proceedings. Order proceedings are a special court proceeding in which the creditor is provided with a writ of execution in case the debtor does not contest the obligation of his claim within a certain period or withdraws his objection. In this case the state fee is twice lower than the fee for general claim process. Otherwise, it moves from order proceedings to a general claim process.

The best solution would undoubtedly to obtain a positive court decision, but this is still not enough to satisfy your claim. Enforcement proceedings need to be launched. In Bulgaria, such can be formed only before a private or state bailiff who has the relevant legal capacity, acquired in the manner and manner prescribed by law. It is necessary to apply for the commencement of enforcement proceedings, as procedural speed and competence are extremely important in the selection of a bailiff. In Law firm “Ivanchov and Partners” we can be extremely useful in researching and finding an enforcement agent that meets all the requirements necessary for effective and timely collection of receivables.

It is also necessary in the course of the proceedings for the bailiff to be constantly seised with requests, with a specific indication of the methods of enforcement to be taken in the course of the proceedings against the debtor and as a result of which your receivables will be actually collected. It is possible that your debtor at the time of initiating enforcement proceedings apparently does not have the funds, and it is important to contact a competent legal professional who will constantly monitor his property status by providing the necessary information and timely comprehensive indication of the correct ways.

Collateral proceedings:

Another very important point for the timely collection of debts is the imposition of precautionary measures such as seizure of bank accounts, foreclosure, suspension of vehicles and others. These measures may be imposed only by a court in the event of collateral proceedings. Such proceedings can be instituted both during a pending lawsuit to convict the debtor and before a claim has been filed at all. Its immediate purpose is to surprise the debtor so that he cannot sell and hide his property.

At Ivanchov & Partners Law Firm can assist you through, but not limited to:

– Legal advice and assistance in filing an application for security for a future claim;

– Legal assistance in gathering and compiling evidence necessary to obtain security, as convincing written evidence is required by law

– Assistance in choosing an appropriate security measure / such as attachment of bank accounts, foreclosure of real estate, vehicles анд etc./;

– Initiation of claim proceedings for collection of debts;

– Initiation of order proceedings for supply with an order for execution and a writ of execution;

– Procedural representation and protection;

– Selection of an appropriate court procedure, bailiff and assistance in initiating enforcement proceedings;

– Survey of the property status of the company / incl. References in the Commercial Register, Registry Agency, Bulgarian national bank, Traffic Police, etc./;

– Correspondence with the bailiff and submission of applications with specific enforcement methods.

If you want us to help you resolve legal issues regarding debt collection, contact us at + 359 2 995 09 08 or by email: lawyer@ivanchovandpartners.com