The debt represents the right of a creditor to demand a specific monetary amount from a debtor, as stipulated in a contract (e.g., commercial, bond, invoices, etc.) or based on other legal grounds such as unjust enrichment or unauthorized work. The creditor has two avenues for debt collection: voluntary/extrajudicial or judicial. The purpose of extrajudicial negotiation is to reach an agreement between the creditor and debtor without involving state entities. Through mutual concessions and negotiations, the goal is to settle an agreement acceptable to both parties. Should the debtor fail to voluntarily pay the claimed amount, the creditor has no choice but to initiate legal proceedings. The objective of these proceedings is to establish a legal basis for enforcement and, with the assistance of a bailiff, enforce the claim against the debtor.
Judicial proceedings encompass a general claims process, while order proceedings constitute a specialized court procedure. In order proceedings, the creditor is granted a writ of execution if the debtor does not contest the obligation within a specific period or withdraws their objection. In such cases, the state fee is half that of general claims proceedings. Otherwise, the case transitions from order proceedings to a general claims process.
Obtaining a positive court decision is undoubtedly the optimal solution, but it is not sufficient to satisfy your claim. Enforcement proceedings must be initiated. In Bulgaria, such proceedings can only be pursued before a private or state bailiff possessing the requisite legal capacity, acquired in accordance with the prescribed laws and regulations. Timely application for the commencement of enforcement proceedings is crucial, as procedural expediency and competence play significant roles in the selection of a bailiff. At “Ivanchov and Partners” Law Firm, we excel at conducting research and identifying an enforcement agent who meets all the necessary requirements for effective and timely debt collection.
Throughout the proceedings, it is essential to keep the bailiff informed, providing specific instructions regarding the enforcement methods to be employed against the debtor. This ensures the actual collection of your receivables. It is possible that, at the time of initiating enforcement proceedings, your debtor may appear to lack the necessary funds. In such cases, it is crucial to engage a competent legal professional who will consistently monitor their asset status, providing timely and comprehensive information regarding the correct approach.
Collateral proceedings:
The imposition of precautionary measures, such as the seizure of bank accounts, foreclosure, or suspension of vehicles, is critical for the prompt collection of debts. These measures can only be enforced by a court in the context of collateral proceedings. Such proceedings can be initiated during a pending lawsuit against the debtor or even before a claim has been filed, serving the immediate purpose of surprising the debtor and preventing the disposal or concealment of their assets.
At Ivanchov & Partners Law Firm, we can provide comprehensive assistance in various aspects, including but not limited to:
- Offering legal advice and assistance in filing applications for future claim security.
- Providing legal support in gathering and compiling evidence necessary to obtain security, as convincing written evidence is mandated by law.
- Assisting in selecting appropriate security measures, such as the attachment of bank accounts, foreclosure of real estate, vehicles, etc.
- Initiating claim proceedings for debt collection.
- Commencing order proceedings to obtain an order for execution and a writ of execution.
- Representing and safeguarding your interests throughout the procedural stages.
- Assisting in selecting the appropriate court procedure, bailiff, and initiating enforcement proceedings.
- Conducting a comprehensive survey of your company’s asset status, including references from the Commercial Register, Registry Agency, Bulgarian National Bank, Traffic Police, and other relevant sources.
- Handling correspondence with the bailiff and submitting applications specifying enforcement methods.
If you require assistance in resolving legal issues pertaining to debt collection, please do not hesitate to contact us at +359 2 995 09 08 or via email at lawyer@ivanchovandpartners.com.
