Collection of debts of individuals and legal entities

When collecting overdue debts, it is advisable as a first step to notify the debtor of his delay. It is not impossible that the default is the result of an oversight by the debtor which can be remedied quickly and easily without the need for further action.

If this is not the case, negotiations may be entered into and an invitation for voluntary performance sent by a lawyer with a view to settling the relationship between the parties out of court. Such a solution may be sought at a later stage, even where court proceedings have already been initiated, and is advisable in order to save time and resources in litigation.

Of course, it is possible that the debtor has financial difficulties or is unwilling to fulfil his obligation voluntarily. The debtor's assets should then be investigated and enforcement action takenThis may be done by court proceedings, in the first instance by writ of execution, for claims up to BGN 25 000 or for claims established by a document provided for by law - without limitation in amount. The procedure for issuing a writ of executionon the basis of which an enforcement order can be issued and enforcement can begin, is aimed at speed and fewer costs in connection with the recovery of claims which the debtor does not contest but does not voluntarily fulfil. However, if the debtor objects to the claim, an action should be brought to establish the existence of the creditor's claim.

If the claim is not one of those for which a writ of execution may be issued, an action should again be brought to order the debtor to perform his obligation. The action may be brought before the court or, if the claim is based on a contract and an arbitration agreement has been concluded between the parties, before the arbitration tribunal chosen by the parties.

Prior to the filing of the action, simultaneously with it or in the course of the proceedings already initiated, it may be requested measures of attachment against the debtor's property - attachment of receivables or bank accounts seizure of real estate etc. The purpose of such action is to ensure that, in the event of a favourable development of the proceedings, the creditor will have limited the debtor's ability to dispose of the property and enforcement may be directed against that property. In recent years, another popular security measure is the seizure of bank accounts that the debtor has with banks operating outside Bulgaria, including very thankful accounts with Revolutmore on this procedure here.

In the event of a positive outcome of the court proceedings, the debtor again has the opportunity to voluntarily pay his debt, which has already been established in court. If, however, no enforcement takes place, the creditor may obtain a writ of execution by means of which enforcement proceedings may be brought before a bailiffThe bailiff examines the debtor's assets and directs enforcement against the debtor, with the funds collected as a result of the enforcement going to satisfy the creditor's claim.

Taking the actions listed above can drag on and cost significant resources and time for the lender, especially in the absence of experience in resolving similar cases. In such cases, it is advisable to work with attorneys experienced in debt collection..

Since KGK's establishment, debt collection has been one of the firm's core business areas. The firm's lawyers have considerable experience in out-of-court and in-court debt collection, can examine the case and the debtor's financial situation and, on this basis, propose an appropriate debt collection strategy.

If you have a claim that your counterparty refuses to settle, you can contact us to discuss the case and offer possible solutions.