Insolvency Proceedings (Bankruptcy)

A judicial procedure under the Commercial Act initiated against a merchant who has become insolvent or over-indebted, with the aim of satisfying creditors through liquidation of the debtor’s assets or by means of a recovery plan. In Bulgaria, a Personal Insolvency Act has been adopted, which regulates the procedure and conditions for declaring insolvency of insolvent, bona fide debtors, with the aim of fairly satisfying creditors and restoring the debtor’s financial activity.