Insolvency law is about order. When there is not enough money to go round, it decides who is paid, in what sequence, and which earlier transactions can be undone. Creditors who act quickly and file correctly recover more; debtors who seek advice early have options that disappear once a petition is filed.
For creditors
Claims must be lodged with the trustee within one month of the opening of proceedings being entered in the Commercial Register; late claims can still be filed within a further two months but may lose some rights. We file and defend claims, attend creditors’ meetings, sit on creditors’ committees and challenge the trustee’s decisions where they harm our client.
For debtors and managers
We advise companies in difficulty on restructuring outside court, negotiations with key creditors and, where unavoidable, the insolvency filing itself — including the duty of managers to file on time. Since 2025, individuals can also seek relief under the new Personal Insolvency Act.
Transactions under attack
Payments and disposals made shortly before insolvency can be set aside by the trustee or creditors. We act on both sides of these clawback (Paulian-type) actions.
- Filing and defending claims in insolvency proceedings
- Representation at creditors’ meetings and on creditors’ committees
- Advice to debtors and their managers
- Negotiated, out-of-court restructuring
- Clawback and Paulian actions — bringing and defending them
- Challenges to decisions taken in the proceedings
- Personal insolvency for individuals
Questions clients ask
When can a Bulgarian company be placed into insolvency?
When it is unable to pay due debts (illiquidity) or, for capital companies, when its assets no longer cover its liabilities (over-indebtedness). The petition can be filed by the company, by a creditor with an unpaid commercial claim, or by the National Revenue Agency for public debts.
In what order are creditors paid?
Secured creditors are paid first from the proceeds of their collateral. The remaining assets go towards the costs of the proceedings, then employees’ claims, public debts and finally ordinary unsecured creditors, in the order set by the Commerce Act.
