Foreign suppliers, lenders and service providers often hesitate to pursue a Bulgarian debtor: a different language, an unfamiliar court system, the worry that costs will exceed the claim. In practice Bulgaria offers fast tools for documented debts, and EU law adds procedures designed for exactly this cross-border situation.
Start with the facts and the paper
Before choosing a route, check three things:
- Evidence: the contract or order confirmation, invoices, delivery or acceptance records, correspondence acknowledging the debt.
- The debtor’s position: whether the company is active in the Commercial Register, whether insolvency proceedings have been opened, and what assets it is likely to have.
- Time: the general limitation period is five years; periodic payments such as interest and rent expire after three. Waiting also gives assets time to move.
Between businesses, late payment brings statutory interest, and the Commerce Act entitles the creditor to a fixed minimum compensation for recovery costs of the equivalent of EUR 40 per invoice.
The routes, from fastest to fullest
Formal demand
A lawyer’s letter in Bulgarian, setting out the debt, interest and a short deadline. Many debtors pay at this stage, or propose a schedule.
Order for payment (Art. 410 CPC)
A paper procedure before the district court for money claims of up to EUR 12,782.30 (BGN 25,000); larger documented claims can go through Art. 417. If the debtor does not object within two weeks of service, the order becomes enforceable.
Order for immediate enforcement (Art. 417 CPC)
Where the claim rests on certain documents — for example bank statements, notarised agreements or bills of exchange — the court can order enforcement immediately, before any objection is decided.
Full claim
If the debtor objects, or the dispute is genuinely contested, the creditor brings an ordinary action with evidence, witnesses and expert reports.
Enforcement
A writ of execution goes to a private bailiff, who can garnish bank accounts and receivables and seize and sell assets.
EU procedures built for cross-border claims
| Procedure | Best for | Key features |
|---|---|---|
| European order for payment (Reg. 1896/2006) | Uncontested money claims of any size | Standard forms; enforceable throughout the EU without further recognition if no opposition is lodged |
| European small claims procedure (Reg. 861/2007) | Claims up to EUR 5,000 | Mainly written procedure on standard forms; judgment enforceable across the EU |
| European account preservation order (Reg. 655/2014) | Freezing the debtor’s bank accounts before or during proceedings | Obtained without warning the debtor; prevents money from leaving the account |
A creditor based in another EU state can often use these procedures in its own courts and then enforce the result in Bulgaria. A judgment already obtained elsewhere in the EU is enforced here under the Brussels I bis Regulation, without a separate recognition procedure. Judgments from outside the EU need recognition under the Private International Law Code.
When the debtor is insolvent
If insolvency proceedings have been opened, ordinary enforcement stops. The claim must be lodged with the trustee within one month of the opening being entered in the Commercial Register; a further two months are available for late claims. Secured creditors are paid first from their collateral, so security taken at the outset — a pledge, a guarantee, retention of title — often decides how much is recovered. See our insolvency practice.
Questions clients ask
Do I need to come to Bulgaria to recover the debt?
No. We act under a power of attorney, communicate with you in English and handle the court and the bailiff. Your involvement is usually limited to providing documents and approving settlement proposals.
Is it worth pursuing a small invoice?
Often yes. Order-for-payment proceedings are inexpensive, and the losing debtor is ordered to reimburse court fees and a reasonable attorney’s fee. For small cross-border claims within the EU, the European small claims procedure is another efficient option.
The debtor objected to the order for payment. Is the order lost?
No. The creditor then has a month to bring a claim confirming the debt. If it does, the case continues as an ordinary action; if the court confirms the claim, the order stands and can be enforced.
This guide is general information about Bulgarian law as it stood on the date of publication. It is not legal advice for your specific case.
