Insolvency and Creditors’ Rights

We represent creditors in insolvency proceedings before courts throughout Bulgaria: we file petitions to open proceedings, lodge claims with the trustee, object to the lists of admitted and rejected claims and bring actions to establish disputed claims. We take part in creditors’ meetings and creditors’ committees and monitor the trustee, the realisation of assets and the distribution, so that the client’s claim receives the ranking and security to which it is entitled.

We recover assets for the estate through avoidance actions against transactions made to the detriment of creditors — gratuitous transactions, payments and security in favour of related parties, transactions at an undervalue — and pursue directors who delayed filing for insolvency. Where a debtor has assets or proceedings in more than one country, we assist with the recognition of foreign insolvency proceedings in Bulgaria under Regulation (EU) 2015/848.

We also advise companies and their directors once financial difficulties have arisen: whether the company is insolvent or over-indebted, what directors’ duties and liability are, and how to restructure debts out of court, reach agreements with creditors or propose a restructuring plan. Before matters reach insolvency, we help creditors protect themselves — through counterparty checks, security, set-off and prompt debt recovery.