In Bulgaria, can I stop enforcement if my company starts insolvency proceedings?

Question

My small company has overdue supplier invoices and a bailiff has started enforcement on our bank account. We are considering filing for insolvency but I’m not sure if that automatically pauses enforcement actions. What steps and timelines apply in Bulgaria?

Savov and Partners Law Firm · Accepted Answer

Under Bulgarian law, a company is required to file a petition for the initiation of insolvency proceedings within 30 days of becoming insolvent or over-indebted. Insolvency occurs when a trader cannot pay a due monetary obligation—whether arising from a commercial transaction or a public-law obligation to the state related to commercial activity. Under the Bulgarian Commercial Code, before insolvency proceedings are opened, the court—either at the request of a creditor or on its own initiative—may suspend enforcement proceedings against the debtor’s assets. This does not apply to enforcement actions initiated by the National Revenue Agency. Precautionary measures are not lifted automatically. The court may lift any imposed protective measures if it determines that they are no longer necessary to achieve their purpose. At the same time, the court may impose new protective measures or extend existing ones if needed to preserve the debtor’s assets. These measures are intended to benefit all creditors involved in the insolvency proceedings.

In Bulgaria, can I stop enforcement if my company starts insolvency proceedings?

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