Strengthening insolvency procedures

The  objective of this reform is to increase the efficiency of insolvency and restructuring procedures. 

As a first step in the reform, Bulgaria adopted legislative amendments to the Commercial Law in transposition of Directive (EU) 2019/1023 to reform insolvency and restructuring procedures and ensure the use of electronic means in insolvency, restructuring and discharge of debt procedures, as well as provide for stricter regulation of the profession of insolvency practitioners, early warning tools, duties of the directors in case of likelihood of insolvency and legal guarantees for traders to register the actual management addresses when registering companies. 

The law was adopted by the Parliament on 20 July 2023 and entered into force on 5 August 2023.  

Further steps in the reform cover implementation measures, including trainings on the new insolvency framework to insolvency practitioners and judges, electronic tools for the purpose of communication throughout insolvency and restructuring proceedings, adoption of manuals, codes, templates and guidelines on the different procedures, as well as statistical data collection and publication.