site.btaPrivate Enforcement Agents Want Waiver of Company Legal Adviser Fee

Private Enforcement Agents Want Waiver of Company Legal Adviser Fee

Sofia, August 24 (BTA) - Private enforcement agents want a waiver of the fees which company legal advisers charge if debtor payments are in arrears, said Bulgarian Chamber of Private Enforcement Agents Council Chairman Georgi Dichev. The Chamber and National Ombudsman Maya Manolova argue that this will lead to drastic drop of costs to respondents in such cases. Currently, a legal adviser fee of as much as 650 leva may be charged on a debt of 50 leva. Add to this the fees for private enforcement agents and interest, and the total amount payable may reach 1,000 leva.
   
"There is always an imbalance in the case of small debts, such as a 20 leva fine on small heating and electricity bills. The costs exceed the obligations. The National Revenue Agency has the same problem. And these debts are numerous. If they are not collected, no one will pay them, and this puts the financial system at a risk," Dichev said.
   
In Serbia and Macedonia, such fees are collected out of court by enforcement agents, and there are no fees for legal advisers and lawsuits. Thus, an enforcement agent will be unable to distrain salaries but will be able to be notified by the appealing party and to hand over the receivable. The enforcement agents will serve the debtor a notice inviting him to pay.
   
"The Chamber is ready to offer cooperation because this small change will make small obligations collectible without such fees, and the arbitration of some institutions will not be necessary," Dichev said.
  
The Chamber wants Parliament to debate the amendments proposed by the Justice Ministry as soon as possible, as well as guarantees that injunctions will not be imposed on maternity benefits and pensions.
   
The Chamber also insists on fair valuation of property.
   
The debtor's right will be protected much better because more actions of the Chamber will be appealable.
   
Costs will also be reduced by digital distraints, and if digital public auctions are introduced, bidders will be unable to manipulate them, the Chamber says, backing another idea of the Justice Ministry.

In addition, the enforcement agents suggest that the starting bid should be 90 per cent and not 75 per cent as it is now, and in the absence of bidders to be cut by 10 per cent steps instead of being halved as is the case now.
   
"Before elections such subjects always crop up with populist intentions, but incessant talking undermines statehood. Enforcement is related to the stability of the financial system, business and the public. Both sides should be consulted on this subject," Dichev said.