site.btaVazrazhdane Submits Bill on Personal Bankruptcy

Members of Parliament from Vazrazhdane submitted to the 50th National Assembly a bill on individual bankruptcy, the party’s press centre said Monday.

For three years, four bills on the bankruptcy of natural persons have been submitted. Public hearings were held, opinions were presented, debates were held in the plenary hall, which provided an opportunity to rethink the draft laws introduced so far, correct their weaknesses, upgrade and revise them. Vazrazhdane’s bill builds on the developments of the previous four bills, taking into account the opinions expressed during their discussion, the release says.

With the passage of the bill, public, state and private debt collectors will be given the opportunity to terminate a decades-long backlog of enforcement cases that have not been moved forward but are consuming administrative capacity.

The bill provides that a debtor, who for more than six consecutive months is unable to fulfil one or more monetary obligations to his creditors with a total value of more than six minimum wages at the time of filing an application to open proceedings, becomes bankrupt and has the right to declare it.

Vazrazhdane also propose for bankruptcy proceedings to be terminated by declaring the debtor insolvent in all cases where 18 months have passed since the commencement and the bankruptcy estate has been exhausted.

Another significant advantage for debtors would be entrusting bankruptcy cases to regional rather than district courts, which relieves the debtors from the small settlements in the country, which are also the overwhelming majority among debtors, the release says.