site.btaCabinet Approves Bill on Personal Bankruptcy

The Cabinet approved a bill on personal bankruptcy on Wednesday, said the government press office. The proposed legislation would fill a gap in national legislation and regulate insolvency proceedings for persons who are not traders or entrepreneurs, in line with public expectations, the EU regulations and the specificities of the national legal system. The bill is also in line with Bulgaria's commitments under the National Recovery and Resilience Plan.

Effective legislation does not allow insolvent individuals to be declared bankrupt. Insolvent debtors are subject to severe constraints and stress over their financial situation and creditors' expectations, with bona fide debtors particularly vulnerable. These persons may have become insolvent due to adverse events beyond their control, including temporary or permanent loss of capacity, health problems, family separation, loss of job or assets, etc.

The law also provides for bankruptcy proceedings for persons, who have no income and assets and are debtors in good faith.