Lodging a creditor’s claim in insolvency proceedings

Under the express terms of Article 685(2) of the Bulgarian Commerce Act, a creditor lodging a claim must state its basis and amount, any priority it enjoys and any security for it. Although the application is not a statement of claim commencing an action, it must identify the claim in full and in detail. If there are several alternative grounds on which the claim may have arisen, the creditor must set them out in the Article 685 application itself. That application defines the legal scope of the claim in the collective realisation of the debtor’s assets. The creditor cannot change the features that identify the claim during the admission procedure or at a later stage. The same restriction applies in proceedings under Article 694 of the Act, whether the aim is a judicial declaration that the claim exists or a declaration, sought by the debtor or another creditor, that it does not.

Lodging the claim precludes the creditor from subsequently relying on grounds for its existence that were not stated in the application.

This article does not provide a legal opinion or advice on any particular situation or person. For assistance in an individual insolvency case, seek a legal consultation.