Rights of third parties affected by enforcement

Under Article 440(1) of the Bulgarian Code of Civil Procedure, a third party whose rights are affected by enforcement may bring an action to establish that the property against which a monetary claim is being enforced does not belong to the debtor. The law thus provides a remedy for third parties affected by enforcement: an action for a negative declaration. The claimant must have a legal interest in bringing the action. As the General Assembly of the Civil and Commercial Colleges of the Supreme Court of Cassation explained in its reasons for Interpretative Judgment No. 3 of 10.07.2017 in interpretative case No. 3/2015, that interest follows from the express statutory provision. The action is admissible and the third party has a legal interest where enforcement of a monetary debt has begun, measures taken against a particular asset affect the third party’s rights, and that party disputes the debtor’s rights to the asset. The third party’s own rights to the asset are not the subject of the action under Article 440(1); they establish its legal interest in bringing the action.

According to the same Interpretative Judgment No. 3 of 10.07.2017 in case No. 3/2015, an action under Article 440(1) is also admissible where the third party possesses the asset against which enforcement is directed and can appeal under Article 435(4). The exception is where the third party has already exercised that right and the appeal has been upheld.

This article is not a legal opinion or advice on a particular situation or person, and the author makes no claim to cover enforcement cases or the rights of people affected by enforcement exhaustively. For legal assistance in a similar case, consult a civil lawyer specialising in enforcement.