Distribution is the act by which the enforcement officer determines which claims are to be paid, in what order, and what amount is allocated to pay each claim in full or in part. It is necessary when several creditors participate in the same enforcement proceedings and the proceeds are insufficient to satisfy them all in full. Article 136 of the Bulgarian Obligations and Contracts Act sets out how and why the original creditor and creditors who have joined the proceedings receive payment. The following claims enjoy priority in the order listed: 1. Costs of securing claims and enforcing them, and costs of actions under Articles 134 and 135, payable from the value of the property in respect of which they were incurred, as against the creditors who benefit from those costs.<\/p>\n
2. State claims for taxes on specific property or on a motor vehicle, payable from the value of that property or vehicle, as well as claims arising from concession payments, interest and penalties under concession contracts.<\/p>\n
3. Claims secured by pledge or mortgage, payable from the value of the pledged or mortgaged property.<\/p>\n
4. Claims for which a right of retention is exercised, payable from the value of the retained property. If the claim arises from expenditure on preserving or improving that property, it ranks ahead of the claims in point 3.<\/p>\n
5. Employees\u2019 claims arising from employment and claims for maintenance.<\/p>\n
6. Claims of the State, except for fines and other excluded claims.<\/p>\n
This article is not a legal opinion of attorney Elitsa Markova, attorney Mihail Tomov or a lawyer at Markova, Tomov and Partners or advice concerning a particular situation or person. For assistance with an enforcement case, consult a lawyer experienced in civil law and enforcement proceedings.<\/em>
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