Debt collection is the process through which a business or an individual seeks to recover undue payments from clients. Business owners who find themselves in need of pursuing due payments can commence a process of debt collection in Bulgaria. Whenever thus step if needed, it is advisable to seek specialized help in order to perform all the necessary legal procedures for recovering the existing debts.
Our Bulgarian lawyers can represent you or your company if you need to take legal actions for existing debts. The Bulgarian National Revenue Agency is the authority in charge of debt collection in this country. The first step in debt collection, as set forth in the procedures issued by the relevant authorities, is to convince the debtors to pay their debts by withholding certain benefits from them if they do not pay their dues (for example, withholding the necessary documents for obtaining bank loans).
Legal steps for debt collection in Bulgaria
Companies in Bulgaria that need to collect overdue payments have two options for debt recovery: they can choose to resolve the issue out of court or they can start the needed court proceedings for recovering debts. The list below describes the main steps that can be attempted as a pre-court solution.
• Contact the debtor: this serves merely as a first and friendly reminder that a payment is overdue and you are looking towards collecting that payment.
• Send a second overdue reminder: should the debtor refuse to take action after the first reminder, you can contact him again and request the payment;
• Send a final notice: if the first two reminders still haven’t determined the debtor to make his payment, you can send a final notice that also includes an intention to commence formal debt collection proceedings;
• Contact a debt collection agency: this can be done if you do not wish to take the case to court and are looking for alternative debt collection solutions.
Additional details about debt collection
Businesses should keep in mind that in some cases it is preferable to negotiate with the debtor and even institute a payment scheme. This can be done if the particular business relationship is an important one.
We remind you that each case is different and you might need to seek adequate counseling in order to determine the most suitable debt collection practice in your case. Moreover, our team of lawyers in Bulgaria can answer any particular questions related to your case.
You can contact our law firm in Bulgaria for complete debt collection assistance. Our lawyers can offer you complete solutions, tailored to your particular needs.