The Changes In The Field Of The Bankruptcy – To More Efficient And More Secure Bankruptcy Proceedings

On 22 December 2016 the last changes in the Commerce act were adopted. Among them, the amendment of the bankruptcy proceedings legislation and the creation of completely new proceedings – the merchant stabilisation proceedings also have places. One of the purposes of these changes is to meet the prevailing in the last years tendencies, developing at a transnational level within the European Union, for guaranteeing the existence of procedures, which can ensure possibility for undertakings stabilization, and also for conducting efficient bankruptcy proceedings, which can result in providing fair satisfaction of creditors and for preserving the interests of the insolvent debtor.

A prerequisite for the amendments are several European acts, among them Resolution, adopted by the European Parliament on 15 November 2011, European Commission Recommendation from 12 March 2014, European Council Recommendation from 14 July 2015. Those acts refer clearly to the need of harmonization of the laws of the Member States in the field of the bankruptcy and also indicate the guidelines of the necessary changes. Among the main priorities is the possibility for restructuring of the undertakings, which  can prevent the risk of becoming insolvent and lead to maximum benefit for the undertakings and their creditors and employees. The purpose of another part of the changes is to to affect on the initiation of the bankruptcy proceedings, the presentment of claims, the rules for the revocatory actions, etc. Last but not least, the changes in the Commerce Act are also based on the recommendations of the World Bank from November 2015, given in accordance with the bankruptcy legislation and the rights of the creditors.

Тhe changes in the legislation are aimed at the protection of the rights of the creditors, the rapid and efficient conducting of the proceeding and the possibility of satisfying as much as possible of the creditors’ claims. Main importance for the proper interpretation of the changes has the necessity the changes to be assessed in accordance with the developing tendencies at a transnational level, which are aimed at creating minimum standarts in different countries for guaranteeing the basic principles in conducting the bankruptcy proceedings and also in sharing experience and established efficient practices in the field of bankruptcy.

Further information you may find in „The Changes In The Field Of Bankruptcy – To More Efficient And More Secure Bankruptcy Proceedings” article. Also you can refer your questions to Desislava Cvetkova, lawyer and head of “Judicial Debt Collection and Bankruptcy” Department on e-mail address: and Asya Petrova, lawyer on e-mail address: a.petrova