7702 | 5 Aug. 2024 | 13:39

With its acceptance, public, state and private judicial enforcers will be given the opportunity to close accumulated executive cases that have been stagnant for decades with no real progression

 The representatives from the third largest and biggest opposition party have introduced a "Personal Insolvency Bill" in the 50th National Assembly. This was announced by the party's press center.

 It is well known that Bulgaria is the poorest country with the lowest incomes per capita among the member states of the European Union. For example, in 2023, 1,325.9 thousand people, or 20.6% of the country's population, were living below the poverty line, which is set at an average of 637.92 BGN per person per month. Compared to the previous year, the poverty line has increased by 21.3%.

 The only solution to this situation is the creation of a legal mechanism to remove this status. Accordingly, this mechanism aims to offer a solution to the problem with non-performing loans through a fast, effective and cost-efficient procedure for declaring individuals insolvent.

 Within a period of 3 years, 4 bills have been submitted for the insolvency of individuals. Public consultations have been conducted, opinions have been presented and debates have been held in the plenary hall, providing the opportunity for reconsideration of the bills submitted so far, correcting their weaknesses, and further development and revision.

 The "Revival" bill builds upon the developments of the previous 4 bills, taking into account the opinions expressed during their discussion. The adoption of the bill will give the opportunity for public, state and private enforcement agents to terminate accumulated for decades enforcement cases, in which there is no actual movement, but they consume administrative capacity.

 The bill of "Revival" provides that a debtor who is unable to fulfill one or more monetary obligations towards his creditors in the amount of 6 minimum monthly salaries for more than 6 consecutive months at the time of filing for insolvency, is declared insolvent and has the right to declare it.

 The state fee for reviewing an application for opening insolvency proceedings under this law is the symbolic amount of 10 BGN.

 The "Revival" bill provides for insolvency proceedings to be terminated with the debtor being declared insolvent in all cases where 18 months have passed since its commencement and the assets of the insolvency have been exhausted. Another significant advantage for debtors offered by the "Revival" bill compared to other previously proposed ones is the proposal for competent courts in insolvency proceedings to be district courts, not regional courts, which would ease the burden for debtors from small towns in the country, who make up the majority among the debtors.

 The similar bills proposed by other political parties provide for insolvency proceedings to last for 12 months for obligations larger than 24 minimum monthly salaries. However, this would not be able to solve the problems of the ordinary person, for whom a period of one or two years unable to cover their obligations could lead to them becoming subject to institutional pressure.

 The "Revival" bill is in line with the needs of the Bulgarian citizens and with what the people from the poorest region in the country share, with whom the representatives of "Revival" constantly meet and seek solutions to their problems through legislative proposals.