It goes without saying that having a claim upheld in full by the court is a cause for great joy for any claimant. Unfortunately, in Bulgaria it is often the case that only a small proportion of the defendants who have been found liable – mostly insurance companies and banks – are willing to pay the amounts awarded immediately and voluntarily after the judgment has come into force. Instead, further legal proceedings are necessary: enforcement. This is a separate procedure that can begin after the court decision on the basis of which the enforcement order is issued has come into force.

Once the enforcement order has been issued, the actual enforcement proceedings can be initiated. To do this, the creditor must contact a bailiff – either state or private – who will take the necessary measures to enforce the claim. Once the enforcement order has been issued, the actual enforcement proceedings can be initiated.

According to the Bulgarian Code of Civil Procedure, the choice of bailiff is governed by the rules of local jurisdiction.
The application for the initiation of enforcement proceedings, together with the enforcement order, is submitted to the bailiff in whose jurisdiction are located:

1. the immovable property to which the enforcement relates;
2. the movable property, if it is to be handed over by the debtor;
3. the permanent or current residence of the creditor or the debtor – at the creditor's discretion, in the case of claims for maintenance, remuneration for work or compensation for work or for damages arising from a tort;
4. the place of performance of the obligation to act or refrain from acting, if the enforcement of such obligations is requested;

the permanent or current residence or registered office of the debtor

The course of enforcement proceedings is regulated by the Bulgarian Code of Civil Procedure, and the legal framework for the activities of private bailiffs is clearly defined in the Law on Private Enforcement Agents. This regulates both the rights and obligations of private bailiffs and lays down the conditions for the exercise of their sovereign functions.

Once the proceedings have been initiated at the request of the creditor, accompanied by an enforcement order, the bailiff takes the first steps. , the law requires him to serve the debtor with a request for voluntary compliance – this is the term used in the law, although it is not "voluntary" compliance in the literal sense, as the bailiff is entitled to take protective measures against the debtor's assets at the same time as serving the request.

All state authorities, local authorities, citizens and organisations are legally obliged to assist the bailiff and provide him with the necessary information.

The bailiff may order that the debtor's premises – such as apartments or business premises – be opened. He is also entitled to inspect all of the assets of the person concerned.

The most common enforcement measures include seizures and prohibitions on disposal. Not only bank balances can be seized, but also wages or other income.

A motor vehicle used by the debtor can also be seized and subsequently auctioned off. If the debtor refuses to pay, the bailiff may also visit him personally at his home. There, he is authorised to inventory and evaluate movable property such as furniture or valuables and have them publicly auctioned off as part of the enforcement proceedings.

Extreme enforcement measures are not always applied. The law provides for natural persons who are in financial distress to apply for payment by instalments to settle their debts.

The plan is to make an initial down payment of 20% of the total amount, followed by monthly instalments of 10% each until the debt is fully repaid. In such cases, seizures and prohibitions on disposal can be lifted. Of course, lower instalments may also be agreed with the creditor's consent. In this case, however, there is no legal entitlement to the lifting of the protective measures ordered by the bailiff.

Protection for debtors who are natural persons has also been provided for by a number of legislative changes relating to the statute of limitations. The ten-year absolute limitation period in Bulgaria was introduced by amendments to the Law of obligations and contracts (Art. 112) and came into force on 2 June 2021. Under this provision, all monetary claims against natural persons become time-barred after ten years, regardless of any interruptions to the limitation period, unless the obligation has been deferred or divided into instalments.

The aim of this amendment is to put an end to the so-called "perpetual debtor" – i.e. people who have been in debt for decades with no real possibility of getting out of it.

The law also provides another form of protection with regard to the sole residence of natural persons.

If the person who owes you money has only one home, it may not be sold by public auction – unless it is encumbered by a mortgage.
In such a case, a foreclosure sale can only be initiated at the request of the mortgage creditor.

In all other cases, flats or other immovable assets are described and put up for public auction.

The procedure is strictly regulated in the Bulgarian Code of Civil Procedure.

The first step in the procedure is the inspection and recording (protocol) of the property by the bailiff. This requires that the debtor has been duly notified.

The debtor has the right to be present during the recording. As long as the property is not publicly auctioned, he may continue to use it and live in it. However, during this time, he bears responsibility as the custodian of the property. This means that he is obliged to maintain the property properly and prevent damage. He takes over the property in the condition stated in the report and is obliged to return it in the same condition.

Before the auction begins, an expert must be appointed to prepare a report on the market value of the property. This report is brought to the attention of the parties involved, who have the right to request an additional report. The official market value of the property is determined on this basis.

A foreclosure auction begins with the setting of a starting price, which, according to the Code of Civil Procedure, is 80% of the market value determined by an expert. At the earliest one week after the official description of the property, the bailiff draws up a notice containing all relevant information about the auction procedure.

As this is a public measure, the announcement is of particular importance. The notice must be posted in several locations: in the bailiff's office, in the courthouse, in the relevant town hall or municipal office, directly at the property and on the website of the relevant district court. This publication must take place at least one day before the scheduled date.

The auction itself runs for a period of one month. During this time, interested third parties have the right to view the property.

Due to conflicts of interest, the debtor, their legal representative, the employees of the district court office, the bailiff's employees and the persons referred to in Article 185 of the Law on Obligations and Contracts may not participate in the auction.
If the property is purchased by a person who was not entitled to bid, the auction is void.

There is no prohibition on persons without Bulgarian citizenship participating in a public auction. However, as this is essentially a property purchase , the legal restrictions on the purchase of land by foreigners also apply in this case.

On the first working day after the deadline for submitting written bids, the bailiff opens the envelopes received in the presence of the bidders at the designated location in the district court building.

A record is made for each bid, noting the names of the bidders and the respective bid amounts in the order in which they were opened.

The bidder with the highest written bid is considered the buyer. If several bidders have submitted the same maximum price, the bailiff decides on the award by drawing lots in the presence of the bidders present. The determination of the buyer is documented in the minutes and signed by the bailiff.

If, when the buyer is announced, a bidder present verbally increases their bid by at least the amount of the deposit above the highest written bid, this offer is noted in the minutes.

After the bidder has signed, the bailiff asks up to three times whether a further higher bid will be submitted with the deposit of a corresponding deposit. Each new bid is also recorded in the minutes and signed by the bidder.

Once the verbal bidding has been concluded, the person who has offered the highest price is designated as the buyer. The buyer is obliged to transfer the remainder of the purchase price within two weeks, i.e. the price offered by them and the deposit deducted.

It is important to mention that the procedure is concluded with an act of the bailiff – the award decision – which is equivalent to a notarial proof of ownership and constitutes an independent legal basis for the acquisition of ownership.

However, this award decision can be contested – by a person who has deposited a deposit by the last day of the auction, by the creditor who participated as a bidder without paying a deposit, and by the debtor if the procedure was not conducted properly or the property was not awarded at the highest price offered.

The appeal is brought before the district court. As long as the court has not confirmed the award decision, it does not take effect and the buyer is considered It should be noted that even if the price appears attractive, there is always a risk that the award decision will not become legally binding immediately or may even be overturned.

The most important question in enforcement proceedings is undoubtedly whether certain deadlines must be taken into account. This question is often linked to what is known as "peremption". If, in the course of initiated enforcement proceedings, the creditor has not applied to the bailiff for enforcement measures for two years, this is taken as a sign that they are no longer interested in enforcing their claim, and the enforcement proceedings are terminated. It is therefore particularly important at this stage of the proceedings to monitor the process carefully and review it regularly.