Quick enforcement without litigation
By Angel Vasilev, Dinova Rusev & Partners
It often happens that a creditor whose debtor does not pay debts voluntarily has to go through lengthy and expensive court litigation until a writ of execution is obtained. To avoid this, some laws in Bulgaria provide the claimant with a useful tool for quick enforcement: a “documentary backed up claim”. If the claimant presents specific documents provided for by the law, the claimant may directly ask the court to immediately issue a writ of execution, irrespective of its amount.
Notarial deeds or notary verified agreements are most common (if they contain payment obligations for the debtor), as well as excerpts from the special pledges register for a registered leasing agreement (in regard to taking back possession of the leasing item) and mortgage deeds. The legislator presumes that the availability of such documents supports higher probability of the claim being considered as lawful and vests the burden of proving the opposite to the defendant.
In this procedure, the court only examines whether the presented document possesses the statutory requisites of a document of this kind and indeed certifies the creditor’s claim. If the formal requirements are met, it issues a writ of execution. An objection by the debtor does not stop the initiated enforcement, unless due collateral is provided.
The procedure allows a certain advantage for creditors. In practice, debtors often prefer to pay debts instead of initiating legal proceedings, challenging the claims on their merits.
Dinova Rusev & Partners, Sofia, Bulgaria
T: +359 2 943 43 50
Angel Vasilev, is an associate attorney at law at Dinova Rusev & Partners. He holds a Commercial and Company Law LL.M. degree from the Erasmus University of Rotterdam. He has experience in Real Estate, Competition, Commercial Leases and advising large commercial centre projects.
Dinova Rusev & Partners is a leader in a wide range of legal fields, including Commercial & Corporate, Energy, M&A, Real Estate, Competition, Banking and Finance, Employment, Public Procurement, Litigation. A modern, forward-thinking and proactive team of experienced lawyers and advisors strives to provide the best advice and representation for its clients.
published: March 2014