site.btaParliament Passes Personal Bankruptcy Bill on Second Reading

Parliament adopted a Bill on Personal Bankruptcy on second reading on Thursday, following nearly nine hours of debate. The law allows individuals who have been unable to meet one or more financial obligations exceeding ten minimum monthly wages for over 12 months to seek legal protection.

Justice Minister Georgi Georgiev explained that the measure is not a debt amnesty, but rather a one-time opportunity for honest debtors to make a fresh start through a formal insolvency procedure.

Under the new rules, proceedings begin upon request from a debtor acting in good faith. The competent authority will be the regional court in the area of the debtor’s current address at the time of filing.

Georgiev emphasized that the legislation, part of Bulgaria's Recovery and Resilience Plan, was necessary and overdue. He acknowledged the law may need future revisions once implemented, but noted that the simplified procedure would make the process more efficient. In his words, the new rules encourage honest, overburdened individuals, not bad-faith debtors.