What to check after a Bulgarian developer enters insolvency: ownership, contract, filing a claim and the insolvency practitioner’s lists.
Payment under a preliminary agreement does not make the buyer owner of the apartment. Once insolvency proceedings open, distinguish property rights already acquired from contractual claims against the developer.
Article 685 of the Commerce Act generally gives creditors one month from registration of the opening decision in the Commercial Register to file claims. Late filing under Article 688 is limited to a further two months and carries disadvantages. Do not wait for a personal assurance from management or news from other buyers.
Filing requires the basis, amount, evidence and details of any claimed security or priority. Provide agreements, amendments, payment records and relevant notices. Distinguish advance payments, a claim for their repayment and damages; their treatment depends on the contract and subsequent events.
Article 644 empowers the insolvency practitioner to terminate contracts not fully or partly performed. Pending property-related civil and commercial proceedings must also be checked under Article 637’s special regime. Unilaterally stopping all your obligations or paying the former manager is not a universal solution.
After filing, monitor the lists: Article 690 provides seven days from publication to object to an admitted or rejected claim. Admission does not guarantee full payment; recovery depends on the estate, security and ranking.
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This article is for general information only. It does not constitute or replace individual legal advice.