Distribution of Bulgarian enforcement-sale proceeds: priorities, mortgages, costs and the short period for challenging the distribution.
The entire sale price does not necessarily go to the creditor who opened enforcement. Where proceeds are insufficient, Article 460 of the Civil Procedure Code requires distribution according to statutory priorities, with the remainder shared proportionately among other claims.
Article 136 of the Obligations and Contracts Act defines preferential categories. Distinguish costs connected with the particular asset and benefiting creditors, taxes on that asset and mortgage-secured claims. Not every fee or public debt ranks ahead of every mortgage. For multiple mortgages, check registration priority and continuing effect.
Joined creditors and parties with secured claims may participate under special rules. Certain amounts may be reserved pending an enforcement instrument or resolution of a dispute. The advertised starting price does not show what an individual creditor will receive.
Under Article 462, it is presented to the debtor and creditors summoned for a specified day. The appeal period is three days from presentation, rather than the general period for every enforcement act. Check principal, interest, costs, priority and payments already received.
A dispute about ranking or calculation differs from a dispute over whether another creditor’s claim exists; the latter may require separate litigation. A sale below the debt does not automatically discharge the balance. That also depends on the particular liability and contractual regime.
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This article is for general information only. It does not constitute or replace individual legal advice.