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A seller’s creditor challenges your Bulgarian property purchase

An Article 135 creditor challenge can affect a purchase without an earlier attachment. Prejudice, knowledge and timing matter.

Kalchev Law FirmA law firm publication
1 min readPublished: Legal review pending

The essentials

  • No attachment does not rule out a creditor challenge.
  • The buyer’s knowledge matters in a transaction for value.
  • The remedy is relative ineffectiveness against the creditor.

The absence of an attachment when you buy Bulgarian property does not exclude a later challenge by the seller's creditor. Article 135 of the Obligations and Contracts Act can make a prejudicial transaction ineffective against a particular creditor. This is not universal cancellation of the sale; it protects recovery under the statutory conditions.

What must be established

The inquiry concerns the creditor's claim, prejudice and the debtor's knowledge. For a transaction for value, the acquirer must also have the required knowledge. Certain close-family relationships trigger a rebuttable presumption. Where the transaction predates the claim, the statute requires an intention by both contracting parties to prejudice the creditor. Selling while indebted does not automatically satisfy every condition.

Evidence extends beyond the deed

Collect proof of actual payment, negotiations, known disputes and relationships between participants. Market value or a clean encumbrance certificate does not alone decide the case, although the underlying facts matter.

If served with a claim, monitor the response deadline and address the allegation of knowledge. Subsequent good-faith acquirers for value have specific protection linked to acquisition and registration of the claim. Do not assume another transfer is an easy way to defeat the proceedings.

Practical guidance

What to do, step by step

01 / 03

Identify the pleaded basis

Establish the alleged debt.

  • Compare claim and transaction dates.
  • Separate facts from assumptions about knowledge.
02 / 03

Document the genuine transaction

Keep original records.

  • Collect transfers and correspondence.
  • Describe relationships accurately.
03 / 03

Prepare the response

Follow the court directions.

  • Submit relevant defences and evidence.
  • Assess possession and possible seller-related claims.

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This article is for general information only. It does not constitute or replace individual legal advice.