The termination of insolvency proceedings in Bulgaria
The competent insolvency court may terminate the insolvency proceedings under the following conditions:
- The satisfaction of all insolvency creditors;
- The depletion of the insolvency estate also if there remain unsatisfied creditors;
- The insolvency administrator’s report regarding the insolvency operations and the executed distribution, communicated to the creditor’s meeting;
- The suspension of the insolvency proceedings.
The termination of the insolvency proceeding has the following effects:
- Regarding the insolvency administrator: it removes his competences;
- Regarding the insolvency debtor:
- If all insolvency creditors have been satisfied, he may continue his business activity;
- If not all of the creditors have been satisfied, the trader is removed from the commercial register;
- Eradication of all non-registered claims and all non-exercised rights;
- Eradication of the claims that have not been performed.
Reopening of insolvency proceedings
Insolvency proceedings may be terminated if the insolvency estate is not sufficient to cover the costs.
The terminated proceedings may be reopened by a court order if within one year after proceedings have been terminated:
- if new monetary amounts have been released and as a consequence, new assets occur that are sufficient to cover the expenses for the reopening and if resources remain for the distribution;
- if knowledge has been obtained regarding assets that have not been known when the proceedings have been terminated.
The reopening begins on demand either of a creditor or the debtor but still it requires a court order. This way, the insolvency administrator’s competences are renewed and the proceedings are opened where they have been terminated before.