Insolvency Proceedings and Local Business

In December’s issue of one of the most respected and renowned editions in Bulgaria, “Your Business” Magazine, was published an article written by the Managing Partners of Toskov & Yordanov Law Firm. The article discusses issues related to the insolvency proceedings in the light of the unfavourable financial climate and the ongoing economic crisis in Bulgaria. A brief analysis is made of the prerequisites for initiation of insolvency proceedings, the consequences of such initiation as well as the possibility of lodging and successfully implementing of a number of repeal actions as a result of which transactions concluded within the so called “suspicious period”, i.e. the period after the initial date of insolvency/overindebtedness of the debtor, to be declared void. There is also an overview of the overall effect on business of the increasing number of insolvency proceedings and the lack of assessment of the economic status of any of the contracting parties when concluding an agreement, which on its turn could be a prerequisite for declaring such transactions void, due to their conclusion within the suspicious period.

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