In the dynamic landscape of 2023, Bulgaria underwent a remarkable metamorphosis in its insolvency proceedings due to game-changing amendments to the Commerce Law. These changes not only impact the bankruptcy processes for legal entities but also introduce an entirely new bankruptcy procedure for natural persons operating as entrepreneurs. This article unravels the thrilling twists in the legal framework, highlighting the ripple effects on both corporate and individual bankruptcy proceedings.
I. Changes in Bankruptcy Proceedings for Legal Entities
Jurisdiction of Claims
Among the noteworthy alterations is the jurisdiction of claims in bankruptcy proceedings. While the court of the debtor’s seat remains the primary jurisdiction, a new requirement mandates that the merchant’s registered office must not have changed within six months before filing the application. This aims to prevent the strategic relocation of a company’s registered office to influence the selection of the court for bankruptcy proceedings, ensuring a fair and transparent process.
Appeal of Decisions and Determinations
The amendments establish a clearer appellate process for decisions made by district courts in various stages of bankruptcy proceedings.
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