insolvency

[englishman]

I am buying an apartment in Bulgaria/which is to be built still/. I want to be sure that the builder is bonded as protection in the, hopefully, unlikely event of insolvency. Is the law in Bulgaria giving such guarantee?

[yank]

Unfortunately – there is no. The builder may insure the construction works in progress, but this concern the risk and the quality of the construction only. In event of builder’s insolvency, there is a specific legislation, providing the rights and the protection of the creditors during the insolvency procedure. To a certain extent the preliminary contract gives you protection in cases the builder refuses or is not capable to transfer you the ownership over the property.

[englishman]

Thanks!
You wrote that there is a specific legislation, providing the rights and the protection of the creditors during the insolvency procedure. Can you explain briefly about this specific legislation?

[yank]

Briefly will be quite difficult. It is a whole chapter in the Commercial Act with articles that regulate the specific subject of bankruptcy and insolvency. In general, as creditors are considered all physical persons and legal entities, to which the builder has any outstanding (despite monetary or contractual obligations). Furthermore, the main idea is how to be distributed the property of the debtor (if any) among these creditors, by keeping certain priorities for certain creditors such as the State, creditors with mortgages and pledges, employees and etc. The court procedure is long, heavy and barely successful.
Find trustable attorney in Bulgaria to protect your interests before the developer, because most of the latter are trying to blackmail the foreigners by asking crazy money in advance and giving no any guarantees for the construction.

[gi_master]

....

[Johnnie]

If you are searching for a property in Bulgaria you can write to an e-mail bp_asya51@yahoo.com this is the e-mail of a firm that can offer properties mostly in the Yambol region.