Debts to Banks – What Should I Do?

1. When You Fall Behind on Your Loan – What Really Happens

Every day clients come into my office worried:

“The bank threatened me with a bailiff. What can I do?”
or
“I have an overdue loan. The bank says they’ll send me to enforcement. What can they actually do and how can I defend myself?”

The truth is that when you’re late with payments, the bank doesn’t immediately sell your property at auction. The procedure is regulated by the Civil Procedure Code (Articles 404–520) and goes through several clear stages. Let’s put them in simple human terms:

2. The Path of Debt – From the Bank to the Bailiff

Step 1. The bank files an application with the court.

• If it presents a bank statement (Art. 417, item 2 CPC), the court issues an order for immediate enforcement and an enforcement writ the same day.

• You won’t know about it yet, because the order is delivered through a private bailiff (ChSI).

Step 2. You receive a “Notice for Voluntary Payment.”

• This is the first official sign that an enforcement case has been opened.

• From this moment, the legal deadlines for reaction begin.

Step 3. You have one month to file an objection (Art. 414 CPC).

• The objection does not need to be justified. It’s enough to write:

  “I object to the issued order for payment.”

• Filing the objection stops the order from becoming final. The bank must then prove the debt in a regular court case.

Step 4. Request to suspend the enforcement (Art. 420 CPC).

• Normally, filing an objection alone does not stop the bailiff’s actions.

• You may request suspension:

  • if you are a consumer – the court can suspend enforcement without security if there is evidence of unfair contract terms;

  • if you are not a consumer – you can provide security (usually one-third of the debt).

Step 5. The bailiff starts enforcement actions:

• garnishment of wages and bank accounts;

• attachment (mortgage) on property;

• inventory and public auction.

But the law sets clear limits:

• Art. 444 CPC – they cannot seize items for personal use, food, heating fuel, or your only home (if you have no other).

• Art. 446 CPC – from your salary only part can be deducted:

  • one-third if your income is up to twice the minimum wage;

  • one-quarter if you have dependent children;

  • you must always be left with at least the minimum wage.

3. Example from Practice

Peter has a bank loan of 20,000 BGN and hasn’t paid for six months.
The bank obtains an order under Art. 417 CPC and the bailiff sends him a notice.

• Peter has one month to object. If he does, the case is suspended and the bank must file a lawsuit.

• If he doesn’t, the order becomes final, and the bailiff can garnish his salary and attach his property.

• Peter earns 2000 BGN gross, about 1600 BGN net. The bailiff can deduct about one-third – roughly 530 BGN per month.

4. How a Lawyer Can Help

1. Check whether the bank followed the law – many orders are based on unfair clauses (hidden interest, unilateral changes, undisclosed terms).

2. Prepare the objection, suspension request, and appeals against unlawful bailiff actions.

3. File motions to lift seizures over non-seizable income or property.

4. Negotiate a settlement with the bank for restructuring, rescheduling, or court settlement.

5. Practical Summary – What You Should Do Immediately

6. Final Takeaway

An overdue loan is not the end of the world, but without action, the law works entirely in the bank’s favor.
Your first step is not panic, but an objection and a legal consultation.

“He who sleeps on his rights wakes up without them.”