SUSPENSION OF ENFORCEMENT PROCEEDINGS IN INSOLVENCY
SUSPENSION OF ENFORCEMENT PROCEEDINGS IN INSOLVENCY
Common cases of suspension of enforcement proceedings are when bankruptcy proceedings are opened or about to be opened. Suspension in this manner is especially the case when there are several joint and several debtors or mortgagees and pledge debtors. The suspension applies only to the property that is in the patrimony of the person for whom bankruptcy proceedings have been opened, as it becomes part of the bankruptcy estate. In the event that there are other debtors or assets that belong to other persons, the execution is continued against them. In this scenario, the proceedings are practically not resumed, since companies that, after the initiation of bankruptcy proceedings, have carried out a recovery plan, are practically non-existent or are exceptions. The usual continuation of the procedure is the termination of the enforcement proceedings upon acceptance of the claimant's claim by the receiver and the approval of the latter's list by the court in the bankruptcy proceedings.
The suspension of enforcement proceedings in the cases specified in the Commercial Law and the Bank Insolvency Law is intended to protect the bankruptcy estate, since universal enforcement has priority over individual enforcement, in view of the possibility in bankruptcy to present their claims and all creditors are satisfied, while in individual enforcement only an individual creditor is satisfied.
Attorney at law Iuila Danova
#3, Dobrotica Str., Varna, Bulgaria
Mob: +359 895 64 59 40
WWW: advokatvarna.com
Email: iulia.danova@abv.bg