Bulgaria’s Ruling Party Proposes 10-Year Limitation Period for Natural PersonsDomestic | April 27, 2015, Monday // 14:23| views
Photo by BGNES
Ruling party GERB (Citizens for European Development of Bulgaria) has proposed the introduction of an absolute limitation period of ten years for debts of natural persons.
GERB has submitted to Parliament proposals for changes to the Obligations and Contracts Act which are available on the website of Bulgaria’s Parliament.
“Bulgarian legislation sets out a well-defined bankruptcy procedure for traders but when it comes to natural persons who are not involved in commercial activities the situation is very different,” the initiators of the legal amendments say, stressing that most European countries have regulations on the bankruptcy of natural persons.
“The introduction of the absolute limitation period of ten years for natural persons is an alternative solution aimed at avoiding the problem of the “eternal debtor,” GERB MPs state.
Bulgaria is currently the only EU country which lacks provisions regulating the bankruptcy of natural persons.
Romania started a procedure to adopt rules on the bankruptcy of natural persons and the provisions are expected to become final soon, according to reports of investor.bg.
At the end of 2014, Economy Minister Bozhidar Lukarski announced that the Justice Ministry was preparing legal provisions to regulate the matter.
Meanwhile, the ABV party (Alternative for Bulgarian Revival) submitted to Parliament a draft Law on Protection in Cases of Over-indebtedness of Natural Persons including provisions on the bankruptcy of natural persons.