Bankruptcy – meaning
The idea of bankruptcy arose in Italy. Bankruptcy is a legal-technical term. It can be considered as a legal institution a set of legal norms, the state of the trader or production which is a dynamic factual composition.
Bankruptcy is a court proceeding of universal enforcement, aimed at proportional satisfaction of the creditors of the insolvent or over-indebted trader.
Commercial insolvency is a court proceeding of universal enforcement to satisfy the creditors of an insolvent or over-indebted debtor.
Bankruptcy has the following characteristics:
- Independent legal institute – a set of legal norms that regulate the relations in case a trader cannot pay his commercial and some other obligations. This institute contains norms of both substantive and procedural law (with procedural matter predominating).
- Bankruptcy is a condition in which the trader has lost his commercial quality, the commercial activity has been terminated and he cannot dispose of his commercial enterprise.
- Judicial proceedings – are governed by the court. It is a dynamic factual composition, which contains a certain series of legal facts. As a consequence of each previous legal fact are those after it. I.e. each previous legal fact gives rise to the next.
Bankruptcy is a way of universal enforcement. Because creditors act collectively, not through individual prosecution of the debtor.
In case of bankruptcy
In case you are a commercial enterprise or a trader in bankruptcy, seek qualified legal assistance. This is your right and opportunity to go through all the stages of bankruptcy more easily. Contact a law firm specializing in Commercial Law. Regardless of whether you are a Bulgarian or a foreign citizen who has a bankrupt business in Bulgaria, you can count on a serious professional attitude and full commitment to your cause.