Legislative Model for Overcoming Insolvency in Bulgaria – Condition and Perspectives

The focus of this research is the legal framework in the Commercial Act that contains the legal means for overcoming the traders’ insolvency in the presence of financial difficulties and the special aspects of the statutory regulations. Based on the historical method, analysis has been made of the first legislative instruments in Bulgaria which reflect the involvement of state in the establishment of a modern legal framework in the area of bankruptcy. The research is focused mainly on the contemporary statutory regulations in an attempt to determine its efficiency when it comes to keep the business operating irrespective of the economic crises and financial shocks. Based on the normative analysis of the current legal framework, separate issues have been outlined connected with its implementation, such as the formal requirements that need to be observed when suggesting the plan for the recovery of the enterprise, as well the lack of criminal provisions engaging the responsibility of the liquidator in case of illegal activities and damage of the debtor’s property. It also states the measures in accordance with the resolution of the European Parliament of 2019 for the optimization of the statutory regulations and the judicial procedures for prevention of insolvency, which may be also instrumental in the improvement of our existing commercial law.