The caretaker government envisages drastic changes in the legislation with the draft Law on Bankruptcy of Individuals submitted to the National Assembly. The new texts introduce imprisonment of up to three years for debtors who hide property during a bankruptcy procedure.
According to the draft, citizens with debts over 10,770 leva, calculated on the basis of ten minimum wages for 2025, will have the right to start a bankruptcy procedure, writes the newspaper "Trud".
"The law will not apply to mortgage loans, fines and alimony owed", the draft states. In addition, it excludes sole proprietors and those exercising liberal professions when their obligations are related to professional activity.
Citizens who have taken on financial obligations in the last five years that are "clearly disproportionate to their assets and income" will also not be able to benefit from the provisions.
Working-age individuals who have not worked in the last year before filing the bankruptcy petition without good reason will also not have access to the procedure.
Criminal liability is also provided for debtors who:
The adoption of a law on personal bankruptcy is part of Bulgaria's commitments under the Recovery Plan, but so far no consensus has been reached on its final version due to the frequent change of power.