Having drawn from the expertise of the Atradius Collections' local offices, the International Debt Collections Handbook explains the different stages, regulations and procedures for Bulgaira.
Atradius Collections and local agents have a professional approach to each case, trying to establish a relationship of confidence with debtors and retain relationships between client and debtor whenever possible. The scope of action includes (but is not limited to) calls, sending reminder letters and attempting to realise personal contact with the responsible person within the debtor company.
In Bulgaria, the legal interest to debtors can be calculated from the base rate set by the Bulgarian National Bank on 1 January (for the first half of the year) and 1 July (for the second half of the year), plus 10% on a yearly basis. It is possible to include interest, which will be calculated differently if this was agreed in the contract between parties. Usually our clients, when submitting a debt collection case, also include interest calculated by them.
We include this in the debt amount in our reminder, but in the majority of the cases debtors do not pay this interest. From a cultural point of view, Bulgarian debtors are not used to paying late payment interest, though often the actual amount of the interest payment is considered a matter of negotiation between debtors and collectors.
Bulgaria has officially accepted recovering debt collection costs, accordingly to EU Directive 2011/7/EU, but in reality this is not yet applied in practice. The principal rule is adapted from the directive; clients may ask for an additional payment of EUR 40 for each invoice.
The Debt Collections Handbook presents a snapshot of the Bulgaria's local economic situation and covers the following topics:
- Legal procedures
- Dunning procedures
- Insolvency proceedings
- Timeframe and outcome
To read more about steps and procedures undertaken in the field of debt collection: