An unpaid invoice is a problem almost every business faces sooner or later. The client accepts the goods or service, then promises to pay "next week", stops answering the phone or starts disputing the quality only after the due date. Meanwhile, you have already paid the VAT on the invoice and paid your own suppliers.
Bulgarian law gives the creditor a clear and relatively quick route for collecting the claim: payment demand, settlement, order for payment, a court claim if needed, and finally the enforcement agent. Below we describe each stage, with the current deadlines and fees as of 2026 and the typical mistakes that cost creditors time and money.
When is the client in default and what do they owe you besides the principal?
First you need to establish when the claim became due. For transactions between traders, the rules are in the Commerce Act (ТЗ):
- If the contract sets a payment deadline, the debtor is in default from the day after it expires. No demand is needed (Art. 84(1) of the Obligations and Contracts Act, ЗЗД).
- If no deadline was agreed, the invoice must be paid within 14 days of receipt (Art. 303a(3) of the Commerce Act).
- The agreed deadline in a commercial transaction may not, as a rule, exceed 60 days. A longer deadline is exceptionally allowed if it is not grossly unfair to the creditor (Art. 303a(1) of the Commerce Act).
In the event of default in a commercial transaction, in addition to the principal, the creditor is entitled to:
- Statutory interest from the day of default (Art. 86 of the Obligations and Contracts Act and Art. 309a of the Commerce Act).
- Compensation for recovery costs of no less than EUR 40, without any demand being needed (Art. 309a(1) of the Commerce Act).
- Compensation for greater proven damage under the general rules.
How is statutory interest calculated after the introduction of the euro? Until the end of 2025 it was the BNB base interest rate (ОЛП) plus 10 percentage points. With the introduction of the euro, the BNB stopped setting a base rate. By an amendment to Council of Ministers Decree No. 426 of 2014, from 1 January 2026 statutory interest is the European Central Bank's interest rate on its main refinancing operations in force on 1 January or 1 July respectively, plus 8 percentage points. For the first half of 2026 this gives about 10.15% per year. For older invoices, use a calculator that takes both regimes into account.
Payment demand and notarial demand
A well-written demand often solves the problem without going to court. It should contain:
- the invoice number and date, and the basis (contract, order, handover record);
- the exact amount due, the interest accrued and the EUR 40 under Art. 309a of the Commerce Act;
- a short but realistic payment deadline (usually 7 days) and a bank account;
- an express warning that, if payment is not made, you will apply for an order for payment without further notice.
Send the demand in a way that lets you prove it was received. A notarial demand (нотариална покана) is served by a notary and certifies its date and content. It is useful where no payment deadline was agreed and default arises after a demand (Art. 84(2) of the Obligations and Contracts Act), or where you expect a dispute.
Sometimes the debtor claims to have already paid, but to an account received from a fake email purporting to be from you. This is usually fraud with substituted bank details. In that case, whether the payment discharges the debt depends on the circumstances. We explain how to deal with the bank in such transfers in our article on unauthorised transactions from a card or account.
Settlement, payment by instalments and acknowledgement of the debt
If the debtor wants to pay but does not have the money all at once, a settlement agreement for payment by instalments is often the fastest route to your money. Follow three rules:
- Ask for a written acknowledgement of the debt. Acknowledgement interrupts the limitation period, which starts to run afresh (Art. 116(a) and Art. 117 of the Obligations and Contracts Act).
- Have the signatures notarised. A settlement with notarised signatures that contains an obligation to pay a sum of money is a document under Art. 417(3) of the Civil Procedure Code (ГПК). If payment is not made, you can apply for an order for immediate enforcement.
- Agree on acceleration. If an instalment is missed, the whole balance should become due immediately.
From our practice: The most common mistake creditors make is a settlement by email or with signatures that are not notarised. If the debtor stops paying, such a document does not allow immediate enforcement. The procedure then starts from scratch. Notarisation costs little and saves you months.
Order-for-payment proceedings under Art. 410 and Art. 417 of the Civil Procedure Code
Order-for-payment proceedings are the most widely used tool for collecting claims from companies. The court issues an order for payment without summoning the parties, and if the debtor does not object, it becomes final.
Order for payment under Art. 410 of the Civil Procedure Code
- For which claims: monetary claims where the claim falls within the jurisdiction of the district court (Art. 410(1) of the Civil Procedure Code). These are claims of up to BGN 25,000, i.e. about EUR 12,782 (Art. 104(4) of the Civil Procedure Code). For higher amounts you must use Art. 417 or bring a claim.
- How it is filed: traders and persons represented by a lawyer file the application electronically only, through the Unified Portal for e-Justice (ЕПЕП) (Art. 410(5) of the Civil Procedure Code).
- State fee: 2% of the amount claimed, but not less than EUR 12.78 (Art. 12(1) of the Tariff of State Fees under the Civil Procedure Code). When filed electronically through the Unified Portal for e-Justice, the fee is 15% lower.
From our firm's practice: We file case documents exclusively electronically, through the Unified Portal for e-Justice. This way our clients benefit from the 15% reduction in state fees, and the application reaches the court immediately. * Time for the court to decide: the court issues the order within three days (Art. 411(2) of the Civil Procedure Code), if the application is in order. * Time for the debtor: the order invites the debtor to pay within one month of service. Within the same one-month period the debtor may file an objection, without having to give reasons (Art. 412(8) and Art. 414 of the Civil Procedure Code). This period cannot be extended.
Order for immediate enforcement under Art. 417 of the Civil Procedure Code
If the claim is based on one of the documents listed in Art. 417 of the Civil Procedure Code, you can apply for immediate enforcement and a writ of execution together with the order, regardless of the amount. Such documents include, for example, a promissory note, a notarial deed, a settlement or contract with notarised signatures, and an extract from a bank's accounting books. An invoice on its own is not such a document.
When filing electronically, you attach a copy of the document, and the original promissory note, notarial deed or notarised settlement must be submitted to the court within 7 days (Art. 417(2) of the Civil Procedure Code). As a rule, the debtor's objection does not suspend enforcement unless the debtor provides security (Art. 420 of the Civil Procedure Code). That is why a promissory note issued in favour of the supplier is one of the most effective protections in long-term commercial relationships.
Declaratory claim under Art. 422 of the Civil Procedure Code
If the debtor objects in time, the court informs you that you may bring a claim to establish the existence of the debt. The claim is filed within one month of the notification, topping up the state fee to the amount payable for ordinary claim proceedings (Art. 415(4) of the Civil Procedure Code). If you do not bring the claim, the court cancels the order (Art. 415(5) of the Civil Procedure Code).
The advantage is that the claim is deemed to have been brought on the date of the application for the order for payment (Art. 422(1) of the Civil Procedure Code). This matters for the limitation period and for interest. If the court upholds the claim, the order becomes final and a writ of execution is issued (Art. 416(2) of the Civil Procedure Code).
Ordinary claim proceedings: when they are the better choice
Sometimes it is more sensible to start directly with a claim for payment:
- you expect the debtor almost certainly to object, for example because they have already disputed the quality in writing;
- the amount is above the district court threshold and you do not have a document under Art. 417 of the Civil Procedure Code;
- the debtor has no address or registered office in Bulgaria (Art. 411(2)(4) and (5) of the Civil Procedure Code).
The state fee for a statement of claim is 4% of the amount claimed, but not less than EUR 25.56 (Art. 1 of the Tariff). Claim proceedings are slower, but they end with a judgment that settles the dispute definitively. If the debtor is a tenant who has not paid rent, see also our article on the key clauses in a lease agreement.
Interim measures: garnishment and attachment before it is too late
If there is a risk that the debtor will transfer their assets or empty their accounts, you can apply for security for the claim. Security is requested with the statement of claim and, if necessary, even before it. The court grants security where, without it, enforcement of the future judgment would be impossible or difficult. In addition, the claim must be supported by convincing written evidence, or you must provide a guarantee (Art. 391 of the Civil Procedure Code). The measures are garnishment of accounts, receivables and movable property, attachment of real property, and other appropriate measures (Art. 397 of the Civil Procedure Code).
When security is granted for a future claim, the court gives you up to one month to bring the claim (Art. 390(3) of the Civil Procedure Code). The fee for securing a future claim is EUR 20.45.
The enforcement agent: how it works and who pays
With the writ of execution, you turn to a private or state enforcement agent (bailiff). Since 1 July 2025, writs of execution are issued in electronic form, and the enforcement agent has access to them through the portal (Art. 426(1) of the Civil Procedure Code). As a rule, the enforcement agent is the one in the area where the debtor has its registered office or where its assets are located (Art. 427 of the Civil Procedure Code). A debt collection lawyer can also guide you through the procedure.
The enforcement agent investigates the debtor's assets, garnishes their bank accounts and receivables, attaches properties and proceeds to a sale. The fees are paid in advance by the creditor, but the costs of enforcement are borne by the debtor (Art. 79 of the Civil Procedure Code) and are collected from the debtor together with the debt.
Bear in mind that if you do not request any enforcement step for two years, the case is terminated by operation of law (Art. 433(1)(8) of the Civil Procedure Code).
| Demand / settlement | Order-for-payment proceedings | Claim proceedings | |
|---|---|---|---|
| When suitable | The debtor is reliable but late | Undisputed claim up to the district court threshold, or a document under Art. 417 | Disputed claim, large amount, debtor abroad |
| State fee | None (notary's fee if notarised) | 2%, min. EUR 12.78 | 4%, min. EUR 25.56 |
| Time for the debtor to respond | Set by you | 1 month to pay or object | Deadline for a response to the statement of claim |
| Result | Payment or acknowledgement of the debt | Writ of execution, if there is no objection | Court judgment and writ of execution |
Limitation: how long can you claim the money?
- The general limitation period is five years (Art. 110 of the Obligations and Contracts Act). It also applies to the price under an unpaid invoice between traders, as the law does not provide a separate limitation period for commercial transactions.
- Three years is the limitation period for interest, rent and other periodic payments, and for contractual penalties and damages for breach of contract (Art. 111 of the Obligations and Contracts Act).
- The limitation period runs from the day the claim became due (Art. 114 of the Obligations and Contracts Act). It is interrupted by acknowledgement of the debt, by a claim or by enforcement steps (Art. 116 of the Obligations and Contracts Act).
- Once the claim has been established by a court judgment, the new limitation period is always five years (Art. 117(2) of the Obligations and Contracts Act).
The debtor is a deleted company or insolvent
If the debtor is in liquidation, lodge your claim with the liquidator. If you have already brought a case, applied for an order for payment or hold a writ of execution, you can ask the regional court to prohibit the deletion of the company (Art. 273(3) of the Commerce Act). We explain more about companies that fail to file accounts for years in our article on the ex officio strike-off of companies for unpublished annual accounts.
Once insolvency proceedings have been opened, individual collection stops. The claim must be lodged with the insolvency court within one month of the decision opening the proceedings being entered in the Commercial Register (Art. 685 of the Commerce Act). Lodging within the following two months is also allowed, but with less favourable consequences (Art. 688 of the Commerce Act). As a creditor under a commercial transaction, you can yourself petition for the opening of insolvency proceedings (Art. 625 of the Commerce Act).
Before supplying goods on deferred payment terms, check your counterparty in the Commercial Register: who manages it, what its capital is and whether it publishes its accounts. We explain the liability of partners in an OOD and EOOD in our article on registering an OOD or EOOD.
Debtor in another EU country: the European order for payment
When the debtor is in another Member State, you can use the European order for payment under Regulation (EC) No 1896/2006. It is intended for uncontested cross-border monetary claims and is filed on a standard form. The debtor has 30 days from service to object. If they do not object, the order is enforced in the other country without any further procedure; if they object, the case continues as ordinary claim proceedings.
Statutory interest Late-payment interest on an unpaid debt, calculated by half-year from 2015 onwards. Court fees State fees for a statement of claim, an order for payment and an appeal, based on the amount claimed.Frequently Asked Questions (FAQ)
How long do I have to sue a client over an unpaid invoice?
The general limitation period for the price under an invoice is five years from the date payment became due (Art. 110 of the Obligations and Contracts Act). Interest is subject to a three-year limitation period. A written acknowledgement of the debt or an application to the court interrupts the limitation period.
What is the deadline for objecting to an order for payment?
The debtor may object within one month of service of the order (Art. 414(2) of the Civil Procedure Code). The period cannot be extended, and the objection does not need to give reasons. If no objection is filed, the order becomes final.
What is the statutory interest rate in 2026?
From 1 January 2026, statutory interest is the ECB's interest rate on its main refinancing operations plus 8 percentage points. The ECB rate is taken as at 1 January or 1 July respectively. For periods up to the end of 2025, the old formula applies: the BNB base rate plus 10 points.
Can I file an application for an order for payment on paper?
Traders, and anyone represented by a lawyer, file the application electronically only, through the Unified Portal for e-Justice (Art. 410(5) of the Civil Procedure Code). Individuals without a lawyer can still file the application on paper at the district court.
What is the state fee for an order for payment?
The fee is 2% of the amount claimed, but not less than EUR 12.78. When the application is filed electronically through the Unified Portal for e-Justice, the fee is 15% lower. For a subsequent claim under Art. 422 of the Civil Procedure Code, you pay the difference up to the fee for claim proceedings, which is 4% but not less than EUR 25.56.
Can I also recover my collection costs?
Yes. In a commercial transaction you are entitled to compensation of no less than EUR 40 without a demand, as well as statutory interest (Art. 309a of the Commerce Act). If you win, the court costs and the lawyer's fee are awarded against the debtor, and the enforcement costs are also borne by the debtor.
What should I do if the debtor is a company in liquidation or has been deleted?
Lodge the claim with the liquidator and, if necessary, ask the court to prohibit the deletion of the company. We explain how the situation looks from the debtor company's side in our article on company strike-off for unpublished annual accounts.
The client says they paid to a different account from a fake email. What now?
This is usually fraud with substituted bank details. Whether the payment discharges the debt depends on the specific circumstances and on who allowed the breach. We explain what rights the payer has against their bank in our article on unauthorised transactions from a card or account.
My tenant is not paying the rent. Do the same rules apply?
Yes, order-for-payment proceedings can be used for unpaid rent. Rent claims, however, are subject to a three-year limitation period (Art. 111(c) of the Obligations and Contracts Act). We explain how to prepare the contract so that collection is easier in our article on the clauses in a lease agreement.
How can I protect myself from unpaid invoices in future?
Conclude written contracts with a payment deadline and a contractual penalty. For larger transactions, ask for a promissory note or other security, and check the counterparty in the Commercial Register. A promissory note allows an order for immediate enforcement under Art. 417 of the Civil Procedure Code.
How can we help you?
We will prepare the demand and the settlement, file the application for an order for payment, represent you in the claim if there is an objection, and work with the enforcement agent until the claim is collected. We will also tell you when collection is not economically justified.
The information in this article is general and does not replace specific advice. The result in each case depends on the evidence and on the debtor's assets. If you have unpaid invoices, contact Mechkova & Dimitrova Law Firm and send us your documents for review.
