(Previous Chapter 37, SG No. 83/1996)
Section I
Complementing of bankruptcy estate

Collection of Capital not Paid In
Article 643
Shares or contributions not paid in or not deposited by limited liability partners, shall be collected by the trustee in bankruptcy to complement the bankruptcy estate.
Termination of Contract
Article 644
(1) The trustee in bankruptcy may terminate any contract to which the debtor is a party, provided it has not been performed wholly or in part.
(2) The trustee in bankruptcy shall send a 15 days advance notice for termination of contract.
(3) Upon request of the other party the trustee in bankruptcy shall respond within 15 days whether he shall keep the contract in effect or terminate it. Should there be no response, the contract shall be considered terminated.
(4) Upon termination of contract the other party shall be entitled to compensation for damages incurred.
(5) Keeping a contract under which the debtor is to effect regular payments shall not bind the trustee in bankruptcy to effect payments that have been overdue prior to the date of ruling on institution of bankruptcy proceedings.
Set-off
Article 645
(1) Creditors may set off their obligations to debtors, provided prior to the date of the ruling on institution of bankruptcy proceedings both obligations existed and were reversibly directed to each other and of the same type and the receivable was due. Where the receivable has become due in the course of bankruptcy proceedings or as result of a ruling to declare bankruptcy, and also where both obligations have become of same type as a result of such ruling, creditors may set off only after the receivable becomes due or the receivables become of the same type.
(2) The statement of a set-off shall be sent to the trustee in bankruptcy.
(3) (Amended and supplemented, SG No. 70/1998) The set-off may be declared invalid with respect to the bankruptcy creditors, provided the creditor has acquired the receivable and the obligation to the debtor prior to the date of the ruling on institution of bankruptcy proceedings, but he knew as of the time of acquiring the receivable or obligation that insolvency or over-indebtedness, as the case may be, has occurred or that an application to institute bankruptcy proceedings has been filed.
(4) (Amended and supplemented, SG No. 70/1998) A set-off effected by the debtor after the initial date of insolvency or over-indebtedness, as the case may be, shall be invalid with respect to the bankruptcy creditors, except for the part that the creditor may have acquired from distribution of assets converted into money, regardless of the time of occurrence of both reversibly directed obligations.
Nullity of Actions and Transactions
Article 646
(1) (Amended, SG No. 70/1998) The following shall be considered null and void with respect to the bankruptcy creditors, if effected after the date of the ruling on institution of bankruptcy proceedings and not in compliance with the procedure established thereby:
1. performance of an obligation that has occurred prior to the date of the ruling on institution of bankruptcy proceedings;
2. pledging or mortgaging rights or chattels included in the bankruptcy estate;
3. transactions with rights or chattels included in the bankruptcy estate.
(2) (Amended, SG No. 70/1998) Performance of the following actions and transactions made by the debtor after the initial date of insolvency or over-indebtedness, as the case may be, shall be null and void with respect to the bankruptcy creditors:
1. performance of a monetary obligation regardless of the manner of performance;
2. gratuitous transactions involving a property right from the bankruptcy estate;
3. setting up a pledge, mortgage or other surety on a property right from the bankruptcy estate;
4. transactions against payment involving a property right from the bankruptcy estate, in which what is given significantly exceeds what is received.
(3) (New, SG No. 103/1999) The preceding paragraphs shall not apply in cases of execution, by the debtor, of public collection claims or of private state claims where the foreclosure is enforceable in the procedure applicable to public claims.
Actions to Repeal
Article 647
(Amended, SG No. 70/1998)
In addition to the cases provided by law, the following acts and transactions effected by the debtor may be declared invalid with respect to the bankruptcy creditors:
1. (amended, SG No. 38/2006) gratuitous transactions, with the exception of an ordinary donation, to the benefit of a party related to the debtor, effected within 3 years prior to the institution of bankruptcy proceedings;
2. gratuitous transactions in favour of third parties, effected within 2 years prior to the institution of bankruptcy proceedings;
3. (amended, SG No. 84/2000) transactions against payment, where the items given exceed considerably in value the items received, effected within 2 years prior to the institution of bankruptcy proceedings;
4. repayment of money obligation by transfer of property, effected within 3 months prior to the initial date of insolvency, where the return of the property could result in increase of the amount to be received by creditors;
5. (amended, SG No. 84/2000) mortgaging, pledging or providing another security in favour of a claim not secured till that time, effected within 1 year prior to the institution of bankruptcy proceedings;
6. (amended, SG No. 84/2000) mortgaging, pledging or providing another security in favour of a claim of a partner or shareholder not secured till that time, effected within 2 years prior to the institution of bankruptcy proceedings;
7. (amended, SG No. 84/2000, No. 38/2006) a transaction effected within two years prior to the institution of bankruptcy proceedings which jeopardized the creditors, with a party related to the debtor being a party thereto;
Return of Items Given to Third Parties
Article 648
Where the provisions of Articles 646 or 647 have been applied to transactions, the items given to third parties shall be returned, and where the items given are not found in the bankruptcy estate or moneys are owed, the third party shall become creditor.
Bringing Actions to Repeal
Article 649
(1) Actions pursuant to Article 645, para 3, and Article 647 may be brought by the trustee in bankruptcy, and should he fail to do so - by any bankruptcy creditor within one year following the institution of proceedings.
(2) (New, SG No. 70/1998, amended, SG No. 84/2000) In the event of action brought under a claim by the trustee in bankruptcy, no preliminary state fee shall be collected. Should the claim be honoured, the state fee due shall be collected from the sentenced party, and should the claim be rejected, the state fee shall be collected from the bankruptcy estate.
(3) (Renumbered from Paragraph 2, SG No. 70/1998) Actions pursuant to Articles 645, 646 and 647 of this Act, as well as actions pursuant to Article 135 of the Obligations and Contracts Act , related to the bankruptcy proceedings, shall be brought before the bankruptcy court.
Section II
Sealing

Order for Sealing
Article 650
(1) Should there exist danger of dissipation, destruction or concealment of property, the court of jurisdiction over bankruptcy may order the sealing of premises, equipment, transport vehicles, etc., where chattels of the debtor are stored.
(2) Inhabitable housing facilities and premises needed to continue the activities of the debtor or to store perishable goods, shall not be sealed.
Execution of Sealing
Article 651
(Amended, SG No. 43/2005)
Seals shall be fixed by a bailiff. A protocol of the acts performed shall be forwarded to the court.
Section III
Inventory of Property

Removal of Seals
Article 652
Within 3 days following his entry into office, the trustee in bankruptcy must request removal of seals and preparing of inventory of real properties and chattels, moneys, valuables, securities, contracts, etc., of debtor's claims and chattels in possession of third parties.
Preparation of Inventory
Article 653
(Amended, SG No. 43/2005)
(1) The inventory shall be prepared by the trustee in bankruptcy.
(2) The trustee in bankruptcy shall inform the debtor of the acts under para 1.
(3) Should other properties be found after preparation of the inventory, supplementary inventory shall be prepared.
Liability for Inventory Property
Article 654
The trustee in bankruptcy shall be liable for the property included in the inventory as from the time of preparation of the inventory, provided it has not been delivered to the debtor or to third parties for safe-keeping.
CHAPTER FORTY-TWO
AUTHORITIES AND MANAGEMENT OF THE BANKRUPTCY ESTATE

(Previous Chapter 38, SG No. 83/1996)
Section I
Trustee

Qualifications
Article 655
(1) (Amended, SG No. 70/1998) Natural persons may become trustees.
(2) (Amended, SG No. 70/1998) Trustees shall conform with the following requirements:
1. not to have been convicted as a citizen of lawful age for general offence, except for the cases of exoneration;
2. not to be spouse of the debtor or creditor and not to be in kinship relations with any of them in direct descent and lateral branch to the sixth degree, and in-law lineage up to the third degree;
3. not to be a creditor in the bankruptcy procedure;
4. not to be a bankrupt debtor whose rights have not been reinstated;
5. not to be in any relations with the debtor or creditor, which may generate substantiated doubts as to his impartiality;
6. (new, SG No. 70/1998) have completed his university education in economics or law, and have no less than 3 years experience in the respective profession;
7. (new, SG No. 70/1998; amended, SG No. 58/2003) have successfully passed a qualification examination following a procedure established under the regulation referred to in Article 655a, paragraph 1, and be included in the list of persons eligible for the position of trustee in bankruptcy approved by the Minister of Justice and promulgated in the State Gazette.
8. (new, SG No. 84/2000; amended SG, No. 38/2006, supplemented, SG No. 59/2006) if the trustee in bankruptcy has not been dismissed as such on grounds as per Art. 657 (2) of this Act or Art. 29 (1) subparagraphs 6 or 7 of the Bank Bankruptcy Act ;
9. (new, SG No. 84/2000, amended SG. No. 38/2006, SG No. 59/2006) the measure under Article 65 (2) subparagraph 11 of the Banking Act or under Article 103 (2) subparagraph 14 of the Credit Institutions Act shall not have been applied to him.
(3) (Amended, SG No. 70/1998, supplemented, SG No. 84/2000, amended, SG No. 38/2006) The Minister of Justice and Legal European Integration shall exclude from the list under para 2 any persons who have been found in violation with regard to their activities as trustees in bankruptcy, regardless of whether this circumstance is established by the court of jurisdiction over bankruptcy. These changes shall be promulgated in the State Gazette.
(4) (Supplemented, SG No. 84/2000) The powers of the trustee in bankruptcy may be exercised by several persons. In such cases, decisions shall be made unanimously and actions shall be undertaken jointly, unless the meeting of creditors or the court in case of a disagreement between the persons exercising the powers of the trustee in bankruptcy decides otherwise.
(5) When The powers of the trustee in bankruptcy are exercised by several persons, making decisions unanimously and acting jointly, they shall be liable jointly and severally under Article 663, paras 2 and 3.
Contribution for Professional Training
Article 655a
(New, SG, No. 58/2003)
(1) The trustee in bankruptcy shall make an obligatory annual contribution for professional training, in an amount as determined in a regulation concerning the procedure for selection, training and control over trustees in bankruptcy, which shall be issued jointly by the Minister of Justice, the Minister of Economy and the Minister of Finance.
(2) Failure to make the contributions referred to in paragraph (1) in a timely manner shall serve as grounds for the exclusion of the person from the list referred to in Article 655, paragraph (2), subparagraph (7).
(3) The Minister of Justice, in cooperation with the Minister of Economy, shall be obliged to organize training course for trustees in bankruptcy on an annual basis.
Appointment of Trustees in Bankruptcy
Article 656
(Amended, SG, No. 84/2000)
(1) The bankruptcy court shall appoint the trustee in bankruptcy elected by the first meeting of creditors, provided he complies with the requirements under Article 655 and has preliminarily given his consent in writing with a notarized signature. In the same resolution the court of jurisdiction over bankruptcy shall determine the date on which the trustee in bankruptcy shall come into office.
(2) At his appointment, the trustee in bankruptcy shall declare in writing and with a notarized signature the existence of prerequisites and the lack of obstacles pursuant to this Act, the participation in companies as a partner, shareholder, the execution of duties as a liquidator, trustee in bankruptcy and other paid functions.
(3) Should a change occur in any of the circumstances under paragraph 2, the trustee in bankruptcy shall immediately notify the court of jurisdiction over bankruptcy in writing.
(4) The trustee in bankruptcy shall come into office on the date determined by the court. If the trustee in bankruptcy fails to fulfil this obligation, the court of jurisdiction over bankruptcy shall, within 7 days, replace the appointed trustee in bankruptcy with another person among those specified by the first meeting of creditors. If there are no such persons, the trustee in bankruptcy shall be replaced with another person from the respective list and a new meeting of creditors shall be convened.
Discharge of Trustees in Bankruptcy
Article 657
(1) The court shall discharge a trustee in bankruptcy in the following cases:
1. his request in writing sent to the court;
2. legal disability;
3. (new, SG No. 70/1998) if the appointed trustee in bankruptcy no longer meets the requirements under Article 655, para 2;
4. (renumbered from Item 3, SG No. 70/1998, amended No. 58/2003) request by the creditors entitled to more than half of the claims;
5. (new, SG No. 84/2000) decision of the meeting of creditors;
6. (renumbered from Item 4, SG No. 70/1998, renumbered from Item 5, SG No. 84/2000) actual inability to exercise his powers;
7. (renumbered from Item 5, SG No 70/1998, renumbered from Item 6, SG No. 84/2000) death.
(2) The court may discharge the trustee in bankruptcy at any time, in the course of the fulfilment of its judicial obligations or at the proposal of the debtor, the committee of creditors or a creditor, when such trustee in bankruptcy fails to fulfil his obligations or his actions jeopardise the interests of the creditor or the debtor.
(3) (Amended, SG Nos. 70/1998, 80/2000, 58/2003) A trustee in bankruptcy discharged under para 1, Item 1, shall continue to perform his duties until a new trustee in bankruptcy is appointed.
(4) (New, SG No. 84/2000) Subject to appeal before the appellate court shall be:
1. a resolution of the court of jurisdiction over bankruptcy rejecting a request under paragraph 1, Items 1 - 6 and paragraph 2;
2. a resolution of the court of jurisdiction over bankruptcy honouring a request paragraph 2;
(5) (New, SG No. 84/2000) The resolution on discharge of the trustee in bankruptcy shall be executed immediately. An appeal submitted against the resolution on the discharge of the trustee in bankruptcy, shall not suspend its execution. The repeal of the resolution on the discharge of the trustee in bankruptcy shall not restore the person as a trustee in bankruptcy in the same bankruptcy proceedings. When a resolution of the court on the discharge of the trustee in bankruptcy is appealed pursuant to paragraph 4, Item 2, the appeal may be made only by the trustee in bankruptcy.
(6) (New, SG No. 84/2000; supplemented , SG No. 58/2003) In the cases under paragraph 1, Items 1, 2, 3, 5, 6, 7, and paragraph 2 the court shall convene a meeting of creditors for the election of a new trustee in bankruptcy.
(7) (New, SG No. 84/2000) In the cases under paragraph 1, Items 2, 3, 5 and 6 and under paragraph 2, the court shall appoint ex officio a trustee in bankruptcy to fulfil the trustee in bankruptcy functions until the election of a new trustee in bankruptcy.
(8) (New, SG No. 58/2003) In the cases referred to in paragraph 1, subparagraph 4, creditors shall be obliged to indicate a trustee in bankruptcy in their request.
Powers of Trustees in Bankruptcy
Article 658
(1) The trustee in bankruptcy shall:
1. represent the enterprise;
2. manage its current affairs;
3. (new, SG No. 84/2000) supervise the debtor's activity in the cases under article 635, paragraph 1;
4. (renumbered from Item 3, SG No. 84/2000) receive the inventory, keep and maintain the books and business correspondence of the enterprise;
5. (renumbered from Item 4, SG No. 84/2000) identify and establish the debtor's property;
6. (renumbered from Item 5, SG No 84/2000) file requests for terminating or avoiding agreements to which the debtor is a party under the terms and conditions set forth by law;
7. (renumbered from Item 6, SG No. 84/2000) participate in the court proceedings of the debtor's enterprise and bring lawsuits on his behalf;
8. (renumbered from Item 7, SG No. 84/2000) collect the cash receivables of the debtor and deposit them in a special bank account;
9. (renumbered from Item 8, SG No. 84/2000) dispose of the funds in the debtor's bank accounts with the permission of the court when this becomes necessary in connection with the management of the property and its preservation;
10. (renumbered from Item 9, SG No. 84/2000) identify and establish the debtor's creditors;
11. (renumbered from Item 10, SG No. 84/2000) convene and organise the meetings of creditors in conformity with a court ruling;
12. (renumbered from Item 11, SG No. 84/2000) offer a plan under Article 696;
13. (renumbered from Item 12, SG No. 84/2000) undertake actions to terminate the debtor's participation in companies;
14. (renumbered from Item 13, SG No. 84/2000) cash in the property from the bankruptcy estate;
15. (renumbered from Item 14, SG No 84/2000) undertake other actions prescribed by law or assigned by court.
(2) The trustee in bankruptcy shall exercise his powers in conformity with the development of the insolvency proceedings and the court rulings.
(3) (New, SG No. 38/2006) Any and all government bodies and organizations shall be obligated to provide assistance to the trustee in the discharge of his/her duties.
Accountability
Article 659
(1) (Amended, SG No. 84/2000) The trustee in bankruptcy shall enter each action on his part relative to the management of and the disposal with objects and rights of the debtor's property or the bankruptcy estate in a specially bound by him journal with numbered pages and certified by the court.
(2) (Supplemented, SG No. 58/2003) The trustee in bankruptcy shall submit performance reports to the court and the committee of creditors on a monthly basis or immediately, at request.
(3) (New, SG No. 84/2000) At the request of a creditor, the trustee in bankruptcy shall present the journal referred to in paragraph 1, the report referred to in paragraph 2, as well as a report on the specifically raised issues if they are not dealt with in the report under paragraph 2 for the respective period.
Due Care Requirement
Article 660
(1) (Amended, SG No. 70/1998) The trustee in bankruptcy shall exercise his powers with due care.
(2) Trustees in bankruptcy may not delegate their powers to other persons, except in case of an explicit permission by court.
Remuneration
Article 661
(Amended, SG No. 84/2000)
(1) Trustees in bankruptcy shall get a remuneration for their work - current and final, in an amount determined by the meeting of creditors. The way of determining the final remuneration of the trustee in bankruptcy may be taken prior to the conclusion of the work of the trustee in bankruptcy.
(2) The court shall determine a current remuneration for the temporary trustee in bankruptcy, as well as for the trustee in bankruptcy in the cases under article 657, paragraph 6, at his appointment.
(3) The current remuneration shall be paid on a monthly basis.
(4) (Amended, SG No. 58/2003) The final remuneration of the trustee in bankruptcy may be determined also during the adoption of a reorganisation plan, or when an out-of-court settlement is achieved between the debtor and its creditors, as the case may be, and it shall depend on the following circumstances:
1. compliance with the proceedings terms;
2. whether the list of the claims allowed by the trustee in bankruptcy is approved by the court without making changes to it;
3. the actions taken and the honoured claims for replenishing the bankruptcy estate;
4. termination of the bankruptcy proceedings due to approval of a reorganisation plan;
5. the conversion of assets into cash upon declaration of bankruptcy;
6. other circumstances relevant to the term of the proceedings and the bankruptcy estate.
(5) The final remuneration may be determined as a percentage of the property with which the bankruptcy estate has been replenished, an/or as percentage of the value of the assets converted into cash.
(6) Where the meeting of creditors has not been able to decide on the election of a trustee in bankruptcy or on determining the remuneration of the trustee in bankruptcy, it shall be determined by the court.
Restrictions
Article 662
(1) (Amended, SG No. 84/2000) The trustee in bankruptcy may not negotiate on behalf of the debtor either with himself or with a person related to him.
(2) Trustees in bankruptcy may not acquire in any way, directly or through another person, any chattel or right from the bankruptcy estate. This restriction applies also to the their spouses, relatives in direct descent and lateral branch to the sixth degree and in-law lineage up to the third degree.
(3) Trustees in bankruptcy shall not disclose any information, data or facts which have become known to them in the course of exercising of their powers.
(4) (Repealed, SG No. 70/1998).
Liability
Article 663
(1) Where the trustee in bankruptcy fails to perform his duties or performs them poorly, the court may impose a fine which, for each individual case, may not exceed the amount of his monthly remuneration.
(2) The trustee in bankruptcy is liable to pay a compensation equal to the interest determined by operation of law for any delay on his part to deposit the funds received in the bank.
(3) The trustee in bankruptcy is liable to compensate the debtor and creditors for the damage inflicted by him to them in the course of the exercising of his powers.
Insurance
Article 663a
(New, SG, No. 58/2003)
(1) The trustee in bankruptcy shall obtain insurance for the time for which he is appointed to serve as trustee in bankruptcy in those particular proceedings, for damages that might occur as a result of guilty non-performance of his duties. The minimum amount of the insurance amount shall be determined in the regulation referred to in Article 655a, paragraph (1).
(2) The obligation referred to in paragraph (1) shall be fulfilled within three days of the election and prior to assuming the office.
Final Report of the Trustee in Bankruptcy
Article 664
(1) Trustees in bankruptcy shall submit a report in writing upon the termination of their work within a term prescribed by the court.
(2) The newly appointed trustee in bankruptcy, the debtor, the creditors' committee or a creditor may raise objections to the report within seven days after its submission.
(3) (Supplemented, SG No. 84/2000) Within fourteen days of receiving the objections, the court shall issue a ruling on the objections, which will be final and not subject to appeal.
(4) Should no objection be raised within seven days, the report will be considered accepted.
Submission of Books and Property
Article 665
(Amended, SG No. 84/2000)
Upon termination of his activities, the trustee in bankruptcy shall immediately submit with an inventory the books, the journal and the reports under Article 659, as well as the property at his disposal to the newly appointed trustee in bankruptcy or a person designated by the court or to the debtor in the cases set forth in Article 707, para 1.
Section II
Temporary Trustee in Bankruptcy

Appointment of Temporary Trustee in Bankruptcy
Article 666
(Supplemented, SG No. 84/2000)
The court shall appoint the temporary trustee in bankruptcy with the ruling to start bankruptcy proceedings or in the cases under article 657, provided he meets the requirements under Article 655 and has given his consent.
Discharge of Temporary Trustee in Bankruptcy
Article 667
(Amended, SG No. 84/2000)
The temporary trustee in bankruptcy shall be discharged under the terms and conditions set forth in Article 657 and upon the appointment of the trustee in bankruptcy elected by the meeting of creditors.
Powers of the Temporary Trustee in Bankruptcy
Article 668
Temporary trustee in bankruptcy shall enjoy the powers under Article 658. In addition, within 14 days after the date of the ruling on bankruptcy proceedings, the temporary trustee in bankruptcy shall prepare:
1. (supplemented, SG No. 84/2000) a list of creditors on the basis of the debtor's books, indicating also the amounts of their claims;
2. (new, SG No. 84/2000) an excerpt of the books, certified by him;
3. (renumbered from Item 2, SG No 84/2000) a report in writing on the reasons for the insolvency, the condition of the property and the measures taken to protect it as well as the possibilities for reorganisation of the enterprise.
Section III
First Meeting of Creditors

Holding the First Meeting of Creditors
Article 669
(1) (Supplemented, SG No. 70/1998, previous Article 669, amended, SG No. 84/2000) The first meeting of creditors shall be convened on the date scheduled by the court with the ruling to institute bankruptcy proceedings, and shall be chaired by the judge considering the petition for instituting bankruptcy proceedings.
(2) (New, SG No. 84/2000) In the first meeting of creditors shall take part the creditors included in the list referred to in article 668, Item 1 and in the excerpts of the debtor's books, which the temporary trustee in bankruptcy shall submit to the first meeting.
Decision-Making at the First Meeting of Creditors
Article 670
(Amended, SG No. 84/2000, No. 38/2006)
(1) A creditor shall be allowed to participate in the first general meeting either in person or by proxy, subject to an explicit authorization in writing. Where the creditor is a natural person, such authorization shall bear the creditor's notarised signature.
(2) Decisions of shall be adopted by a simple majority vote in terms of the amounts of the claims listed as per Article 668, Item 1.
(3) The decisions of the first meeting of creditors can be annulled in accordance with the procedure as per Art. 679.
Participation of the Temporary Trustee in Bankruptcy and the Debtor
Article 671
The participation of the temporary trustee in bankruptcy at the first meeting of creditors is mandatory, whereas the debtor may attend it if he deems it necessary.
Powers of the First Meeting of Creditors
Article 672
(1) (Previous Article 672, SG No. 84/2000) The first meeting of creditors shall:
1. listen to the report of the temporary trustee in bankruptcy under Article 668, Item 2;
2. (amended, SG No. 84/2000) nominate a permanent trustee in bankruptcy and submit the nomination to the court for approval;
3. elect a creditors' committee.
(2) (New, SG No. 84/2000) At the meeting the creditors may nominate and rank according to their preference several persons for trustees in bankruptcy, of which the court shall appoint a trustee in bankruptcy should the approved trustee in bankruptcy does not come into office within the specified term, in case of discharging him until the meeting referred to in article 673 is held, or when he does not meet any of the requirements under article 655, paragraph 2.
Section IV
Meeting of Creditors

Holding the Meeting of Creditors and Voting Rights
Article 673
(1) The meeting of creditors shall be convened after the approval of the list under Article 692 by the court.
(2) After claims are allowed, voting rights at the meeting of creditors shall be granted only to creditors holding claims allowed.
(3) (Amended and supplemented, SG No. 70/1998, amended, SG No. 58/2003) The court may grant voting rights also to a creditor under Article 637, para 3, provided his claim is supported by the presentation of convincing evidence in writing, and to a creditor with an unacknowledged claim which has filed a claim as stipulated in Article 694, and to creditor whose claim has been acknowledged against whom a claim under Article 694 has been filed requesting the establishment of the non-existence of such creditor's claim.
(4) No voting rights under para 3 shall be granted to a creditor under Article 616, para 2.
Convening of the Meeting of Creditors
Article 674
(Amended, SG, No. 84/2000)
(1) The court shall convene the meeting of creditors at the request of the debtor, trustee in bankruptcy, creditors' committee or creditors holding one-fifth of the amount of claims allowed within maximum 7 days after the submission of the request.
(2) (Amended, SG, No. 38/2006) The meeting of creditors shall be convened immediately after approval by the court of the list of claims allowed pursuant to article 692, paragraph 4, or when no objections have been made - pursuant to article 692, paragraph 2, with an agenda pursuant to article 677, Item 8.
Invitation for the Meeting of Creditors
Article 675
(1) (Supplemented, SG No. 84/2000, No. 38/2006) The invitation for the meeting of creditors shall contain the debtor's trade name, standard identification code and seat, the agenda, date, hour and venue of the meeting.
(2) (Amended, SG, No. 38/2006) The invitation shall be posted in the Commercial Register, such posting being considered due notification of all creditors.
Decision-Making
Article 676
(1) (Amended, SG No. 84/2000) The meeting of creditors shall be held, regardless of the number of persons present and its chairman shall be the judge hearing the case.
(2) During the decision-making process, each creditor shall be entitled to a number of votes representing the proportional share of his claim in the total amount of claims allowed and the claims with voting rights under Article 673, para 3.
(3) Decisions shall be made by simple majority vote, unless the law prescribes otherwise.
(4) (New, SG No. 84/2000) The participation of the creditors in the meeting of creditors shall be in accordance with the procedure of article 670, paragraph 1.
Powers of the Meeting of Creditors
Article 677
(1) The meeting of creditors shall:
1. listen to the report of the trustee in bankruptcy on his activities;
2. hear the report of the creditors' committee;
3. (amended, SG No. 84/2000) nominate a trustee in bankruptcy, if none has been nominated; in this case article 672, paragraph 2 shall be applied;
4. (amended, SG No. 84/2000) decides on the discharge of the trustee in bankruptcy and his replacement;
5. (amended, SG No. 58/2003) determine the amount of the current-basis remuneration of the trustee in bankruptcy, any alteration thereof, and the amount of the final remuneration;
6. appoint the creditors' committee, if none has been appointed, or change its membership;
7. propose to the court the amount of the subsistence for the debtor and his family.
8. (new, SG No. 84/2000; amended, SG No. 58/2003) determine the procedure and the method of cashing the debtor's property, the method and terms and conditions for property evaluation, the choice of evaluators and the determination of their remuneration.
(2) If the meeting of creditors fails to make a decision under para 1, Item 3, the trustee in bankruptcy shall be appointed by the court. The court ruling shall not be subject to appeal.
(3) Minutes shall be taken at the meeting of creditors and signed by the chairing person and the secretary of the meeting.
(4) (New, SG No. 84/2000) If the meeting of creditors fails to make a decision under paragraph 1, Item 8, the decision shall be made by the trustee in bankruptcy.
Effect of the Decisions Made by the Meeting of Creditors
Article 678
The decisions made by the meeting of creditors shall be binding on all creditors, including those absent.
Repeal of a Decision of the Meeting of Creditors by the Court
Article 679
(1) The bankruptcy court may repeal a decision of the meeting of creditors, at the request of the debtor or a creditor, where such decision is unlawful or causes substantial damage to a part of the creditors.
(2) (Amended, SG No. 84/2000; supplemented, SG, No. 38/2006) The request shall be filed within seven days after the meeting is held and it shall be examined by an alternative panel of judges of the court of jurisdiction over bankruptcy with the debtor and creditors being summoned to the court session. The court session on considering the request shall be held not later than 14 days after its submission.
(3) Creditors under para 2 shall be summoned through advertisement in the State Gazette.
(4) (Amended, SG No. 84/2000) The court shall issue a resolution.
Section V
Creditors' Committee

Options
Article 680
(1) The meeting of creditors may appoint a creditors' committee consisting of not less than three and not more than nine members.
(2) The creditors' committee shall include persons representing both secured and unsecured creditors, except for those under Article 616, para 2.
Powers
Article 681
(1) (Amended and supplemented, SG No. 84/2000) The creditors' committee shall assist and check the activities of the trustee in bankruptcy with respect to the property management, inspect the books and cash availabilities, and notify the court in the cases under article 657.
(2) Cash availabilities shall be inspected at least once a month and the findings shall be communicated to the court of jurisdiction over bankruptcy.
(3) (New, SG No. 58/2003) The committee of creditors may, at its own initiative or at the request of the court, provide an opinion concerning the extension of the operation of the debtor's enterprise, the remuneration of the temporary and ex officio trustee in bankruptcy, actions related to cashing, the responsibility of the trustee in bankruptcy under Article 663, paragraph (1), and on other matters.
Remuneration
Article 682
(1) The members of the creditors' committee shall be entitled to remuneration which is determined at the time of their appointment at the expense of creditors.
(2) The unpaid remuneration shall be deducted, at the request of the creditors' committee, when the property converted into cash is distributed according to the size of receivables on a pro rata basis.
Property Acquisition Ban
Article 683
Members of the creditors' committee shall not acquire in any way either directly or through another person chattels or rights from the Bankruptcy Estate. This restriction applies also to the their spouses, relatives of direct lineage, relatives of collateral lineage up to six times removed and in-laws up to three times removed.
Subsidiary Application of the Obligations and Contracts Act
Article 684
As far as the relations between the creditors' committee and creditors are not settled with the provisions of this Part or with an agreement, the provisions of Arts. 280-292 of the Obligations and Contracts Act shall apply.
CHAPTER FORTY-THREE
CLAIMING RECEIVABLES

(Previous Chapter thirty nine, SG No. 83/1996)
Deadline for Claims
Article 685
(1) (Amended, SG No. 84/2000, No. 38/2006) Creditors shall claim their receivables in writing before the bankruptcy court within one month following the posting in the commercial Register of the announcement on the start of bankruptcy proceedings.
(2) (Amended, SG No. 84/2000) Each creditor shall indicate the grounds and amount of the receivables, privileges and security, the legal address and submit evidence in writing.
Statute of Limitation on Claims in Bankruptcy Proceedings
Article 685a
(New, SG, No. 38/2006)
(1) The act of making a claim in bankruptcy proceedings shall be deemed to constitute an interruption of the statute of limitation. The statute of limitation shall be suspended for the duration of the bankruptcy proceedings.
(2) Where a presented claim is not accepted into the bankruptcy proceedings and a supporting claim to establish the facts is required by the court in support thereof, the statute of limitation shall be interrupted. If the claim is overruled, the statute of limitation shall not be deemed to have been interrupted.
(3) Where a presented claim is not accepted, and the creditor has failed to present a supporting claim to establish the facts within the time limit as per Art. 694, the statute of limitation shall not be deemed to have been interrupted.
(4) With the termination of bankruptcy proceedings in accordance with Art. 632 par. (5), the statute of limitation as per Art. 110 of the Obligations and Contracts Act shall be resumed, whereas in cases as per Art. 740 par. (2) the provisions as per 707b shall apply. In case where a resumption of bankruptcy proceedings is requested, the statute of limitation shall be suspended for the accepted claims for the duration of the resumed proceedings.
List of Presented Claims
Article 686
(Amended, SG, No. 84/2000, No. 58/2003)
(1) Within 7 days after the expiration of the term under Article 685, para 1, the trustee in bankruptcy shall compile:
1. a list of the acknowledged claims that have been presented, by order of their presentation, indicating the creditor, the amount and the grounds of the claim, the privileges and security, the date of presenting the claim;
2. a list of the claims pursuant to article 687;
3. (amended, SG, No. 38/2006) a list of claims presented but not acknowledged; annual financial statements for the preceding calendar year and for the last month before the date of the institution of bankruptcy proceedings.
(2) The documents under paragraph 1 shall be made available to the creditors and the debtor at the court chancery.
Proprio Motu Entry
Article 687
(1) (Previous Article 687, SG No. 84/2000, amended SG No. 38/2006) The claims of a worker or employee arising from a labour relationship with the debtor shall be entered proprio motu by the trustee in bankruptcy in the list of accepted claims.
(2) (New, SG No. 84/2000) The trustee in bankruptcy shall enter proprio motu in the list of presented claims any government claim established by an act which has come into effect.
Additional Claims
Article 688
(1) (Supplemented, SG No. 84/2000, amended, No. 58/2003, No. 38/2006) Any claim made after the expiration of the term under Article 685, para 1, but not later than two months there from, shall be entered on the list of presented claims and acknowledged in accordance with the terms and procedures set forth by law. After the expiration of this period, no claims which have occurred prior to the date of institution of bankruptcy proceedings may be presented.
(2) A creditor with claims under para 1 may not challenge claims already acknowledged or a distribution which has been made and he shall be satisfied with the balance if the property cashed in has been distributed. The additional expenses for the acceptance of his claim shall be borne by him.
(3) (New, SG No. 84/2000; amended, SG, No. 38/2006) Claims not paid on the maturity date and occurred after the date of the institution of bankruptcy proceedings and until the approval of a reorganisation plan, respectively the date of declaring the debtor in bankruptcy, shall be presented according to the procedure of this Chapter. The trustee in bankruptcy shall make a separate list of such claims.
(4) (New, SG No. 84/2000, repealed, SG No. 38/2006) .
List of the Claims Acknowledged by the Trustee in Bankruptcy
Article 689
(Amended, SG Nos. 84/2000, 58/2003, No. 38/2006)
The trustee in bankruptcy shall submit for posting in the Commercial Register the lists and financial statements immediately after they have been compiled, and shall make them available for creditors and the debtor at the court chancery.
Challenge of the List
Article 690
(Amended and supplemented, SG, No. 84/2000;
amended, SG No. 58/2003)
(1) (Amended, SG, No. 38/2006) The debtor or any creditor may challenge a claim, whether allowed or not by the trustee in bankruptcy, by filing an objection in writing within 7 days from the posting as per Art. 689.
(2) The trustee in bankruptcy shall be obliged to present to the court an opinion on each objection within three days of its receipt but not later than the date of holding the court hearing of objections.
Unchallengeable Claim
Article 691
Claims which have been established by a court ruling which has entered into force and was issued after the date of the decision to start bankruptcy proceedings, where the trustee in bankruptcy was a party, cannot be challenged.
Approval by the Trustee in Bankruptcy of the List
of the Claims Allowed
Article 692
(Supplemented, SG, No. 70/1998; amended, SG No. 84/2000)
(1) (Amended, SG No. 58/2003, No. 38/2006) Where no objections have been filed in respect of the lists as per Art. 686 par (1), the court shall approve in a closed session the list of allowed claims that have been entered proprio motu immediately after expiry of the term as per Art. 690 par. (1). The court shall rule in a determination.
(2) (New, SG No. 38/2006) In case of objections filed against the lists as per Art. 686 par. (1) in accordance with Art. 690 par. (1), the court shall rule on such lists after the objections have been heard.
(3) (Amended, SG No. 58/2003; renumbered from par. 2, SG No. 38/2006) The court shall examine any objections made in a public session summoning the trustee in bankruptcy, the debtor, the creditor the inclusion or non-inclusion of whose claim in the list is being challenged, and the creditor which has challenged it. Where possible, all objections shall be considered in one court session.
(4) (Renumbered from par. 3, SG No. 38/2006) Upon finding the objections reasonable, the court shall approve the list with the due amendment made. Otherwise, the court shall reject the objections. The court shall make a determination within 14 days of the session referred to in paragraph 2.
(5) (Renumbered from par. 4; amended, SG No. 38/2006) The court ruling on approval of the list shall be posted in the Commercial Register.
(6) (New, SG No. 58/2003; renumbered from par. 5, amended, SG No. 38/2006) The determinations as per pars. 1 ?
Claim Allowed
Article 693
(Amended, SG, No. 70/1998, No. 84/2000)
An allowed claim in the bankruptcy proceedings shall be a receivable included in the list of allowed claims approved by the court under Article 692 except for claims under article 694, paragraph 1.
Submission of a claim to establish a right
(Title new, SG No. 38/2006)
Article 694
(Repealed, SG, No. 70/1998; new, SG, No. 84/2000; amended,
SG, No. 58/2003)
(1) (Amended and supplemented, SG, No. 38/2006) A creditor or the debtor who has made an objection under article 690, paragraph 1, may submit a claim for establishing the existence of a claim allowed or the non-existence of an allowed claim within 7 days of the date of posting in the Commercial Register of the court determination concerning the approval of the list under article 692, paragraph 4. The claim shall be submitted to the court of jurisdiction over bankruptcy and shall be hear by other court members.
(2) Upon submission of a claim to establish a right, no state fee shall be charged in advance. If the claim is rejected, the costs shall be at the expense of the claimant.
(3) (New, SG, No. 38/2006) The rights as per pars. (1) ?
(4) (New, SG No. 38/2006) The effective court decision under par. (1) shall be legally binding in establishing the relations among the debtor, the trustee in bankruptcy and all creditors in the bankruptcy proceedings.
(5) (New, SG No. 38/2006) In the rehabilitation plan, resp. in the distribution of cashed property, provisions shall mandatorily be made for disallowed claims that are subject to a claim for establishing rights as per par. (1).
Expansion of the List
Article 695
The list approved by the court shall be expanded with claims presented and approved subsequently under terms and procedures set forth by law.
CHAPTER FORTY-FOUR
REORGANISATION OF THE ENTERPRISE

(Previous Chapter 40, SG No. 83/1996)
Reorganisation Plan
Article 696
(Amended, SG No. 84/2000)
A reorganisation plan may provide for a deferment or rescheduling of payments, a remission of the debts in full or in part, a reorganisation of the enterprise, or undertaking other acts or making other transactions.
Proposal of a Plan
Article 697
(1) The right to propose a plan shall belong to:
1. The debtor;
2. The trustee in bankruptcy;
3. The creditors holding at least one-third of the secured claims;
4. The creditors holding at least one-third of the unsecured claims;
5. The partners, the shareholders respectively, who hold at least one-third of the capital of the debtor company;
6 An unlimited liability partner;
7. Twenty per cent of the total number of the debtor's employees.
(2) The creditors with the claims specified under Article 616, para 2, are not entitled to propose a plan.
(3) (New, SG No. 84/2000) A reorganisation plan may not be proposed in the cases under article 630, paragraph 2.
Deadline for Proposing a Plan
Article 698
(1) (Amended, SG No. 70/1998, No. 84/2000, No. 38/2006) A plan may be proposed not later than one month following the date of the announcement in the Commercial Register of the court ruling on approval of the list of claims allowed under Article 692.
(2) More than one plan may be proposed in the bankruptcy proceedings.
Costs on the Preparation of the Plan
Article 699
The costs on the preparation of a plan proposed by the debtor or by the trustee in bankruptcy shall be at the expense of the bankruptcy estate, and in the rest of the cases they shall be at the expense of the proposer.
Content of the Plan
Article 700
(1) The plan shall contain:
1. (amended, SG No. 84/2000) The extent of satisfying the claims, the manner and periods for paying the creditors within each class, as well as guarantees for executing challenged not allowed claims which are subject to pending legal actions as of the date of proposing the plan;
2. The terms and conditions under which the partners in a general or limited partnership are relieved from their commitments in full or in part;
3. The extent of satisfaction received by each class of creditors as compared with what it would have received in the event of distributing the assets under the terms and procedures provided by law;
4. The guarantees provided to each class of creditors in relation to the implementation of the plan;
5. The managerial, organisational, legal, financial, technical, and other actions for the implementation of the plan;
6. The influence of the plan on the employment of the debtor's employees.
(2) (Amended, SG No. 84/2000) The plan may envisage the sale of the entire enterprise or an autonomous part of it, the manner and the terms of the sale, the buyer, a debt equity swap, novation, or taking other actions or making other transactions.
(3) (New, SG No. 84/2000; amended, SG No. 38/2006) In the cases as per par. (2), enclosed with the rehabilitation plan shall be a market evaluation of the property subject to the transaction.
(4) (New, SG No. 84/2000) If the reorganisation plan envisages the sale of the entire enterprise or a separate part of it, a draft agreement signed by the buyer shall be attached to the plan.
(5) (New, SG No. 58/2003) The reorganization plan may envisage the appointment of a supervisory body to exercise control over the debtor's activity for the period when the reorganization plan is in effect, or for a shorter time period.
(6) (New, SG No. 58/2003) Where the reorganization plan envisages the conversion of claims into equity, the plan shall enclose a list of names of creditors which have stated their agreement to subscribe interest stakes or shares of the equity, as the case may be, a full description of in-kind contributions - claims, their cash evaluation under Article 72 paragraph 2, the grounds of the proposor's rights and the number, type and nominal value of stakes or shares, as the case may be, which are being acquired. In these cases, Article 72 paragraph 2 shall not apply. Where the company's property is not sufficient to cover its money obligations, the conversion of the claim into equity shall be made at the nominal value of stakes or shares, as the case may be. Where the company's property is sufficient to cover its money obligations, the conversion of the claim into equity shall be made at the balance sheet value of stakes or shares, as the case may be. Where the reorganization plan envisages the conversion of a claim into equity, the decision to endorse the reorganization plan shall have the force of a decision of the general meeting of shareholders, or partners, as the case may be, to increase capital by in-kind contributions.
Supervisory Body
Article 700a
(New, SG No. 58/2003)
(1) The supervisory body referred to in Article 700, paragraph (5) may be a single member or a collegiate one.
(2) A collegiate supervisory body shall consist of 3 to 7 people, including a chairman and a deputy chairman.
(3) The chairman shall convene meetings of the supervisory body at his initiative as well as at the request of the members of the supervisory body or at the debtor's request.
(4) The convocation procedure for the collegiate supervisory body, its quorum and method of decision-making shall be regulated in the reorganization plan.
(5) The debtor shall present a report on its activity and on measures undertaken to implement the reorganization plan at least once every three months to the supervisory body.
(6) The debtor shall notify the supervisory body immediately of the occurrence of any circumstances which are of material significance for the implementation of the reorganization plan.
(7) The supervisory body is entitled at any time to require that the debtor present a summary information statement or a report on any matter concerning the activity of the debtor and the implementation of the reorganization plan.
(8) The bodies of the debtor may make decisions only upon the agreement of the supervisory body on the following:
1. transformation of the debtor;
2. winding down or transfer of enterprises or of considerable parts thereof;
3. property transactions beyond the customary actions or transactions related to the normal business operations of the debtor;
4. any material change in the business activity of the debtor;
5. any material organizational change;
6. long-term cooperation of material significance for the implementation of the reorganization plan or the termination of such a cooperation;
7. setting up or closing down a branch.
(9) The circumstances referred to in paragraph (8) shall be recorded in the commercial register.
(10) Any objections that such actions have been performed in violation of paragraph (9) shall not be opposable to third parties.
Admittance of the Plan
Article 701
(1) (Amended, SG No. 84/2000) By a ruling, given in camera within 7 days after expiration of the period under article 698, the court shall admit the plan to be considered by the creditors' meeting, provided the plan meets the requirements under Article 700, para 1. The court shall specify the date of holding the meeting, not later than 45 days after the date of the ruling.
(2) (Supplemented, SG No. 84/2000) In the event that the plan proposed does not meet the requirements under Article 700, para 1, the court shall send a notice to the proposer to remove the instances of non-compliance within 7 days. This provision shall not apply if the ruling of the court of jurisdiction over bankruptcy on approval of the reorganisation plan is repealed and the case is returned by the court of second instance for continuation of the proceedings.
(3) The ruling on non-admittance of the plan is subject to appeal within 7 days.
Announcement of the Plan and Convention of the Creditors' Meeting
Article 702
(1) (Amended, SG No. 84/2000, No. 38/2006) The court shall submit for entry in the Commercial Register an announcement of the date of holding the creditors' meeting for adoption of the plan admitted for consideration.
(2) (Amended and supplemented, SG No. 38/2006) The debtor and the trustee in bankruptcy shall be summoned to the meeting, and the creditors shall be deemed to be summoned by the posting of the announcement in the Commercial Register.
Adoption of the Plan
Article 703
(1) The right to vote on the plan shall belong only to a creditor whose claim has been allowed or whose right to vote under Article 673, para 1 has been recognised.
(2) The creditors shall vote separately in the following classes:
1. Creditors with secured claims and creditors with a foreclosure right;
2. Creditors under Article 722, para 1, Item 4;
3. (amended, SG No. 70/1998) Creditors under Article 722, para 1, Item 6;
4. Creditors with unsecured claims;
5. Creditors under Article 616, para 2,
(3) A creditor may also vote in absentia, by a letter with a signature authenticated by the notary public.
(4) (Amended, SG No. 84/2000) The plan shall be accepted by each class by a simple majority of the size of the claims of such class.
(5) (Supplemented, SG No. 38/2006) An objection to the approved plan may be filed with the bankruptcy court within 7 days after the date of the voting. An objection can also be filed by a creditor with a disallowed claim in respect of which said creditor has filed a claim under Art. 694.
(6) (New, SG No. 84/2000) A plan voted against by creditors with more than half of the claims allowed regardless of the classes in which they are distributed, shall not be considered adopted.
(7) (New, SG No. 58/2003) The meeting of creditors may take a decision to appoint a supervisory body under Article 700a also in cases where this is not envisaged in the reorganization plan for the enterprise.
(8) (New, SG No. 38/2006) An announcement of the acceptance of the plan shall be posted in the Commercial Register.
Approval of the Plan by the Court
Article 704
(1) The bankruptcy court shall approve the approved plan if the requirements of the law have been observed.
(2) (Amended, SG No. 84/2000) In the event that several plans have been accepted, the plan for which creditors holding more than half of the total size of the allowed claims voted shall be approved. If this plan can not be approved, approved shall be that plan which has been accepted by the creditor classes whose interests have been most injured.
(3) (Supplemented, SG No. 84/2000) The plan is approved in camera. In case objections have been entered to the plan accepted by the creditors' meeting, the court shall consider the objections in camera, summoning the debtor, the trustee in bankruptcy and the party which has entered the objection. All objections shall be considered in one session, if possible, and shall make a ruling on the objections within a period 14 days after the session.
Terms and Conditions for the Approval of the Plan
Article 705
(1) (Previous Article 705, SG No. 70/1998) The court approves the plan, provided:
1. The requirements of the law for the acceptance of the plan by the different creditor classes have been observed;
2. (amended, SG No. 84/2000, No. 38/2006) The plan has been approved by a majority of creditors holding more than half of the claims allowed included in the lists under article 692, paragraph 1 and article 692, paragraph 4, approved by the court; in the event that the plan envisages partial payment, at least one of the creditor classes which have approved it, shall receive partial payment;
3. All creditors of the class are put on an equal footing, unless the injured creditors give their consent in writing;
4. The plan ensures that a dissenting creditor and a dissenting debtor receive the same payment which they would have received if the assets were allocated under the terms and procedures provided by law;
5. No creditor receives more than is due under this creditor's allowed claim;
6. No income is envisaged to be received by a partner or shareholder until the final payment of the obligations to the class of creditors whose interests are affected by the plan;
7. No support of a sole proprietor, unlimited liability partner or their families, greater than the support ruled by the court is envisaged up to the final fulfilment of the obligations to the class of creditors whose interests are affected by the plan.
(2) (New, SG No. 70/1998) The court shall rule a decision on endorsing the plan for reorganising the enterprise or on rejecting it.
Effect of the Plan Approved
Article 706
(1) The plan approved by the court is mandatory for the debtor and the creditors whose claims have occurred before the date of the ruling to institute bankruptcy proceedings.
(2) (New, SG No. 70/1998) Guarantors and persons who have established a pledge or a mortgage to secure an obligation of the debtor, and any persons liable jointly and severally with the debtor except for persons under Article 610 may not avail of any privileges envisaged in the plan.
(3) (Renumbered from Paragraph 2, SG No. 70/1998) The claims of the creditors under para 1 shall be transformed in accordance with what is envisaged in the plan.
(4) (Renumbered from Paragraph 3, SG No. 70/1998) The debtor is obliged immediately to carry out the structural changes envisaged by the plan.
(5) (New, SG No. 70/1998) In the event of a sale of the whole enterprise or a part thereof, any disposal actions performed by the buyer prior to the final payment of the price shall be null and void with respect to creditors in bankruptcy.
Term for Concluding an Agreement
Article 706a
(New, SG No. 84/2000)
(1) The agreement for sale of the whole enterprise or an autonomous part of it, according to the approved reorganisation plan, shall be concluded within one month of the entry into force of the decision on approving the plan.
(2) If no agreement for sale is concluded within the term referred to in paragraph 1 in accordance with the draft attached to the approved reorganisation plan, each of the parties, within one month after the expiration of the term referred to in paragraph 1, may request the court of jurisdiction over bankruptcy to declare the agreement concluded according to the draft under article 700, paragraph 4, adopted at the meeting of creditors.
(3) If, within the period under paragraph 2, none of the parties requests the agreement to be declared concluded, and if there is a request submitted by a creditor, the court of jurisdiction over bankruptcy shall resume the proceedings and shall declare the debtor bankrupt.
Termination of Bankruptcy Proceedings
Article 707
(1) (Supplemented, SG No. 58/2003) By the ruling to approve the plan, the court terminates the bankruptcy proceedings and appoints the supervisory body under Article 700a, in cases where this is not envisaged in the reorganization plan for the enterprise.
(2) (Repealed, SG No. 84/2000).
(3) (New, SG No. 58/2003) At the request of a creditor, the supervisory body or the debtor, or at a later stage for the purposes of retaining the property and to ensure the implementation of the plan, the court may:
1. define the property with which the debtor may dispose only upon the permission of the supervisory body, and if the latter does not exist, with that of the court;
2. replace one or more members of the supervisory body by other persons.
Appeal
Article 707a
(1) (New, SG No. 70/1998, previous Article 707a, amended, SG No. 84/2000, No. 38/2006) The decision under Article 707 and the decision rejecting the endorsement of a reorganisation plan for the enterprise which has been approved by the creditors' meeting may be appealed within 7 days following its entry in the Commercial Register.
(2) (New, SG No. 84/2000) After repeal of the court decision, no reorganisation proceedings shall be performed.
Statute of limitation in conditions of an approved reorganization plan
Article 707b
(New, SG No. 38/2006)
(1) For claims as per Article 706, par. (1), a new statute of limitation in accordance with Art. 110 of the Obligations and Contracts Act shall commence from the date of entry into force of the decision on the approval of the reorganization plan, where such claims are subject to immediate satisfaction, and in cases where the plan provides for deferment or rescheduling of satisfaction of such claims, from the date when such claims will become due.
(2) In case where a resumption of bankruptcy proceedings is requested, the statue of limitations shall not apply to allowed claims for the duration of the resumed proceedings.
Collection of Transformed Claim
Article 708
(Amended, SG No. 59/2007)
On the basis of the plan as endorsed by the court, the creditor shall have the option to move for the issuance of an order under Article 410 (1) of the Code of Civil Procedure for enforcement of the transformed claim regardless of the amount of the said claim.
Resumption of the Bankruptcy Proceedings
Article 709
(1) (Supplemented, SG No. 70/1998, amended, SG Nos. 84/2000, 58/2003) In the event that the debtor does not fulfil his obligations under the plan or under Article 700a, paragraphs (5), (6), (7) and (8), the creditors whose claims have been transformed under the plan and account for at least 15 per cent of the total size of the claims, or the supervisory body under the terms and conditions of Article 700a, may request a resumption of the bankruptcy proceedings, without new insolvency or over-indebtedness, as the case may be, having to be proved.
(2) In the cases under para 1, the transforming effect of the plan with regard to the creditors' rights and the security remains.
(3) (New, SG No. 70/1998) In the renewed bankruptcy proceedings, no reorganisation proceedings shall be performed.
(4) (New, SG No. 84/2000; supplemented, SG No. 38/2006) The request under paragraph 1 shall be considered by the bankruptcy court within 14 days of its submission, in an open session to which the creditor who has submitted the request and the debtor have been summoned.
CHAPTER FORTY-FIVE
DECLARATION OF BANKRUPTCY
(Previous Chapter 40, SG No. 83/1996)
Ruling on Declaration of Bankruptcy
Article 710
The court declares the debtor to be bankrupt, in the event that a plan under Article 696 has not been proposed within the period provided by law or the plan proposed has not been accepted and approved, as well as in the cases under Article 630, para 2, Article 632, para 1, and Article 709, para 1.
Contents of the Ruling on Declaration of Bankruptcy
Article 711
(1) By the ruling on declaration of bankruptcy, the court:
1. (supplemented, SG No. 70/1998) Declares the debtor to be bankrupt and rules termination of the activity of the enterprise;
2. Decrees a general attachment on the debtor's assets;
3. Terminates the powers of the debtor's organs when he is a legal person;
4. Deprives the debtor of the right to manage and dispose of the assets, the bankruptcy estate included;
5. Institutes the start of the conversion of the bankruptcy estate assets into cash, and of the distribution of the cash.
(2) (Repealed, SG No. 70/1998).
Effect of the ruling
(Title amended, SG 38/2006)
Article 712
(1) The ruling on declaration of bankruptcy shall be effective towards all persons.
(2) (Amended, SG No. 38/2006) The decision to declare bankruptcy shall be entered in the Commercial Register.
Appeal against the Ruling on Declaration of Bankruptcy
Article 713
(1) (Previous Article 713, SG No. 70/1998; amended, SG No. 38/2006) The ruling on declaration of bankruptcy is subject to an appeal within 7 days from the date of entry into the Commercial Register.
(2) (New, SG No. 70/1998; amended, SG No. 38/2006) The decision repealing, partially or in full, or overruling the decision ruled by the district court for declaring bankruptcy shall be entered into the Commercial Register.
Immediate Execution
Article 714
The ruling on declaration of bankruptcy is subject to immediate execution.
Decreeing a general Attachment and Entering It
Article 715
(1) (Amended, SG, No. 38/2006) As from the day of entry into the Commercial Register of the ruling on declaration of bankruptcy, the real estate, the chattels and the debtor's claims from third bona fide persons shall be deemed attached.
(2) (Amended, SG No. 38/2006) The attachment on the debtor's real estate and ships shall be entered in the notary public's registers, in the ships' registers respectively, on the basis of the announcement of the debtor's being declared insolvent as posted in the Commercial Register.

CHAPTER FORTY-SIX
CONVERTING THE ASSETS INTO CASH

(Previous Chapter 42, SG No. 83/1996)
Scope
Article 716
(1) (Previous Article 716, SG No. 58/2003) The real estate and the chattels as a whole or parts of them, the chattel and the other property rights within the bankruptcy estate shall be converted into money, insofar as it is required for the payment of the debtor's obligations.
(2) (New, SG No. 58/2003) The sale of property rights from the bankruptcy estate shall be done by the trustee in bankruptcy following the court's permission.
Sale of Chattels and Property Rights
Article 717
(1) (Supplemented, SG No. 70/1998, amended and supplemented, No. 84/2000, amended No. 58/2003) The chattels and property rights out of the bankruptcy estate shall be sold by the trustee in bankruptcy under the terms and procedures set out in this Chapter and according to the decision of the meeting of creditors under Article 667, paragraph (1), subparagraph (8), except for cases referred to in Article 677, paragraph (4).
(2) (New, SG No. 70/1998, Supplemented, SG No. 84/2000) Upon a proposal by the trustee in bankruptcy, and according to the decision of the meeting of creditors, the bankruptcy court shall allow the sale of chattels and property as a whole, of autonomous parts thereof, or of individual property rights. The court must rule on the proposal of the trustee in bankruptcy on the date of its receipt by the court, or on the following business day at the latest.
Announcement of Sale
Article 717a
(New, SG No. 58/2003)
(1) (Amended, SG No. 38/2006) The trustee in bankruptcy shall prepare an announcement for the sale, indicating the debtor's identifying data, a description of the property, the procedure and method of sale, the place and the day on which the sale shall take place, the deadline for accepting proposals within that day, and the evaluation of the property which is to be sold.
(2) (Amended, SG, No. 38/2006) The trustee in bankruptcy shall post the announcement referred to in paragraph 1 in a visible place in the building of the municipality in which the seat of the debtor is located and in the building in which the debtor's management address is, no less than 14 days prior to the day specified in the announcement, and shall draw up a memorandum certifying this fact. The trustee in bankruptcy shall submit the announcement for the sale for publication in a specialized bulletin issued by the Ministry of Economy 14 days prior to the day for the sale as specified in the announcement.
Place of Holding the Sale
Article 717b
(New, SG, No. 58/2003)
The sale shall take place at the office of the trustee in bankruptcy or at the debtor's management address on the day specified in the announcement.
Procedure for Holding the Sale
Article 717c
(New, SG, No. 58/2003)
(1) The papers for the sale shall be kept at the office of the trustee in bankruptcy or at the debtor's management address and shall be available to any interested party.
(2) To participate in the bidding, a payment of earnest money in the amount of 10 per cent of the evaluation amount shall be deposited.
(3) Each bidder shall indicate the price proposed by him in figures and in words and shall submit his bid together with the receipt for the earnest money deposit in a sealed envelop. Bids shall be submitted on the day of the sale before the end of the time period referred to in Article 717а, paragraph 1 to the trustee in bankruptcy, who shall record them in the order of their submission in a register of incoming documents.
(4) Immediately after the expiry of the time period under paragraph 3, the trustee in bankruptcy shall announce the proposed bids that have been submitted, in the presence of the bidders who have chosen to attend, and a memorandum shall be drawn up to that effect. The memorandum shall indicate the bidders and the proposed bids in the order of opening the envelops. The bidder which has proposed the highest price shall be considered to be the buyer of the property right. If the highest price has been proposed by more than one bidder, the buyer shall be determined by the trustee in bankruptcy through an immediate auction by open bidding in the presence of bidders who have chosen to attend. The announcement of the buyer shall be done by the trustee in bankruptcy in the memorandum, which shall be signed by him and by the bidders who have chosen to attend.
(5) (Amended, SG, No. 38/2006) Proposed bids of persons which do not have the right to bid, and bids, if any, proposing a price less than the evaluation shall be invalid.
Limitation on Participation in the Sale
Article 717d
(New, SG No. 58/2003)
(1) The debtor, his representative, the trustee in bankruptcy, and the persons indicated in Article 185 of the Obligations and Contracts Act shall not have the right to participate in the bidding.
(2) Where the property right has been bought by a person, which did not have the right to bid, the sale shall be invalid.
(3) In the case under paragraph 2, money deposited by the buyer shall be seized for the purpose of satisfying creditor claims.
Payment of the Price
Article 717e
(New, SG, No. 58/2003)
The buyer must, within 5 days following the completion of the sale, pay in the price proposed by him, deducting the earnest money deposit.
Subsequent Buyers
Article 717f
(New, SG, No. 58/2003)
If, within the time period specified in Article 717e, the price has not been paid in:
1. the earnest money deposited by the bidder shall serve to satisfy the creditors;
2. (amended, SG, No. 38/2006) the trustee in bankruptcy shall invite the bidder which has offered the next highest price, if he has not withdrawn the earnest money deposit; if that bidder agrees, he shall be announced to be the buyer; if he does not agree or if he should fail to pay in the price within 5 days of having been announced as the buyer, the earnest money deposited by him shall be seized to satisfy the creditors, and the trustee in bankruptcy shall offer the property to the next bidder in the order of prices proposed and shall proceed in this manner, if need be, until there are no more bidders left which have proposed a price not lower than the evaluation; a bidder which has agreed to buy the property and fails to make due payment of the proposed price shall be held liable according to subparagraph 1.
Holding a New Auction
Article 717g
(New, SG No. 58/2003, amended, SG No. 38/2006)
(1) If no bidders have appeared or no valid bids have been proposed, or if the buyer has not paid in the price, a new sale by open bidding shall be held with a starting price of 80 per cent of the evaluation, after a new announcement is made following the procedure set out in Article 717а, paragraph 2.
(2) The bidding for the sale as per par. (1) shall be carried out by entry into a bidding sheet. The bidding increment shall be determined by the trustee in bankruptcy and shall be stated in the announcement as per Art. 717a.
Making the Award
Article 717h
(New, SG, No. 58/2003)
(1) (Amended SG, No. 38/2006) The court shall award the item or the right to the entity declared as the buyer, provided that said entity has paid in full the amount due, on the day following the date of payment thereof.
(2) As from the date of issue of the ruling on the award, the buyer shall acquire all rights which the debtor has had on the property right. Any rights which third parties may have acquired on the property right cannot be opposed to the buyer, provided these rights cannot be opposed to the debtor.
(3) (Amended, SG, No. 38/2006) The ruling on the award issued by the court can be challenged before the appellate court by participants in the tender and by the debtor.
(4) If the award is not challenged the validity of the sale may be attacked through the claims procedure only in case of a violation of Article 717d and in case of non-payment of the price. In the latter case, the buyer may decline to honour the claim, provided that he pays the amount due together with any interest accrued from the day he was announced as the buyer.
Cancellation of the Award
Article 717i
(New, SG. No. 58/2003)
If the ruling on the award should be rescinded or if the sale should be proclaimed invalid according to Article 717d, the new sale shall be made after a new announcement.
Acquisition and Challenging of Ownership
Article 717k
(New, SG, No. 58/2003)
(1) The buyer of chattels shall become their owner, regardless of whether those have belonged to the debtor.
(2) The previous owner has the right to receive the price, if it has not been paid, and if it has been paid, he has the right to claim from the creditors and from the debtor what they have received according to the distribution.
Entry into Possession and Transfer of Risk
Article 717l
(New, SG, No. 58/2003)
(1) The buyer shall be introduced into possession of the property right by the trustee in bankruptcy based on the award ruling that has come into force and on the basis of a document certifying that payment has been made of fees for the transfer of the property and that the said ruling has been registered.
(2) The risk of perishing of the property right shall be for the account of the buyer, and any costs associated with its protection until the entry into possession of the buyer shall be for the account of the bankruptcy estate.
(3) Entry into possession shall be performed against any person which is in possession of the property right. Such a person may seek remedy only by means of a claim of ownership.
(4) (New - SG No. 38/2006) A sale effected in accordance with the procedure as per this Chapter shall have the consequences of a sale in enforcement action, under the Code of Civil Procedure.
Sale in the Case of Co-ownership
Article 717m
(New, SG No. 58/2003)
(1) When the execution is aimed at a property right which is co-owned, for a debt of any of the co-owners, the property right shall be inventories in its entirety but only the indivisible interest of the debtor shall be put on sale.
(2) The property may also be sold as a whole if the remaining co-owners should agree to this in writing.
Sale of a Mortgaged Property
Article 717n
(New, SG No. 58/2003)
In case of a sale of a mortgaged property which is being performed not in response to the claim of the mortgage creditor, the trustee in bankruptcy shall send the latter a notice of the scheduled sale.
Sale in Special Cases
Article 718
(1) (Supplemented, SG No. 70/1998; amended, SG No. 38/2006) Upon the proposal of the trustee in bankruptcy, the bankruptcy court may permit the sale to be made through direct negotiations or through an intermediary, in case the chattels and the property rights as a whole, the autonomous part, or an individual piece of chattel or the property right were offered under the terms and procedures of Article 717 and foll., but the sale was not realised because the buyer did not appeared or desisted. In such cases the sale price can be lower than the initial price as per Art. 717g and shall be determined in accordance with the Code of Civil Procedure. The court must rule on the proposal of the trustee in bankruptcy on the date of its receipt by the court, or on the following business day at the latest.
(2) Interests in other companies owned by the debtor shall be sold after being offered to be purchased by the remaining partners and the offer is not accepted within one month.
(3) (New, SG No. 70/1998) In the case of a sale under para 1 of the chattels and property rights as a whole, or of an autonomous part thereof, creditors cannot be put in a less favourable position than in the case of a sale of individual chattels and property rights.
(4) (Renumbered from Paragraph 3, amended SG No. 70/1998)In the case of a sale under para 1 of the chattels and property rights as a whole, or of an autonomous part thereof, any disposal actions performed by the buyer prior to the final payment of the price shall be null and void with respect to creditors in bankruptcy.
(5) (New, SG No. 84/2000) The trustee in bankruptcy shall appear as the seller in an agreement pursuant to paragraph 1.
Sale by the trustee in bankruptcy of housing units rented by
workers and employees
Article 718a
(New, SG No. 38/2006)
(1) In case where, towards the date of the decision of the creditors' meeting as per Art. 677 par. (1), item 8, housing units owned by the debtor had been rented out to persons who, towards said date, were in the debtor's employment, or to persons with claims under Art. 687, par. 1, the trustee in bankruptcy shall be obligated to offer said housing units to its tenants for sale. In such cases, the provisions of Art. 33 of the Ownership Act shall apply.
(2) The trustee in bankruptcy shall address an invitation in writing to each of the parties as per par. (1), stating the specific housing unit, its evaluation as given by an appraiser selected by the creditors' meeting or appointed in accordance with Art. 677 par. (4); the time limit for payment, which cannot be shorter than 30 or longer than 60 days; and the bank account to which payment shall be remitted.
(3) The persons as per par. (1) shall have the right, within 14 days from receipt of the invitation, to state in writing to the trustee in bankruptcy their willingness to purchase the housing unit at a price corresponding to the evaluation, within the time limit set by the trustee in bankruptcy. In paying the said price, the workers and employees shall have the right to deduct from it any debts of the debtor arising from unpaid employment compensations.
(4) The sale agreement shall be executed in notarised form, with the trustee in bankruptcy signing as the seller. Any legal expenses pertinent to the transaction shall be covered by the seller.
(5) The provisions of pars. (1) through (4) shall not apply in case of a legal dispute involving the housing unit subject to the lease agreement.
Sale of a Pledged Chattel
Article 719
(Supplemented SG No. 70/1998)
A pledged chattel held by a creditor or by a third person shall be demanded by the trustee in bankruptcy and sold under the terms and procedures of this chapter, unless a law provides for its sale by the creditor without court interference.
CHAPTER FORTY-SEVEN
DISTRIBUTION OF THE ASSETS CONVERTED INTO CASH
AND COMPLETION OF THE BANKRUPTCY PROCEEDINGS

(Previous Chapter 43, SG No. 83/1996)
Section I
Distribution of the Assets Converted into Cash

Condition for the Distribution
Article 720
The distribution shall be carried out when sufficient cash funds accumulate in the bankruptcy estate.
Distribution Account
Article 721
(1) (Amended, SG No. 84/2000) The trustee in bankruptcy shall prepare an account for the distribution of the available amounts among the creditors with claims pursuant to article 722, paragraph 1, in conformity with the order, the privileges, and the pledges.
(2) The distribution account is partial up to the point when the obligations have been repaid in full or the entire bankruptcy estate, with the exception of the unsellable chattels, has been converted into cash.
(3) ( New, SG No. 84/2000) The inclusion into the account for distribution of a claim under article 722, paragraph 1, Item 7, may not be refused, if the obligation has been taken with the consent of the trustee in bankruptcy or has been recognised him.
Order of the Claims
Article 722
(1) When the cashed in property is allocated, the claims shall be redeemed in the following order:
1. (amended, SG No. 70/1998, SG No. 105/2005) Claims secured by a pledge or mortgage or distraint or prohibition registered in pursuance of the procedure under the Registered Pledges Act ;
2. Claims with regards to which the right to foreclose is exercised - out of the value of the foreclosed property;
3. Bankruptcy costs;
4. (amended, SG No. 58/2003) Claims deriving from employment contractual relations, which have emerged before the date of the ruling to institute bankruptcy proceedings;
5. Support owed by the debtor to third persons by operation of law;
6. (amended, SG No. 70/1998, No. 84/2000) Public law claims of the state and the municipalities such as taxes, customs duties, fees, obligatory social security contributions, as well as others, which have emerged prior to the date of the ruling to institute bankruptcy proceedings;
7. Claims which have emerged after the date of the ruling to institute bankruptcy proceedings and have not been paid when due, deriving from the continuing operations of the debtor;
8. (renumbered from Paragraph 9, amended SG No. 70/1998) Any remaining unsecured claims that may have occurred prior to the date of the ruling to institute bankruptcy proceedings;
9. (new, SG No. 70/1998) claims under Article 616, para 2, Item 1;
10. (new, SG No. 70/1998) claims under Article 616, para 2, Item 2;
11. (new, SG No. 70/1998) claims under Article 616, para 2, Item 3;
12. (new, SG No. 38/2006) claims under Article 616, para 2, Item 4.
(2) (Amended, SG No. 70/1998, No. 38/2006) In case the cash funds are insufficient to fully satisfy the claims under para 1, Items 3-12, they shall be allocated among the creditors under the commensurability order.
(3) (New, SG No. 38/2006) Where several claims by the state of the same sequence have been presented and allowed, the amount due shall be disbursed for the entire sequence in totality from the distribution account, and after receipt shall be distributed by the Government Claims Agency in accordance with the procedure as per the Tax and Social Insurance Procedure Code . The Government Claims Agency shall notify the trustee in bankruptcy without delay of the distribution of funds carried out.
Costs on the Bankruptcy
Article 723
Bankruptcy costs are:
1. (amended, SG, No. 38/2006) the stamp duty pertinent to the bankruptcy proceedings and all remaining expenses accrued until the moment of entry into force of the decision on the institution of bankruptcy proceedings;
2. the remuneration of the trustee in bankruptcy;
3. the payables to the employees, in case the debtor's enterprise has not wound up its operations;
4. the expenses on replenishing, managing, assessing, and distributing the bankruptcy estate;
5. the specified support of the debtor and his family.
Satisfaction of a Secured Creditor and of a Creditor
with a Right to Foreclose
Article 724
(1) In the event that the selling price of a pledged or mortgaged chattel does not cover the claim with the interest accumulated in full, the creditor shall participate for the balance in the distribution along with the creditors with unsecured receivables.
(2) In case the selling price of a pledged or mortgaged chattel exceeds the secured claim with the interest accumulated, the balance shall be included in the bankruptcy estate.
(3) (Amended, SG No. 70/1998) In any case of the bankruptcy proceedings, the debtor may sign a contract with all creditors with accepted receivables for settling payment of cash liabilities. In such a case, the trustee in bankruptcy shall not represent the debtor as party.
(4) Paras 1, 2, and 3 shall also apply to satisfying the claim of a creditor with a lien.
Participation of Claims under Postponing or Peremptory Conditions
Article 725
(1) A claim under a postponing condition is included in the initial distribution as a disputed receivable. An adequate distribution amount is set aside for it. In the final distribution, this receivable shall be excluded, in case the condition has not been realised.
(2) A claim under a peremptory condition shall be included in the distribution as unconditional.
Setting Aside Amounts for a Disputed Claims
Article 726
(1) For a claim disputed under judicial proceedings, the adequate amount shall be set aside in the distribution account.
(2) In case only the security or the privilege has been disputed, the claim shall be included as unsecured up to the settlement of the dispute, the amount which the creditors would have received for a secured receivable being set aside in the distribution account.
Publicity of the Distribution Account
Article 727
(Supplemented, SG No. 38/2006)
The distribution account shall be displayed visibly at a specifically designated place in the courthouse, for 14 days. An announcement of the compilation of the distribution account shall be posted by the trustee in bankruptcy in the Commercial Register.
Objections to the Account
Article 728
The debtor, the creditors' committee, and each creditor may put object before the court in writing to the distribution account, within the period under Article 727.
Approval of the Distribution Account
Article 729
(1) The court of jurisdiction over bankruptcy shall approve by an order the distribution account, having made the relevant change in case it has established proprio motu or following an objection non-conformity with the law.
(2) (New, SG No. 104/2007) The ruling approving the distribution account and any appeals against the said ruling received shall be published in the Commercial Register, whereby the creditors and the debtor shall be presumed notified.
(3) (Amended, SG No. 38/2006, renumbered from Paragraph (2), SG No. 104/2007) The ruling under Paragraph (1) shall be appealable by the debtor, by the creditors' committee, or by an individual creditor.
(4) (Renumbered from Paragraph (3) - SG No. 104/2007) The distribution account approved shall be executed by the trustee in bankruptcy.
Additional Inclusion of a Creditor in the Distribution
Article 730
A creditor who has filed his claim after a distribution has been made, shall be included in the subsequent distributions without the right for equalisation with what has already been paid.
Additional Inclusion of Amounts
Article 731
The bankruptcy estate shall include additionally the newly-collected amounts from claims of the debtor and from converting assets into cash, as well as the amounts from receivables which the creditors have waived.
Return of the Bankruptcy Estate Balance
Article 732
After the full payment of the obligations, the bankruptcy estate balance shall be returned to the debtor.
Section II
Completion of the Bankruptcy Proceedings

Report of the Trustee in Bankruptcy
Article 733
(Amended, SG No. 38/2006)
Within one month after the depletion of the bankruptcy estate, with the exception of the unsellable chattels, the trustee in bankruptcy shall submit to the bankruptcy court:
1. a report on his/her activities;
2. an account on the distribution of payments raised as a result of cashing the property, and on the remaining outstanding claims.
Conclusive Creditors' Meeting
Article 734
(1) The court shall convene a conclusive creditors' meeting within 14 days after receiving the report of trustee in bankruptcy.
(2) (Amended, SG, No. 38/2006) The meeting shall hear the account on the distribution of payments raised as a result of cashing the property, and on the remaining outstanding claims. The meeting shall adopt a decision regarding the unsellable chattel from the bankruptcy estate.
(3) (New, SG No. 38/2006) The creditors; meeting may adopt a decision to leave to the debtor chattel of negligible value or claims the collection of which could be rendered onerous.
Completion of the Bankruptcy Proceedings
Article 735
(1) The bankruptcy proceedings shall be terminated by a court ruling, when:
1. The obligations have been paid;
2. The bankruptcy estate has been depleted.
(2) By the ruling under para 1, the court shall enact a deletion of the merchant, unless all creditors have been satisfied and assets have remained.
(3) (Amended, SG, No. 38/2006) The decision as per par. (1) may be appealed within 7 days as from the date of recordation thereof in the Commercial Register.
Termination of the Powers of the Trustee In Bankruptcy
Article 736
(1) The powers of the trustee in bankruptcy shall be terminated with the termination of the bankruptcy proceedings.
(2) The trustee in bankruptcy shall hand over the commercial books and the assets balance to the debtor or to the debtor's managerial body.
Depositing the Uncollected Amounts
Article 737
Upon the injunction of the court, the trustee in bankruptcy shall deposit with a bank the amounts which have been set aside in the final distribution for the uncollected or disputed claims.
Termination of the Effect of the Attachment
Article 738
(1) The effect of the attachment shall be terminated by the termination of the bankruptcy proceedings.
(2) (amended, SG No. 38/2006) The attachment shall be deleted proprio motu as from the moment of recordation of the decision of the termination of the bankruptcy proceedings in the Commercial Register;
Extinguishment
Article 739
(1) The claims which have not been filed in the bankruptcy proceedings and the rights which have not been exercised shall be extinguished.
(2) The claims which have not been satisfied in the bankruptcy proceedings shall be extinguished, with the exception of the cases under Article 744, para 1.
CHAPTER FORTY-EIGHT
OUT OF COURT SETTLEMENT

(Previous Chapter 44, SG No. 33/1996)
Agreement
Article 740
(1) (Amended, SG No. 70/1998)At any point in the bankruptcy proceedings it shall be possible to conclude an agreement for settlement of cash obligations between the debtor and all the creditors holding claims allowed.
(2) (Amended, SG, No. 38/2006) Provided that the concluded agreement satisfies the requirements of the law, the court shall, by a ruling, terminate the bankruptcy proceedings, subject to the condition that there are no claims filed under Art. 694 par. (1), regarding ascertainment of the non-existence of an allowed claim. Such ruling shall be subject to appeal within 7 days from the date of entry thereof into the Commercial Register.
(3) The agreement shall be concluded in writing.
Applicability of Civil Law
Article 741
Civil law shall apply unless provided otherwise in the agreement or this Act.
Renewal of Bankruptcy Proceedings
Article 741a
(New, SG, No. 70/1998)
Should the debtor fail to perform its obligations under the contract, creditors whose claims constitute not less than 15 per cent of the total amount of claims may request a renewal of the bankruptcy proceedings without having to prove new insolvency or over-indebtedness, as the case may be. In the renewed bankruptcy proceedings, no reorganisation proceedings shall be carried out.
CHAPTER FORTY-NINE
SPECIFIC RULES FOR COMPANIES

(Previous Chapter 45, SG No. 83/1996)
Over-indebtedness
Article 742
(1) A commercial company shall be deemed over-indebted provided its assets are insufficient to cover its liabilities.
(2) (Supplemented SG No. 70/1998) Bankruptcy proceedings on grounds of over-indebtedness can also be initiated by a member of the commercial company's managing body and by the liquidator.
Separation of Property
Article 743
(1) The assets of a general partnership, limited partnership or partnership limited by shares with respect of which bankruptcy proceedings have been initiated, as well as the assets of an unlimited partner shall be kept separately.
(2) Creditors with personal claims on debts of an unlimited partner shall not participate in the distribution of the company's assets.
(3) The creditors of a company can participate in the distribution of the personal property of an unlimited partner only with a claim which has not been satisfied in the course of the company's bankruptcy proceedings.
CHAPTER FIFTY
RESUMPTION OF BANKRUPTCY PROCEEDINGS

(Previous Chapter 46, SG No. 83/1996)
Conditions for Resumption
Article 744
(1) Discontinued bankruptcy proceedings shall be resumed by court ruling provided within a year after such discontinuation:
1. amounts allocated for contested claims are released;
2. assets the existence of which was ignored during the bankruptcy proceedings are discovered.
(2) Where the released allocated amounts and the newly-discovered assets are insufficient to cover the cost of proceedings, the court may refuse to resume the proceedings unless an interested party pays the necessary amount in advance.
Petition for Resumption of Proceedings
Article 745
Bankruptcy proceedings shall be resumed following a written application by the debtor or a creditor whose claim has been recognised or established by court.
Effect of Resumption
Article 746
(1) The ruling to resume proceedings shall re-establish the rights of the trustee in bankruptcy and the Committee of Creditors.
(2) Resumed proceedings shall recommence from the final distribution account, which is considered as partial.
CHAPTER FIFTY-ONE
RESTORATION OF DEBTOR RIGHTS

(Previous Chapter 47, SG No. 83/1996)
(Title amended, SG 38/2006)
Effect of Restoration
Article 747
(1) (Previous Art. 747, SG No. 38/2006) Restoration of the rights of a sole proprietor debtor and an unlimited partner shall delete ex tunc the implications which the law relates to the declaration of bankruptcy.
(2) (New, SG No. 38/2006) This Chapter shall apply, respectively, for natural persons who have participated in the management of the commercial company declared bankrupt.
Prerequisites for Restoration
Article 748
(1) Rights shall be restored to a debtor who pays in full claims allowed in the bankruptcy proceedings and the related interest and expenditures.
(2) The rights of a debtor shall be restored also in case of non-full payment of debts if the bankruptcy is due to adverse changes in the economic environment.
(3) The rights of an unlimited partner shall be restored pursuant to paras 1 and 2. If he pays the debts of an insolvent company, and such payment shall not be considered an amount not owed.
Inadmissibility
Article 749
The rights of a debtor convicted for bankruptcy shall not be restored.
Petition for Restoration
Article 750
(1) Debtors shall file an application for restoration of rights in writing with the bankruptcy court.
(2) The application shall be accompanied with evidence that the claims allowed in the bankruptcy proceedings have been paid.
Restoration of Rights of Deceased Debtors
Article 751
Petition for restoration of rights of a deceased debtor shall be filed by one heir at least.
Announcement of Petition for Restoration
Article 752
(Amended, SG No. 38/2006)
The petition for restoration shall be entered in the Commercial Register under the case file of the merchant declared bankrupt.
Objection to Petition
Article 753
(Amended, SG, No. 38/2006)
Within a month from the date of entry of the petition for restoration into the Commercial Register, any creditor with a claim recognised or established by court order can object in writing against the application for restoration.
Consideration of Petition
Article 754
An application for restoration and the related objections shall be considered in open session to which the petitioner and the objecting creditor have been summoned.
Appeal
Article 755
(1) A court ruling in favour of the application shall not be subject to appeal.
(2) A court ruling against the application for restoration of rights shall be subject to appeal by the debtor within a seven-day period.
(3) (Amended, SG No. 38/2006) The effective court decision shall be entered in the Commercial Register under the case file of the merchant declared bankrupt.
New Petition for Restoration
Article 756
A new application for restoration of rights can be filed not earlier than one year after the ruling to reject an application has come into effect.
CHAPTER FIFTY-TWO
APPLICABLE LAW

(Previous Chapter 48, SG No. 83/1996)
Acceptance of Foreign Court Ruling on Bankruptcy
Article 757
On conditions of reciprocity the Republic of Bulgaria shall honour foreign court ruling of bankruptcy, provided it is taken by an authority of the state where the debtor's registered main office is located.
Powers of a Trustee in Bankruptcy Appointed
by Foreign Court of Law
Article 758
A trustee in bankruptcy appointed by a foreign court ruling shall have the powers envisaged in the state where the bankruptcy proceedings are initiated, provided they do not contradict public order rules of the Republic of Bulgaria.
Supplementary Bankruptcy Proceedings
Article 759
(1) At the request of a debtor, trustee in bankruptcy appointed by foreign court of law or a creditor, a Bulgarian court can institute supplementary bankruptcy proceedings concerning a merchant who has been ruled bankrupt by a foreign court, provided he has substantial property within the territory of the Republic of Bulgaria.
(2) The decision pursuant to para 1 shall be effective only in respect of debtor property within the territory of the Republic of Bulgaria.
Effect of Supplementary Proceedings
Article 760
(1) A claim for repeal lodged by the trustee in bankruptcy with respect of the main or supplementary bankruptcy proceedings shall be deemed to apply to both.
(2) A creditor who has received partial payment under the main proceedings shall participate in the distribution of assets under the supplementary proceedings provided the portion he would get is bigger than the respective portion to be received by the other creditors under the supplementary proceedings.
(3) A plan referred to in Article 696 can be approved in the supplementary bankruptcy proceedings only with the consent of the trustee in bankruptcy in the main bankruptcy proceedings.
(4) When distribution under supplementary proceedings is completed, the remaining property shall be transferred to the property under the main proceedings.
SUPPLEMENTARY PROVISIONS
(New, SG No. 63/1994)
§ 1. (1) "Related persons" within the meaning of this Act shall be:
1. Spouses, relatives on direct line of descent - without any restrictions, relatives on collateral line of descent - up to and including the fourth degree, and in-law lineage - up to and including the third degree;
2. Employers and employees;
3. Persons one of which is involved in the management of the other one's company;
4. Partners;
5. A company and a person who owns more than 5 percent of the company's voting shares and stock;
6. Persons whose activities are under the direct or indirect control of a third party;
7. Persons who exercise joint direct or indirect control over a third party;
8. Persons one of whom is a commercial agent of the other;
9. Persons one of whom has made a donation in favour of the other.
(2) "Related persons" shall be also persons who either directly or indirectly participate in the management, control or capital of another person or persons, which may enable them to agree on terms and conditions which differ from the standard practice.
§ 1a. (New, SG No. 70/1998) "Autonomous part" within the meaning of this Act shall be an organisational structure which can perform business activity independently (such as a shop, studio, ship, workshop, restaurant, hotel, etc.)
§ 1b. (New, SG No. 38/2006) "Web page" within the meaning of this Act shall mean a designated resource within the World-Wide Web (the Internet) containing programs, text, sound, graphics, images or other material accessible through standardized access protocol and content presentation.
§ 1c. (New, SG No. 104/2007) (1) "Control", within the meaning of this Act, shall be in place where one natural or legal person (controlling party):
1. holds more than one-half of the votes in the General Meeting of another legal person, or
2. has the right to appoint more than one-half of the members of the management or supervisory body of another legal person and, at the same time, is a shareholder or a partner in the said legal person, or
3. has the right to exercise a dominant influence over another legal person by virtue of a contract concluded therewith or by virtue of its Memorandum or Articles of Association, or
4. is a shareholder or a partner in another legal person and by virtue of a contract with other shareholders or partners controls, on his own, more than one-half of the votes in the General Meeting of that legal person.
(2) In the cases referred to in Items 1, 2 and 4 of Paragraph (1), the votes of the persons controlled by the controlling party, as well as the votes of persons who act on their own behalf but for the account of the controlling party or for the account of another person controlled thereby, shall be added to the votes of the controlling party.
(3) In the cases referred to in Items 1, 2 and 4 of Paragraph (1), the votes attached to shares or participating interests held by the controlling party for the account of another person who is not controlled thereby, as well as the votes attached to shares or participating interests which the controlling party holds as security shall not be treated as votes of the controlling party if the rights attached to the said shares or interests are exercised by order or in the interest of the person who furnished the security.
(4) In the cases referred to in Items 1 and 4 of Paragraph (1), the total number of votes in the General Meeting of a controlled party shall be reduced by the votes attached to shares or participating interests held by the said party, by a person controlled by the said party, or by a person who acts on his own behalf but for the account of the said party.
§ 2. Debts in foreign currency shall be converted in Bulgarian leva at the exchange rate of the Bulgarian National Bank as of the date on which the ruling to institute bankruptcy proceedings was taken.
§ 3. The provisions set forth in Part Four of this Act concerning commercial companies shall apply also to cooperatives - merchants.
§ 3a. (New, SG No. 38/2006) The Minister of Justice shall organize the keeping and storage in electronic format of the book as per Art. 634b, paragraph 1.
§ 4. (Amended, SG No. 28/2002) The Privatization and Post-privatization Control Act shall not apply to cases referred to in Article 700, para 2 of this Act.
§ 5. (1) (Amended, SG Nos. 70/1998, 28/2002, SG No. 31/2003, No. 38/2006) A decision determining a method for the sale of shares or interests in any commercial corporation wherein the State or a municipality holds an interest in the capital exceeding 50 per cent, which is subject to instituted bankruptcy proceedings, may be adopted prior to the date as defined by the bankruptcy court approving the list of claims as allowed under Article 692 para 4 herein.
(2) Bankruptcy proceedings shall be discontinued upon approval by the court of the list of allowed claims under Article 692.
(3) Unless a Privatisation transaction is concluded within 4 months after the discontinuation of bankruptcy proceedings, the latter shall be resumed.
(4) (Amended, SG No. 28/2002) The money proceeds from the privatization of any commercial corporation subject to instituted bankruptcy proceedings shall be distributed according to the procedure established by Section I of Chapter Forty-Seven of this Code. The sum remaining after satisfaction of the creditors shall be distributed according to the procedure established by Articles 8 and 10 of the Privatization and Post-privatization Control Act .
§ 5a. (New, SG No. 104/2007) This Act transposes the provisions of the First Council Directive (68/151/EEC) on coordination of safeguards which, for the protection of the interests of members and others, are required by Member States of companies within the meaning of the second paragraph of Article 58 of the Treaty, with a view to making such safeguards equivalent throughout the Community, the Second Council Directive (77/91/EEC) on coordination of safeguards which, for the protection of the interests of members and others, are required by Member States of companies within the meaning of the second paragraph of Article 58 of the Treaty, in respect of the formation of public limited liability companies and the maintenance and alteration of their capital, [with a view to making such safeguards equivalent], the Third Council Directive (78/855/EEC) based on Article 54 (3) (g) of the Treaty concerning mergers of public limited-liability companies, the Sixth Council Directive (82/891/EEC) based on Article 54 (3) (g) of the Treaty, concerning the division of public limited liability companies, the Eleventh Council Directive (89/666/EEC) concerning disclosure requirements in respect of branches opened in a Member State by certain types of company governed by the law of another State, the Twelfth Council Company Law Directive (86/667/EEC) on single-member private limited-liability companies, and Council Directive 86/653/EEC on the coordination of the laws of the Member States relating to self-employed commercial agents.
TRANSITIONAL AND CONCLUDING PROVISIONS
§ 6. (Renumbered from § 1, SG No 63/1994) This Act shall enter into force on 1 July 1991 and shall repeal Chapters One and Two and Article 65, para 4 of Decree 56 on Economic Activity (promulgated in State Gazette No. 4/1989; amended SG No. 16/1989; amended Nos. 38, 39 and 62/1989, Nos. 21, 31 and 101/1990, Nos. 15 and 23/1991; amended SG No. 25/1991)
§ 7. (Renumbered from § 2, SG No 63/1994) State-owned and municipal firms registered pursuant to Decree 56 on Economic Activity shall continue their activities under the existing provisions until they are transformed into companies pursuant to Articles 61 and 62 of this Act.
§ 8. (Renumbered from § 3, SG No 63/1994) (1) The registration of companies pursuant to Decree 56 on Economic Activity shall remain valid, and the following changes shall be made ex lege:
1. sole proprietor firms shall be deemed sole proprietors. The name as provided for in Article 59 shall be added if missing;
2. collective or partnership firms of individuals shall be deemed general partnerships. The necessary extension pursuant to article 77 shall be added;
3. limited liability firms shall be deemed limited liability companies. The extension "firma s ogranichena otgovornost" or "OOF" shall be replaced with "druzhestvo s ogranichena otgovornost" or "OOD". The firm's head shall become ex lege the company's manager;
4. joint-stock firms shall be deemed joint-stock companies. The extension "aktsionerna firma" or "AF" shall be replaced with "aktsionerno druzhestvo" or "AD". The functions of the firm's manager shall be assumed by the company's managing board;
5. unlimited liability firms which have not issued stock shall be deemed limited partnerships. The extension "firma s neogranichena otgovornost" or "NOF" shall be replaced with "komanditno druzhestvo" or "KD";
6. unlimited liability firms which have issued stock shall be deemed partnerships limited by shares. The extension "firma s neogranichena otgovornost" or "NOF" shall be replaced with "komanditno druzhestvo s aktsii" or "KDA".
(2) The previous paragraph shall apply mutatis mutandis to foreign and joint firms in the country incorporated pursuant to chapter five of Decree 56 on Economic Activity.
§ 9. (Renumbered from § 4, SG No 63/1994) (1) Persons who are carrying on economic activities pursuant to Council of Ministers Decree No. 35/1987 (State Gazette No. 48/1987) and pursuant to issued on the basis of this decree regulations, and who are merchants within the meaning of this Act, must register within 6 months of the entry into force of this Act.
(2) The deadline under the previous paragraph shall be deemed observed if the respective application is made prior to its expiration.
§ 10. (Renumbered from § 5, SG No 63/1994) (1) Clauses in articles of incorporation or partnership and in Articles of Association of firms which have been registered prior to the entry into force of this Act and which are inconsistent with its mandatory provisions shall be replaced ex lege with the respective provisions of this Act.
(2) On pending applications for registration the court shall provide, if necessary, a deadline to the interested parties to bring their articles or, respectively, Articles of Association, in conformity with the provisions of this Act.
TRANSITIONAL AND CONCLUDING PROVISIONS
To the Act amending and supplementing the Commerce Act
(Promulgated State Gazette No. 63/1994)
§ 7. This Act shall supersede Title III of Decree No.56 on Economic Activity (publ. in SG No.4 of 1989, amended, No.16/1989, amended in No. 28, 39 and 62/1989, No. 21, 31 and 101 of 1990, amended in No.5/1991; No. 15 and 23/1991, amended; in No.25/1991; amended in No.47, 48 and 62/1991, No. 60/1992, No.84 and 93/1993).
§ 8. (1) Any settlement procedures under Article 66 of Decree No.56 on Economic Activity, pending at the time of entry of this Act into force, shall be terminated.
(2) Existing pending actions for declaration of bankruptcy shall continue under the procedure of this Act with the appointed liquidator exercising the functions of a trustee; in the event of bankruptcy of a single-person trader, a trustee shall be appointed.
(3) If distribution of assets has not started in an existing procedure under paragraph (2), a plan may be proposed under Article 696 of this Act within 2 months of the entry into force of this Act. This plan shall be reviewed under the procedure of Chapter Forty of this Act.
TRANSITIONAL AND CONCLUDING PROVISIONS
To the Securities, Stock Exchanges And Investment Companies Act
(Promulgated State Gazette No. 63/1995)
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§ 11. The ration between voting and non-voting shares in the nominal value of the capital under Article 182(3) of the Commerce Act must be achieved within one year of the entry of this Act into force.
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TRANSITIONAL AND CONCLUDING PROVISIONS
to the law on Amendment and Supplement of the Commerce Act
(SG, No. 83/1996, effective 1.11.96)
§ 9. Amendments to Articles 203 and 266 as well as to Article 270a shall apply also to such cases of liquidation that have not been completed to the entry of this Act into force.
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TRANSITIONAL AND CONCLUDING PROVISIONS
to the law on Amendment and Supplement of the Commerce Act
Promulgated State Gazette No. 100/1997, amended in No. 39/1998)
§ 5. In respect of pending applications for registration the court shall, where necessary, fix a period of time for the parties concerned to bring their Articles of Incorporation, Articles of Association respectively, in compliance with the provisions of this Act.
§ 6. (1) Where a company has been incorporated for the exclusive purpose to participate in a privatisation transaction concluded by persons under Article 25, para (3) and Article 31, para (1) of the Transformation and Privatisation of State-owned and Municipal Enterprises Act , the required minimum capital shall be as follows:
1. for a limited liability company - BGL 500,000, where the shares may not be less than BGL 1,000 each;
2. for a joint-stock company and partnership limited by shares, where formed by subscription - BGL 10,000,000, where formed without subscription - BGL 5,000,000.
(2) A company under para (1) above may not conclude transactions other than such necessary for participation in the privatisation.
(3) After completion of the privatisation transaction a company under para (1) should forthwith bring its capital in compliance with the requirements of Article 117, para (4), and Article 161, para (2) respectively.
(4) Where the company under para (1) fails to conclude the privatisation transaction, it shall be dissolved within three months following the completion of the privatisation procedure.
§ 7. (1) The existing limited liability companies, joint-stock companies and partnerships limited by shares shall be bound to bring their capital in compliance with the minimum required by law and to request registration of such circumstances in the commercial register within one year following the coming of this Act into force.
(2) In the cases under para (1), for the purposes of entering in the commercial register a decision about increase of joint-stock company capital, it shall be required not less than 25 percent of the capital amount after the increase to be paid in.
§ 8. Where a company fails to meet its obligations under § 7, the provisions of Article 155, subpara 2, and Article 252, subpara 5, respectively, shall apply.
TRANSITIONAL AND CONCLUDING PROVISIONS
to the law on Amendment and Supplement of the Commerce Act
(Promulgated State Gazette No. 70/1998)
§ 58. (1) Within two month of the effective date of this Act, the Minister of Justice and European Integration shall endorse a list of persons who can be appointed to the position of receivers by the court, and promulgate it in the State Gazette.
(2) The list under para 1 can be added to at any time.
(3) The Minister of Justice and European Integration must send to all district courts the list under para 1, indicating the address and specialization area of approved receivers.
(4) A person appointed as a receiver or interim receiver under bankruptcy proceedings grandfathered by this Act shall be released by the court within a time period not to exceed one month following the promulgation of the list in the State Gazette, in case he is not included in the list under para 1. Within the same time period, the court shall be obliged to appoint a person from those listed in the list under para 1 to the vacancy opened by the released receiver or the interim receiver.
§ 59. Under court action in process grandfathered by this Act on which a decision has been ruled to declare the debtor bankrupt, it shall be presumed that the court has ruled termination of the activity of the enterprise as per Article 711, para 1, subpara 1 as of the date of the decision declaring bankruptcy.
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TRANSITIONAL AND CONCLUDING PROVISIONS
to the Lev Re-denomination Act
(SG No. 20/1999, supplemented, SG No. 65/1999, effective 5.07.1999)
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§ 4. (1) (Supplemented, SG No. 65/1999) With the entry into force of this Act, any and all amounts in old Bulgarian leva as may appear in laws effective prior to July 5th, 1999, shall be replaced by figures in new Bulgarian leva reduced 1,000 times. The replacement of all figures in old Bulgarian leva with ones in 1,000 times reduced figures in new Bulgarian leva shall also apply to any and all laws enacted prior to July 5th, 1999, which have become, or are to become effective, following that date.
(2) The bodies which have adopted or issued secondary legislation or regulatory acts effective prior to July 5th, 1999, which contain figures in Bulgarian leva, shall effect the relevant amendments arising out of this Act in such a way as to make such amendments backdated to, and effective from, the date of entry into force of this Act.
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§ 7. Effective as of July 5th, 1999.
TRANSITIONAL AND CONCLUDING PROVISIONS
to the law on Amendment and Supplement of the Civil Procedure Code
(Promulgated State Gazette No. 64/1999)
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§ 63. Legal proceedings pertinent to appeal against court decisions and rulings on bankruptcy cases under Art. 613a of the Commerce Act, pending at the time of entry of this Act into force, shall be conducted in accordance with the current procedure .
TRANSITIONAL AND CONCLUDING PROVISIONS
To the Tax Procedure Code
(SG, No. 103/1999, effective 1.01.2000)
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§ 20. (1) Court proceedings in taxation cases, initiated before court and still pending, shall be reviewed under the hitherto procedure.
(2) Pending cases under the repealed Article 83(2) of the Collection of State Receivables Collection Act shall be reviewed under the procedure of Chapter Twelve "a" of the Code of Civil Procedure.
(3) Pending the adoption of the rules of organization of the tax administration, the number and the territorial scope of the tax directorates shall be determined by order of the Minister of Finance, which shall be published in State Gazette.
§ 21. In regard to any cases, mot regulated by this code, the provisions of the Code of Civil Procedure shall respectively apply.
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TRANSITIONAL AND CONCLUDING PROVISIONS
to the law on Amendment and Supplement of the Commerce Act
(Promulgated State Gazette No. 84/2000)
§ 139. Legal actions pursuant to article 70 of the Commerce Act, brought prior to the entry into force of this Act, shall be concluded under the procedure existing so far.
§ 140. Joint-stock companies shall bring their Articles of Association into compliance with article 162 within a period of one year after this Act's entry into force. A monetary sanction of up to BGN 2000 shall be imposed in case of non-performance of this obligation.
§ 141. Where a supervisory board may have been authorized by the Articles of Association prior to this Act's entry into force to increase the capital of a joint-stock company, this authority shall be continue to exist until the expiration of its term or until a subsequent amendment to the Articles of Association.
§ 142. Should a prospectus for raising capital for the incorporation of a joint-stock company has been approved by the State Committee on Securities prior to this Act's entry into force, the incorporation shall be governed by the procedure existing so far.
§ 143. The claims for establishing right, submitted under the procedure of article 694 prior to the date of entry into force of the Act on the Amendment and Supplement to the Commerce Act (SG No. 70/1998) shall be considered under the procedure which was effective as of that date. The state fee paid shall be exempted and returned to the payer.
§ 144. Appeals made against decision of the court of jurisdiction over bankruptcy under article 692 prior to this Act's entry into force shall be considered under the procedure which has been effective so far.
§ 145. For pending bankruptcy proceedings, the term referred to in article 688, paragraph 1, shall be considered starting on the date of this Act's entry into force.
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TRANSITIONAL AND CONCLUDING PROVISIONS
To the Act amending and supplementing the Commerce Act
(Promulgated State Gazette No. 58/2003, supplemented, SG No. 66/2005)
§ 94. Any change in the seat of a merchant and opening up of a branch that have been declared for registration prior to the coming into force of this act shall be registered following the procedure then in effect.
§ 95. Any transfer of a enterprise performed prior to the coming into force of this act shall be registered following the procedure then in effect.
§ 96. For grandfathered companies, the time period referred to in Article 70, paragraph (2) shall commence as from the coming into force of this act.
§ 97. Claims pursuant to Articles 70 and 74 against decisions to effect transformation that have been filed prior to the coming into force of this act shall be completed following the procedure then in effect.
§ 98. Transformations of companies declared for registration prior to the coming into force of this act shall be registered following the procedure then in effect and shall have effect in accordance with the provisions then in effect.
§ 99. The rights of creditors in relation to transformations registered prior to the coming into force of this act shall be retained.
§ 100.(1) Within three months after the coming into force of this act, the Minister of Justice in cooperation with the Minister of Economy shall issue the regulation referred to in Article 655a, paragraph (1).
(2) Until the regulation referred to in Article 655a, paragraph (1) has been issued and until the examination referred to in Article 655a, paragraph (2), subparagraph (7) has been held, receivers shall be appointed under the procedure that has been in effect so far.
(3) (Supplemented - SG, No. 66/2005) Within one month following the expiration of the time period specified in paragraph (1), an examination shall be held for the acquisition of receivership qualifications following the procedure specified in the regulation referred to in Article 655a, paragraph (1). The order of the Minister of Justice, whereby the examination is announced, shall be published in State Gazette.
(4) Persons who have successfully taken the examination for the acquisition of receivership qualifications shall be named in a list which shall be promulgated in the State Gazette.
(5) A person who has been appointed receiver or temporary receiver in grandfathered bankruptcy proceedings shall be discharged forthwith by the court if he is not included in the list of persons who may be appointed to receiver positions as promulgated in the State Gazette.
§ 101.(1) Grandfathered pending bankruptcy proceedings shall be completed following the procedure set out in this act.
(2) Any petitions of appeal against the actions referred to in Article 613a, paragraph (1), shall be dealt with under the procedure that has been in effect so far.
(3) In relation to the time periods referred to in Article 686, Article 688, paragraph (1), Article 690 and Article 694, paragraph (1) which have commenced prior to the coming into force of this act, the provisions which had been in force previously shall apply, unless they expire after the time periods set under this act.
(4) Public sales for which announcements have been made when this act takes force shall be completed in the procedure that has been in effect so far, upon which the provision of Article 717g shall apply.
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ADDITIONAL PROVISION
to the Law on the Amendment and Supplement to the Commerce Act
(SG No. 66/2005)
§ 31. Throughout the text of this act, the phrases "accounting statement" and "accounting statements" shall be replaced by "financial statement" and "financial statements" respectively.
TRANSITIONAL AND CONCLUDING PROVISIONS
to the law on Amendment and Supplement of the Commerce Act
(Promulgated State Gazette No. 38/2006)
§ 163. The imperative provisions of this Act shall also apply to contract for trade representation valid at the time of its entry into force.
§ 164. (Amended, SG No. 80/2006, effective 3.10.2006) Until the date of entry into force of the Commercial Register Act, any announcement of acts of court, the identifying data of the trustee in bankruptcy and the supervisory body, as well as any invitations, announcements and summonses shall be promulgated, as heretofore, in State Gazette.
§ 165.(1) Grandfathered pending bankruptcy proceedings shall be completed following the procedure set out in this act.
(2) Regarding time limits as per Art. 626 par. (1) and Art 698 par. (1) which have commenced prior to the coming into force of this Act, the provisions which had been in force heretofore shall apply.
(3) Regarding public sales for which announcements had been issued prior to the effective date of this Act, the time limits for dissemination of such announcements that had been in force towards the date of issuance of the announcements shall apply.
(4) The provision of par. (1) shall also apply in relation to Art. 718a regarding housing units, unless a sale agreement in respect thereof had been concluded towards the effective date of this Act
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§ 167. The provisions of § 1 through 7, § 15, items 3 through 5, § 16 through 77, § 78, item 2, § 79 ?
(*) Act to Amend the Commercial Register Act
(SG No. 80/2006, effective 3.10.2006)
§ 1. In § 56 of the Transitional and Final Provisions the words "1 October 2006" shall be replaced by "1 July 2007"
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Act to Amend and Supplement the Commerce Act
(SG No. 104/2007)
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SUPPLEMENTARY PROVISION
§ 11. This Act transposes the provisions of Council Directive 92/101/EEC amending Directive 77/91/EEC on the formation of public limited-liability companies and the maintenance and alteration of their capital, Directive 2006/68/EC of the European Parliament and of the Council amending Council Directive 77/91/EEC as regards the formation of public limited liability companies and the maintenance and alteration of their capital, and Directive 2005/56/EC of the European Parliament and of the Council on cross-border mergers of limited liability companies.
TRANSITIONAL AND FINAL PROVISIONS
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§ 15. (1) § 2 shall have effect as from the day of entry into force of the Commerce Act.
(2) § 14 shall enter into force as from the day of entry into force of the Commercial Register Act.
(3) Until the entry into force of the Commercial Register Act, the recordation of the circumstances and the issuing of the certificates provided for in § 14 shall be effected by the competent district court according to the rules of Chapter Fifty-Two of the Code of Civil Procedure, and the publication of the acts shall be effected through promulgation in the State Gazette.

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