The transfer of claim in Bulgaria

According to Article 99 of the Bulgarian law of obligations and contracts, a creditor may transfer his claims, provided that neither the law, a contract or the nature of the claim dictates otherwise. The transferred claim including the prerogatives, the remuneration and all other additions as well as the accrued interest passes on to the new creditor, unless something else is appointed. The old creditor must inform the debtor about the transfer of claim and hand over all present documents regarding the claim to the new creditor. Besides, the creditor must confirm the transfer in writing. The transfer is effective regarding third parties and the debtor from the day that the debtor gets informed by the old creditor. Regarding the transfer of claim for consideration, the old creditor is liable for the validity of the claim at the time of the transfer. The old creditor is only liable for the debtor’s ability to pay if he pledged himself to and only to the amount that he obtained by transferring the claim.

Stepping in as co-debtor

With the approval of creditor and/or debtor, an obligation may also be joined by a third person as co- debtor. If the creditor agreed to the joining, it may not be cancelled or modified without his consent. The principal debtor and the co-person are jointly and severally liable toward the creditor. The debtor may be substituted by third parties only with the explicit consent of the creditor. The substituted debtor is relieved from the liability towards the creditor. The securities given by third parties expire if they do not agree on serving the new creditor. Pledges and mortgages that have been given to the first creditor remain effective.