The guarantee in Bulgaria

The guarantee agreement obliges the guarantor to be personally responsible for the fulfillment of obligations/liabilities of the main debtor. The guarantee has to be confirmed in writing. Subject of the guarantee can be only existing obligations.

A guarantee may also be issued for future or conditioned obligations. It may be issued for parts of the debtor’s obligation or under more favourable conditions. If the guarantor obliged himself to a value that exceeds the debtor’s obligation or if he did it under worse conditions, his obligation is lowered to the amount of the main claim. Aside of the main claim, the guarantee covers all consequences of the non-performance including the costs for any legal enforcement measures.

According to Article 141 of the law of obligations and contracts, the guarantor and the main debtor are jointly liable. If several persons guarantee for the same obligation of the same debtor, they are liable as joint debtors unless they agreed upon a division. The guarantor may raise all objections of the debtor against the claim of the creditor as well as seeking an offsetting with the debtor’s claims. These rights of the guarantor last even if the debtor has been released from his obligation or in case of resumption of the debt. The guarantor who has fulfilled this obligation can claim from the debtor principal, interest and expenses after informing him about the request for payment. From the day of payment, the guarantor is also entitled to the statutory interest rate over the paid amount.

The debtor is not liable to the guarantor, if the debtor has fulfilled his obligation before being informed of the payment done by the guarantor. If the guarantor has paid the debt without informing the main debtor, the latter is entitled to raise against the creditor all his objections that he might have had. In both cases, the guarantor is entitled to claim back from the creditor what he has received without a legal ground. If the main debtor has performed, he has to inform the guarantor immediately. If several persons guarantee for the same obligation, the guarantor that has fulfilled the obligation may claim from the other guarantors the respective shares of the debt, incumbent on each of them. According to Article 146 of the law of obligations and contracts, the creditor’s claim against the main debtor is transferred to the guarantor under condition that the creditor has been satisfied by the guarantor even if the debtor has not been aware of the guarantee. The guarantor is entitled to exercise the creditor’s rights towards third parties that have guaranteed for the obligation with granting a lien or mortgage but only to the extent of the claim that might have been raised against them if they would have become guarantors. The guarantee expires if the creditor hinders the guarantor from taking over his rights.

Only if the creditor has claimed payment from the debtor within 6 months after the due date of payment, the guarantor remains obliged under the given guarantee. The prolongation of the time period granted by the creditor to the debtor has no effect for the guarantor if there has not been an agreement in this sense. Regarding the debtor, an interruption of the limitation period or a rejection of the expired limitation does not affect the guarantor; regarding the guarantor, an interruption of the limitation period or a rejection of the expired limitation does not affect the debtor.