Recovering claims against Bulgarian insurers in winding-up proceedings: a guide for Italian creditors

The first check concerns the proceedings, not just the enforceable instrument

An Italian judgment against a Bulgarian insurer may be a decisive document, but it does not ensure payment or always allow attachment to proceed. If the undertaking is subject to winding-up or insolvency proceedings, the claim must be coordinated with the proceedings opened in its home Member State. This assessment is relevant to insured persons, injured parties, supplier businesses and fellow lawyers acting for Italian creditors.

Start with the insurer’s exact legal name and company identifier: the intermediary, claims representative and undertaking assuming the risk may be different entities. Obtain the full decision, details of its legal effect, its entry in the Bulgarian register and the contact details of the person or body administering the proceedings. The FSC and IVASS are official sources for checking the available notices.

Withdrawal of authorisation, voluntary winding-up and insolvency are distinct

Withdrawal of authorisation affects the conduct of insurance business; it does not, by itself, establish that any particular collective insolvency proceedings have been opened. Voluntary winding-up concerns the cessation of the undertaking’s business and the settlement of its legal relationships, whereas insolvency requires the conditions and decision prescribed by the applicable rules. In Bulgaria, the Insurance Code distinguishes these routes; Article 613 reserves the right to apply for the opening of an insurer’s insolvency proceedings to the FSC.

For EU law purposes, the substance of the proceedings also matters. Article 268 of the Solvency II Directive includes within winding-up proceedings collective procedures for realising and distributing assets that involve intervention by the competent authority, including voluntary procedures and those not founded on insolvency. In Case C-427/19, the Court of Justice clarified that withdrawal of authorisation and the appointment of a provisional liquidator do not necessarily amount to the opening of proceedings: the powers conferred and the effects of the law of the home Member State must be examined.

Which law governs recovery and why a judgment may not be enough

Regulation (EU) 2015/848 on insolvency proceedings excludes insurance undertakings. The specific EU framework is Title IV of Directive 2009/138/EC. Article 273 provides for recognition, without further formalities, of the decision to open proceedings taken in the home Member State; Article 274 makes the law of that State govern the admission, verification and ranking of claims, distributions and effects on individual actions, subject to the prescribed exceptions.

For an insurer whose home Member State is Bulgaria, Bulgarian law and the specific decision must therefore be examined before enforcement is commenced or continued. The Italian enforceable instrument records the determination obtained, but it does not remove competition with other creditors, any stays or restrictions on individual action. An attachment already under way must be examined separately.

Pending lawsuits are subject to the special rule in Article 292: the effects of the proceedings on a lawsuit falling within that provision are governed by the law of the State in which the lawsuit is pending. As the Court of Justice clarified in Case C-724/20, this exception concerns actions seeking to determine rights and obligations, not individual enforcement proceedings. It therefore does not mean that every lawsuit must be interrupted or that the future judgment can always be enforced. Security interests and other rights may also require examination of the exceptions in Articles 285–292.

Insurance claim or trade claim: the ranking differs

An insurance claim, as defined in Article 268, includes certain amounts owed to policyholders, insured persons, beneficiaries and injured parties entitled to bring a direct action. An invoice for services supplied to the company does not automatically become an insurance claim merely because the debtor is an insurer. Assignments, subrogation and ancillary claims also require specific legal classification.

This distinction affects treatment in the collective proceedings. Article 275 provides protections for insurance claims; in Bulgarian insolvency proceedings, Article 620 of the Code sets the order of the categories, also distinguishing compulsory insurance, life insurance and other classes. Priority does not guarantee payment in full: the assets available and the distribution rules remain decisive.

Documents to prepare and deadlines to check immediately

A well-organised file makes it possible to formulate the appropriate application and check whether a previously notified claim has already been registered. It is useful to collect:

• The complete policy, endorsements, claim number and documents identifying the creditor and the insurer.
• The claim notification, payment demands, replies, expert reports and evidence of loss and liability, according to the nature of the claim.
• The full judgment or other enforceable instrument, documents relating to service, and information on appeals and previous enforcement proceedings.
• A breakdown of principal, interest, costs and payments received, with dates and supporting documents.
• The decision opening proceedings, the notice to creditors, the liquidator’s or insolvency administrator’s details and documents relating to any security or guarantees.

Lodging a claim, language and communications

For the insolvency of a Bulgarian insurer, Article 617 requires claims to be submitted in writing to the insolvency administrator within two months of registration of the decision referred to in Article 614. The actual deadline must be calculated by reference to the official registration and the rules applicable to the proceedings: this time limit must not be applied automatically to voluntary winding-up. The same article governs insurance claims already registered under Article 106(2), and adverse consequences for claims submitted late. Inclusion, amount and classification must be checked, without relying solely on the earlier notification of the insured event.

Articles 281–283 of the Directive and Articles 627–628 of the Bulgarian Code protect the rights of creditors from other Member States to information and participation. An Italian creditor may lodge a claim in their own official language, with the heading of the application in Bulgarian; documents, filing arrangements and any necessary translations must be organised for the particular case. Failure to receive a communication does not justify waiting: the notice and register should be checked promptly.

A separate compensation route may be available for motor liability claims

Directive (EU) 2021/2118, transposed in Italy by Legislative Decree 184/2023, strengthened protection for injured parties when the insurer is subject to winding-up or equivalent proceedings. For residents of Italy involved in certain accidents abroad, Consap identifies the route through the Italian Compensation Body, including for undertakings made subject to such proceedings from 23 December 2023.

Eligibility must be checked by reference to the place and date of the accident, residence, vehicle, cover and date of the proceedings. A different route must be examined for accidents in Italy. This is not a general guarantee for every debt of the insurer: surety bonds, professional liability and trade invoices cannot automatically be brought within the motor liability insurance system. Any compensation must be coordinated with the claim in the proceedings, with amounts received disclosed.

Coordinating work between Italy and Bulgaria

The initial discussion should identify the insurer, the nature and amount of the claim, any known proceedings, the enforceable instrument available and documented urgent issues. Coordination between Avv. Andrea De Amicis and Avv. Sonia Petrova enables work to be organised within their respective legal systems and the application, calculations and subsequent updates to be checked. The strategy depends on the documents and does not permit promises as to timing or recovery rates.