Statute of Limitations in Bulgaria — When Do Debts Expire? (2026)

What is the statute of limitations

The statute of limitations (prescription period) is a legal institution governed by Art. 110 to Art. 120 of the Obligations and Contracts Act (ZZD). Its core function is: after a specified period, the creditor loses the ability to obtain compulsory enforcement of their claim through the courts and bailiffs.

What is extinguished and what is not

When the limitation period expires, the right to bring a court claim is extinguished, not the underlying obligation itself. The debtor continues to owe the amount, but the creditor can no longer compel payment through the courts. If the debtor voluntarily pays a time-barred claim, they have no right to request a refund (Art. 118 ZZD).

Mandatory nature

Under Art. 113 of the ZZD, limitation periods cannot be shortened or extended by agreement of the parties. A contractual clause stipulating a longer or shorter limitation period is null and void. A waiver of the limitation defence before the period has run is likewise null and void.

Types of limitation periods

Bulgarian law recognizes several types of limitation periods:

General 5-year limitation (Art. 110 ZZD)

The 5-year period is the "general" or "residual" limitation. It applies to any claim for which the law does not provide a different period. Typical examples:

• Loan claims (principal amount).
• Claims under sale and purchase agreements.
• Claims under service contracts.
• Unjust enrichment claims (with exceptions).
• Damages for breach of contract.

Short 3-year limitation (Art. 111 ZZD)

(a) Rent, interest, and other periodic payments. Periodic payments are those due at regular intervals (monthly, quarterly, annually).

(b) Compensation and penalties for breach of contract. If your counterparty owes you a contractual penalty for delay or damages for a breached contract, the limitation period is 3 years.

(c) Employment remuneration. Wages, bonuses, and other employment compensation are subject to a 3-year limitation.

The absolute 10-year limitation (Art. 112 ZZD)

The absolute limitation period was introduced by an amendment to the ZZD, effective from 2 June 2021. After the expiry of a 10-year limitation period, monetary claims against natural persons are extinguished regardless of any interruptions of the limitation period, except in specified cases.

When does it begin to run

The absolute limitation runs from the moment the claim became due. For claims that were already due before 2 June 2021, the period is deemed to have commenced on 2 June 2021. This means the first 10-year absolute limitation period will expire on 2 June 2031.

Exceptions

Art. 112, para. 2 of the ZZD provides important exceptions. The absolute limitation does not apply to:

1. Claims arising from commercial activity. If both the creditor and the debtor are traders and the claim arises from commercial activity.
2. Employment remuneration. Claims of employees for wages and compensation.
3. Maintenance claims. Obligations for maintenance (of children, of a former spouse).
4. Tort claims. Compensation for damages caused by a wrongful act (delictual claims).
5. Unjust enrichment claims.

Practical significance

The absolute limitation is particularly important for individuals who have accumulated debts on which creditors (banks, quick-loan companies, utility providers) periodically interrupt the ordinary limitation through enforcement proceedings. Under the new Art. 112 ZZD, 10 years after the claim became due, it will be extinguished regardless of the creditor's actions. The first real effects will materialize from 2 June 2031.

When does the limitation period begin to run

General rule (Art. 114 ZZD)

The limitation period begins to run from the day the claim becomes due and payable. Examples:

• Loan with a fixed repayment date. The limitation runs from the day following the repayment deadline.
• Loan without a fixed repayment date. The limitation runs from the date the contract was concluded.
• Periodic payments (rent, interest). For each individual payment, the limitation runs from the day it was due.

For tort damages (Art. 114, para. 3)

In tort cases, the limitation runs from the discovery of the wrongdoer.

First and last day

The day from which the limitation begins to run is not counted (Art. 114, para. 1 in conjunction with Art. 72, para. 1 ZZD). The limitation expires on the last day of the relevant period. If the last day falls on a non-working day, the limitation expires on the next working day.

Interruption vs suspension — the difference

Interruption of the limitation period (Art. 116 ZZD)

Upon interruption, the entire elapsed period is erased and a new limitation period of the same duration begins to run from the moment of interruption.

The limitation period is interrupted in three situations:

(a) Acknowledgment of the claim by the debtor. If the debtor acknowledges the debt (in writing, orally, through a partial payment, or by requesting an instalment plan), the limitation is interrupted and a full new period runs from the moment of acknowledgment.

(b) Filing a court claim or counterclaim. When the creditor files a lawsuit or the debtor raises a set-off defence, the limitation is interrupted.

(c) Commencement of enforcement proceedings. When the creditor initiates enforcement proceedings and the bailiff takes an enforcement action (seizure, inventory, public auction), the limitation is interrupted.

Suspension (tolling) of the limitation period (Art. 115 ZZD)

When the limitation is suspended, it temporarily stops running. The time already elapsed is not erased. Once the ground for suspension ceases, the limitation continues from where it stopped.

The limitation is suspended:

• Between spouses — while the marriage subsists.
• Between parents and minor children — while parental authority continues.
• For persons under guardianship.
• During force majeure events.
• While court proceedings concerning the claim are pending.

The practical difference

If 4 years of a 5-year limitation period have already elapsed and a ground for suspension arises, then once the ground ceases, only 1 year remains. But if at the same moment an interruption occurs, the 4 years already elapsed are erased and a full new 5-year period begins from zero.

The limitation period does NOT expire automatically

This is one of the most important and frequently misunderstood aspects of the statute of limitations.

The court does not apply the limitation ex officio

Under Art. 120 of the ZZD, the limitation period is not applied ex officio. Even if the limitation has expired, the court will not apply it unless the debtor raises a defence. If the creditor files a claim for a time-barred debt and the debtor fails to appear or fails to raise the limitation defence, the court will uphold the claim.

When to raise the defence

• In court proceedings. The limitation defence should be raised in the statement of defence (Art. 131 of the Civil Procedure Code) or at the latest during the first hearing.
• In order-for-payment proceedings. If the creditor has obtained a payment order under Art. 410 of the Civil Procedure Code and you file an objection under Art. 414, the creditor must then file a claim.
• Against a bailiff. The limitation defence may be raised under Art. 439 of the Civil Procedure Code.

Practical advice for debtors

Keep your documents

Retain copies of contracts, payment receipts, and correspondence with creditors. These documents can be decisive in proving the point from which the limitation began to run.

Be careful about acknowledging the debt

Any acknowledgment of the debt interrupts the limitation period. Be cautious with:

• Letters to the creditor in which you acknowledge the obligation.
• Emails requesting an instalment plan.
• Partial payments (even a EUR 1 payment interrupts the limitation for the entire debt).
• Signing a new repayment schedule.
• Oral acknowledgments in front of witnesses.

Do not pay time-barred debts without legal advice

If a debt collector contacts you about an old debt, do not rush to pay. Consult a lawyer to determine whether the limitation period has expired. If it has expired and you pay, you have no right to request a refund (Art. 118 ZZD).

Respond to court documents

If you receive a payment order or a statement of claim, respond within the deadline. File an objection. Do not ignore court documents even if you believe the limitation period has expired.

Practical advice for creditors

Monitor limitation deadlines

Create a system for tracking the limitation periods for your receivables. Missing a limitation deadline means losing the ability to enforce collection.

Interrupt the limitation in time

If the debtor is not paying and the limitation period is approaching, take action to interrupt it:

• File a court claim or a payment order application.
• If you hold an enforcement order, initiate enforcement proceedings.
• Request a written acknowledgment of the debt from the debtor.

Avoid inaction in enforcement proceedings

Under Interpretive Decision No. 2/2013 of the Supreme Court of Cassation, if the creditor does not request an enforcement action for 2 consecutive years during enforcement proceedings, the proceedings are terminated by operation of law (Art. 433, para. 1, item 8 of the Civil Procedure Code).

Plan for the absolute limitation period

For claims against natural persons, keep in mind that from 2 June 2031, claims will begin to be extinguished under the absolute limitation. Plan your collection efforts accordingly.

Document every interruption

Preserve evidence of every action that interrupts the limitation: the date a claim was filed, the date of each enforcement action, any written acknowledgment from the debtor.

Frequently asked questions

Conclusion

The statute of limitations is a powerful legal tool that protects debtors from indefinite pursuit and motivates creditors to act promptly. With the introduction of the absolute 10-year limitation under Art. 112 ZZD in 2021, individuals gained additional protection whose real effects will first materialize in 2031.

If you have questions about the limitation period for a specific claim, the team at Innovires Legal can provide a legal analysis and an action strategy. Contact us for a consultation.

This article is prepared for informational purposes only and does not constitute legal advice. The information is current as of the publication date (25 March 2026) and may be affected by subsequent legislative changes.