How Can Inherited Debts Be Waived in Bulgaria?

When the death of a loved one occurs, emotional loss is often accompanied by legal and financial uncertainty — especially when the question arises: “What if he left only debts?”It is at such times that the key need for clarity arises about the possibility of renunciation of inheritance, pursuant to Articles 52—53 of the Inheritance Act (ZN), and its importance in protecting against inheritance of obligations.

🔍 According to Art. 60 ZN, the inheritance includes both assets (property, deposits) and liabilities (liabilities, loans). If the heir fails to act, he accepts all of the heir's assets — including outstanding bank loans, loans, household debts and other receivables. Here comes the crucial moment: can and how can the heir protect himself?

✅ By law, the refusal of inheritance is carried out by an explicit written application submitted to the district court of the last place of residence of the deceased (art. 52, para. 1 ZN). The deadline for filing is six months from the knowledge of the opening of the inheritance. If the refusal is made within the time limit, the heir is not responsible for the obligations of the heir.

💡 Typical life examples:
“A son who lives abroad learns over time that his father died with large loans — he filed a waiver to protect himself from liability.
— An heir discovers that the heir had a mortgage loan — checks whether he has insurance on the loan at death, and decides whether to accept or refuse the inheritance.

🧾 Topics we will consider in detail:

• How is an inheritance waiver filed in case of existing debts?
• Can credit be simplified at death?
• Is there loan insurance in case of death and how to check it?
• Does a statute of limitations expire?
• How are obligations of a deceased person checked?
• Who inherits if all heirs give up?

⚖️ BSLCis here to provide professional assistance — from checking obligations and risk analysis to legal representation in cases of refusal of inheritance or contesting inheritance rights. We have experience in cases with an international element, bank obligations, hereditary disputes and life insurance contracts with credit coverage.

What obligations of the deceased are the heirs responsible for?

According to Art. 60, para. 1 ZN, “the heirs who have accepted the inheritance shall be liable for the obligations with which it is encumbered, in proportion to the shares they receive”.

This means that the responsibility of the heirs arises only upon acceptance of the inheritance. Reception can be:

• explicitly, by written application to the district court (art. 49 ZŁ),
• silently, through actions that clearly indicate an intention to accept — e.g. disposing of property (art. 49, para. 2 ZN).

Example from practice 🧾: A person begins to collect rent from an apartment of his deceased father. Without an explicit statement, this is interpreted as tacit acceptance of the inheritance and carries consequences — including the assumption of possible debts.

🧾 What obligations pass into the inheritance?

According to Art. 60, para. 1 ZN, all obligations with which it is encumbered pass into the inheritance, other than those that are inextricably linked with the personality of the heir.

This means that only obligations that are intended to be fulfilled independently of the specific person are heritable. Here are the types of obligations that fall within the scope of the inheritance mass:

1. Obligations (contractual obligations)

🔹 Hereditary are:

• The obligation of the buyer to pay the price;
• The obligation of the seller to transfer ownership and transfer possession (in the case of an already concluded contract);
• Obligations under a rental agreement — both of the tenant and the landlord;
• Remuneration under service or labour contracts, where not wholly outstanding;
• Obligations on the recording of a warrant, loan, lease, credit, etc.

🔹 They are not heritable:

• Obligations related to personal services (e.g. participation in a competition or production of a personal work);
• Execution of specific personal actions that can only be performed by the heir (e.g. personal tutor, lawyer contract with clause “intuitu personae” — due to personal qualities).

2. Intuitu personae contracts — especially the maintenance and care contract

According to Interpretative Decision No. 30 of 15.05.1981 of the SAC of the Air Force, the obligations under maintenance and care contract do not pass automaticallyto the heirs. They They can be inheritedbut only if the heir accepts the inheritance and wishes to continue the fulfillment of obligationsTake care, for example.

📌 If he doesn't want to, he has to give up the inheritance., since acceptance also includes the obligation to watch. In case of refusal, liability does not arise.

3. Delinquent Obligations (Unlawful Harm)

Obligations for compensation for damage caused by the heir during his lifetime (e.g. in the event of a car accident, beating, property damage), are heritable, if:

• a court decision has been issued,
• there is a recognition or documented request from the injured person.

📌 Example: If the deceased hit a pedestrian and is ordered to pay 3,000 euros. compensation, this obligation passes to the inheritance and the heirs will owe it according to their shares.

What is the responsibility of the heirs for the debts of the deceased?

According to Art. 60, para. 1 ZN, “the heirs are responsible for the obligations with which the inheritance is encumbered, in accordance with the shares they receive”. This means that each heir is liable only up to the amount of his or her share, regardless of the type of debt and even if during his lifetime the heir was a solidary debtor.

🔍 Example:If the deceased had a debt of 9,000 euros. and has three heirs, each is responsible for 3,000 euros., even if during his lifetime he was a solidary debtor with another.

It is important to emphasize: between the heirs There is no solidarity— that is, the creditor cannot claim the entire amount from one of them. Each is individually responsible for his or her case.

🔹 Exception — in case of indivisible obligations

According to Art. 129 ZZD, in case of indivisible obligations, which cannot be separated by their nature (for example, an obligation to transfer an item, which is only one), the responsibility remains solidary even after inheritance.

📌 Example:A and B undertake to transfer one horse to C, but A dies and leaves two heirs. In this case, they remain solidarily obliged to perform — because the object (the horse) cannot be divided.

🔹 Responsibility for covenants

According to Art. 19 et seq. ZN, covenants are a burden on the inheritance and the heirs are responsible for them under split row, except in cases of indivisible covenant or expressly agreed solidarity.

• At Individually Defined Item(e.g. apartment) — the testator becomes the owner upon acceptance and the heirs owe only the transfer of possession.
• At Gender-Defined Item(eg 1 ton of grain, 100,000 euros.) — the testator has a claim against the heirs and can force them to enforce through a court.

🛡️ Protection by separation of inheritance — art. 67 ZŁ

According to Art. 67 ZŁ, the creditors of the inheritance and the legatees may, within three months of its acceptance, request the separation of the estate of the heir from the property of the heir. This separation is carried out for real estate by entering in the real estate lots of the heir in accordance with the procedure of the Law on Cadastre and Property Register, and for movable property - by an application to the district judge, which is entered in accordance with the order of Art. 49, para. 1. Creditors of the inheritance and legatees who have requested separation are preferred to those who have not requested it. When separation is requested by creditors and charterers, preference shall be given to the former.

‍Separation of inheritance(lat. separatio bonorum) is a protected institute for the benefit of creditors of the heir and legatees. They may request a separation entry:

• in the land register — for real estate;
• in the book of acceptance/refusal in court — for movable property.

📌 Consequences:

• The creditors of the heir receive preferencein satisfaction;
• The inheritance is separated from the estate of the heir and cannot be used by his personal creditors;
• If only one creditor or legatee requests separation — The benefit extends to the rest, but he has advantagein satisfaction.

What is the responsibility of the other heirs if there is a will in favor of a third person?

According to Art. 19 et seq. ZN, when the deceased left a will, in which he established covenant, the responsibility for its implementation falls on heirs— whether they inherited by law or by will.

The general rule is separate responsibility, in proportion to the shares of the inheritance that each has accepted. The heirs are not jointly and severally liable unless the covenant is indivisible in nature.

📌 Types of covenants and the consequences for heirs

🔹 1. A testament to an individually defined item

It is a will by which a specific property or movable property is bequeathed, for example apartment in Sofia, blvd. Bulgaria No. 100. According to established practice:

With the adoption of the covenant, the testator Automatically Acquires Ownershipon the item.

The heirs not responsible for the transfer of ownership, a only for the transfer of possessionif the item is in their actual possession.

📌 Example:If the apartment is bequeathed to the daughter, but is inhabited by her brother, the brother as heir must hand it over to her voluntarily or through a court.

🔹 2. Testament of a Gender-Defined Item

It is a covenant that describes an object by quantity or type, but not individualized — e.g. “I bequeath 1 ton of wheat” or “100,000 euros.”.

According to Art. 24, para. 2 ZDZ, the adoption of a covenant does not result in the transfer of ownership automatically. The Provost acquires receivableagainst the heirs - they must transfer the property to him and hand over the possession to him.

📌 Example:If there is a will for 100,000 euros., but there are only 30,000 euros in the inheritance., the testament remains valid, but the testator has a claim only up to the amount available.

❌ What happens if the will does not exist?

We distinguish two main cases:

• Individually determined item that is not in the inheritance at the time of deathThe Covenant is null, pursuant to art. 19, para. 1 ZN. This means that the heirs They don't owe anythingon it.
• Gender-defined item that is missing or in insufficient quantity— the covenant remains actual, but it is executed within what is available. The hermit becomes creditor of heirs, to the value of the corresponding part.

What to do if the heir has more debts than property? What if we do not know the size of the inheritance?

When opening an inheritance, in Bulgarian law the heir does not automatically acquire property, and the right to accept or refuse the inheritance. This is because the inheritance mass includes not only assets (property, money, movable property), but also liabilities, that is, debts of the heir (art. 60, para. 1 ZN).

According to Art. 60, para. 1 ZN, “the heirs who have accepted the inheritance shall be liable for the obligations with which it is encumbered, in proportion to the shares they receive”. This means that the heir accepts and assets (property, money), but also liabilities (debts, covenants, public liabilities). If the adoption is made without a precautionary measure, the heir risking his personal propertyto be affected if the debts are greater than the inheritance.

According to Art. 49, para. 2 ZN, “the acceptance of the inheritance may be explicit or tacit”. A tacit acceptance is considered to be present when the heir committed actions that unequivocally indicate his intention to accept the inheritance, especially if he has the property as his own.

❗ Not every action is acceptance!

Jurisprudence and doctrine agree that the following actions do not in themselves constitute tacit acceptance:

• temporary use of property (for example, moving into a dwelling without a disposition);
• payment of bills, taxes or security for the preservation of property;
• submission of documents, certificates or obtaining information.

📌 Example:
A father dies, leaving a debt of 100,000 euros. and an apartment for 70,000 euros. The son is applied to the apartment, but does not sell it, does not rent it and does not declare that it takes it for itself. This is not automatic silent reception. But if he sells the property, enters into a lease or initiates dispositive action — that would be acceptance with conclusive action.

❗ But if still you do not know what exactly the inheritance includes— neither property nor debts — you have legal protection mechanisms.

Decision No. 1 - Acceptance of the Inheritance by Inventory

According to Art. 60, para. 2 ZN, “the heir who has accepted the inheritance by inventory shall be liable only to the amount of the inheritance received”.

This is the only way to accept inherited rights and property, without the risk of your personal property being affectedif the debts of the heir turn out to be greater.

🛠️ What does the procedure include?

1. You submit a written requestto the District Court at the last permanent address of the deceased, in which you expressly state that you want admission by inventory;
2. You attach a death certificate, a deed of heirs and a list of your known assets and liabilities;
3. The Court assigns a description— it can be carried out by a notary or a judge;
4. The data is enter in the public ledgerfor admissions and refusals, upheld by the court.

🧷 Advantages:

• Creditors can be satisfied only up to the amount of inherited property;
• The heir retains all rights to the assets— e.g. real estate, deposits;
• His personal income, wages and savings are not at riskby bailiffs.

⚠️ Disadvantages:

• The procedure is formal and you will certainly incur expenses;
• Must to be active— submit an application on time and follow the procedure;

Decision No. 2 - Refusal by inheritance

According to Art. 52 ZŁ, “Giving up an inheritance is a unilateral transaction”, which is carried out explicitly and in writingbefore the District Court. Refusal has retroactive effect — just like You have never been an heir.

🛠️ How to make a refusal?

1. You draw up a written declaration with a notarized signature;
2. You submit it to the District Court at the last permanent address of the heir;
3. The declaration is records in the book of acceptances and refusals— public register.

🧷 Advantages:

• You do not bear any responsibilityabout the debts of the deceased;
• You do not participate in inventory or division procedures;
• The Refusal is final and not subject to cancellation.

⚠️ Disadvantages:

• You lose all rights to the inheritance— both on real estate and on movable property;
• Your share distributes among the other heirsof the same order (art. 55 ZŁ);
• You You can't choose — either accept everything or refuse everything. Partial refusal is null and void.

📌 Example:You inherit debts of 80,000 euros., but there is a suspicion of valuables. You can choose:

• Acceptance by inventoryto preserve them and limit your liability;
• Refusalif you do not want any risk and have no interest in the assets.

🔍 How can we check what property the deceased had?

The study of the hereditary mass is necessary step before accepting or renouncing an inheritance, especially if there is a suspicion of debts. Because in Bulgarian law there is no central public register of all the property of a deceased person, information should be collected from several sources:

🏠 Real Estate

📍 Where:Registry Office (Registry Agency)
📌 What it shows:The estates in the name of the heir, mortgages, foreclosures, litigation
📌 Important:If it is possible that he had properties in different cities — the reference is made separately for each registry office in the country
📄 Additionally:You can request copies of notarial deedsif they are missing from the available documentation

🚗 Vehicles

📍 Where:Ministry of the Interior, Traffic Police Sector
📌 What it shows:Registered cars, liens imposed, owned at the time of death

💳 Bank accounts and loans

📍 Where:By asking the banks and Central Credit Register at BNB
📌 What it shows:Available deposits, loans, arrears
📄 Necessary:Certificate of heirs, death certificate and proof of interest (inheritance law)

⚖️ Executive cases

📍 Where:

• At any private bailiff (CSI)
• IN Chamber of Private Bailiffs— a request for a centralized check can be submitted
• At the State Bailiff at the District Courtat the address of the heir

📌 What it shows:Whether the heir had debts in the shares or was a party as a claimant (creditor)

🏢 Participation in commercial companies

📍 Where:Trade Register and BULSTAT
📌 What it shows:Shares, company ownership, participations in companies

📈 Securities

📍 Where:Central Depositary
📌 What it shows:Stocks, bonds, investment instruments

🧾 Tax and Social Security Obligations

📍 Where:

• National Revenue Agency (NRA)
• Municipalities where properties were located

📌 What it shows:Building Tax, Garbage Tax, Vehicles, Public Obligations

🌍 Foreign property and assets

📍 Where:Through an inquiry to the relevant embassy or consular office of the country where the deceased is presumed to have had property
📌 What it shows:Real estate, banking assets, investments or company participations abroad