Lawyer in Zurich for debt collection law and bankruptcy
We represent your concerns regarding debt collection and bankruptcy in Zurich.
What to do in the event of debt collection? How can I pursue a claim?
Anyone who is confronted with outstanding claims or is being pursued themselves is quickly confronted with complex debt enforcement or bankruptcy proceedings. Debt enforcement law regulates how creditors can enforce their claims and how debtors can defend themselves against unjustified claims. The basis for this is the Debt Enforcement and Bankruptcy Act (SchKG).
At the heart of this is debt enforcement: the procedure by which a monetary claim is initiated at the responsible debt enforcement office. The order for payment gives the debtor the option of settling the claim within 20 days or lodging an objection within 10 days. The latter prevents the debt enforcement proceedings from continuing for the time being. The creditor must then – depending on the evidence – initiate proceedings to open legal proceedings in order to continue the debt enforcement and realize the debtor’s assets for his benefit.
For creditors, the question often arises as to whether debt enforcement is worthwhile at all and how assets can be effectively secured. For debtors, the question is how to ward off unjustified debt enforcement proceedings or avoid the threat of bankruptcy proceedings.
Spühler Rechtsanwälte AG advises and represents both creditors and debtors in all areas of debt collection law. We support you in the initiation or defense of debt enforcement proceedings, in legal proceedings to open insolvency proceedings, in negotiations on payment agreements and in the preparation and support of bankruptcy proceedings. Assets can be blocked from the debtor with a so-called attachment so that they are not set aside or used up.
FAQ – Frequently asked questions about debt collection law
To initiate debt enforcement proceedings, the creditor submits a debt enforcement request to the competent debt enforcement office at the debtor’s domicile or registered office. The request must contain the name and address of the debtor, the amount of the claim, the reason for the claim and any interest. The debt enforcement office will then send the debtor a payment order.
The payment order is an official request from the debt enforcement office to the debtor to settle the claim within 20 days or to lodge an objection within 10 days. It is issued on the basis of the creditor’s debt enforcement request without the debt enforcement office checking the legitimacy of the claim.
Upon receipt of the payment order, the debtor may lodge an objection with the debt enforcement office within 10 days. This has the effect of temporarily suspending the debt enforcement proceedings. The objection can be made verbally or in writing and does not have to be substantiated.
A legal objection is the debtor’s formal objection to the payment order. It can be lodged verbally with the official issuing the order or in writing with the debt collection office within 10 days of service of the order for payment. The objection does not have to be substantiated.
The creditor can remove the legal proposal in three ways:
- Definitive legal opening: If there is a legally binding judgment or an enforceable public deed.
- Provisional legal opening: If the debtor acknowledges the debt in writing.
- Ordinary action: By action for recognition in civil proceedings if none of the above-mentioned evidence is available.
Legal proceedings are court proceedings under the Swiss Debt Enforcement and Bankruptcy Act (SchKG) with which a creditor can remove the debtor’s objection. The objection is the debtor’s objection to the payment order, which initially blocks the debt enforcement proceedings.
In order for the debt enforcement proceedings to be continued, the creditor must submit an application for the opening of legal proceedings to the competent court. There are two types of legal opening:
- Definitive legal opening: This is granted if the creditor submits a legally binding judgment or an enforceable public deed that clearly states the debt.
- Provisional legal opening: This is possible if the creditor can present a written acknowledgement of debt from the debtor. The debtor can then respond by filing an action for annulment within 20 days in order to defend against the claim.
The legal opening procedure therefore serves to clarify whether the asserted claim is legally enforceable. If the legal opening is granted, the creditor can continue the debt enforcement proceedings.
If the debtor has not submitted a legal proposal or if this has been removed, the creditor can submit a request for continuation to the debt enforcement office at the earliest 20 days and at the latest one year after service of the payment order. This leads to the continuation of the debt enforcement, e.g. by attachment or threat of bankruptcy.
Entries in the debt collection register generally remain visible for five years. Early deletion is possible if the creditor withdraws the debt enforcement or a court determines that the claim does not exist. In certain cases, the debt enforcement office can also hide the entry for third parties upon request. The lawyers at Spühler Attorneys at Law will be happy to help you have unjustified debt collection register entries deleted. Contact us without obligation.
Debt collection proceedings remain visible in the debt collection register for five years after the proceedings have been concluded, regardless of whether the claim has been settled. After this period has expired, the entry is automatically deleted.
A certificate of loss is issued if debt collection (after removal of the advance on rights) does not result in full settlement of the claim. It confirms the outstanding amount and enables the creditor to assert the claim again within 20 years of issue (statute of limitations). Certificates of loss are entered in the debt enforcement register (register of certificates of loss) at the debt enforcement office.
In Switzerland, various non-profit organizations offer support with debt problems. These organizations offer advice and help with debt settlement. In Zurich, you can find the relevant contact points on the following website: https://www.stadt-zuerich.ch/de/lebenslagen/unterstuetzung-und-beratung/izs/wegweiser/finanzen/budget-_und_schuldenberatung.html
Personal bankruptcy is a legal procedure in Switzerland that enables over-indebted private individuals to stabilize their financial situation. The existing realizable assets are liquidated and distributed among the creditors. It is important to note that personal bankruptcy does not cancel existing debts. Outstanding amounts are documented in the form of loss certificates, which creditors can reclaim under certain conditions.
A key effect of personal bankruptcy is that ongoing debt collection, seizures and wage garnishments are lifted when bankruptcy proceedings are opened. This provides the over-indebted person with noticeable short-term relief.
In addition, once the bankruptcy proceedings have been completed, the person concerned can invoke the so-called defense of lack of new assets against former creditors. This means that claims prior to the opening of bankruptcy proceedings can only be pursued to a limited extent.
In order to apply for personal bankruptcy, the debtor must be able to guarantee the costs of the bankruptcy.
An attachment is a precautionary measure used to secure the debtor’s assets in order to guarantee the subsequent enforcement of a claim. The creditor must apply to the competent court for an attachment order and demonstrate that the claim exists and that there are grounds for attachment.