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Swiss law provides for two types of proceedings for the enforcement of money
claims referred to as "special execution proceedings" and "general execution
proceedings" respectively.
Both types of enforcement proceedings are initiated
by a creditor (or a private individual/ company claiming to be a creditor)
filing an enforcement request with the competent debt enforcement authority
(Betreibungsamt) and asking for issuance of a payment summons to the debtor.
Special execution proceedings are often directed against private individual
debtors. They also serve to reach the realization of a collateral or mortgage
respectively for the benefit of a single creditor.
General execution proceedings are mostly directed against companies. All
creditors jointly participate in the realization of the debtor's asset. Swiss
law provides for two types of general execution, bankruptcy and debt
restructuring proceedings.
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Bankruptcy
With the opening of bankruptcy proceedings by the competent judge the debtor
loses his authority to dispose of his assets and all business operations in
general come to an immediate and final standstill. The assets of the bankrupt
debtor are realized by a court appointed bankruptcy trustee under very strict
rules and the respective proceeds distributed proportionally to the creditors
once their claims have been assessed by the bankruptcy trustee following a
specific procedure.
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Debt Restructuring Proceedings
As opposed to bankruptcy proceedings, debt restructuring proceedings allow for
a limited continuation of the debtor's business activities and for a more
flexible realization of the debtor's assets and are, therefore, often likely
to yield higher proceeds to be proportionally distributed to the creditors.
Debt restructuring proceedings under Swiss law can be somewhat similar to the
Chapter 11 proceedings provided by U.S. law, particularly with regard to the
ordinary debt restructuring agreement which allows a debtor to dispose of a
certain percentage of his debts and continue to stay in business. Compared to
U.S. chapter 11 proceedings, however, Swiss law focuses primarily on the rights
of the creditors rather than on the continuation of the debtor's business
activities.
Applicable law
Detailed information
1. Procedural requirements for creditors to start enforcement proceedings
2. Types of enforcement proceedings
3. Types of enforcement proceedings
3.1.
Special execution
3.2.
General execution
a) Bankruptcy proceedings
b) Debt restructuring proceedings
Fequently asked questions
Useful links
This site has been prepared by
Brigitte Umbach-Spahn LL.M. and
Martina Stettler
Attorneys at Law
WENGER PLATTNER
Seestrasse 39
8700 Kuesnacht-Zurich
Switzerland
Tel. +41 43 222 38 00
Fax +41 43 222 38 01
E-mail: brigitte.umbach@wenger-plattner.ch
or
E-mail:
martina.stettler@wenger-plattner.ch
www.wenger-plattner.ch
Brigitte Umbach-Spahn serves as deputy to the liquidator in several Swiss
insolvency proceedings, among others in the Swissair case.
Related publication:
Enforcement of a Money Claim in Switzerland
April 2006
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