When you fail to pay a bill, despite several reminders from the creditor, the creditor takes legal action against you. In this article, we'll look at how debt enforcement works in Switzerland.
In Switzerland, this is the only legal way for a creditor to demand repayment of a debt. As a result, there will be a registration with a debt enforcement office. It is the debt enforcement office that will take steps to recover the amount owed.
The debt enforcement office usually takes action after one or more unsuccessful reminders. However, in Switzerland, an invoice is due as soon as it is received. A creditor can therefore legally take legal action against the debtor as soon as the invoice is issued. The creditor would then requisition the debtor from the debt enforcement office in the area where the debtor is registered. This is done by means of a pursuit requisition.
Receipt of a summons to pay
The payment order is the official document issued by the debt enforcement office, based on the details provided by the creditor on the debt enforcement requisition. It should be noted that the debt enforcement office is neither competent nor obliged to check that the claim is valid. The debt enforcement office therefore acts on the instructions received from the creditor. In addition to the claim, the debtor will have to pay the costs of the debt enforcement proceedings, as well as the interest linked to the amount of the claim.
As soon as the payment order you have two options:
The claim is recognized
A period of 20 days from the date of notification of the order to pay in ordinary pursuit is allowed for repayment of the total amount of the pursuit. Once this period has elapsed, the creditor may request continuation of the proceedings. This will be done by way of seizure, or by way of bankruptcy if you are entered in the commercial register.
The claim is disputed
You have 10 days in which to lodge an objection. This begins on the date of notification of the payment order. If you feel that the debt enforcement action is unfounded and you wish to express your disagreement with the debt, you can lodge an objection, either orally or in writing, with the debt enforcement office. You do not need to give reasons for your objection.
The disadvantages of the Swiss debt enforcement system
Even in the event of payment, a debt enforcement entry remains registered for a long time! This period can be 5 years in the case of a payment order. In the case of a deed of default, up to 20 years if you take no action. Contrary to what you might think, the creditor is not obliged to have an entry cancelled by the debt enforcement office. He can do so, and the service will generally be billed to the former debtor.
What's more, it's important to know that if you're looking for an apartment, personal loanIf you're in a situation where you don't have any assets, or even a job, you'll be severely limited or even prevented from taking any action. In Switzerland, it's very important to have your own debt enforcement register!
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