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Debt collection in Switzerland is governed by the Swiss Federal Act on Debt Enforcement and Bankruptcy (DEBA), known in German as the Bundesgesetz über Schuldbetreibung und Konkurs (SchKG). This law, established on April 11, 1889, provides the legal basis for the enforcement of monetary debt recovery, Betreibungsamt. It applies uniformly throughout Switzerland, although the language used in the procedure may differ depending on the canton. In addition to DEBA, the enforcement of other types of claims is regulated under Title 10 of the Swiss Civil Procedure Code (CPC), which was adopted on December 19, 2008.

Overview of the Debt Collection Process in Switzerland
The debt collection process in Switzerland can be broadly divided into several key stages, including the initiation of the debt enforcement procedure, notification to the debtor, and the execution of enforcement measures.

1. Initiation of the Debt Collection Process
The process begins when a creditor seeks to recover a debt owed by a debtor. The creditor must file a request for debt enforcement with the competent local debt enforcement office (Betreibungsamt) in the debtor’s canton of residence. This request must include the following details:

A formal claim specifying the amount owed
Evidence of the debt, such as a contract or invoice
The debtor’s contact details
2. Notification of the Debtor
Once the request for debt enforcement is submitted, the debt enforcement office sends a notification (Betreibungsandrohung) to the debtor. This document informs the debtor that debt recovery proceedings have commenced and that they have the opportunity to settle the debt.

Payment or Objection: The debtor has the right to either pay the outstanding amount or file an objection (Rechtsvorschlag) to the debt enforcement within ten days. If the debtor files an objection, the creditor must either resolve the dispute through court or withdraw the enforcement request.
3. Execution of Debt Enforcement
If the debtor does not object or settle the debt, the creditor can move forward with further enforcement actions. These may include:

Seizure of Property: The debt enforcement office may seize the debtor’s assets, including bank accounts, salaries, or movable property. This is usually done through a court order, and the seized property may be sold to satisfy the debt.

Wage Garnishment: If the debtor is employed, the enforcement office may order a portion of the debtor’s wages to be withheld and paid directly to the creditor.

Real Estate Seizure: In cases where the debtor owns real estate, the creditor may request the seizure of the property. This can result in the sale of the property to recover the outstanding debt.

4. Bankruptcy Proceedings
In cases where the debtor’s debts exceed their assets, and enforcement measures fail, bankruptcy proceedings may be initiated under the Swiss Bankruptcy Act. Bankruptcy allows creditors to claim a portion of the debtor’s assets in a structured manner. The debtor’s remaining debts may be discharged after the sale of assets and distribution of proceeds.

Enforcement of Foreign Debts in Switzerland
In cases involving foreign creditors, Switzerland allows for the enforcement of foreign judgments under the provisions of international treaties and private international law. If a creditor holds a foreign judgment, they may seek recognition and enforcement in Switzerland. This process often requires a legal procedure known as exequatur, where the Swiss courts verify the validity and enforceability of the foreign judgment under Swiss law.

Debt Collection and Legal Considerations
Statute of Limitations: Swiss law imposes a statute of limitations on the enforcement of debts. The general limitation period is ten years, although certain types of claims may have shorter periods.

Costs: The creditor is generally responsible for the costs associated with debt enforcement. These costs include administrative fees, legal expenses, and fees for asset seizures.

Debt Recovery Agencies: In addition to using the official debt enforcement process, creditors may also hire private debt collection agencies in Switzerland to assist in recovering outstanding debts. These agencies typically charge a fee based on the amount recovered.

Conclusion
Debt recovery and collection in Switzerland follow a structured legal framework that ensures fairness for both creditors and debtors. The Swiss Federal Act on Debt Enforcement and Bankruptcy (DEBA) provides a clear procedure for creditors to recover debts, while also offering protection for debtors through rights such as the ability to object to claims or seek bankruptcy relief. It is essential for both parties to understand the legal provisions, costs, and potential outcomes associated with debt collection in Switzerland to navigate the process effectively.