Assumption of debt

Assumption of debt concerns a third party taking over a debtor’s obligation. Swiss law distinguishes internal arrangements between old debtor and assuming party from an external assumption effective toward the creditor. A full release of the original debtor normally requires creditor consent, because the creditor’s risk changes. The assumption may be cumulative, leaving the original debtor also liable, or liberating, replacing the debtor. Defenses, securities and accessory rights must be assessed carefully, as they may not all pass or remain unchanged without agreement or legal basis.