281.1 — DEBA
English is not an official language of the Swiss Confederation. This translation is provided for information purposes only and has no legal force.
of 11 April 1889 (Status as of 1 January 2026)
The Federal Assembly of the Swiss Confederation,
based on Article 64 of the Federal Constitution 1 , 2
decrees:
The territory of each canton shall form one or more districts for the purpose of debt enforcement and bankruptcy proceedings.
The cantons shall determine the number and size of these districts.
A bankruptcy district may comprise two or more debt enforcement districts.
Each debt enforcement district has a debt enforcement office, which shall be headed by a debt enforcement officer.
Each bankruptcy district has a bankruptcy office, which shall be headed by a bankruptcy officer.
Each debt enforcement officer and each bankruptcy officer shall have a deputy who shall replace him if he recuses himself or is unable to manage the office.
The debt enforcement office and the bankruptcy office may be merged and headed by the same public official.
The cantons shall otherwise decide on how the debt enforcement and the bankruptcy offices are organised.
The remuneration of debt enforcement and bankruptcy officers and their deputies is a matter for the cantons.
The debt enforcement and bankruptcy offices shall carry out official acts at the request of other public offices, non-official bankruptcy administrations, commissioners and liquidators from another district.
With the consent of the office that has jurisdiction, debt enforcement and bankruptcy offices, non-official bankruptcy administrations, commissioners and liquidators may also perform official acts outside their district. However, only the office at the place where the act must be carried out is competent to serve debt enforcement notices other than by post or to conduct distraint proceedings and public auctions or to request assistance from the police
In the case of bankruptcies and composition proceedings that have the same subject matter, the compulsory execution bodies, supervisory authorities and courts involved shall coordinate their actions as far as possible.
The bankruptcy and composition courts involved and the supervisory authorities may, by mutual agreement, designate a single jurisdiction for all proceedings.
The canton shall be liable for any loss or damage caused unlawfully by debt enforcement and bankruptcy officers and their employees, their auxiliaries, non-official bankruptcy administrations, commissioners, liquidators, supervisory and judicial authorities and the police in the fulfilment of the duties assigned to them by this Act.
The person suffering loss or damage has no claim against the person at fault.
Recourse by the canton against the person who has caused the loss or damage is governed by cantonal law.
Where the severity of the loss or damage justifies it, there is also a right to satisfaction.
A claim for damages shall become time-barred three years from the day on which the person suffering damage became aware of the damage, but in any case ten years from the day on which the harmful behaviour occurred or ceased.
If the person who caused the damage has committed a criminal offence through his conduct, the claim for damages shall become time-barred at the earliest when the right to prosecute becomes time-barred. If this no longer applies as a result of a first-instance criminal judgment, the claim shall become time-barred at the earliest three years after notice of the judgment was served.
Where an action for damages is filed on the grounds of unlawful conduct by the cantonal supervisory authorities of second instance or of the cantonal composition court of second instance, the Federal Supreme Court has exclusive jurisdiction.
The debt enforcement and bankruptcy offices shall keep a record of their official activities and of the requests and declarations they receive; they keep the registers.
The records and registers are conclusive in their content until proven otherwise.
The debt enforcement office shall correct an incorrect entry ex officio or at the request of the person concerned.
Any person who can credibly demonstrate an interest may inspect the records and registers of the debt enforcement and bankruptcy offices and obtain extracts from them.
An interest is deemed to be credible in particular if the request for information is made in direct connection with the conclusion or performance of a contract.
The offices shall not provide third parties with information about debt enforcement proceedings if:
The right to inspect of third parties expires five years after the conclusion of the proceedings. Judicial and administrative authorities may still request extracts in the interests of proceedings pending before them.
The debt enforcement and bankruptcy offices shall hand over sums of money, securities and valuables which are not disposed of within three days of receipt to the official depositary.
Officers and employees of the debt enforcement and the bankruptcy offices, and members of the supervisory authorities may not carry out official acts:
A debt enforcement or bankruptcy officer who must recuse himself shall immediately forward any request he receives to his deputy and notify the creditors of this by standard post.
The officers and employees of the debt enforcement and the bankruptcy offices may not enter into any legal transactions for their own account in relation to claims to be enforced or goods to be sold by the office. Legal acts that breach this provision are null and void.
Bankruptcy officers are obliged to report to the prosecution authorities any felonies or misdemeanours that they or their subordinates discover in the course of their official duties or that are reported to them and for which there are specific grounds for suspicion. 20
Subject to the same conditions, any person working for the bankruptcy office is also entitled to report offences to be prosecuted ex officio to the prosecution authorities. 21
The debt enforcement office must accept payments for the account of the creditor seeking enforcement.
The debt is cancelled by payment to the debt enforcement office.
Each canton must appoint a supervisory authority to supervise the debt enforcement and bankruptcy offices.
The cantons may also appoint lower supervisory authorities for one or more districts.
The Federal Council shall exercise oversight over the debt enforcement and bankruptcy matters and ensure the uniform application of this Act.
It shall issue the ordinances and regulations necessary for the implementation of this Act.
It may issue directives to the cantonal supervisory authorities and request annual reports from them.
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It shall coordinate electronic communication between the debt enforcement and bankruptcy offices, the land register and commercial register offices, the courts and the public. 26
The Federal Council shall set the tariff of fees.
Documents issued in debt enforcement and bankruptcy proceedings are exempt from stamp duty.
With the exception of cases in which this Act requires court action, an appeal may be filed with the supervisory authority against any order of a debt enforcement or bankruptcy office due to infringement of the law or unreasonableness. 27
The appeal must be filed within ten days of the date on which the appellant received notice of the order.
An appeal may be filed at any time on the grounds of denial of justice or unjustified delay.
The office may reconsider its order at any time before the deadline on which it must submit its response to the appeal. If it issues a new order, it shall give notice of the same to the parties immediately and inform the supervisory authority. 28
The decision of a lower supervisory authority may be referred within ten days of notice thereof being given to the higher cantonal supervisory authority.
An appeal may be filed at any time with the higher cantonal supervisory on the grounds of denial of justice or unjustified delay by a lower supervisory authority.
An appeal to the Federal Supreme Court is governed by the Federal Supreme Court Act of 17 June 2005 31 .
In cases relating to debt enforcement proceedings based on a bill of exchange, the period allowed for filing an appeal in first and second instance amounts to five days only; the authority must decide on the appeal within five days.
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The following provisions apply to the procedure before the cantonal supervisory authorities:35
The cantons shall otherwise regulate the procedure.
An authority that upholds an appeal shall order the contested act to be quashed or corrected; it shall order the execution of acts that the official refuses to carry out or delays without justification.
If orders breach regulations issued in the public interest or in the interests of persons not party to the proceedings, these rulings shall be null and void. Irrespective of whether an appeal has been filed, the supervisory authorities shall declare the rulings null and void ex officio .
The office may replace an order that has been declared null and void with a new order. If proceedings under paragraph 1 are pending before the supervisory authority, the office may do this at any time before the deadline on which it must submit its response.
The cantons shall designate the judicial authorities that are responsible for making the decision assigned to a court under this Act.
The cantons shall designate the institutions that are required to accept deposits in the cases provided for in this Act (official depositaries). The cantons are liable for the deposits held by these institutions.
The cantons may, unless federal law applies, impose consequences under public law (such as declaring a person unfit for public office or to carry on a profession or activities requiring authorisation) to unsuccessful distraint proceedings or a declaration of bankruptcy. These consequences may not include a withdrawal of the right to vote or be elected, or the publication of unpaid debt certificates.
The legal consequences must be revoked if the bankruptcy is annulled, if all creditors holding unpaid debt certificates have been repaid in full or their claims have become time-barred.
If the only creditor to sustain a loss is the debtor’s spouse or registered partner, no consequences under public law may be imposed for unsuccessful distraint proceedings or bankruptcy. 42
Any person with legal capacity to act is authorised to represent other persons in enforcement proceedings. This also applies to professional representation. The cantons may prohibit a person from acting as a professional representative for good cause.
The costs of representation in proceedings before the debt enforcement and bankruptcy offices may not be charged to the other party.
The cantons shall provide the Federal Council with details of the debt enforcement and bankruptcy districts and of the system of organisation of the debt enforcement and the bankruptcy offices and of the authorities that they have appointed in implementation of this Act.
The Federal Council shall ensure that this information is made public in an appropriate manner.
This Act does not apply to the enforcement proceedings against cantons, districts and communes where special federal or cantonal regulations apply.
The provisions of other federal laws on special enforcement proceedings are also reserved.
International treaties and the provisions of the Federal Act of 18 December 1987 48 on Private International Law (PILA) are reserved.
The computation of and compliance with deadlines are governed by the provisions of the Civil Procedure Code of 19 December 2008 50 (CPC), unless this Act provides otherwise.
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A deadline is also complied with if a debt enforcement or bankruptcy office without jurisdiction is seised before its expiry; this office shall transfer the case immediately to the office that has jurisdiction. 53
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In the case of written submissions that contain errors that can be corrected, an opportunity must be given to correct them.
The deadlines laid down in this Act may not be amended by agreement.
If a party to proceedings lives abroad or if he must be notified by public notice, a longer deadline may be granted or an existing deadline extended. 55
A party to proceedings may waive his right to claim non-compliance with a deadline if the deadline is imposed exclusively in his interest. 56
Any person who is prevented from acting within a deadline due to circumstances beyond his control may request the supervisory authority or the judicial authority with jurisdiction over the case to reinstate the deadline. From the date on which those circumstances no longer apply, he must carry out the required legal act for the competent authority within the same period as that which has expired and file an application stating the grounds for reinstating the deadline. 57
A submission may be filed electronically with the debt enforcement and bankruptcy offices and the supervisory authorities.
The submission must be provided with a qualified electronic signature in accordance with the Federal Act of 18 March 2016 59 on Electronic Signatures. The Federal Council may make exceptions for mass procedures.
The relevant time for compliance with a deadline is that at which the receipt is issued that confirms that all the steps necessary for transmission have been completed by the party or their representative.
The Federal Council shall regulate:
Notices, orders and decisions of the debt enforcement and bankruptcy offices and the supervisory authorities shall be served by registered mail or in any other way against confirmation of receipt, unless this Act provides otherwise
With the consent of the person concerned, notices, orders and decisions may be sent electronically. They must bear an electronic signature in accordance with the Federal Act of 18 March 201661 on Electronic Signatures. The Federal Council shall regulate:
Public notice shall be given in the Swiss Official Gazette of Commerce and in the relevant official cantonal gazette. For the calculation of deadlines and determining the legal consequences of the notice, publication in the Swiss Official Gazette of Commerce is decisive. 63
If the circumstances so require, notice may also be given in other publications or by public proclamation.
No appeal of any form shall have suspensive effect unless this is specifically ordered by the authority to which it is addressed or its presiding official. If such an order is made, immediate notice must be given to the parties.
The term «mortgage» in this Act comprises mortgages, mortgage certificates, mortgage rights under the previous law, real burdens and any preferential rights to specific immovable properties as well as the pledge on the appurtenances of an immovable property. 65
The term «pledge of chattels» also includes the pledge of livestock, the special lien and the pledge on claims and other rights.
The term «pledge» comprises both the mortgage and the pledge of chattels.
Debt enforcement is an enforcement procedure carried out to secure the payment of money or the provision of security.
Debt enforcement begins with the service of the summons for payment and is continued either by way of distraint, proceedings to realise a pledge or bankruptcy.
The debt enforcement officer decides which type of debt enforcement applies.
Debt enforcement proceedings are continued by way of bankruptcy proceedings, either in the form of «ordinary bankruptcy proceedings» (Arts 159–176) or of «debt enforcement proceedings based on a bill of exchange» (Arts 177–189) if the debtor is registered in the Commercial Register as any of the following:
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Registration takes effect on the day after notice thereof in published in the Swiss Official Gazette of Commerce.
Persons who were registered in the Commercial Register remain subject to bankruptcy proceedings for six months following publication of their deletion in the Swiss Official Gazette of Commerce.
If the creditor requests continuation before the expiry of this deadline or if he demands that a summons for payment be issued in debt enforcement proceedings based on a bill of exchange, the debt enforcement proceedings shall be continued by way of bankruptcy proceedings. 74
For pledge-secured claims, the debt enforcement proceedings, including those against debtors subject to bankruptcy proceedings, are continued by proceedings to realise a pledge (Arts 151–158).
If debt enforcement by distraint or through bankruptcy proceedings are initiated for a pledge-secured claim, the debtor may by filing an appeal (Art. 17) demand that the creditors first realise the pledge.
In the case of interest or annuities secured by a mortgage, however, the creditor may choose either to have the pledge realised or, depending on the debtor’s legal personality, to initiate debt enforcement by distraint or bankruptcy. The provisions on debt enforcement proceedings based on a bill of exchange are reserved (Art. 177 para. 1).
In all other cases, debt enforcement is continued by way of distraint (Arts 89–150).
If a debtor is subsequently registered in the Commercial Register, a pending request for continuation must still be executed by way of distraint unless the debtor has already been declared bankrupt.
The realisation of items that have been seized under criminal or fiscal provisions or under the Federal Act of 18 December 2015 83 on the Freezing and the Restitution of Illicit Assets held by Foreign Politically Exposed Persons shall be carried out in accordance with the relevant federal or cantonal provisions.
The pursuit of pawnbrokers’ claims is governed by Article 910 CC 85 .
Debt enforcement takes place at the debtor’s domicile.
Debt enforcement against legal entities and companies registered in the Commercial Register takes place at their registered offices, or in the case of non-registered legal entities at the place where they are primarily managed.
For debts arising from an agreement on joint ownership in undivided shares, in the absence of a representative, debt enforcement may take place against any of the joint owners at the place of their joint economic activity. 86
Debt enforcement against a community of condominium owners takes place at the location of the property. 87
Debt enforcement against debtors of no fixed abode takes place where they are currently to be found.
Provided the estate has not been distributed, a contractual community of property formed or bankruptcy liquidation ordered, debt enforcement against a deceased person’s estate may be carried out at the place and by the procedure which would have applied to the deceased person at the time of his death.
In the case of debtors domiciled abroad who have a business establishment in Switzerland, enforcement take place in respect of liabilities incurred for the account of the business establishment at the location of the business establishment.
Where debtors domiciled abroad have elected for a domicile in Switzerland in order to fulfil an obligation, enforcement may take place in respect of this obligation at the place of special domicile.
Where a pledge of chattels has been made to secure the claim, debt enforcement proceedings may either take place where required in accordance with Articles 46–50, or at the place where the pledge or the most valuable part thereof is located. 90
For claims secured by a mortgage 91 , the debt enforcement proceedings may only take place 92 where the mortgaged immovable property is located. If the debt enforcement proceedings related to two or more immovable properties located in different debt enforcement districts, debt enforcement must take place in the district in which the most valuable part of the immovable properties is located.
If an attachment is made in respect of a claim, debt enforcement proceedings may also be instituted where the attached asset is located. 93 The notice of impending bankruptcy and the declaration of bankruptcy may however only be issued where debt enforcement proceedings must normally take place.
If the debtor changes his domicile after receiving notice of distraint proceedings, notice of impending bankruptcy or a summons for payment in debt enforcement proceedings based on a bill of exchange, debt enforcement proceedings continue at their original location.
Bankruptcy proceedings are instituted against an absconding debtor at his last domicile.
Bankruptcy proceedings may only be instituted in Switzerland against a specific debtor at one place at any one time. Proceedings are deemed to have commenced at the place where the debtor is first declared bankrupt.
Other than in attachment proceedings or in the case of urgent measures to preserve individual assets, enforcement procedures may not be carried out:
The suspension of deadlines in actions under this Act that must be filed in a court are governed exclusively by the provisions thereon in the CPC 96 . 97
A stay of enforcement applies to debtors who are on military, civil protection or civil defence service, for the duration of such service. 100
If the debtor completed at least 30 days of service without substantial interruption before discharge or leave, the stay of enforcement continues for two weeks following discharge or leave.
Enforcement proceedings may be taken against debtors for regular family maintenance or support contributions during the stay of enforcement. 101
Debtors who undertake military or civil defence service in terms of an employment contract with the Confederation or a canton are not entitled to a stay of enforcement. 102
If an enforcement procedure cannot be carried out because the debtor is on military, civil protection or civil defence service, adults in his household and if the debt enforcement notice is served in a place of business, the employees or if applicable the employer are obliged, subject to criminal penalties (Art. 324 No 5 SCC 104 ) to notify the officer of the service address and the year of birth of the debtor. 105
The debt enforcement officer shall make those concerned aware of their obligations and of the criminal penalties in the event of their violation. 106
The command office concerned shall notify the debt enforcement office on request of the debtor’s discharge or leave.
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Where a debtor is enjoying a stay of enforcement due to military, civil protection or civil defence service, the duration of liability of a mortgage right for the interest of the claim secured by that mortgage right (Art. 818 para. 1 No 3 Swiss Civil Code 109 ) is extended by the duration of the stay of enforcement. 110
In debt enforcement proceedings to realise a pledge, the summons for payment must also be served during the stay of enforcement if this has lasted for three months.
Where a debtor is enjoying a stay of enforcement due to military, civil protection or civil defence service, the creditor may during the stay of enforcement demand that the debt enforcement office draw up a inventory with the effects set out in Article 164. 112 The creditor must however provide prima facie evidence that his claim exists and that it is endangered by acts of the debtor or third parties that aim to favour individual creditors to the detriment of others or to have a detrimental effect on the creditors in general.
The drawing up of an inventory may be obviated by securing the applicant creditor’s claim.
A stay of enforcement due to military, civil protection or civil defence service may on application by a creditor be lifted with immediate effect by the court competent to set aside the objection in general or for individual claims if the creditor provides prima facie evidence that:114
The provisions on the stay of enforcement also apply to persons and legal entities whose legal representative is performing military, civil protection or civil defence service, provided the person or entity is unable to appoint another representative.
In the event of the death of the debtor’s spouse or registered partner, or of a relative or in-law of the debtor in direct line, or of a member of the debtor’s household, the debtor shall be entitled to a two-week stay of enforcement from the date of death.
In debt enforcement proceedings for debts due from a deceased person’s estate, a stay of enforcement applies from the testator’s date of death for the two subsequent weeks and during the period of reflection allowed for accepting or disclaiming the inheritance. 119
Debt enforcement proceedings raised during the lifetime of the testator may be continued against the estate in accordance with Article 49. 120
Proceedings may only be continued against the heirs if they involve debt enforcement proceedings to realise a pledge or if the deadlines given in Articles 110 and 111 for participating in distraint proceedings in a case of debt enforcement by distraint proceedings have already expired.
If an arrested person who has no representative becomes subject to debt enforcement proceedings, the debt enforcement officer shall set him a deadline for appointing one. 121 During this period, the arrested person is entitled to a stay of enforcement.
The debt enforcement officer may grant a seriously ill debtor a stay of enforcement for a specific period of time.
In the event of an epidemic or a national disaster, as well as in times of war, the Federal Council or, with its consent, the cantonal government may decide to stay enforcement in a specific area or for certain sections of the population.
Debt enforcement holidays and stays of enforcement do not suspend the deadlines. However, if the deadline for the debtor, the creditor or the third party falls during the debt enforcement holiday or the stay of enforcement, the deadline shall be extended until the third day after the end of the holiday or stay. When calculating the three-day period, a Saturday, Sunday and officially recognised public holidays are not counted.
Debt enforcement notices shall be served on the debtor at his home or at the place where he carries out his profession. If he is not found there in person, service may be effected on an adult person belonging to his household or on an employee.
If none of the persons mentioned are found, the debt enforcement notice must be handed to an official of the commune or police officer for delivery to the debtor.
If debt enforcement proceedings are directed against a legal entity or a company, service shall be effected on the representative of the same. As such applies:
If the aforenamed persons cannot be found at their place of business, service may also be effected on another official or employee.
If debt enforcement proceedings are directed against an undistributed estate, service shall be made on the representative appointed for the estate or, if no such representative is known, on one of the heirs. 126
If the debtor does not live at the place of debt enforcement, the debt enforcement notices shall be served on the person designated by the debtor or at the place designated by the debtor.
In the absence of such a designation, service shall be effected through the debt enforcement office at the place of residence or by post.
If the debtor resides abroad, service shall be effected through the local authorities or, if provided for by international treaties or if the recipient state consents, by the postal service. 127
Service shall be replaced by public notice if:
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The request for debt enforcement must be filed in writing or made orally to the debt enforcement office. The following information must be provided:
For a claim secured by a pledge, the information specified in Article 151 must also be provided.
The creditor shall be entitled to have receipt of the request for debt enforcement certified free of charge on request.
The debtor shall bear the costs of debt enforcement. These must be paid in advance by the creditor. If advance payment is not made, the debt enforcement office may temporarily suspend the debt enforcement proceedings and notify the creditor thereof.
The creditor is entitled to collect the debt enforcement costs in advance from the debtor’s payments.
If a spouse living under a community of property regime is the subject of debt enforcement proceedings, the summons for payment and all other debt enforcement notices must also be served on the other spouse; if it is only made known in the course of the proceedings that the debtor is subject to community of property, the debt enforcement office shall immediately effect service on the other spouse.
Either spouse may file an objection to the summons.
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Either spouse may assert in the third-party claims procedure (Arts 106–109) that a distrained asset is the personal property of the debtor’s spouse.
If the debt enforcement proceedings are limited to the debtor’s share of the common property in addition to his individual property, either spouse may also oppose the distraint of items of common property under the third-party claims procedure (Arts 106–109).
If debt enforcement proceedings for satisfaction from individual property and the share in the common property are continued, distraint and realisation of the share in the common property are governed by Article 132; the right to distrain the future earned income of the spouse subject to debt enforcement remains reserved (Art. 93). 135
A spouse’s share of the common property may not be auctioned.
The supervisory authority may request the judge to order the separation of property.
If the debtor is a minor, the debt enforcement notices shall be served on the minor’s legal representative. In the event of the appointment of a child welfare advocate pursuant to Article 325 CC 137 , the advocate and the holder of parental responsibility shall receive the debt enforcement notices, provided that the debt enforcement office has been notified of the appointment of the advocate.
However, if the claim comes from an authorised business activity or is connected with the management of earnings or free assets by a minor (Arts 321 para. 2, 323 para. 1 and 327 b CC), the debt enforcement notices shall be served on the debtor and the legal representative.
If a deputy or a person entrusted with an adult’s care is responsible for managing an adult debtor’s assets and the adult protection authority has informed the debt enforcement office of this, the debt enforcement notices shall be served on the deputy or the person entrusted with the adult’s care.
If the debtor’s capacity to act is not restricted, the debt enforcement notice shall also be served on the debtor.
If the debtor is only liable with his free assets, it may be claimed in the third-party claims procedure (Arts 106–109) that a distrained asset is not a part thereof.
On receipt of the request for debt enforcement, the debt enforcement office shall issue a summons for payment.
The summons for payment contains:
The summons for payment is issued in duplicate. One copy is intended for the debtor, the other for the creditor. If the two documents are not identical, the copy delivered to the debtor shall take precedence.
If joint debtors are sued at the same time, a separate summons for payment shall be served on each of them. 139
The summons for payment is served on the debtor after receipt of the request for debt enforcement. 140
If there are several requests for debt enforcement against the same debtor, all the summons for payment must be served at the same time.
In no case may a request received later be executed before an earlier request.
The summons for payment shall be served by the debt enforcement officer, an employee of the office or by post. 141
On handing over the summons, the person effecting service must certify on both copies the date of service and the details of the person on whom the summons is served.
At any time after the debt enforcement proceedings begin, the debtor may demand that the creditor be requested to make evidence for his claim and a summary of all his claims against the debtor available for inspection at the debt enforcement office.
This request shall have no effect on existing deadlines. If the creditor does not comply with the request or does not comply with it in time, the court shall take account of the fact that debtor was unable to inspect the evidence in its decision on procedural costs in any subsequent legal action.
If the debtor wishes to object to the summons for payment, he must do so immediately verbally or in writing to the person serving the summons or within ten days of service to the debt enforcement office. 143
If the debtor only partly disputes the claim, he must indicate the disputed amount precisely; if he fails to do this, the entire claim is regarded as disputed. 144
If the debtor so requests, he must be issued free of charge with a certificate confirming his objection.
No legal grounds need be given for objecting to the summons for payment. Any person who nevertheless states such grounds is not precluded from stating other grounds at a later date.
If the debtor disputes that he has acquired new assets (Arts 265, 265 a ), he must expressly declare this when objecting to the summons, failing which he may not raise this defence at a later date.
The provisions on subsequent objection (Art. 77) and on filing an objection to enforcement proceedings based on a bill of exchange (Art. 179 para. 1) are reserved.
Notice of the grounds for filing an objection to the summons for payment shall be given to the creditor on his official copy of the summons for payment; if no objection to the summons has been filed, this must be indicated on the official copy.
The official copy is sent to the creditor immediately after an objection to the summons is filed, or if no objection is filed, immediately after expiry of the deadline for objecting to the summons.
If the creditor changes during the debt enforcement proceedings, the debtor may subsequently object to the summons for payment at any time prior to the distribution of the proceeds or declaration of bankruptcy. 146
The debtor must file the objection in writing in the court at the place of debt enforcement within ten days of learning of the change in creditor, providing a statement of the grounds and entering credible defences against the new creditor. 147
On receiving notice of the objection to the summons, the court may order the preliminary suspension of the debt enforcement proceedings; it decides on whether to admit the objection after hearing the parties.
If subsequent objection is accepted, but distraint proceedings have already been carried out, the debt enforcement office shall allow the creditor ten days to request the recognition of his claim. If he does not file a request, the distraint proceedings become invalid. 148
The debt enforcement office shall give the debtor notice of any change in creditor. 149
The objection to the summons for payment has the effect of suspending the debt enforcement proceedings.
If the debtor disputes only part of the claim, the debt enforcement proceedings may be continued in respect of the undisputed amount.
If the debtor files an objection to the summons for payment, the creditor must pursue his claim in civil or administrative proceedings. He may only secure the continuation of the debt enforcement proceedings on the basis of an enforceable decision that expressly dismisses the objection.
If the claim is based on an enforceable court judgment, the creditor may request the court to dismiss the objection to the summons for payment (setting aside the objection definitively). 152
The following are equivalent to court judgments:153
If the claim is based on an enforceable decision of a Swiss court or a Swiss administrative authority, the objection shall be set aside definitively unless the debtor provides documentary evidence that the debt has been repaid or deferred since the decision was issued or invokes the statute of limitations.
If the claim is based on an enforceable public record, the debtor may assert further defences against the obligation to perform, provided they can be proven immediately.
If a decision has been issued in another state, the debtor may also claim the defences provided for in the relevant international treaty or, in the absence of such a treaty, in the Federal Act of 18 December 1987 162 on Private International Law, unless a Swiss court has already ruled on these defences. 163
If the claim is based on recognition of the claim evidenced by a public deed or confirmed by signature, the creditor may request that the objection be set aside provisionally.
The court shall grant the same provided the debtor does not immediately enter credible defences that rebut the recognition of the claim.
A creditor who has been successful in having the objection set aside provisionally may demand provisional distraint proceedings on expiry of the payment deadline, depending on the person of the debtor, or that an inventory be made in accordance with Article 162.
The debtor may however within 20 days of the objection being set aside bring an action to have the claim declared unfounded under ordinary procedure in the court at the place of debt enforcement. 164
If the debtor fails to do this or if the action to have the debt declared unfounded is dismissed, the provisional decision to set aside the objection and if applicable the provisional distraint proceedings shall become definitive. 165
The deadline under Article 165 paragraph 2 shall be suspended between the initiation of and the decision on the action being raised to have the debt declared unfounded. However, the bankruptcy court shall annul the effects of the inventory if the requirements for ordering it are no longer met. 166
The court at the place of debt enforcement shall decide on applications to set aside the objection.
Immediately on receipt of the application, it shall give the debtor the opportunity to respond orally or in writing and shall then give notice of its decision within five days.
If the debtor proves by official documents that the debt together with interest and costs has been settled or deferred, he may at any time request the court at the place of debt enforcement in the former case to dismiss, and in the latter case to suspend the debt enforcement proceedings.
Irrespective of whether an objection to the summons for payment is filed, the debtor may at any time have the court at the place of debt enforcement declare that the debt does not exist or no longer exists or has been deferred. 171
On the action being filed, the court shall hear the parties and assess the evidence; if the court considers the action to be very probably well-founded, it shall provisionally suspend debt enforcement proceedings:
If the court upholds the action, it shall cancel or discontinue the debt enforcement proceedings.
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If no objection to the summons for payment was filed or if the objection was set aside, the person who has paid an undue debt as a result may recover the amount paid through legal proceedings within one year of the payment. 173
The plaintiff has the choice of bringing the action for restitution to court either at the place of debt enforcement or at the place where the defendant has his ordinary place of jurisdiction.
In derogation from Article 63 CO 174 , this right of restitution is not dependent on any condition other than proof that the debt was not due. 175
The special provisions of Articles 151–153 apply to the summons for payment in debt enforcement proceedings to realise a pledge, and those of Articles 178–189 apply to the summons for payment and filing an objection to debt enforcement proceedings based on a bill of exchange.
If the debt enforcement proceedings have not been suspended by an objection to the summons for payment or by court decision, the creditor may file a request for continuation no earlier than 20 days after service of the summons.
This right expires one year after service of the summons. If an objection to the summons has been filed, this period shall be suspended between the initiation and settlement of any court or administrative proceedings brought as a result.
Receipt of the request for continuation shall be certified to the creditor free of charge on request.
A claim in a foreign currency may, at the creditor's request, be converted back into the national currency at the exchange rate on the date of the request for continuation.
Where the debtor is subject to debt enforcement by distraint, the debt enforcement office, on receipt of the application for continuation, must immediately distrain the assets or have them distrained by the debt enforcement office at the place where the assets to be distrained are located.
The debtor shall be notified of the distraint proceedings on the preceding day at the latest, with reference being made to Article 91.
The debtor is obliged, subject to criminal penalties for failing to do so:
If the debtor fails to attend the distraint without sufficient excuse and does not allow himself to be represented, the debt enforcement office may have him brought to the proceedings by the police.
The debtor must open premises and containers to the officer on request. The official may use police powers if necessary.
Third parties who hold the debtor’s assets in safekeeping or with whom the debtor has assets are obliged to provide information to the same extent as the debtor, subject to criminal penalties for failing to do so (Art. 324 para. 5 SCC).
Authorities are obliged to provide information to the same extent as the debtor.
The debt enforcement office shall expressly draw the attention of the persons concerned to their obligations and to the penalties for failing to meet the same.
The following are exempt from distraint:
Items for which it can be assumed from the outset that the surplus of the realisation proceeds over the costs would be so small that removal is not justified may not be distrained. However, they must be noted in the deed of distraint together with the estimated amount. 201
High-value items in accordance with paragraph 1, numbers 1–3 are distrainable; However, they may only be taken away from the debtor if the creditor provides replacement items of the same utility value or the amount required to purchase them before they are taken away. 202
The special provisions on undistrainability of the Federal Act of 2 April 1908 203 on Insurance Policies (Arts 79 para. 2 and 80 IPA), the Copyright Act of 9 October 1992 204 (Art. 18 CopA) and the Swiss Criminal Code 205 (Art. 378 para. 2 SCC) remain reserved. 206
Earned income in any form, usufructs and their revenues, life annuities, and maintenance payments, pensions and payments in any form that compensate for a loss of income or a right to maintenance, in particular pensions and lump-sum payments that are not exempted from distraint under Article 92, may be distrained unless the debt enforcement officer is of the view that they are absolutely essential to the debtor and his family.
Such income may be distrained for one year at the most; this period begins with the execution of distraint. If two or more creditors participate in the distraint proceedings, the period runs from the first distraint that is executed at the request of a creditor of the respective group (Arts 110 and 111).
If, during the period of such distraint, it comes to the attention of the office that the circumstances that are decisive in determining the distrainable amount have changed, the office shall modify the distraint proceedings to take account of the new circumstances.
At the request of the debtor, the office shall instruct the debtor’s employer to transfer to the office, in addition, the amount required to pay the current premium and share of cost debts due to the compulsory health insurer for the duration of the distraint of earnings, insofar as these premiums and share of cost debts are part of the debtor’s subsistence minimum. The office shall use this to settle the current premium and share of cost debts directly with the insurer. 208
Hanging and standing crops may not be distrained:
Any sale before or on the specified dates of harvested crops is invalid as against the distraining creditor.
The rights of a mortgagee to hanging and standing crops as part of the pledged property are reserved, but only on condition that the mortgagee himself has initiated enforcement proceedings for realisation of the mortgage 209 before the realisation of the pledged crops takes place. 210
In the first instance, movable assets, including claims and claims subject to limited distrainability (Art. 93), shall be attached. The first items to be distrained are everyday items; However, more dispensable assets shall be distrained before those less dispensable. 211
Immovable assets shall only be distrained if the movable assets are insufficient to cover the debt. 212
In the last instance, assets which have been attached or which are designated by the debtor as belonging to third parties or are claimed by third parties shall be distrained.
If fodder stocks are distrained, a corresponding number of livestock must also be distrained at the debtor’s request.
The officer may derogate from this order if the circumstances justify it or if the creditor and debtor jointly request so. 213
Moreover, the officer shall, as far as practicable, take into account the interests of both the creditor and the debtor.
Claims of the debtor against his or her spouse or registered partner shall only be distrained if his or her other assets are insufficient.
The debtor may not dispose of the distrained assets without the authorisation of the debt enforcement officer, subject to criminal penalties for doing so (Art. 169 SCC 215 ). The distraining officer shall expressly draw his attention to this and to the penalty. 216
Disposals by the debtor are invalid insofar as they infringe the rights of the creditors arising from distraint, subject to the consequences of third parties acquiring possession in good faith. 217
The officer shall estimate the value of the distrained items, if necessary, with the assistance of experts.
No more shall be distrained than is necessary to satisfy the distraining creditors’ claims, including interest and costs.
Money, banknotes, bearer instruments, bills of exchange and other endorsable papers, precious metals and other valuables shall be held in safekeeping by the debt enforcement office. 218
Other movable items may be left temporarily in the possession of the debtor or a third-party holder against the undertaking to keep them available at all times.
However, these items must also be taken into official safekeeping or handed over to a third party for safekeeping if the debt enforcement officer deems it appropriate or the creditor can credibly demonstrate that this is necessary to secure his rights established by distraint. 219
The debt enforcement office may also take possession if a third party has a pledge on the property. If it is not realised, it shall be returned to the pledgee.
When distraining claims or other rights for which there is no document made out to the holder or transferable by endorsement, a debtor of the debtor subject to enforcement shall be informed that he may only make legally valid payments to the debt enforcement office.
The debt enforcement office shall ensure that the distrained rights are maintained and shall collect payment for debts due.
The distraint of immovable property has the effect of a restriction on the power of disposal. The debt enforcement office shall notify the land register office without delay, stating the date and the amount for which distraint was made, for the purpose of entering the priority notice. Notice must also be given of the participation of new creditors in the distraint proceedings and the cancellation of distraint.
The priority notice shall be cancelled if the application for realisation is not filed within two years of distraint.
Subject to the rights of the mortgagees, the distraint of immovable property also covers its crops and other yields.
The debt enforcement office must inform the mortgagees and, where applicable, the tenants or lessees of the distraint proceedings.
It is responsible for the administration and management of the immovable property 222 .
The debt enforcement office shall ensure that the crops are harvested (Arts 94 and 102). 223
If necessary, the crop shall be used for the subsistence of the debtor and his family.
If a usufruct or a share in an undistributed estate, joint property or other joint assets is distrained, the debt enforcement office shall notify the third parties involved of the distraint proceedings.
On request, the creditor shall advance the costs of storage and maintenance of distrained assets to the debt enforcement office.
If it is asserted that a third party has the ownership of, a pledge on or another right to the distrained item that prevents distraint or that must be taken into account in the further course of the enforcement proceedings, the debt enforcement office shall note the third party’s claim in the deed of distraint or, if the deed has already been served, notify the parties separately.
Third parties may file their claims as long as the proceeds from the realisation of the distrained item have not yet been distributed.
After realisation, the third party may assert the claims to which it is entitled under civil law in the event of theft, loss or other misappropriation of a movable item (Arts 934 and 935 CC 226 ) or in the event of bad faith on the part of the acquirer (Arts 936 and 974 para. 3 CC) outside the debt enforcement proceedings. A public auction within the meaning of Article 934 paragraph 2 CC shall also be deemed to be a private sale in accordance with Article 130 of this Act.
The debtor and creditor may contest the third party’s claim at the debt enforcement office if the claim relates to:
The debt enforcement office shall set them a deadline of ten days to do so.
On the demand of the debtor or the creditor, the third party shall be requested to submit his evidence to the debt enforcement office for inspection within the time limit for contesting the claim. Article 73 paragraph 2 applies mutatis mutandis .
If the third party's claim is not contested, it shall be deemed to have been recognised in the debt enforcement proceedings in question.
If the claim is contested, the debt enforcement office shall set the third party a time limit of 20 days within which it may bring an action against the disputing party to establish its claim. If he does not file an action, the claim shall not be considered in the debt enforcement proceedings in question.
The creditor and debtor may bring an action against the third party to have his claim declared unfounded if the claim relates to:
The debt enforcement office shall set them a deadline of 20 days to do so.
If no action is filed, the claim shall be deemed to have been recognised in the debt enforcement proceedings in question.
On the demand of the creditor or the debtor, the third party shall be requested to submit his evidence to the debt enforcement office for inspection within the time limit for bringing an action. Article 73 paragraph 2 applies mutatis mutandis .
The following must be filed in the court at the place of debt enforcement:
If the action under Article 108 paragraph 1 is brought against a defendant domiciled in Switzerland, it must be filed in the court of the defendant's domicile.
If the claim relates to immovable property, the action must in every case be filed in the court of the place where the property or its most valuable part is located.
The court shall notify the debt enforcement office of the receipt and conclusion of the action. … 230
Until the action has been concluded, the debt enforcement proceedings in respect of the disputed items shall be suspended and the time limits for requests for realisation (Art. 116) shall be suspended.
Creditors who submit a request for continuation within 30 days of the execution of distraint shall participate in the distraint proceedings. The distraint proceedings shall be extended in each case to the extent necessary to cover all the claims of the creditor group.
Creditors who only submit the request for continuation after the 30-day period has expired shall in the same way form additional groups with separate distraint proceedings.
Assets that have already been distrained may be distrained again, but only to the extent that their proceeds are not to be paid to the creditors for whom the previous distraint proceedings were carried out.
The following persons may participate in the distraint proceedings within 40 days of their execution without bringing debt enforcement proceedings beforehand:
The persons mentioned in paragraph 1 numbers 1 and 2 may only claim their rights if the distraint proceedings are carried out during or within one year of the end of the marriage, the registered partnership, the parental relationship or the period in which the advance care directives is in effect; the duration of litigation or debt enforcement proceedings is not included in the calculation. The child and adult protection authority may also file a declaration of intention to participate on behalf of the children or of a person subject to an adult protection measure. 238
Where the debt enforcement office is aware of persons entitled to participate, it shall notify these persons of the distraint proceedings by standard post.
The debt enforcement office shall notify the debtor and the creditors of any such claim that is made and allow them ten days within which to dispute the claim.
If the claim is contested, the claimant may only participate with the rights under provisional distraint proceedings, and the claimant must bring an action within 20 days in the court at the place of debt enforcement; if he fails to meet this deadline, his right to participate becomes invalid. ... 239
In any distraint proceedings, a document (the deed of distraint) signed by the officer or employee carrying out the proceedings must be recorded. The document shall list the creditor and the debtor, the amount of the claim, the date and time of distraint, the distrained assets and their estimated value and, if applicable, the claims of third parties.
If goods are distrained that are already subject to an attachment, the participation of the attachment creditor in the distraint proceedings (Art. 281) shall be noted.
If no distrainable assets are available or the assets are insufficient, this fact shall be noted in the deed of distraint.
If new creditors take part in distraint proceedings or if the distraint proceedings are expanded, this shall be added subsequently to the deed of distraint.
The debt enforcement office shall serve the creditors and the debtor with a copy of the deed of distraint immediately on expiry of the 30-day deadline for participation.
If no distrainable assets were available, the deed of distraint serves as the unpaid debt certificate in terms of Article 149.
If insufficient assets were available in the estimation of the officer, the deed of distraint shall serve the creditor as a provisional unpaid debt certificate and as such has the legal effects mentioned in Articles 271 number 5 and 285.
The provisional unpaid debt certificate also confers on the creditor the right to request the distraint of assets newly discovered within the one-year deadline under Article 88 paragraph 2. The provisions on participation in distraint proceedings (Arts 110 and 111) apply. 242
The creditors may request the realisation of distrained movable assets, claims and other rights no earlier than one month and at the latest one year after distraint, and the realisation of distrained immovable property no earlier than six months and at the latest two years after distraint.
Where a future salary has been distrained, and if the employer has not paid over the distrained amounts by the date on which they were due for payment, the realisation of the claim to these amounts may be requested within 15 months after distraint.
Where the distraint proceedings have been extended because of the participation of several creditors, these deadlines shall run from the last successful additional distraint procedure.
Each individual participant in a group of creditors has the right to request realisation.
Creditors who have distrained assets in accordance with Article 110 paragraph 3 only for the additional proceeds may also request their realisation.
Creditors whose distraint proceedings are merely provisional may not request realisation. During the provisional period, he deadlines in Article 116 do not apply to such creditors.
The distrained assets shall be realised in accordance with Articles 122–143 a .
Realisation is suspended as soon as the proceeds reach the total amount of the claims for which distraint is provisional or definitive. Article 144 paragraph 5 is reserved.
The debt enforcement office shall notify the debtor within three days of the request for realisation.
If the request for realisation is not made within the statutory deadline or is withdrawn and not filed again, the debt enforcement proceedings shall lapse.
The debt enforcement office shall realise movable items and claims no earlier than ten days and at the latest two months from receipt of the request. 245
The realisation of hanging or standing crops may not take place before the crops is ready for harvest without the consent of the debtor.
If the debtor can credibly demonstrate that he can repay the debt in instalments and undertakes to make regular and reasonable payments on account to the debt enforcement office, the debt enforcement officer may defer realisation for a maximum of twelve months from receipt of the first instalment. 247
In the case of debt enforcement proceedings for first-class claims (Art. 219 para. 4), realisation may be deferred for a maximum of six months. 248
The debt enforcement officer shall determine the amount and due dates of the instalment payments; he must take into account the circumstances of both the debtor and the creditor.
The deferral shall be extended by the duration of any stay of enforcement. In this case, the instalments and their due date will be redetermined after the expiry of the stay of enforcement. 249
The debt enforcement officer shall amend his order ex officio or at the request of the creditor or the debtor if the circumstances so require. The deferral shall be cancelled automatically if an instalment payment is not made on time. 250
Realisation shall be effected by way of public auction. The place, day and hour of the same shall be publicly announced in advance.
The form of announcement and the manner, place and date of the auction shall be determined by the debt enforcement officer in such a way that the interests of the parties involved are taken into account as far as possible. Announcement in the Official Gazette is not required in this case.
If the debtor, the creditor and the third parties involved have a known place of residence or a representative in Switzerland, the debt enforcement office shall inform them of the time and place of the auction by standard post at least three days before the auction. 253
The item to be realised shall be sold to the highest bidder after three calls, provided that the bid exceeds the amount of any claims secured by lien ranking prior to the creditor seeking enforcement.
If no such bid is made, the debt enforcement proceedings in respect of this item shall lapse.
If it can be assumed from the outset that a sale in accordance with Article 126 will not be possible, the debt enforcement officer may, at the request of the creditor seeking enforcement, dispense with realising the claim and issue an unpaid debt certificate.
Items made of precious metal may not be sold for less than their metal value.
Payment must be made immediately after the sale. However, the debt enforcement officer may allow a period of a maximum of 20 days for payment to be made. The item shall only be handed over when the payment is irrevocably in the possession of the debt enforcement office. 257
Payment may be made in cash up to an amount of CHF 100,000. If the price is higher, the portion exceeding this amount must be paid through a financial intermediary in accordance with the Anti-Money Laundering Act of 10 October 1997 258 . The debt enforcement officer shall determine the other terms of payment. 259
If payment is not made on time, the debt enforcement office must order a new auction, to which Article 126 applies. 260
The former successful bidder and his guarantors shall be liable for the loss and any further damage. Interest shall be charged on the loss at five per cent.
A sale by private contract may be held instead of an auction:261
Monetary claims of the debtor which have no market or stock exchange price shall, if all distraining creditors so request, be assigned either to all the creditors or to individual creditors for joint account at nominal value in lieu of payment. In this case, the creditors shall assume the rights of the debtor subject to debt enforcement up to the amount of their claims.
If all distraining creditors agree, they or individual creditors may assert distrained claims in their own name and for their own account and risk, without prejudice to their rights as against the debtor subject to debt enforcement. They shall require authorisation from the debt enforcement office to do so. The result serves to cover the expenses and claims of those creditors who have proceeded in this way. Any surplus must be paid to the debt enforcement office. 265
If assets of a different nature are to be realised, such as a usufruct or a share in an undistributed estate, ownership in undivided shares, in partnership property or in another form of communal property, the debt enforcement officer shall request the supervisory authority to determine the procedure.
The same rule applies to the realisation of inventions, plant variety rights, industrial designs and models, trademarks and copyrights. 267
The supervisory authority may, after hearing the parties involved, order the auction, delegate realisation to an administrator or make other arrangements.
Realisation may only be contested by means of an appeal against the auction sale or the sale by private contract.
The period allowed to file the appeal under Article 17 paragraph 2 begins when the appellant has become aware of the contested act of realisation and the grounds for contesting the same have become apparent to him.
The right of appeal expires one year after realisation.
Properties shall be sold by public auction by the debt enforcement office no earlier than one month and no later than three months after receipt of the request for realisation.
At the request of the debtor and with the express consent of all distraining and mortgagees, realisation may take place even if no creditor is yet entitled to demand it.
The debt enforcement office shall draw up the auction terms in the manner customary at the location and arrange them in such a way that the most favourable result can be expected.
The auction terms shall be made available for public inspection at the debt enforcement office at least ten days before the auction.
The auction terms shall stipulate that immovable property be auctioned with all encumbrances (easements, real burdens, mortgages and registered personal rights) and that the associated personal debt obligations be transferred to the acquirer. The debtor of a transferred debt from a mortgage contract or mortgage certificate is released if the creditor does not declare within one year of the auction sale that he wishes to retain it (Art. 832 CC 270 ). Debts secured by mortgages that fall due are not transferred but paid in advance from the proceeds. 271
The terms of the auction shall also specify the costs to be borne by the acquirer.
The debt enforcement officer shall determine the method of payment in the auction terms; he may grant a payment term of a maximum of six months.
Payment may be made in cash up to an amount of CHF 100,000. If the price is higher, the portion exceeding this amount must be paid through a financial intermediary in accordance with the Anti-Money Laundering Act of 10 October 1997 273 .
If a payment deadline is agreed, the immovable property remains under the administration of the debt enforcement office for the account and at the risk of the acquirer until the purchase price has been paid. In the meantime, no entry may be made in the land register without authorisation from the debt enforcement office. In addition, the debt enforcement office may require special security for the deferred purchase price.
The auction shall be publicly announced at least one month in advance.
The announcement contains:
A corresponding request shall also be addressed to the owners of easements insofar as cantonal law is still applicable. 276
The debt enforcement office shall send a copy of the announcement by standard post to the creditor, the debtor, any third-party owner of the immovable property and all parties entered in the land register if they have a known place of residence or a representative.
Prior to the auction, the debt enforcement officer shall determine the encumbrances (easements, real burdens, mortgages and registered personal rights) resting on the property on the basis of the submissions of the entitled parties and an extract from the land register.
He shall send the list of encumbrances to the parties involved and at the same time set them a deadline of ten days to contest the list. Articles 106–09 apply.
In addition, the debt enforcement officer shall order a valuation of the property and inform the parties concerned of the result.
If a claim included in the list of encumbrances is disputed, the auction shall be suspended until the matter is settled if it may be assumed that the dispute will influence the sale price or that other legitimate interests will be harmed by a prior auction.
If there is only a dispute about the nature of appurtenances or whether the appurtenances are only pledged to individual pledgees, the auction of the property together with the appurtenances may nevertheless take place.
If a property is encumbered with an easement, a real burden or a registered personal right without the consent of the preceding mortgagee and the priority of the mortgage is evident from the list of encumbrances, the mortgagee may request the auction both with or without the encumbrance within ten days of service of the list of encumbrances.
If the priority of the mortgage is not apparent from the list of encumbrances, the request for a double auction shall only be granted if the holder of the right concerned has recognised the priority or the mortgagee files an action for a declaration of priority within ten days of service of the list of encumbrances at the place where the property is located.
If the offer for the property with the encumbrance is not sufficient to satisfy the creditor and he obtains better cover without it, he may demand the cancellation of the encumbrance in the land register. If a surplus remains after satisfaction, this shall be used primarily to compensate the entitled party up to the value of the encumbrance.
The provisions on the sale and the coverage principle (Art. 126) and on the waiver of realisation (Art. 127) apply.
If payment is not made on time, the sale shall be cancelled and the debt enforcement office shall immediately order a new auction. Article 126 applies. 282
The former successful bidder and his guarantors shall be liable for the loss and any further damage. Interest shall be charged on the loss at five per cent.
Articles 123 and 132 a also apply to the realisation of immovable property.
A sale by private contract may take the place of an auction if all parties involved are agree and at least the valuation price is offered.
The sale may only take place after the proceedings to agree on the encumbrances has been carried out in accordance with Article 138 paragraph 2 number 3 and paragraph 3 and Article 140 and in corresponding application of Articles 135–137.
The proceeds shall be distributed as soon as all the assets subject to distraint are realised.
Assets may however be provisionally distributed beforehand.
First of all, the costs of administration, realisation, the distribution of the proceeds and if applicable the purchase of a replacement item (Art. 92 para. 3) shall be paid from the proceeds. 285
The net proceeds shall be paid out to the participant creditors up to the amount of their claims, including interest to the time of final realisation and the costs of debt enforcement (Art. 68). 286
The amounts related to claims subject to provisional distraint are deposited temporarily in the official depositary.
If the proceeds do not cover the amount of the claims, the debt enforcement office shall immediately execute additional distraint proceedings and realise the assets as quickly as possible. A special request by a creditor is not necessary and the office is not bound by the ordinary time limits.
If further distraint proceedings have been carried out in the meantime, the rights arising from them shall not be affected by the subsequent distraint proceedings.
The provisions on participating in distraint proceedings (Arts 110 and 111) apply.
If not all creditors can be satisfied, the debt enforcement office shall draw up the plan for the ranking of creditors (schedule of claims) and the distribution list.
The creditors receive the ranking that they would have in the debtor’s bankruptcy in accordance with Article 219. Instead of the date of the declaration of bankruptcy, the date of the request for continuation is decisive.
The schedule of claims and the distribution list shall be made available for public inspection at the debt enforcement office. The office shall notify the parties of this and issue each creditor with an extract in respect of his claim.
If a creditor wishes to contest the claim or the rank of another creditor, he must file an action to contest the schedule of claims against that other creditor within 20 days of receiving the extract in the court at the place of debt enforcement. 290
... 291
If the court upholds the action, it shall assign to the plaintiff the share of the proceeds of realisation allocated to the defendant in the distribution list that is required to cover the plaintiff’s loss shown in the distribution list and the legal costs. Any surplus remains with the defendant. 292
Each creditor that has participated in the distraint proceedings shall receive an unpaid debt certificate for the unpaid amount of his claim. The debtor shall be issued with a copy of the unpaid debt certificate. 293
The debt enforcement office shall issue the unpaid debt certificate as soon as the amount of the shortfall is established. 294
The unpaid debt certificate constitutes an acknowledgement of the debt in terms of Article 82 and gives the creditor the rights mentioned in Article 271 number 5 and Article 285.
The creditor may continue the debt enforcement proceedings for six months after receiving the unpaid debt certificate without obtaining a new summons for payment.
The debtor is not required to pay interest on the claim documented by the unpaid debt certificate. Joint debtors, guarantors and other persons entitled to take recourse who are required to pay interest in the debtor’s stead may not require him to reimburse the same.
... 295
The claim documented by the unpaid debt certificate becomes time barred 20 years after the issue of the unpaid debt certificate; in relation to the debtor’s heirs, however, the claim becomes time barred one year at the latest after the process of succession begins.
The debtor may settle the claim at any time by making payment at the debt enforcement office that issued the unpaid debt certificate. The office shall forward the paid amount to the creditor or if applicable pay it into the official depositary.
Following settlement, the entry in respect of the unpaid debt certificate shall be deleted from the registers. Written confirmation shall be sent to the debtor on request.
If a creditor's claim is fully satisfied, the creditor must endorse the document acknowledging the debt and hand it over to the debt enforcement officer to be passed on to the debtor. 297
If a claim is only partially satisfied, the creditor retains the document; the debt enforcement office must certify on the same or have the competent authority certify the amount of debt still due.
In the case of the realisation of immovable property, the debt enforcement office shall arrange for the necessary deletions and amendments to easements, real burdens, mortgages and registered personal rights in the land register. 298
Any person who initiates debt enforcement proceedings for a claim secured by a pledge (Art. 37) must, in addition to the details listed in Article 67, specify the pledged asset in the request for debt enforcement. In addition, the following must be stated in the request where applicable:
If a creditor initiates debt enforcement proceedings on the basis of a pledge on which a third party has a subordinate pledge (Art. 886 CC), the creditor must notify the third party of the initiation of the debt enforcement proceedings.
On receipt of the request for debt enforcement, the debt enforcement office shall issue a summons for payment in accordance with Article 69, but with the following special features:303
If immovable property is subject to a lease or usufructuary lease and the enforcing pledgee requests that liability under the pledge be extended to include the rent claims (Art. 806 CC 304 ), the debt enforcement office shall notify the tenants or lessees of the initiation of debt enforcement proceedings and instruct them to pay the rent that is due to the debt enforcement office. 305
The summons for payment shall be issued in accordance with Article 70.
The third party and the spouse may file an objection to the summons in the same way as the debtor. 306
The debt enforcement office shall also serve a summons for payment on the following persons:
The persons referred to in paragraph 2 may file an objection to the summons in the same way as the debtor. 310
If the third party has initiated redemption proceedings (Arts 828 and 829 CC), immovable property may only be realised if the creditor instituting the proceedings proves to the debt enforcement office that he is still the creditor to a mortgage on the property for the claim being enforced. 311
In all other respects, the provisions of Articles 71–86 apply with regard to the summons for payment and objection to the summons. 312
If an objection to the summons for payment is filed, the creditor may, within ten days of receiving notice of the objection, demand that the objection be set aside or file an action for recognition of the claim or for establishment of the pledge.
If the creditor is unsuccessful in having the objection set aside, he may file an action within ten days of receiving notice of the decision 314 .
If he does not comply with these deadlines, notice to tenants and lessees shall be cancelled.
The creditor may request the realisation of a pledged chattel no earlier than one month and no later than one year, and the realisation of a mortgage no earlier than six months and no later than two years after service of the summons for payment. If an objection to the summons is filed, these time limits shall be suspended between the initiation and conclusion of any court proceedings brought as a result. 315
If the application for realisation is not filed or withdrawn and not renewed within the statutory period, the debt enforcement shall lapse.
If the creditor has made the request for realisation, Articles 97 paragraph 1, 102 paragraph 3, 103 and 106–109 apply to the pledge mutatis mutandis . 316
The debt enforcement office shall notify the debtor of the request for realisation within three days.
Articles 122–143 b apply to realisation . However, the auction terms (Art. 135) shall stipulate that the share of the sale price due to the pledgee be paid in cash unless the parties involved agree otherwise. They shall also stipulate that the encumbrance on the property that existed in favour of the debtor be deleted from the land register.
In the event of separate realisation, pledge instruments in the name of the owner or in bearer form and pledged by the landowner are reduced to the amount of the proceeds of realisation.
The costs of administration, realisation and distribution are paid in advance from the pledge proceeds. 318
The net proceeds shall be paid to the pledgees up to the amount of their claims, including interest up to the time of the last realisation and the costs of enforcement. 319
If not all the pledgees can be satisfied, the debt enforcement officer shall determine the ranking of the creditors and their shares, taking account of Article 219 paragraphs 2 and 3.
Articles 147, 148 and 150 apply accordingly.
If the pledge could not be realised because the bids were insufficient (Arts 126 and 127) or if the proceeds do not cover the claim, the debt enforcement office shall issue the enforcing pledgee with a pledge shortfall certificate. 320
After service of this document, the creditor may pursue debt enforcement by way of distraint or bankruptcy, depending on the person of the debtor, unless the debt is a land charge certificate (Art. 33 a Final Title CC 321 ) or another real burden. If the debtor brings debt enforcement proceedings within one month, a new summons for payment is not required. 322
The pledge shortfall certificate is deemed to be an acknowledgement of debt within the meaning of Article 82. 323
If the debtor is subject to debt enforcement through bankruptcy, the debt enforcement office shall give notice of impending bankruptcy immediately on receipt of the request for continuation.
The notice of impending bankruptcy contains:
The debtor is also reminded that he is entitled to propose a composition agreement.
The court responsible for opening bankruptcy proceedings (bankruptcy court) shall, at the request of the creditor, order an inventory of all the debtor’s assets (inventory of assets) to be recorded if this appears necessary for the creditor's security.
The debt enforcement office shall record the inventory of assets. It may not begin until the notice of impending bankruptcy has been served, except in the cases referred to in Articles 83 paragraph 1 and 183. 329
Articles 90–92 apply accordingly.
The debtor is obliged, subject to criminal penalties for failing to do so (Art. 169 SCC 331 ), to ensure that the assets recorded are preserved or replaced by equivalent assets; however, he may use or consume as many of the assets as, at the discretion of the debt enforcement officer, are necessary to support himself and his family.
The debt enforcement officer shall expressly draw the debtor’s attention to his obligations and to the criminal penalties for failing to abide by them.
The debt enforcement officer shall release the debtor from the duties imposed by the inventory of assets if all the creditors in the enforcement proceedings agree.
The duties expire by law four months after the recording of the inventory. 332
Once 20 days have elapsed since service of the notice of impending bankruptcy, the creditor may file a petition for bankruptcy with the bankruptcy court by submitting the notice of impending bankruptcy and the summons for payment.
This right expires 15 months after service of the summons for payment. If an objection to the summons has been filed, this period shall be suspended between the initiation and conclusion of any legal proceedings brought as a result. 333
If the creditor withdraws the bankruptcy petition, he may not file it again before one month has lapsed.
If the bankruptcy petition has been filed, the parties shall be given notice of a court hearing at least three days in advance. They shall be free to appear in court, either in person or by proxy.
The person who files the bankruptcy petition is liable for the costs incurred up to and including the discontinuation of bankruptcy proceedings due to a lack of assets (Art. 230) or until the call to creditors (Art. 232). 334
The court may demand an advance of the costs from the creditor.
Immediately after the petition for bankruptcy has been filed, the court may issue interim orders necessary to safeguard the rights of the creditors.
The court shall issue its decision without delay, even in the absence of the parties. It shall declare bankruptcy unless one of the cases mentioned in Articles 172–173 a applies.
The court shall dismiss the bankruptcy petition:
If the suspension of debt enforcement proceedings is ordered by the supervisory authority following an objection or by the court in accordance with Article 85 or 85 a paragraph 2, the court shall defer the decision on bankruptcy. 337
If the court finds on its own initiative that an order (Art. 22 para. 1) issued in the previous proceedings was null and void, it shall also defer the decision and refer the case to the supervisory authority. 338
The bankruptcy court shall be notified of the supervisory authority's decision and issue its decision thereafter.
If the debtor or a creditor has applied for a composition moratorium or emergency moratorium, the court may defer the decision on bankruptcy. 340
The court may also defer the decision on bankruptcy ex officio if direct debt restructuring or the conclusion of a composition agreement appears to be possible; it shall transfer the files to the composition court. 341
... 342
If the bankruptcy petition relates to a debtor that is subject to the bankruptcy jurisdiction of the Swiss Financial Market Supervisory Authority (FINMA) under the financial market legislation in accordance with Article 1 of the Financial Market Supervision Act of 22 June 2007 344 , the bankruptcy court shall refer the files to FINMA. The latter shall proceed in accordance with the special rules.
Only debtors who have the required FINMA licence are subject to FINMA's bankruptcy jurisdiction. 345
The decision of the bankruptcy court may be contested within ten days by means of an appeal in accordance with the CPC 347 . The parties may assert new facts if these occurred before the decision of the court of first instance.
The appellate court may revoke the declaration of bankruptcy if the debtor provides credible evidence of his solvency and proves by documentary evidence that in the meantime:
If it grants the appeal suspensive effect, it shall at the same time take the necessary interim measures to protect the creditors.
Bankruptcy is declared at the time that the ruling is issued.
The court shall state this point in time in the declaration of bankruptcy.
The court shall notify the debt enforcement office, the bankruptcy office, the commercial register office and the land register office without delay of:
The bankruptcy must be recorded in the land register no later than two days after it is declared. 349
In the case of claims based on a bill of exchange or cheque, even if they are secured by a pledge, debt enforcement proceedings may be requested at the debt enforcement office if the debtor is subject to debt enforcement through bankruptcy.
The bill of exchange or cheque must be handed over to the debt enforcement office.
If the requirements for debt enforcement proceedings based on a bill of exchange are met, the debt enforcement office shall immediately serve a summons for payment on the debtor.
The summons for payment shall contain:
Articles 70 and 72 apply.
The debtor may file a written objection with the debt enforcement office within five days of service of the summons for payment; when doing so, he must demonstrate that any one of the conditions set out in Article 182 is met. On request, the debt enforcement office shall confirm the filing of an objection to the summons free of charge.
By stating the grounds for objecting to the summons, the debtor does not waive further defences under Article 182.
Article 33 paragraph 4 does not apply.
The enforcing creditor shall be informed of the grounds for the objection to the summons for payment on the copy of the summons given to him; if no objection to the summons has been filed, this is noted on the same.
This copy shall be served on the debtor immediately after the objection to the summons has been filed or, if no objection has been filed, immediately after the expiry of the deadline for filing the same.
The debt enforcement office shall immediately submit the objection to the summons for payment to the court at the place of debt enforcement. The court shall summon the parties and issue a decision, even in their absence, within ten days of receipt of the objection to the summons.
The court shall approve the objection to the summons for payment:
If the court refuses to approve the objection to the summons for payment, it may take interim measures, and in particular order the recording of an inventory of assets in accordance with Articles 162–165.
If necessary, the court may also require the creditor to provide security. 357
Notice of the decision on approving the objection to the summons for payment shall be given to the parties immediately. 358
If the objection to the summons has only been approved after the amount in dispute has been deposited, the creditor shall be requested to raise a claim for payment within ten days. If the creditor does not comply with this request, the deposit shall be returned.
The decision on the approval of objection to the summons for payment may be contested within five days by an appeal under the CPC 360 .
If the objection is approved, the debt enforcement proceedings shall be discontinued; the creditor must pursue his claim through ordinary civil proceedings.
Any person who has paid an undue debt as a result of failing to file an objection to the summons for payment or the objection not being approved may exercise his right to recover the payment in accordance with Article 86.
If no objection to the summons for payment is filed or if the objection has been set aside but the summons has nevertheless not been complied with, the creditor may file a petition for bankruptcy by submitting the unpaid debt certificate and the summons and, if applicable, the court decision.
This right expires one month after service of the summons. If the debtor has filed an objection to the summons, the time between filing the objection and the corresponding court decision and, if the objection is approved, the time between the raising of the action and the court’s decision in this matter shall not be taken into account.
The court shall notify the parties of the place, day and hour of the hearing on the bankruptcy petition. It shall issue its decision, even in the absence of the parties, within ten days of the petition being filed.
Articles 169, 170, 172 number 3, 173, 173 a , 175 and 176 apply.
A creditor may request the court to declare bankruptcy without prior debt enforcement proceedings:
If the debtor lives in Switzerland or has a representative in Switzerland, he shall be summoned to court within a short period of time and questioned.
The debtor may himself apply to be declared bankrupt by declaring to the court that he is insolvent.
The court shall declare bankruptcy if there is no prospect of a debt settlement in accordance with Article 333 ff.
Bankruptcy shall be declared ex officio without prior debt enforcement proceedings if the law so provides.
The competent authority shall notify the bankruptcy court if:
In such cases, the court shall order liquidation by the bankruptcy office.
A creditor or an heir may also request liquidation by the bankruptcy office.
Articles 169, 170 and 173 a –176 apply to bankruptcies that have been declared without prior debt enforcement proceedings. However, if bankruptcy is declared in accordance with Article 192, Article 169 does not apply.
Notification of the Commercial Register Office (Art. 176) is not required if the debtor is not subject to debt enforcement through bankruptcy.
The bankruptcy court shall revoke the declaration of bankruptcy and restore the debtor’s right to dispose of his assets if:
Revocation of bankruptcy may be ordered from the expiry of the deadline for filing until the conclusion of the proceedings.
Notice of the revocation of bankruptcy shall be published.
The liquidation by the bankruptcy office of an estate that has been disclaimed shall also be revoked if a beneficiary declares acceptance of the inheritance before the end of the proceedings and provides sufficient security for payment of the debts.
All distrainable assets belonging to the debtor at the time that bankruptcy is declared, regardless of where they are located, form a single estate (the bankruptcy estate) which serves to satisfy the creditors jointly. 370
Assets that accrue to the debtor 371 before the end of the bankruptcy proceedings are also part of the bankruptcy estate.
Assets subject to pledge shall be included in the bankruptcy estate, subject to any preferential rights granted to the pledgees.
Assets secured by a pledge which have not been realised by the time of declaration of bankruptcy and attached assets shall be included in the bankruptcy estate.
However, distrained cash amounts, amounts surrendered in the case of distraint proceedings of claims and income and the proceeds of assets already realised shall be distributed in accordance with Articles 144–150, provided the time limits for participating in distraint proceedings (Arts 110 and 111) have expired; any surplus falls into the bankruptcy estate. 372
The bankruptcy estate also includes any assets and claims that are subject of an action for avoidance in accordance with Articles 214 and 285–292.
Where a bearer security or instrument to order is in the debtor’s possession but has been handed over to him or endorsed in his favour merely for collection or as cover for a specified future payment, the person who handed over or endorsed the security or instrument may demand its return.
If the debtor has sold an item that does not belong to him and has still to receive the purchase price at the time that bankruptcy is declared, the previous owner may, by paying what is due to the debtor, request the assignment of the claim against the purchaser or restitution of the purchase price where it has in the meantime been collected by the bankruptcy administration.
If an item which the debtor has purchased and not yet paid for has been dispatched to him but has not yet passed into his possession at the time that bankruptcy is declared, the seller may demand its return unless the bankruptcy administration pays the purchase price.
However, a right of return is excluded if the item was acquired as property or a pledge by a third party acting in good faith on the basis of a waybill, bill of lading or consignment note prior to the public announcement of bankruptcy.
Legal acts performed by the debtor after bankruptcy is declared in relation to assets belonging to the bankruptcy estate are invalid as against the bankruptcy creditors.
However, if the debtor has paid a bill of exchange issued by him or drawn on him on the due date before the public announcement of bankruptcy, this payment is valid, provided the holder of the bill of exchange had no knowledge of the declaration of bankruptcy and could have successfully exercised recourse under the law on bills of exchange against third parties in the event of non-payment.
Claims forming part of the bankruptcy estate may no longer be settled by payment to the debtor once bankruptcy is declared; a person who makes payment to the debtor is discharged from liability to the bankruptcy creditors only up to the amount of the sum or value which accrues to the bankruptcy estate.
However, if the payment was made before the public announcement of bankruptcy, the payer is released from the debt obligation if he was not aware of the declaration of bankruptcy.
All pending debt enforcement proceedings against the debtor are cancelled, and new debt enforcement proceedings for claims that arose before bankruptcy is declared may not be initiated during the bankruptcy proceedings. This does not apply to enforcement proceedings for the realisation of assets that have been pledged by third parties.
Enforcement proceedings for claims that arose after bankruptcy is declared shall be continued during the bankruptcy proceedings by distraint or proceedings for the realisation of pledged assets.
During the bankruptcy proceedings, the debtor may not apply to be declared bankrupt on the grounds of insolvency (Art. 191).
With the exception of urgent cases, civil proceedings in which the debtor is a party and which affect the assets in the bankruptcy estate shall be suspended. In ordinary bankruptcy proceedings, they may be resumed at the earliest ten days after the second creditors’ meeting, and in summary bankruptcy proceedings at the earliest 20 days after the schedule of claims has been drawn up.
Administrative proceedings may be suspended subject to the same conditions.
During the suspension, statutes of limitation and deadlines for the forfeiture of rights are suspended.
This provision does not apply to compensation claims for defamation and personal injury or to family law proceedings.
The declaration of bankruptcy causes all of the debtor’s debt obligations towards the bankruptcy estate to fall due, with the exception of those covered by a mortgage on the debtor’s immovable property. In addition to the principal claim, the creditor may claim interest up to the date on which bankruptcy is declared and the costs of enforcement. 375
A five per cent discount is applied to non-interest-bearing claims that are not yet due.
The debtor ceases to be liable for further interest when bankruptcy is declared.
For claims secured by a pledge, however, interest continues to accrue until realisation provided the pledge proceeds exceed the amount of the claim and the interest accrued up to the declaration of bankruptcy.
Claims subject to a condition precedent shall be admitted in bankruptcy for the full amount; however, the creditor is not entitled to receive his share of the bankruptcy estate unless the condition has been met.
Article 518 paragraph 3 CO 378 applies to life annuity claims.
Claims that do not involve a monetary payment shall be converted into monetary claims of a corresponding value.
However, the bankruptcy administration has the right, instead of the debtor, to perform bilateral contracts that are not or only partially performed at the time that bankruptcy is declared. The contractual partner may demand security for performance. 379
However, the right of the bankruptcy administration under paragraph 2 is excluded in the case of fixed date transactions (Art. 108 para. 3 CO 380 ) and financial futures, swap and option transactions if the value of the contractual services can be determined on the basis of market or stock exchange prices at the time that bankruptcy is declared. The bankruptcy administration and the contractual partner each have the right to claim the difference between the agreed value of the contractual services and their market value at the time that bankruptcy is declared. 381
The provisions of other federal laws on the termination of contractual relationships in the event of bankruptcy and the provisions on reservation of ownership (Arts 715 and 716 CC 382 ) remain reserved. 383
Claims arising from long-term contractual obligations may be asserted as bankruptcy claims from the declaration of bankruptcy until the next possible termination date or until the end of the fixed contract term at the latest. The creditor must take into account any benefits that he has obtained for this period.
Insofar as the bankruptcy estate has claimed the benefits from the long-term contractual obligation, the corresponding counterclaims that arose after bankruptcy is declared shall be deemed to be liabilities of the estate.
The debtor reserves the right to continue a contractual relationship personally.
A seller who has transferred the sold item to the debtor before bankruptcy is declared may no longer withdraw from the contract and reclaim the transferred item, even if he has expressly reserved the right to do so.
A creditor may set off his claim against a claim against him to which the debtor is entitled.
However, offsetting is not permitted:
Offsetting against claims arising from bearer securities is permitted if and insofar as the creditor proves that he acquired them in good faith prior to bankruptcy being declared. 388
In the event of the bankruptcy of a limited partnership, a company limited by shares, a partnership limited by shares, a limited liability company or a co-operative, the partners’ specific contributions or the share capital that have not been fully paid up and contributions to the co-operative may not be offset. 389 , 390
Offsetting may be contested if a debtor of the bankrupt 391 has acquired a claim against the bankrupt prior to bankruptcy being declared but with knowledge of the bankrupt's insolvency in order to obtain an advantage for himself or another person by means of offsetting, to the detriment of the bankruptcy estate.
Claims arising from contracts of surety entered into by the debtor may be asserted in bankruptcy, even if they are not yet due.
The bankruptcy estate is subrogated to the creditor's rights as against the principal debtor and any co-sureties in respect of the amount that it pays (Art. 507 CO 392 ). However, if bankruptcy proceedings are also instituted against the principal debtor or a co-surety, Articles 216 and 217 apply. 393
If bankruptcy is declared simultaneously against two or more co-obligors, the creditor may assert his claim in full in each bankruptcy.
If the allocations from the various bankruptcy estates exceed the amount of the entire claim, the surplus shall revert to the estates in accordance with the rights of recourse existing among the co-obligors.
If the total amount of the allocations does not reach the full amount of the claim, the estates have no recourse against each other for any instalments paid.
If a creditor has received partial satisfaction of his claim from a co-obligor of the debtor, the claim shall nevertheless be included in the bankruptcy of the latter in its full original amount, irrespective of whether the co-obligor is entitled to recourse against the debtor or not.
The creditor and the co-obligor are both entitled to file the claim in bankruptcy.
The creditor is entitled to a share of the bankruptcy estate attributable to the claim until it has been satisfied in full. A co-obligor entitled to recourse receives the amount from the surplus that he would receive if he had asserted his right of recourse independently. The residue remains for the estates.
If a general partnership and any of its partners are simultaneously declared bankrupt, the creditors of the partnership may only assert in the bankruptcy of the partner that part of their claims that remained unpaid in the bankruptcy of the partnership. The provisions of Articles 216 and 217 apply with regard to the payment of this residual debt by the individual partners.
If bankruptcy proceedings are instituted against a partner but not simultaneously against the partnership, the creditors of the partnership may assert their claims in full in the bankruptcy of the partner. The bankruptcy estate is entitled to the rights of recourse granted by Article 215 to the bankruptcy estate of a surety.
Paragraphs 1 and 2 apply mutatis mutandis to partners with unlimited liability in a limited partnership. 394
Claims secured by a pledge are paid in advance from the proceeds of the sale of the pledges.
If several pledges secure the same claim, the amounts realised therefrom shall be used to cover the claim in proportion to their amount.
The ranking of mortgagees and the extent of mortgage security for interest and other ancillary claims shall be determined in accordance with the provisions governing mortgages. 395
Claims not secured by a pledge and the unsecured portion of claims secured by a pledge shall be covered from the proceeds of the entire remaining bankruptcy estate in the following order of priority:
First classAll other claims. 410
The following are not taken into account when calculating the deadlines set in the first and second classes:
The creditors of the same class have equal rights among themselves.
The creditors of a lower class are only entitled to the proceeds once the creditors of the preceding class have been satisfied.
Immediately on receipt of the declaration of bankruptcy, the bankruptcy office shall proceed to record an inventory of the assets belonging to the bankruptcy estate and take the measures necessary to secure them.
… 413
The debtor is obliged, subject to criminal penalties for failing to do so, to declare and hand over all his assets to the bankruptcy office (Arts 163 para. 1 and 323 para. 4 SCC 415 ).
If the debtor has died or has absconded, all adult persons who lived in the same household as the debtor are subject to the same obligations, subject to criminal penalties for failing to do so (Art. 324 para. 1 SCC).
The persons obliged under paragraphs 1 and 2 must open the premises and containers to the official on request. The official may use police powers if necessary.
Third parties who hold the debtor’s assets in safekeeping or with whom the debtor has assets are obliged to provide information on and hand over the assets to the same extent as the debtor, subject to criminal penalties for failing to do so (Art. 324 para. 5 SCC).
Public authorities are obliged to provide information to the same extent as the debtor.
The bankruptcy office shall expressly draw the attention of the persons concerned to their obligations and to the criminal penalties for failing to comply.
The bankruptcy office may instruct postal services providers to allow it to inspect post addressed the debtor for the duration of the bankruptcy proceedings and to deliver the post to the bankruptcy office.
The bankruptcy office is entitled to open the post delivered provided it is not obvious that the content of the post is of no relevance to the bankruptcy proceedings.
The debtor is entitled to be present when post is opened.
Stores, warehouses, workshops, public houses and the like must be closed immediately by the bankruptcy office and placed under seal if they cannot be managed under adequate supervision until the first creditors’ meeting.
The bankruptcy office shall take custody of cash, securities, business and household accounts and other relevant documents.
All other assets shall be placed under seal unless they are recorded in the inventory; the assets may be resealed after their recording if the bankruptcy office deems it necessary.
The bankruptcy office shall ensure the safekeeping of items located outside the premises used by the debtor.
The assets referred to in Article 92 shall be left at the debtor’s free disposal but shall nevertheless be recorded in the inventory.
Items designated as the property of third parties or claimed by third parties as their property shall nevertheless be recorded in the inventory, with the claim being noted.
The rights of third parties to the debtor’s immovable property as recorded in the land register shall be noted ex officio in the inventory.
The estimated value of each asset is recorded in the inventory.
The inventory shall be presented to the debtor with the request that it be declared complete and accurate.
The debtor’s declaration shall be recorded in the inventory and signed by the debtor.
The debtor is obliged to remain at the disposal of the bankruptcy administration during the bankruptcy proceedings subject to criminal penalties for failing to do so (Art. 323 no 5 SCC 418 ); he may only be released from this obligation by special authorisation. If necessary, he shall be brought to the required location with the aid of police powers. The bankruptcy administration shall expressly draw his attention to this and to the penalties for failing to comply. 419
The bankruptcy administration may grant the debtor a reasonable contribution towards his support, in particular if this encourages the debtor to remain at its disposal.
The bankruptcy administration shall determine how and under what terms the debtor and his family may remain in their current home, in the event that it is part of the bankruptcy estate. 420
If the bankruptcy estate is unlikely to be sufficient to cover the costs of summary proceedings, the bankruptcy court shall order the bankruptcy proceedings to be discontinued at the request of the bankruptcy office. 421
The bankruptcy office shall give public notice of discontinuation and notify the known creditors by standard post. In the notice, it shall indicate the proceedings will be concluded unless a creditor requests the conducted of bankruptcy proceedings within 20 days and provides the security specified for the portion of the costs not covered by the bankruptcy estate. 422
After the bankruptcy proceedings have been discontinued, the debtor may still be pursued by way of distraint for a period of two years. 423
Debt enforcement proceedings initiated prior to bankruptcy being declared shall be revived after the bankruptcy proceedings have been discontinued. The time between the opening and the discontinuation of bankruptcy proceedings shall not be counted for the purposes of any deadlines under this Act. 424
If the bankruptcy liquidation of a deceased’s estate is discontinued due to a lack of assets, the heirs may request assignment of the assets belonging to the estate to the community of heirs or to individual heirs if they declare their willingness to assume the personal debt obligation for the claims secured by a pledge and to pay the uncovered liquidation costs. If none of the heirs exercises this right, the creditors and, after them, third parties who assert an interest may exercise it.
If there are assets secured by a pledge in the bankruptcy estate of a legal entity and the bankruptcy has been discontinued due to a lack of assets, a pledgee may nevertheless request the bankruptcy office to realise their pledge. The office shall set a deadline for this.
If no assignment agreement within the meaning of paragraph 1 is concluded and no creditor demands the realisation of his pledge in due time, the assets shall be transferred to the state after deduction of the costs, together with the encumbrances liable thereon, but without the personal debt obligation, unless the competent cantonal authority rejects the transfer.
If the competent cantonal authority rejects the transfer, the bankruptcy office shall realise the assets.
The bankruptcy office shall apply to the bankruptcy court for summary proceedings if it decides that:
If the court shares the opinion of the bankruptcy office, the bankruptcy shall be conducted in summary proceedings unless a creditor requests ordinary proceedings before the proceeds are distributed and provides adequate security for the anticipated uncovered costs.
Summary bankruptcy proceedings shall be conducted in accordance with the provisions governing ordinary proceedings, subject to the following exceptions:
The bankruptcy office shall give public notice of the declaration of bankruptcy as soon as it has been decided whether it will be conducted as ordinary or summary proceedings. 428
The notice shall contain:
The bankruptcy office shall send a copy of the notice by standard post to each creditor whose name and place of residence are known.
If a call to creditors has already taken place prior to the liquidation of a deceased’s estate that has been disclaimed or in composition proceedings prior to bankruptcy, the bankruptcy office shall set the deadline for filing claims at ten days and state in the notice that creditors who have already given notice do not have to do so again.
At the first creditors’ meeting, a bankruptcy officer shall chair the proceedings and forms the office with two creditors that he appoints.
The office shall decide on the admission of persons who wish to participate in the discussions without being specifically invited.
The meeting is quorate if at least one quarter of the known creditors are present or represented. If four or fewer creditors are present or represented, a valid hearing may be held provided that they account for at least half of the known creditors.
The meeting passes resolutions by an absolute majority of the creditors voting. In the event of a tie, the chair has the casting vote. If the calculation of votes is disputed, the office shall decide. 437
If the meeting is not quorate, the bankruptcy office shall formally establish this. It shall inform the creditors present about the extent of the estate and administer it until the second creditors’ meeting.
If the creditors’ meeting is quorate, the bankruptcy office shall report to it on the recording of the inventory and the status of the estate.
The meeting shall decide whether it wishes to appoint the bankruptcy office or one or more persons that it chooses to be the bankruptcy administration.
In either case, the meeting may elect a creditors’ committee from among its members; unless the meeting decides otherwise, this committee has the following duties:439
The creditors’ meeting may pass resolutions on matters whose settlement cannot be delayed, in particular on the continuation of the bankrupt's trade or business, on the question of whether the bankrupt's workshops, warehouses or business premises should remain open, on the continuation of pending legal proceedings, and on the conduct of private sales 440 .
If the bankrupt proposes a composition agreement, the creditors’ meeting may suspend realisation.
An appeal may be filed with the supervisory authority within five days against resolutions of the creditors’ meeting. 441
The supervisory authority shall decide within a short period of time after consulting the bankruptcy office and, if it deems it appropriate, the appellant and those creditors who request to be heard.
The bankruptcy administration is responsible for all transactions relating to the preservation and realisation of the estate; it represents the estate in court.
Articles 8–11, 13, 14 paragraph 2 numbers 1, 2 and 4 as well as Articles 17–19, 34 and 35 also apply to a non-official bankruptcy administration.
The bankruptcy administration shall issue an order for items claimed by a third party to be surrendered.
If the bankruptcy administration considers the claim to be unfounded, it shall set the third party a time limit of 20 days within which he may file an action in the court at the place of bankruptcy. If he does not comply with this deadline, the claim is forfeited.
If the estate claims movable items that are in the custody or joint custody of a third party, or immovable property that is recorded in the land register in the name of a third party, as the property of the debtor, it must bring an action against the third party.
The bankruptcy administration shall issue an order for the surrender of crypto-based assets over which the bankrupt has power of disposal at the time that bankruptcy is declared and which are claimed by a third party.
The claim is justified if the bankrupt has undertaken to hold the crypto-based assets ready for the third party at all times and the assets:
If the bankruptcy administration considers the claim to be unfounded, it shall set the third party a time limit of 20 days within which it may file an action in the court at the place of bankruptcy. If he does not comply with this deadline, the claim is forfeited.
The costs of surrender shall be borne by the party requesting the same. The bankruptcy administration may demand a suitable advance payment.
If data fall under the power of disposal of the bankruptcy estate, any third party who can prove a legal or contractual entitlement to the data may, depending on the type of entitlement, demand access to this data or its release from the power of disposal of the bankruptcy estate .
If the bankruptcy administration considers the claim to be unfounded, it shall set the third party a deadline of 20 days within which it may file an action in the court at the place of bankruptcy. The data may not be destroyed or used until the court has issued a legally binding decision.
The costs for access to the data or for their release shall be borne by the party requesting access. The bankruptcy administration may demand a suitable advance payment.
The right to information in accordance with the federal or cantonal data protection provisions remains reserved.
Undisputed assets due to the estate shall be collected by the bankruptcy administration, if necessary by way of debt enforcement proceedings.
The bankruptcy administration shall realise without delay assets that are subject to rapid depreciation, require costly maintenance or involve disproportionately high storage costs. It may also order that securities and other items with a stock exchange or market price be realised immediately. 446
The remaining parts of the estate shall be realised after the second creditors’ meeting has taken place.
After expiry of the deadline for filing, the bankruptcy administration shall examine the claims filed and make the necessary enquiries for their verification. It shall consult the bankruptcy debtor about each bankruptcy claim filed.
The bankruptcy administration shall decide on whether to recognise the claims. It is not bound by the declaration of the bankruptcy debtor.
The claims evident in the land register shall be included among the bankruptcy claims together with the current interest, even if they have not been filed.
The bankruptcy administration shall draw up the plan for the ranking of creditors (schedule of claims, Arts 219 and 220) within 60 days of the expiry of the time limit for filing claims.
If the estate includes immovable property, the bankruptcy administration shall draw up a list of the encumbrances (mortgages, easements, charges on land and registered personal rights) within the same period. The list of encumbrances forms part of the schedule of claims.
If a creditors’ committee has been appointed, the bankruptcy administration shall submit the schedule of claims and the list of encumbrances to it for approval; the committee may make changes within ten days.
The supervisory authority may extend the deadlines specified in this Article if necessary.
Rejected claims shall also be noted in the schedule of claims, together with the reason for rejection.
The schedule of claims shall be made available for inspection at the bankruptcy office.
The bankruptcy administration shall give public notice that the schedule is available for inspection 449 .
Each creditor whose claim has been rejected in whole or in part or who has not been given the rank requested shall be notified separately of the publication of the schedule of claims and the rejection of his claim or request.
Any creditor who wishes to contest the schedule of claims because his claim has been rejected in whole or in part or has not been given the requested ranking must file an action against the estate in the court at the place of bankruptcy within 20 days of the publication of the schedule of claims.
If he wishes to contest the admission or ranking of another creditor, he must bring the action against that creditor. If the court approves the claim, the amount by which the defendant’s share of the bankruptcy estate is reduced shall serve to satisfy the plaintiff’s claim up to its full amount, including the legal costs. Any surplus shall be distributed in accordance with the revised schedule of claims.
... 451
Bankruptcy claims may be filed until the conclusion of the bankruptcy proceedings.
The creditor must bear any costs caused by the delay and may be required to make a suitable advance payment.
The creditor shall not be entitled to provisional distributions that took place prior to his filing a claim.
If the bankruptcy administration considers a bankruptcy claim filed late to be justified, it shall amend the schedule of claims and give public notice of the amendment.
Article 250 applies.
After the schedule of claims has been published, the bankruptcy administration shall invite the creditors whose claims have not already been legally rejected to a second meeting. The invitation must be sent out at least 20 days before the meeting. 452
If a composition agreement is to be negotiated at this meeting, this shall be indicated in the invitation. 453
A member of the bankruptcy administration shall chair the meeting. Article 235 paragraphs 3 and 4 apply mutatis mutandis .
The bankruptcy administration shall submit a comprehensive report to the creditors’ meeting on the progress of the administration and the status of the assets and liabilities.
The meeting shall decide on the confirmation of the bankruptcy administration and, where appropriate, of the creditors’ committee and shall, without limitation, order whatever else is required in order to conduct the bankruptcy proceedings.
If the meeting is not quorate, the bankruptcy office shall formally establish this and inform the creditors present of the status of the assets. The current bankruptcy administration and the creditors’ committee shall remain in office until the end of the proceedings.
Further creditors’ meetings shall be convened if a quarter of the creditors or the creditors’ committee so request or if the bankruptcy administration deems it necessary.
In urgent cases, or if a creditors’ meeting was not quorate, the bankruptcy administration may submit proposals to the creditors by circular letter. A proposal shall be accepted if the majority of the creditors expressly or tacitly approve it within the set deadline.
If not all creditors are known to the bankruptcy administration, it may also give public notice of its proposals.
The assets belonging to the estate shall be sold at public auction by order of the bankruptcy administration or, if the creditors so decide, by private sale.
Unless they are sold at public auction, assets secured by a pledge may only be realised with the consent of the pledgee.
Assets of significant value and immovable property may only be sold privately if the creditors have first been given the opportunity to make higher offers. 457
Avoidance claims under Articles 286–288 may not be auctioned or otherwise disposed of. 458
The place, day and hour of the increase shall be publicly announced.
If immovable property is to be realised, notice shall be given at least one month before the date of the auction and shall state the date from which the auction terms will be available for inspection at the bankruptcy office.
Copies of the notice shall be sent separately to the mortgagees, stating the amount of the valuation.
The item to be realised shall be sold to the highest bidder after three calls.
Article 142 paragraphs 1 and 3 applies to the realisation of immovable property. The creditors may also decide to set a minimum bid for the first auction. 460
Articles 128, 129, 132 a , 134–137 and 143 apply mutatis mutandis to the auction terms. The debt enforcement office is replaced by the bankruptcy administration.
If the community of creditors waives its right to assert a claim, any one of the creditors may individually request that the estate’s rights be assigned to him.
After deduction of the costs, the result shall serve to cover the claims of those creditors to which the claim was assigned, in accordance with their respective ranks. The surplus must be paid into the estate.
If the community of creditors waives its right to assert its claims and no creditor demands assignment, such claims may be realised in accordance with Article 256. 462
After receipt of the proceeds of the entire bankruptcy estate and after the schedule of claims has become legally binding, the bankruptcy administration shall draw up the distribution list and the final account.
All costs for opening and conducting the bankruptcy proceedings and for recording an inventory of assets shall be covered beforehand.
Only the costs of inventorying, managing and realising are covered from the proceeds from assets secured by a pledge.
The distribution list and the final account shall be made available for inspection at the bankruptcy office for ten days.
Each creditor shall receive notice of publication, enclosing an extract relating to his share.
The bankruptcy administration shall proceed with the distribution immediately after the expiry of the period allowed to inspect the distribution list and the final account.
The provisions of Article 150 apply accordingly.
The shares attributable to the claims subject to a condition precedent or with an uncertain expiry date shall be deposited with the official depositary.
During distribution, each creditor shall receive an unpaid debt certificate for the amount of his claim that remains uncovered. The certificate shall state whether the claim has been accepted or contested by the debtor. In the former case, the unpaid debt certificate is deemed to be an acknowledgement of debt within the meaning of Article 82.
The unpaid debt certificate entitles the holder to carry out an attachment and has the legal effects specified in Articles 149 paragraph 4 and 149 a . However, new debt enforcement proceedings may only be initiated on the basis of the certificate if the debtor has acquired new assets. New assets also include assets over which the debtor has economic control. 464
... 465
If the debtor files an objection to the summons for payment on the grounds that he has not acquired new assets, the debt enforcement office shall submit the objection to the court at the place of debt enforcement. The court shall hear the parties and issue a decision; there is no right of appeal against the decision. 467
The court shall approve the objection to the summons if the debtor sets out his income and financial circumstances and credibly demonstrates that he has not acquired any new assets.
If the court does not approve the objection to the summons, it shall establish the extent of the new assets (Art. 265 para. 2). The court may declare assets of third parties over which the debtor has economic control to be distrainable if the third party's right is based on an act carried out by the debtor with the intention, recognisable to the third party, of thwarting the creation of new assets.
The debtor and the creditor may file an action to contest or establish the new assets in the court at the place of debt enforcement within 20 days of receiving notice of the decision on the objection. 468
If the debtor opposes debt enforcement proceedings by denying that he has new assets, he may not apply to be declared bankrupt (Art. 191) for the duration of these proceedings.
Provisional distributions may be made as soon as the deadline for contesting the schedule of claims has expired.
Article 263 applies mutatis mutandis . 470
The claims of those creditors who have not participated in the bankruptcy proceedings are subject to the same restrictions as those for which an unpaid debt certificate has been issued.
After distribution, the bankruptcy administration shall submit a final report to the bankruptcy court.
If the court finds that the bankruptcy proceedings have been completed, it shall declare them concluded.
If the manner in which the bankruptcy has been managed by the administration gives rise to comment by the court, the court shall bring the matter to the attention of the supervisory authority.
The bankruptcy office shall give public notice of the conclusion of the bankruptcy proceedings.
If, after the conclusion of bankruptcy proceedings, assets are discovered that belonged to the estate but were not included therein, the bankruptcy office shall take possession of them and, without further formalities, realise them and distribute the proceeds to the creditors who have suffered a loss in accordance with their ranking.
The bankruptcy office shall proceed in the same way with deposited amounts that are released or have not been withdrawn after ten years. 471
If the right is dubious, the bankruptcy office shall bring the case to the attention of the bankruptcy creditors by public notice or by post, and the provisions of Article 260 apply mutatis mutandis .
The bankruptcy proceedings should be completed within one year of the declaration of bankruptcy. 472
This period may be extended by the supervisory authority if necessary.
The creditor may request that assets of a debtor that are located in Switzerland be attached for a debt that is due and not secured by a pledge:473
In the cases referred to in numbers 1 and 2, attachment may also be demanded for a debt that is not yet due; doing so causes the claim to become due against the debtor.
In the case referred to in paragraph 1 number 6, the court shall also decide on the enforceability of foreign judgments that are to be enforced in accordance with the Convention of 30 October 2007 477 on Jurisdiction and the Recognition and Enforcement of Judgments in Civil and Commercial Matters. 478
Attachment shall be authorised by the court at the place of debt enforcement or at the place where the assets are located if the creditor can credibly demonstrate that:480
If the creditor is domiciled abroad and does not designate a place of service in Switzerland, the place of service is the debt enforcement office.
The creditor shall be liable both to the debtor and to third parties for any loss or damage arising from an unjustified attachment. The court may require the creditor to provide security.
The action for damages may also be filed in the court at the place of attachment.
The court shall instruct the debt enforcement officer or another official or employee to execute the attachment and serve the attachment order on him. 482
The attachment order shall contain:
Articles 91–109 on distraint proceedings apply mutatis mutandis to the execution of the attachment.
The public official or employee responsible for execution shall draw up the deed of attachment by certifying on the attachment order that the attachment has been executed and listing the attached assets and their estimated value, and shall deliver the same immediately to the debt enforcement office.
The debt enforcement office shall immediately serve the creditor and the debtor with a copy of the deed of attachment and shall notify third parties whose rights are affected by the attachment. 484
The debtor shall be allowed to freely dispose of the attached assets to the extent that he provides security so that in the event of distraint proceedings or a declaration of bankruptcy the attached assets or other assets of equivalent value will be available. Security shall be provided by deposit, by a joint and several guarantee or by another equivalent form of security. 485
Any person whose rights are affected by an attachment may file opposition in court within ten days of becoming aware of the attachment order.
The court shall give the parties the opportunity to state their case and shall issue an immediate decision.
The decision on opposition may be contested by filing an appeal under the CPC 487 . New circumstances may be pleaded before the appeal court.
Neither opposition nor an appeal compromises the effect of the attachment.
If the creditor has not begun debt enforcement proceedings or filed an action before the attachment is authorised, he must do so within ten days of service of the deed of attachment.
If the debtor files an objection to the summons for payment, the creditor must within ten days of receiving the creditor’s copy of the summons apply to have the objection set aside or file an action for the recognition of his claim. If his application to have the objection set aside is rejected, he must file the action within ten days of receiving notice of the decision 489 . 490
If the debtor has not filed an objection to the summons for payment, the creditor must within 20 days of receiving the creditor’s copy of the summons file a request for continuation of the proceedings. If the objection to the summons is subsequently dismissed, the 20-day period begins once the dismissal of the objection is legally binding. Depending on the debtor’s legal personality, the debt enforcement proceedings shall be continued by way of debt enforcement proceedings by distraint or of debt enforcement proceedings through bankruptcy. 491
If the creditor has filed a court action in respect of his claim without prior debt enforcement proceedings, he must begin debt enforcement proceedings within ten days of receiving notice of the decision.
The deadlines in this Article do not run:
The attachment shall cease to have effect if the creditor:
If, following issue of the attachment order, the attached assets are distrained by another creditor before the attachment creditor may file his own application for distraint, the latter shall automatically participate provisionally in the distraint proceedings.
The creditors may deduct the costs of the attachment from the proceeds of the attached assets.
In addition, the attachment does not establish any preferential right.
Landlords and lessors of business premises may call on the assistance of the debt enforcement office to temporarily safeguard their special lien (Arts 268 ff. and 299 c CO 496 ) even if the debt enforcement proceedings have not been initiated. 497
If there is a risk in any delay, the assistance of the police or the communal authority may be sought.
The debt enforcement office shall draw up a list of the items subject to the lien and set the creditor a deadline for initiating debt enforcement proceedings to realise a pledge.
If objects have been removed secretly or by force, they may be returned to the rented or leased premises with the help of the police within ten days of their removal. The rights of third parties acting in good faith are reserved. In the event of any dispute, the court shall decide. 498
If the assets of a trust as defined in Chapter 9 a of the Federal Act of 18 December 1987 499 on Private International Law (PILA) are liable for a debt, debt enforcement proceedings must be directed against a trustee as representative of the trust.
The place of enforcement shall be the seat of the trust in accordance with Article 21 paragraph 3 PILA. If the designated place of administration is not in Switzerland, the trust shall be subject to enforcement at the place where it is administered in fact.
The debt enforcement shall be continued as debt enforcement proceedings through bankruptcy. Bankruptcy is limited to the trust assets.
In the event of a trustee’s bankruptcy, the trust assets shall be segregated from the bankruptcy estate after deduction of the trustee’s claims against the trust assets.
Avoidance actions aim to make assets subject to enforcement proceedings where they have been made unavailable by means of a legal act under Articles 286–288. 502
The following persons are entitled to bring an avoidance action:503
Avoidance actions may not be brought in the case of legal acts that were carried out during a composition moratorium if they were approved by a composition court 505 or by a creditors’ committee (Art. 295 a ). 506
Other liabilities entered into during the moratorium with the consent of the commissioner are also not subject to avoidance. 507
With the exception of customary occasional gifts, all gifts and gratuitous dispositions made by the debtor within the last year prior to distraint or the declaration of bankruptcy are subject to avoidance. 508
The following are treated in the same way as gifts:
If an action in favour of a close associate or relative of the debtor is contested, the latter bears the burden of proof that there is no imbalance between performance and consideration. Close associates also include companies within a group. 510
The following legal acts are subject to avoidance if the debtor performed them within the last year before distraint or the declaration of bankruptcy and was already overindebted at the time they were performed:511
However, avoidance is excluded if the beneficiary proves that he did not know and should not have known of the debtor’s overindebtedness. 513
Avoidance is excluded in particular if securities, intermediated securities or other financial instruments traded on a representative market have been provided as collateral and the debtor has previously:
Any legal acts that the debtor carried out within the five years before distraint or the declaration of bankruptcy with the intention, recognisable to the other party, of prejudicing his creditors or favouring individual creditors to the prejudice of the others are ultimately subject to avoidance.
When seeking avoidance of an act in favour of a close associate or relative of the debtor, the associate or relative bears the burden of proving that the intention to cause prejudice was not recognisable. Close associates also include companies in a group of companies. 516
The following are not considered when calculating the relevant periods under Articles 286–288:
The avoidance action shall be filed in the court at the domicile of the defendant. If the defendant is not domiciled in Switzerland, the action may be filed in the court at the place of the distraint or bankruptcy proceedings.
An avoidance action may be brought against persons who have concluded legal transactions subject to avoidance with the debtor or who have been favoured by the debtor in a manner subject to avoidance, as well as against their heirs or other general successors and against third parties acting in bad faith. The rights of third parties acting in good faith are not affected by an avoidance action.
Any person who has acquired any of the debtor’s assets through a legal act subject to avoidance is obliged to return them. The consideration must be reimbursed to the extent that it is still in the hands of the debtor or the debtor has been enriched by it. Otherwise, reimbursement may only be claimed as a debt due by the debtor.
If the legal act subject to avoidance consisted in the repayment of a debt, the debt shall be reinstated upon restitution of the amount received.
The bona fide recipient of a gift is only obliged to make restitution up to the amount of his enrichment.
The right to seek avoidance becomes time-barred:
When recognising a foreign bankruptcy decree, the time between the application for recognition and publication in accordance with Article 169 PILA 521 is not taken into account.
Composition proceedings are initiated by:
The composition court shall immediately authorise a provisional moratorium and take any further measures ex officio that are necessary to preserve the debtor’s assets. The provisional moratorium may be extended by the composition court on request.
The total duration of the provisional moratorium may not exceed four months. At the request of the commissioner or, if no commissioner has been appointed, of the debtor, the provisional moratorium may be extended by a maximum of four months in justified cases. 524
If there is clearly no prospect of restructuring or confirmation of a composition agreement, the composition court shall declare bankruptcy ex officio .
The composition court shall appoint one or more provisional commissioners to further examine the prospect of restructuring or confirmation of a composition agreement. Article 295 applies mutatis mutandis .
In justified cases, the appointment of a commissioner may be dispensed with.
The provisional moratorium has the same effect as a definitive moratorium.
In justified cases, public notice may be dispensed with until the end of the provisional moratorium, provided that the protection of third parties is guaranteed and a corresponding request has been made. In such a case:
The authorisation of the provisional moratorium and the appointment of the provisional commissioner is not subject to appeal.
If it emerges during the provisional moratorium that there is a prospect of restructuring or confirmation of a composition agreement, the composition court shall grant the moratorium definitively for a further four to six months; it shall decide ex officio before the provisional moratorium expires.
The debtor and, if applicable, the requesting creditor must be summoned to a hearing in advance. The provisional commissioner shall report orally or in writing. The court may hear other creditors.
If there is no prospect of restructuring or confirmation of a composition agreement, the court shall declare bankruptcy ex officio .
The composition court shall appoint one or more commissioners.
The commissioner shall have the following duties in particular:
The composition court may assign the commissioner further duties.
Articles 8, 8 a , 10, 11, 14, 17–19, 34 and 35 apply mutatis mutandis to the commissioner’s management. 530
Where the circumstances require, the composition court shall appoint a creditors’ committee; the various classes of creditor must be appropriately represented therein.
The creditors’ committee shall supervise the commissioner; it may issue him with recommendations and he must report to it regularly on the progress with the proceedings.
The creditors’ committee shall grant authorisation for transactions under Article 298 paragraph 2 in lieu of the composition court.
At the request of the commissioner, the moratorium may be extended to twelve months or, in particularly complex cases, to a maximum of 24 months.
In the event of an extension beyond twelve months, the commissioner must convene a creditors’ meeting, which must be held before the end of the ninth month after the definitive moratorium was granted. Article 301 applies mutatis mutandis .
The commissioner shall inform the creditors of the status of the proceedings and the reasons for the extension. The creditors may appoint or dismiss a creditors’ committee and individual members and appoint a new commissioner. Article 302 paragraph 2 applies mutatis mutandis .
The debtor and the creditors may contest the decision of the composition court by filing an appeal under the CPC 534 .
An appeal against the authorisation of the moratorium may not be granted suspensive effect.
The composition court shall give public notice of the authorisation of the moratorium and the debt enforcement office, the commercial register office and the land register office shall be notified immediately. The composition moratorium must be noted in the land register no later than two days after authorisation.
If restructuring is successful before the moratorium expires, the composition court shall terminate the moratorium ex officio . Article 296 applies mutatis mutandis .
The debtor and, if applicable, the requesting creditor must be summoned to a hearing. The commissioner shall report orally or in writing. The court may hear other creditors.
The decision to terminate may be contested by filing an appeal under the CPC 537 .
Bankruptcy shall be declared ex officio before the moratorium expires if:
During the moratorium, debt enforcement proceedings may neither be initiated nor continued against the debtor. This does not apply to debt enforcement proceedings to realise a pledge for claims secured by mortgage; the actual realisation, on the other hand, remains excluded.
Article 199 paragraph 2 applies mutatis mutandis to distrained assets.
Attachment and other protective measures are excluded for composition claims.
If the assignment of a future claim was agreed before the composition moratorium was authorised, this assignment shall have no effect if the claim only arises after the composition moratorium was authorised.
With the exception of urgent cases, civil proceedings and administrative proceedings relating to composition claims are suspended.
Prescriptive periods and forfeiture periods are suspended.
When the moratorium is authorised, interest shall cease to run on all claims not secured by a pledge as against the debtor, unless the composition agreement provides otherwise.
Articles 213 and 214 apply to offsetting. Declaration of bankruptcy is replaced by the authorisation of a moratorium.
Article 211 paragraph 1 applies mutatis mutandis if and as soon as the commissioner notifies the contracting party of the conversion of the claim.
The debtor may, with the consent of the commissioner, terminate a long-term contractual obligation at any time subjected to compensating the other party, provided that the purpose of restructuring would otherwise be frustrated; compensation is deemed to be a composition claim. The special provisions on the termination of employment contracts remain reserved.
The debtor may continue his business activities under the supervision of the commissioner. However, the composition court may order that certain acts may only be validly carried out with the involvement of the commissioner, or authorise the commissioner to take over management in place of the debtor.
Without the authorisation of the composition court or the creditors’ committee, capital assets may no longer be alienated or encumbered in a legally valid manner, pledges and sureties may not be granted or gratuitous dispositions be made during the moratorium.
The rights of third parties acting in good faith remain reserved.
If the debtor breaches this provision or fails to comply with the instructions of the commissioner, the composition court may, on receiving notice from the commissioner, withdraw the debtor’s power of disposal over his assets or declare bankruptcy ex officio .
Immediately after his appointment, the commissioner shall draw up an inventory of all the debtor’s assets and the estimate of the value of the same.
The commissioner shall submit the order on the valuation of the pledged assets to the creditors for inspection; he shall inform the pledgees and the debtor of his order in writing before the creditors’ meeting.
Any interested party may request a new valuation of the pledged assets from the composition court within ten days against advance payment of the costs. If a creditor has applied for a new valuation, he may only claim reimbursement of the costs from the debtor if the previous valuation has been significantly changed.
The commissioner shall issue a public notice (Arts 35 and 296) calling on the creditors to file their claims within one month, with the warning that if they fail to do so they will not be entitled to vote in the negotiations on the composition agreement. The commissioner shall send a copy of the notice by standard post to each creditor whose name and place of residence are known. 544
The commissioner shall consult the debtor about the claims filed.
As soon as the draft composition agreement has been drawn up, the commissioner shall convene a creditors’ meeting by public notice, stating that the files may be inspected for 20 days prior to the meeting. The public notice must be given at least one month before the meeting.
The commissioner shall send a copy of the notice by standard post to each creditor whose name and place of residence are known. 545
Repealed
The commissioner shall chair the negotiations at the creditors’ meeting; he shall report on the debtor’s assets, earnings or income situation.
The debtor is obliged to attend the meeting in order to provide information on request.
The draft composition agreement shall be submitted to the assembled creditors for their signed approval.
Repealed
A creditor who has not consented to the composition agreement shall retain all rights against co-debtors, sureties and warrantors (Art. 216).
A creditor who has consented to the composition agreement preserves his rights against the aforementioned persons provided he has notified them of the time and place of the creditors’ meeting at least ten days before the meeting and has offered to assign his claim to them in return for payment (Arts 114, 147, 501 CO 548 ).
The creditor may also, without prejudice to his rights, authorise co-debtors, guarantors and warrantors to decide in his place on whether to join the composition agreement.
Before expiry of the moratorium, the commissioner shall submit all the files to the composition court. He shall provide details in his report of consents already given and shall recommend the confirmation or rejection of the composition agreement.
The composition court shall reach its decision expeditiously.
Public notice is given of the place and time of the hearings. The creditors must be notified therein that they may file objections to the composition agreement at the hearings.
The composition agreement is accepted if it has been approved by the time of the confirmation decision:
The debtor’s privileged creditors, spouse or registered partner are not included in the calculation either for their person or for their claim. Claims secured by a pledge only count towards the amount that is uncovered according to the commissioner’s valuation. 551
The composition court shall decide whether and to what extent conditional claims, claims with an uncertain due date and disputed claims may be included. This shall not prejudge the court's decision on the legal validity of the claims. 552
Confirmation of the composition agreement is subject to the following requirements:
The composition court may amend an inadequate arrangement on request or ex officio .
At the debtor’s request, the composition court may suspend the realisation of mortgaged property in settlement of a claim that arose before the composition proceedings were initiated for a maximum of one year after confirmation of the composition agreement, provided that no more than one year's interest on the mortgaged debt is outstanding. However, the debtor must credibly demonstrate that he needs the property to operate his business and that realisation of the mortgaged property would jeopardise his economic existence.
The affected mortgagees must be given the opportunity to submit a written response before the hearing on the confirmation of the composition agreement (Art. 304); they must be summoned in person to the creditors’ meeting (Art. 302) and to the hearing before the composition court.
The suspension of the realisation proceedings lapses by operation of law if the debtor voluntarily alienates the mortgaged property, if he becomes bankrupt or if he dies.
The composition court shall revoke the suspension of the realisation proceedings at the request of an affected creditor and after hearing the debtor if the creditor can credibly demonstrate that:
The decision on the composition agreement may be contested by means of an appeal under the CPC 555 .
The appeal has suspensive effect unless the appellate court decides otherwise.
As soon as it becomes enforceable, the decision on the composition agreement shall be:
The effects of the moratorium lapse when the decision becomes enforceable.
If the composition agreement is rejected, the composition court shall declare bankruptcy ex officio .
The confirmed composition agreement shall be binding on all creditors whose claims arose before the moratorium was granted or since then without the commissioner’s consent (composition claims). This does not apply to claims secured by a pledge to the extent that they are covered by the pledge.
The liabilities entered into during the moratorium with the consent of the commissioner shall be binding on the estate in a composition agreement with assignment of assets or in any subsequent bankruptcy. The same applies to counterclaims in connection with a long-term contractual obligation, insofar as the debtor has claimed benefits under the contract concerned with the consent of the commissioner.
With the confirmation of the composition agreement, all debt enforcement proceedings initiated against the debtor prior to the moratorium shall lapse, with the exception of those for the realisation of pledges; Article 199 paragraph 2 applies mutatis mutandis .
Any promise in which the debtor offers a creditor more than he is entitled to under the composition agreement is null and void (Art. 20 CO 559 ).
Any creditor may request the composition court to revoke a composition agreement that was concluded in bad faith (Arts 20, 28, 29 CO 560 ).
Articles 307–309 apply mutatis mutandis .
The composition agreement must specify the extent to which the creditors waive their claims and how the debtor’s liabilities will be met and, if necessary, secured.
The composition dividend may consist in whole or in part of shares or membership rights in the debtor or in a rescue company. 561
The former commissioner or a third party may be granted supervisory, management and liquidation powers to implement and ensure the fulfilment of the composition agreement.
When confirming the composition agreement, the composition court shall set a deadline of 20 days for creditors with disputed claims to file an action at the place of the composition proceedings, on pain of forfeiting security for the dividend in the event of failing to do so.
By order of the composition court, the debtor must deposit the amounts relating to disputed claims with the official depositary until the proceedings have been settled.
If the composition agreement is not fulfilled in respect of an individual creditor, he may request the composition court to cancel the composition agreement for his claim without losing his rights under it.
Article 307 applies mutatis mutandis .
A composition agreement with assignment of assets may grant the creditors the right to dispose of the debtor’s assets or transfer these assets in whole or in part to a third party.
The creditors shall exercise their rights through the liquidators and a creditors’ committee. These are elected by the meeting that votes on the composition agreement. Commissioners may act as liquidators.
The composition agreement shall contain provisions on:
The composition dividend may consist in whole or in part of shares or membership rights in the debtor or in a rescue company. 563
Where the proceedings do not concern all the debtor’s assets, a precise distinction must be made in the composition agreement.
When confirmation of the composition agreement with assignment of assets becomes enforceable, the debtor’s right of disposal and the signatory powers of the previously authorised persons lapse. 564
If the debtor is entered in the commercial register, the words «in composition liquidation» must be added to the business name. The estate can be made subject to debt enforcement proceedings under this name for debts not covered by the composition agreement.
The liquidators must carry out all the transactions required to preserve and realise the assets and for any transfer of the assigned assets.
The liquidators shall represent the estate in court. Article 242 applies mutatis mutandis .
The liquidators are subject to the supervision and control of the creditors’ committee.
Opposition may be filed with the creditors’ committee to the orders made by the liquidators on the realisation of assets within ten days of receiving notice of the same and an appeal may be filed with the supervisory authority against the related decisions of the creditors’ committee.
In addition Articles 8–11, 14, 34 and 35 apply mutatis mutandis to the liquidators’ management practices.
In order to establish which creditors are participating in the liquidation result and their ranking and without making an additional call to creditors, a schedule of claims shall be drawn up by the liquidators based on the debtor’s business accounts and the submissions made and shall be made available for inspection by the creditors.
Articles 244–251 apply mutatis mutandis .
As a general rule, assets are realised separately or en bloc, either by collection or sale in the case of debts or by private sale or public auction in the case of other assets.
The liquidators shall determine the type and time of realisation by agreement with the creditors’ committee.
With the exception of cases in which the assets have been assigned to a third party, pledged immovable property may only be sold by private sale with the consent of the mortgagees whose claims are not covered by the purchase price. Otherwise, the property must be realised by public auction (Arts 134–137, 142, 143, 257 and 258). The schedule of claims (Art. 321) is decisive for the existence and ranking of the encumbrances on the property (easements, real burdens, mortgages and registered personal rights).
Pledgees with rights to a pledge of chattels are not obliged to deliver the pledged assets to the liquidators. Provided there is no moratorium in the composition agreement that prevents them from doing so, they are entitled to liquidate the pledges of chattels within what they deem to be a reasonable time by debt enforcement proceedings to realise a pledge or if they were entitled to do so in terms of the pledge agreement, to sell the pledged asset by private sale or on the stock market.
However, if the interests of the estate require that a pledge be realised, the liquidators may set the pledgee a deadline of at least six months within which he must realise the pledged asset. At the same time, they shall request him to deliver the pledged asset to them if the deadline set for realisation expires without the pledged asset being sold, warning him of the criminal penalties (Art. 324 no 4 SCC 565 ) and that his preferential right will expire if he fails to deliver the pledged asset without justification.
If the liquidators and the creditors’ committee waive the assertion of a claim that is disputed or difficult to collect that is part of the assets of the estate, such as a claim for avoidance or a liability action against the management officers or employees of the debtor, they must inform the creditors of this by circular letter or public notice and offer to assign them the debt so that they may enforce it themselves in accordance with Article 260.
Prior to any instalment payment, even if only provisional, the liquidators must send the creditors an extract from the distribution list and make it available for inspection for ten days. The distribution list is subject to an appeal to the supervisory authority during the inspection period.
A pledgee whose pledged assets have already been sold at the time of publication of the provisional distribution list shall participate in any provisional distribution to the extent of the actual shortfall on the pledge. The liquidators shall determine the amount of the shortfall, and their decision may only be contested by an appeal in accordance with Article 326.
If the pledged asset has not yet been sold on publication of the provisional distribution list, the pledgee must be taken into account to the extent of the probable shortfall on the claim as estimated by the commissioner. Where the pledgee proves that the proceeds of sale are less than the estimate, he is entitled to the corresponding dividend and instalment payment.
Where the pledgee has received an amount in excess of his claim from the proceeds of sale and any instalment payment already made, he shall be obliged to refund the surplus.
A final account, including details of the costs shall be made available for inspection at the same time as the final distribution list.
Amounts that have not been claimed by the deadline set by the liquidators must be deposited in the official depositary.
After ten years, unclaimed amounts must be distributed by the bankruptcy office; Article 269 applies mutatis mutandis .
The liquidators shall draw up a final report at the end of the proceedings. This must be submitted to the creditors’ committee for approval, submitted to the composition court and made available for inspection by the creditors.
If the liquidation takes more than one year, the liquidators are obliged to draw up a status report on the liquidated and not yet realised assets at the end of each calendar year and to submit a report on their activities. The status report and report on activities must be submitted to the composition court within the first two months of the following year via the creditors’ committee and made available for inspection by the creditors.
Legal acts performed by the debtor prior to confirmation of the composition agreement shall be subject to avoidance in accordance with the principles of Articles 285–292.
The deadlines in accordance with Articles 286–288 shall be calculated on the basis of the date of authorisation of a composition moratorium instead of distraint or the declaration of bankruptcy. 566
Insofar as avoidance claims by the estate lead to the full or partial rejection of claims, the liquidators shall be authorised and required to assert them as a defence.
The debtor or a creditor may propose a composition agreement. The bankruptcy administration shall assess the proposal for submission to the creditors’ meeting. The negotiations on the same shall take place at the earliest at the second creditors’ meeting. 567
Articles 302–307 and 310–331 apply mutatis mutandis . However, the commissioner is replaced by the bankruptcy administration. Realisation is suspended until the composition court has decided on the confirmation of the composition agreement.
The decision on the composition agreement shall be communicated to the bankruptcy administration. If the composition agreement is confirmed, the bankruptcy administration shall apply to the bankruptcy court for revocation of the bankruptcy.
A debtor who is not subject to the provisions on debt enforcement proceedings through bankruptcy may apply to the composition court for an amicable private debt settlement.
The debtor must state his debts and his income and financial circumstances in his request.
If a debt settlement with the creditors does not appear impossible from the outset and the costs of the proceedings are secured, the composition court shall grant the debtor a moratorium of up to three months and appoint a commissioner.
At the request of the commissioner, the moratorium may be extended to a maximum of six months. It may be revoked prematurely if it is obvious that an amicable debt settlement cannot be reached.
During the moratorium, the debtor may only be pursued for periodic maintenance and support payments under family law. The deadlines under Articles 88, 93 paragraph 2, 116 and 154 are suspended.
The creditors shall be given notice of the composition court’s decision; Article 295 c applies mutatis mutandis . 568
The commissioner shall support the debtor in drawing up a settlement proposal. In particular, the debtor may offer his creditors a dividend or request a moratorium of enforcement or other payment or interest relief.
The commissioner shall conduct negotiations with the creditors on the debtor’s settlement proposal.
The composition court may instruct the commissioner to monitor the debtor’s fulfilment of the agreement.
In subsequent composition proceedings, the duration of the moratorium pursuant to Articles 333 ff. shall be taken into account when calculating the duration of the composition moratorium.
The provisions of this Title may, in exceptional circumstances, in particular in the event of a prolonged economic crisis, be declared applicable by the cantonal government, with the consent of the Confederation, to debtors in a specific sector who are collectively affected by these circumstances and for a specific period of time.
A debtor who, through no fault of his own, is unable to fulfil his obligations as a result of the circumstances referred to in Article 337 may request an emergency moratorium from the composition court for a maximum of six months, provided there is a prospect that he will be able to satisfy his creditors in full at the end of this moratorium.
To this end, the debtor must submit an application to the composition court with the necessary evidence of his financial situation and a list of his creditors; he must also provide all the information requested by the composition court and submit any other documents that are still required of him.
If the debtor is subject to the provisions on debt enforcement proceedings through bankruptcy, he must also submit a balance sheet and his business records with the request.
After the request has been filed, the composition court may issue an interim order suspending the pending debt enforcement proceedings, except for the debts specified in Article 342. It decides whether and to what extent the period of suspension is to be counted towards the duration of the emergency moratorium.
The composition court shall make any enquiries that may still be necessary and, if the application does not prove to be obviously unfounded, shall then order a hearing to which all creditors shall be invited by public notice; if necessary, experts must be consulted.
If the list of creditors submitted by the debtor indicates only a relatively small number of creditors and is deemed credible by the composition court, the court may dispense issuing a public notice and summon the creditors, sureties and co-debtors by personal notification.
The creditors may inspect the files prior to the hearing and submit their objections to the request in writing.
The composition court shall make its decision within a short period of time. In the moratorium authorisation, it may order the debtor to make one or more instalment payments.
The debtor and any creditor may contest the decision by filing an appeal under the CPC 570 . 571
The debtor and those creditors who were present or represented at the first-instance hearing must be summoned to the hearing.
An emergency moratorium granted by the composition court is effective until the final decision of the appellate court. 572
The composition court shall order an inventory of assets to be drawn up at the latest when granting the emergency moratorium. Articles 163 and 164 apply to this mutatis mutandis . The composition court may take further measures to safeguard the rights of creditors.
If the moratorium is granted, the court may appoint a commissioner to monitor the debtor’s management.
The debt enforcement office and, if the debtor is subject to the provisions on debt enforcement through bankruptcy, the bankruptcy court shall be notified of the authorisation of the moratorium. Authorisation shall be made public as soon as it has become legally binding.
During the period of the moratorium, debt enforcement proceedings against the debtor may be raised and continued as far as distraint or a notice of impending bankruptcy. Distrained wages shall also be cashed in during the moratorium. The same applies to rent if liability under the pledge extends to rent on the basis of debt enforcement proceedings to realise a pledge raised before or during the moratorium. However, a request for realisation or bankruptcy petition may not be granted.
The deadlines in Articles 116, 154, 166, 188, 219, 286, 287 and 288 shall be extended by the duration of the moratorium. The same applies to liability for the interest on the mortgage debt (Art. 818 para. 1 no 3 CC 573 ).
The debtor is authorised to continue his business; however, for the duration of the moratorium, he may not carry out any legal acts that prejudice the legitimate interests of the creditors or favour individual creditors to the detriment of others.
The composition court may stipulate in the moratorium authorisation that the alienation or encumbrance of immovable property, the creation of pledges, the granting of sureties, the making of gratuitous dispositions and the making of payments on debts that arose prior to the moratorium is only valid with the consent of the commissioner or, if no such commissioner has been appointed, the composition court. However, this authorisation shall not be required for the payment of second-class debts under Article 219 paragraph 4 or for instalment payments under Article 339 paragraph 4.
If the composition court attaches this reservation to the moratorium authorisation, it must be included in the public notice and the moratorium must be noted in the land register as a restriction on disposal.
The moratorium does not apply to debts of less than 100 francs and to first-class claims (Art. 219 para. 4).
However, for the duration of the moratorium, these debts may only be enforced against the debtor by debt enforcement proceedings by distraint or debt enforcement proceedings to realise a pledge, even if he is subject to the provisions on debt enforcement proceedings for bankruptcy.
Within the period specified in Article 337, the composition court may, at the request of the debtor, extend the moratorium granted to him for a maximum of four months if the reasons that led to its granting are still continuing through no fault of his own.
To obtain an extension, the debtor must submit an amendment to the list of creditors to the composition court with his request and, if he is subject to the provisions on debt enforcement through bankruptcy, a new balance sheet.
The composition court shall give public notice to the creditors of the request for an extension and set them a deadline within which they may raise objections to the request in writing. If a commissioner has been appointed, he must be invited to submit a report.
After the deadline has expired, the composition court shall issue its decision. This is subject to the same appellate remedies as the emergency moratorium and public notice thereof must be given in the same way.
The supreme cantonal composition court shall decide on the basis of the files.
The moratorium shall be revoked by the composition court at the request of a creditor or the commissioner:
The debtor must be consulted verbally or in writing about the request. The composition court shall decide on the basis of the files after carrying out any necessary enquiries, as does the appellate court in the event of an appeal. 574 Notice of the revocation of the moratorium shall be given in the same way as the authorisation.
If the moratorium is revoked in accordance with numbers 2 or 3, neither a composition moratorium nor a further emergency moratorium may be authorised.
If the debtor wishes to propose a composition agreement during the emergency moratorium, the draft composition agreement must be submitted with all the files and the expert opinion of the commissioner before the moratorium expires.
After expiry of the emergency moratorium, the debtor may not request a composition moratorium or a further emergency moratorium for a period of six months.
A debtor who has withdrawn an application for an emergency moratorium or whose application has been rejected may no longer request an emergency moratorium before six months have elapsed.
This Act shall come into force on 1 January 1892.
Article 333 shall come into force as soon as the Act is included in the Federal Compilation of Legislation.
When this Act comes into force, all conflicting provisions of both federal and cantonal acts, ordinances and concordats shall be repealed, unless otherwise provided for in the following articles.
The Federal Council is instructed to organise the publication of this Act in accordance with the provisions of the Federal Act of 17 June 1874 578 on Popular Votes on Federal Acts and Federal Decrees.
The Federal Council, the Federal Supreme Court and the cantons shall enact the implementing provisions.
The procedural provisions of this Act and its implementing provisions shall apply to pending proceedings on their coming into force insofar as they are compatible with them.
The previous law applies to deadlines that began to run before this Act came into force.
The privileges contained in the previous law (Art. 146 and 219) shall continue to apply if bankruptcy was declared or distraint was executed before this Act came into force. 5 The prescriptive period for claims certified by unpaid debt certificate before this Act came into force shall commence on the date on which this Act comes into force.
4 The privileged part of the wife's property claim shall be assigned to a special class between the second and third class in the following cases:
This Act is subject to an optional referendum.
The Federal Council shall determine the commencement date.
The privileges under the previous law (Arts 146 and 219) continue to apply if bankruptcy is declared, distraint is executed or the moratorium on debt enforcement is authorised before this Act comes into force.
The privileges under the previous law continue to apply if bankruptcy is declared, distraint is executed or the moratorium on debt enforcement is authorised before this Amendment comes into force.
The implementing ordinances of the Federal Supreme Court remain in force to the extent that their content does not contradict the new law and unless the Federal Council provides otherwise.
The privileges under the previous law continue to apply if bankruptcy is declared, distraint is executed or the moratorium on debt enforcement is authorised before this Amendment comes into force.
The previous law applies to the composition proceedings if the application for a composition moratorium was submitted before the Amendment of 21 June 2013 came into force.
Composition moratoriums granted before the Amendment of 19 June 2020 came into force are subject to the previous law..