Debt collection Debtors to be given a second chance to live debt-free
In future, people in debt in Switzerland are to be given a second chance to lead a debt-free life. The Federal Council wants to amend the Federal Debt Enforcement and Bankruptcy Act accordingly.
15.01.2025, 15:15
SDA
In contrast to many other countries, Swiss law does not provide highly indebted or destitute private individuals with the opportunity to sustainably restructure their finances. This is what the national government writes in its bill published on Wednesday, which now goes to parliament.
These people currently have no realistic prospects of ever living debt-free again and earning more than the minimum subsistence level under debt enforcement law. This could paralyze their motivation to improve their own situation and contribute to them remaining on social welfare.
The Federal Council is proposing two innovations: A simplified debt restructuring procedure should benefit debtors with a regular income. A restructuring bankruptcy procedure is intended to help hopelessly indebted people.
