Execution Procedures in Switzerland in Special Consideration of - PowerPoint PPT Presentation

Execution Procedures in Switzerland in Special Consideration of International Aspects LIC General Assembly June 10 – 12, 2015 June 12, 2015

Agenda Wesen und Zweck eines Inkassounternehmens • Unterstützung der Kunden beim Eintreiben von Forderungen (gegen Entgelt) • Beratung bei rechtlichen und Inkassofragen zur Verbesserung des Debitorenmanagement • Hoher Geldrückfluss bei der Bearbeitung 16.06.2015

Agenda • Legal Basis – Swiss Debt Enforcement and Bankruptcy Law (SDEBL) of April 11, 1889 • Nature of Collecting Money with SDEBL • Place of Enforcement Proceedings (Art. 46 ff.) • Commencement of Enforcement Proceedings (Art. 67 ff.) • Summons to Pay and Objection (Art. 69 ff.) • Continuation of Enforcement Proceedings / Seizure of Assets (Art. 88 ff.) • Realisation (of Assets) (Art. 116 ff.) • Certificate of Shortfall (Art. 149 ff.) • Freezing Orders (Art. 271 ff.) 16/06/2015

Legal Basis in Switzerland - Swiss Debt Enforcement and Bankruptcy Law (SDEBL) Wesen und Zweck eines Inkassounternehmens • Unterstützung der Kunden beim Eintreiben von Forderungen (gegen Entgelt) • Beratung bei rechtlichen und Inkassofragen zur Verbesserung des Debitorenmanagement • Hoher Geldrückfluss bei der Bearbeitung 16.06.2015

Legal Basis in Switzerland • SDEBL established on April 11, 1889 (oldest still existing Federal Law in Switzerland) • All collection procedures can generally be executed without calling lawyers (principle of popular application of the law) 16.06.2015

Place of Enforcement Proceedings • Debt enforcement take place at the debtor’s domicile (Art. 46) • Debt enforcement against a debtor of no fixed abode can be sought at the place where he happens to be (Art. 48) • Debt enforcement against debtors domiciled abroad who have a branch in Switzerland can, to the extent that they are derived from operations of such branch, be enforced at the place where the branch is situated (Art. 50) 16.06.2015

Place of Enforcement Proceedings (Art. 46 ff.) Wesen und Zweck eines Inkassounternehmens • Unterstützung der Kunden beim Eintreiben von Forderungen (gegen Entgelt) • Beratung bei rechtlichen und Inkassofragen zur Verbesserung des Debitorenmanagement • Hoher Geldrückfluss bei der Bearbeitung 16.06.2015

Nature of Collecting Money with SDEBL Wesen und Zweck eines Inkassounternehmens • Unterstützung der Kunden beim Eintreiben von Forderungen (gegen Entgelt) • Beratung bei rechtlichen und Inkassofragen zur Verbesserung des Debitorenmanagement • Hoher Geldrückfluss bei der Bearbeitung 16.06.2015

Nature of Collecting Money with SDEBL • In general it is the creditor who has to initiate and to continue all debt enforcement actions!!! • The application for the commencement of enforcement proceeding is made to the debt enforcement office . • The debt enforcement office does not examine for the substantive existence of the debt!!! 16.06.2015

Summons to Pay (Art. 69) Wesen und Zweck eines Inkassounternehmens • Unterstützung der Kunden beim Eintreiben von Forderungen (gegen Entgelt) • Beratung bei rechtlichen und Inkassofragen zur Verbesserung des Debitorenmanagement • Hoher Geldrückfluss bei der Bearbeitung 16.06.2015

Summons to Pay • Upon receipt of the enforcement request, the enforcement office issues the summons to pay (Art. 69) 16.06.2015

Vagaries of the system • This procedure hold the fact that everybody can become part of enforcements, therefore: • This procedure must give an instrument to the debtor to contest the claim in the document “Summons to Pay” • Objection 16.06.2015

Objection (Art. 74) Wesen und Zweck eines Inkassounternehmens • Unterstützung der Kunden beim Eintreiben von Forderungen (gegen Entgelt) • Beratung bei rechtlichen und Inkassofragen zur Verbesserung des Debitorenmanagement • Hoher Geldrückfluss bei der Bearbeitung 16.06.2015

Objection • This procedure hold the fact that everybody can become part of enforcements, therefore: • This procedure must give an instrument to the debtor to contest the claim in the document “Summons to Pay”, given by the “Objection” • The objection interrupts the procedure!!! • Art. 74 SDEBL: “If the respondent wishes to file an objection, he must immediately inform the person serving the summons to thereof or inform the debt enforcement office orally or in writing thereof within 10 days of service. 16.06.2015

Continuation of Enforcement Proceedings - Seizure (Art. 88 ff.) Wesen und Zweck eines Inkassounternehmens • Unterstützung der Kunden beim Eintreiben von Forderungen (gegen Entgelt) • Beratung bei rechtlichen und Inkassofragen zur Verbesserung des Debitorenmanagement • Hoher Geldrückfluss bei der Bearbeitung 16.06.2015

Continuation of Enforcement Proceedings • “If the enforcement proceedings have not been stayed by the filing of an objection or by court judgment, the creditor may apply for continuation of the enforcement proceedings at the earliest 20 days after the summons to pay has been served.” (Art. 88 al. 1) 16.06.2015

Enforcement Proceedings leading to Seizure of Assets • “If the debtor is subject to enforcement proceedings leading to the seizure of assets, the enforcement office must immediately upon receipt of the request for continuation make the seizure or have it made by the enforcement office at the place where the assets to be seized are situated.” (Art. 89) • Debtor must (under the threat of penal law sanctions): • disclose his assets (including those not in his possession) (keyword: reservation of ownership) • disclose his income(s) 16.06.2015

Enforcement Proceedings leading to Seizure of Assets (Art. 89 ff.) • Effect of the seizure: • Debtor must (under the threat of penal law sanctions): • disclose his assets (including those not in his possession) (keyword: reservation of ownership) • disclose his income(s) 16.06.2015

Enforcement Proceedings leading to Seizure of Assets (Art. 89 ff.) • Effects of seizure: • The debtor is prohibited, under threat of penal law sanctions, from disposing of the seized assets without the consent of the enforcement official. • Seizure of the income (information to the employer) • seizure of the income to the subsistence level • the employer has to pay this part of the salary directly to the enforcement office. 16.06.2015

Enforcement Proceedings leading to Seizure of Assets (Art. 89 ff.) • Effects of seizure: • Seizure will last 12 months only • If there is no full payment the creditor will obtain a certificate of shortfall (coming soon in this presentation) 16.06.2015

Realisation (of Assets) (Art. 116 ff.) Wesen und Zweck eines Inkassounternehmens • Unterstützung der Kunden beim Eintreiben von Forderungen (gegen Entgelt) • Beratung bei rechtlichen und Inkassofragen zur Verbesserung des Debitorenmanagement • Hoher Geldrückfluss bei der Bearbeitung 16.06.2015

Realisation (of Assets) • Realisation (of Assets): • Request for Realisation of the Assets • Deadlines: • Realisation of seized chattels, claims and other rights: earliest six months, and the latest one year after seizure • Realisation of real estate: earliest six months, and the latest two years of the seizure. 16.06.2015

Certificate of Shortfall (Art. 149 ff.) Wesen und Zweck eines Inkassounternehmens • Unterstützung der Kunden beim Eintreiben von Forderungen (gegen Entgelt) • Beratung bei rechtlichen und Inkassofragen zur Verbesserung des Debitorenmanagement • Hoher Geldrückfluss bei der Bearbeitung 16.06.2015

Certificate of Shortfall • Causes: • Result of a unsuccessful or partly successful seizure • Established by the debt enforcement office 16.06.2015

Certificate of Shortfall • Effects: • Serves as a recognition of debt • Declaration of the loss for the creditor after the enforcement proceedings • Possibility for filing a request for continuation without having to initiate new enforcement proceedings • No interests • Statutory limitation 20 years after the establishment 16.06.2015

Freezing Orders (Art. 271 ff.) Wesen und Zweck eines Inkassounternehmens • Unterstützung der Kunden beim Eintreiben von Forderungen (gegen Entgelt) • Beratung bei rechtlichen und Inkassofragen zur Verbesserung des Debitorenmanagement • Hoher Geldrückfluss bei der Bearbeitung 16.06.2015

Freezing Order • Grounds: • if the debtor has no fixed domicile • if the debtor is concealing his assets, absconding or making preparations to abscond so as to evade the fulfilment of his obligations • if the debtor is passing through or belong to the category of persons who visit fairs and markets, for claim which by their nature must be fulfilled at once • if the debtor does not live in Switzerland, and none of the other grounds for a freezing order is fulfilled, provided the claim has a sufficient connection with Switzerland or is based on an enforceable court judgment or on recognition of debt pursuant to art. 82 al. 1 16.06.2015