Legislative changes in debt collection and bankruptcy law

Legislative changes in debt collection and bankruptcy law

At its meeting of September 14, 2018, the Federal Council selected January 1, 2019, as the date of entry into force of two important reforms.

The first reform relates to the Swiss Debt Enforcement and Bankruptcy Act (DEBA). As from January 1, 2019, the debt collection offices will no longer have the right to provide information to a third party about a debt collection proceeding when the debtor has made the request within 3 months of the date of notification of the payment order. Such information may however be available if the creditor proves, within a 20 days deadline set by the debt collection office, that he has initiated an opposition cancellation proceeding in due course.

The second amendment relates to the Federal Act on Private International Law (PILA). The current legislation sets restrictive conditions regarding the recognition in Switzerland of foreign decisions of bankruptcy and composition. Such restrictions are considerably delaying, or even preventing under certain circumstances, the recognition of such decisions. The new legal provisions will bring a number of simplifications, notably in terms of coordination of insolvency and bankruptcy proceedings in Switzerland and abroad.