Debt collection in Switzerland
How to recover a commercial debt from a Swiss debtor
Switzerland is one of the main markets for European exports, especially for SMEs. However, regulatory and procedural differences can make debt collection from Swiss debtors complex, particularly when adequate contractual documentation is not available.
Debt collection in Switzerland is, therefore, a crucial step for foreign companies that want to protect their commercial interests. Although not a member of the European Union, Switzerland is a party to the Lugano Convention, which allows for the mutual recognition of judgments and injunctions between signatory states, thereby simplifying enforcement procedures to some extent.
Legal actions for international debt collection in Switzerland
Those wishing to initiate debt collection proceedings against a Swiss debtor can use various tools:
- Request for enforcement (DEBA): the most commonly used method, which allows you to initiate enforcement proceedings at the competent enforcement office quickly.
- Ordinary or simplified legal action: depending on the value of the debt, different procedures apply (ordinary for amounts over CHF 30,000, simplified for amounts up to CHF 30,000, with the possibility of a direct decision for amounts up to CHF 2,000).
- Preventive seizure (Arresto): a precautionary measure provided for by Swiss law to freeze the debtor’s assets or bank accounts.
- Recognition of a foreign judgment: foreign titles can be enforced in Switzerland thanks to the Lugano Convention or to bilateral treaties.
Why rely on an experienced lawyer for debt collection in Switzerland
Dealing with a debt collection procedure in Switzerland requires in-depth knowledge of local legislation, and working with a local lawyer allows you to explore the possibility of reaching an amicable agreement with the debtor without resorting to legal action, or in case this is not possible to pursue the most effective proceedings.
UrsusNetwork provides professionals specializing in international debt collection who can:
- Evaluate the economic viability of the action, given that high legal fees may make small claims not worth pursuing.
- Identify the fastest and most effective legal action
- Coordinate the activity of the lawyer assigned to the case, reducing the time and costs of the action.
If you would like to learn more about the main features of the debt collection system in Switzerland, please refer to the Practical Information below.
