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Bankrupt debtors to get second chance in Switzerland

Bankruptcies: debtors in Switzerland get another chance
Bankruptcies: debtors in Switzerland get another chance Keystone-SDA

Over-indebted people in Switzerland will be offered a new chance to wipe the slate clean with new procedures to restructure debt.

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People who are unable to pay off their debts themselves have little chance of ever living debt-free again, says the government in a press release.

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Two new procedures are proposed: an agreement between debtors and creditors, subject to certain conditions, will allow partial debt relief. For debtors who have no chance of reaching such an agreement, reorganisation proceedings through bankruptcy will be possible, again subject to conditions.

Safeguards will be introduced to prevent abuse and excessive losses for creditors. Cantons will have to ensure that indebted persons have access to advisory services on the new procedures.

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Translated from French by DeepL/mga

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