The smart way to start a business

Newsletter abonnieren


Blog

Debt Collection– Part 4: Continuation Request

It is particularly important for start-ups to receive their remuneration on time. Unfortunately, it is not always the case. If payment reminders do not help and negotiations fail, the last resort is a debt collection procedure. If needed, an outstanding debt is caused to be paid under duress. In a series of four articles, STARTUPS.CH explains what the debt collection procedure is about and how to proceed with it. In the first article it was explained what exactly the debt collection procedure is and how it can be launched. The second article revealed what the default summons and objection are. The third article described three ways how an objection can be removed. In this last article it is explained how the debt collection procedure is continued once the objection is removed.

 

Resumption Request (Article 88 of the Debt Collection and Bankruptcy Act)

The main feature of the debt collection procedure is that it is continued only if so requested by the creditor. This also applies to the resumption request. Once an objection has been removed (see part 3), the creditor has to file a resumption request. It should be lodged with the Debt Collection Authority in the place where the debtor lives.

The resumption request is needed only under the procedure to obtain an attachment of earnings order or to declare bankruptcy. In the procedure to recover debt, the relevant request can be filed together with the debt collection request (article 154 of the Debt Collection and Bankruptcy Act).

Timings and Peculiarities

The creditor can request the resumption of a debt collection procedure after 20 days of receipt of the default summons at the latest. The maximum time within which the creditor can make such a request is one year after serving the default summons. If an objection is raised against the default summons, the lapse of time between the launch and completion of the relevant litigation or administrative proceedings is stopped.

If a claim is denominated in a foreign currency, the debt collection request must specify it in Swiss francs (see part 1). In the resumption request, the creditor is allowed to reconvert the claim to Swiss currency at the exchange rate effective at the date of the resumption request.

» Company Law
» Foundation Platform

New comment

Your email address will not be published. Required fields are marked *