Bankruptcy denotes a legal procedure aiming to fulfil the requirements of all the creditors through the proportional repartition of the bankrupt estate (constituted by the patrimony of the borrower). The Bankruptcy procedure is initiated first and foremost against borrowers who are subjected to a debt collection.

Request for the commencement of bankruptcy proceedings is made by the creditors and is instructed by the judge after the request of the debt collection. With the opening of the bankruptcy, all the realisable patrimony of the borrower is paid into the bankrupt estate. The borrower can no longer dispose of his/her patrimony, which must be used to refund the creditors. However, the borrower can continue to dispose entirely of his/her earned income.

The borrower is usually a legal person (that is a company) or a physical person who is registered in the Commercial Register under a specific function – as owner of a single-member company, as member of a partnership, as absolutely liable member of a limited partnership with shared capital or as executive member of a company with limited liability.

In principle, if a physical person is not registered in the Commercial Register, he/she is not subjected to the bankruptcy procedure, unless he/she presents the judge with a declaration of insolvency. In this case, one talks about private bankruptcy.

Further Information

Swiss Debt Collection and Bankruptcy Offices

Commercial Register schedule of bankruptcy proceedings - Keywords: SOGC-notices 
 
Bancruptcy proceeding 
 
Forms 
 
Association for Debt Recapitalization Berne
 
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