Federal Act of April 11, 1889 on Debt Enforcement and Bankruptcy (DEBA) (SCHKG)

The territory of each canton forms one or more districts for debt enforcement and bankruptcy administration.

The cantons determine the number and extent of these districts.

The bankruptcy districts may be divided into several debt enforcement districts.

The Federal Council, the Federal Court, and the cantons enact the implementing provisions.

1 The procedural rules provided by this Act and its implementing provisions apply to ongoing procedures as soon as they come into force, insofar as they are compatible with them. 2 The duration of time limits that began to run before the entry into force of this Act is governed by the former law. 3 The privileges provided by the former law (Art. 146 and 219) apply to bankruptcies declared and seizures executed before the entry into force of this Act. 4 The privileged claim of the wife is assigned to a special class, situated between the second and third class, in the following cases: a. when the spouses continue to live under the regime of property union or the external community of property regime according to Art. 211 and 224 CC in their 1907 version; b. when the spouses live under the regime of participation in acquisitions according to Art. 9 c of the final tit. CC in its 1984 version. 5 The limitation period for claims established by certificates of shortfall issued before the entry into force of this Act begins to run from the entry into force of this Act.

This law is subject to an optional referendum.

The Federal Council shall determine the commencement date.

Each debt enforcement district is furnished with a debt enforcement office which is headed by the debt enforcement officer.

Each bankruptcy district is furnished with a bankruptcy office which is headed by the bankruptcy officer.

A substitute replaces the officer who is disqualified or unable to direct the office.

The debt enforcement office and the bankruptcy office may be combined under a single management.

For the remaining matters, the organization of the offices is the responsibility of the cantons.

The method of handling the officials and their deputies is under the jurisdiction of the cantons.

Debt collection offices and bankruptcy offices carry out actions within their competence upon the request of offices, special bankruptcy administrations, as well as commissioners and liquidators from another district.

Offices, special bankruptcy administrations, commissioners, and liquidators may also carry out actions within their competence outside their district, if the office competent by reason of location consents. However, this latter office is solely competent for the notification of collection actions other than by post, for seizure, public auction, and requisition of public force.

In bankruptcies and concordat proceedings with a material connection, the enforcement authorities, supervisory authorities, and courts involved shall coordinate their actions to the extent possible.

The bankruptcy courts and concordat courts involved, as well as the supervisory authorities, may, by mutual agreement, designate which among them shall exercise exclusive jurisdiction for all proceedings.

The canton is liable for the damage caused unlawfully by the officials, employees, their assistants, members of the special bankruptcy administrations, commissioners, liquidators, supervisory authorities, judicial authorities, as well as by public forces in the execution of the tasks assigned to them by this law.

The injured party has no rights against the person at fault.

Cantonal law governs the recourse action against the perpetrators of the damage.

Moral reparation is also due when the severity of the infringement justifies it.

The action for damages is subject to a statute of limitations of three years from the day on which the injured party became aware of the damage and, in all cases, ten years from the day on which the damaging act occurred or ceased.

If the damaging act results from a punishable act of the person who committed it, the action is subject to a statute of limitations at the earliest upon the expiration of the prescription period of the criminal action. If the prescription of the criminal action no longer applies because a first-instance judgment has been rendered, the civil action is subject to a statute of limitations at the earliest three years from the notification of the judgment.

When a claim for damages is based on the unlawful act of the higher cantonal supervisory authority or the higher concordat judge, the Federal Supreme Court has exclusive jurisdiction.

The offices for debt enforcement and bankruptcy shall draw up minutes of their operations, as well as of the requests and declarations they receive; they shall maintain the registers.

The minutes and registers shall be considered proof until evidence to the contrary is provided.

The debt enforcement office shall correct an inaccurate entry on its own initiative or upon the request of an affected person.

Any person may inspect the records and registers of the debt enforcement offices and bankruptcy offices and may obtain excerpts therefrom, provided that they demonstrate a legitimate interest.

This interest is deemed to be legitimate in particular when the request for an excerpt is directly related to the conclusion or liquidation of a contract.

The offices shall not disclose to third parties: a. null debt enforcements and those annulled following a complaint or as a result of a judgment; b. debt enforcements for which the debtor has prevailed in the action for recovery of unjustified payments; c. debt enforcements withdrawn by the creditor; d. debt enforcements for which a request by the debtor is made after the expiration of a three-month period from the notification of the payment order, unless the creditor proves, within a 20-day period set by the debt enforcement office, that proceedings for the annulment of the objection (Art. 79 to 84) have been timely initiated; when proof is subsequently provided, or when the enforcement proceedings continue, the enforcement is again disclosed to third parties.

The right of consultation for third parties expires five years after the closure of the procedure. However, judicial and administrative authorities may still request an excerpt in the interest of a pending procedure before them.

Debt enforcement and bankruptcy offices are required to deposit with the deposit and consignments office any sums, securities, and valuable items that they have not utilized within three days.

No official, employee, or member of the supervisory authority may perform an act of their office in the following cases: 1. when it concerns their own interests; 2. when it concerns the interests of their spouse, registered partner, or the person with whom they are in a de facto domestic partnership; 2bis. when it concerns the interests of their relatives or in-laws in a direct line or up to the third degree in a collateral line; 3. when it concerns the interests of a person for whom they are the legal representative, agent, or employee; 4. when, for other reasons, they might have a preconceived opinion in the matter.

The official who must recuse themselves shall immediately forward the request to their substitute and inform the creditor by simple letter.

It is prohibited for officers and employees to conclude, for their own account, any transaction involving claims under enforcement or items to be realized. Any act violating this prohibition is null and void.

Bankruptcy officers are required to report to the criminal prosecution authorities all crimes and offenses to be prosecuted ex officio that they or any of their subordinates ascertain in the exercise of their functions or that are reported to them and may constitute a suspicious case.

Under the same conditions, any person acting for the bankruptcy office is further authorized to report to the criminal prosecution authorities any offenses ascertained that are to be prosecuted ex officio.

The debt collection office is obliged to accept payments made on behalf of the pursuing creditor.

The debtor is discharged by these payments.

Each canton shall designate a supervisory authority for the debt enforcement offices and bankruptcy offices. The cantons may also establish lower supervisory authorities for one or more districts.

The supervisory authority inspects each office at least once a year. The following disciplinary measures may be taken against an officer or an employee: 1. reprimand; 2. fine up to 1000 francs; 3. suspension for up to six months; 4. dismissal.

The Federal Council exercises supreme oversight in matters of debt enforcement and bankruptcy and ensures the uniform application of this Act.

It issues the necessary regulations and executive orders.

It may provide instructions to the cantonal supervisory authorities and request annual reports from them.

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It coordinates electronic communication between the offices of debt enforcement and bankruptcy, the land registry, the commercial register, the courts, and individuals.

The Federal Council establishes the tariffs.

Documents concerning debt collection and bankruptcy are exempt from stamp duty.

Except in cases where the law mandates judicial proceedings, a complaint may be lodged with the supervisory authority if a measure of the office contravenes the law or does not appear justified in fact.

The complaint must be filed within ten days from the day the complainant became aware of the measure.

A complaint may likewise be lodged at any time for denial of justice or unjustified delay.

In the event of a complaint, the office may, until it sends its response, re-examine the contested decision. If it issues a new measure, it must promptly notify the parties and inform the supervisory authority.

Any decision of the lower authority may be appealed to the higher cantonal supervisory authority within ten days from the date of its notification.

A complaint may be filed at any time with the said authority against the lower authority for denial of justice or unjustified delay.

The appeal to the Federal Tribunal is governed by the Federal Tribunal Act of 17 June 2005.

In matters of enforcement of negotiable instruments, the time limits for complaints and appeals are only five days; the authority is required to rule within the same period.

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The following provisions apply to the procedure before the cantonal supervisory authorities: 1. the supervisory authorities must designate themselves as such whenever they act in this capacity, and where applicable, as a lower or higher authority; 2. the supervisory authority must establish the facts ex officio. It may request the parties to cooperate and may declare their submissions inadmissible if the parties refuse to provide the necessary cooperation that can be reasonably expected from them; 3. the supervisory authority freely evaluates the evidence; subject to Art. 22, it cannot go beyond the submissions of the parties; 4. the decision is reasoned and indicates the legal remedies; it is notified in writing to the parties, the concerned office, and other possible interested parties; 5. the procedures are free of charge. The party or its representative who resorts to reckless or bad faith practices may be fined up to 1500 francs and may also be ordered to pay the fees and expenses.

Otherwise, the cantons regulate the procedure.

When a complaint is deemed justified, the authority shall annul or rectify the act in question; it shall order the execution of operations that the official unduly refuses to carry out or whose completion he delays.

Measures that are contrary to provisions enacted in the public interest or in the interest of persons not party to the proceedings are null and void. The supervisory authorities ascertain the nullity independently of any complaint.

The office may replace a null measure with a new measure. If a procedure based on para. 1 is pending before the supervisory authority, the office retains this competence only until its response.

The cantons shall designate the judicial authorities responsible for ruling on matters that this Act assigns to the judge.

The cantons designate the deposit and consignment offices; they are responsible for the deposits made with these offices.

Insofar as federal law is not applicable, the cantons may prescribe that unsuccessful seizure and the opening of bankruptcy proceedings produce public law effects (such as incapacity to hold public office, to practice a profession, or to engage in an activity subject to authorization). They cannot order the deprivation of the right to elect or vote, nor the publication of certificates of loss.

These public law effects cease as soon as bankruptcy is revoked, all creditors holding a certificate of loss are satisfied, or all their claims are time-barred.

The public law effects of an unsuccessful seizure and bankruptcy are not incurred due to losses suffered by one of the spouses or one of the registered partners, as the sole creditor, from the other.

Any person with the capacity to exercise civil rights is authorized to represent another person in a forced execution procedure. This also applies to professional representation. The cantons may prohibit professional representation for a person on just grounds.

The costs of representation in proceedings before the offices of debt enforcement and bankruptcy may not be charged to the opposing party.

The cantons shall inform the Federal Council of the enforcement and bankruptcy districts, the organization of the offices, as well as the authorities they have established in execution of this Act.

The Federal Council shall ensure the necessary publicity for these communications.

This law does not apply to the enforcement against cantons, districts, and municipalities, provided that there are federal or cantonal laws on the matter.

Provisions of other federal laws providing for special enforcement procedures are also reserved.

International treaties and the provisions of the Federal Act of December 18, 1987 on Private International Law (PILA) are reserved.

Unless otherwise provided in this Act, the rules of the Civil Procedure Code of December 19, 2008 (CPC) apply to the calculation and observance of time limits.

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The deadline is observed when an incompetent debt collection office or bankruptcy office is seized in a timely manner; the latter shall forward the communication without delay to the competent office.

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In the case of written communications affected by a remediable defect, the opportunity must be given to correct them.

Any agreement altering the time limits set by this law is null and void.

It is permissible to grant a longer time limit or to extend a time limit when a party to the proceedings resides abroad or is summoned by publication.

A party to the proceedings may waive the right to invoke a time limit that has not been observed, if it was established exclusively in their favor.

Anyone who has been unable to act within the set time limit through no fault of their own may request that the supervisory authority or the competent judicial authority restore this time limit. The affected party must, from the end of the hindrance, submit a reasoned request within a period equal to the elapsed time limit and fulfill the omitted legal act with the competent authority.

Documents may be transmitted electronically to the offices and supervisory authorities. They must bear a qualified electronic signature pursuant to the Electronic Signatures Act of March 18, 2016. The Federal Council may provide exceptions for bulk exchanges. The decisive moment for meeting a deadline is when the acknowledgment of receipt is issued, confirming that the party or its representative has completed all necessary steps for the transmission. The Federal Council shall regulate: a. the format of documents and attachments; b. the modalities of transmission; c. the conditions under which the offices and supervisory authorities may require, in the event of technical problems, that documents be subsequently sent to them on paper.

Communications, measures, and decisions of the offices and supervisory authorities are notified by registered letter or in another manner with acknowledgment of receipt, unless otherwise provided by this Act. They may be notified electronically with the consent of the person concerned. They bear an electronic signature in accordance with the Electronic Signatures Act of March 18, 2016. The Federal Council shall regulate: a. the type of signature to be used; b. the format of the communications, measures, and decisions as well as the attachments; c. the modalities of the transmission; d. the moment at which the communication, measure, or decision is deemed to be notified.

The publications are inserted in the Swiss Official Gazette of Commerce and in the cantonal gazette. The insertion in the Swiss Official Gazette of Commerce is authoritative for the calculation of deadlines and for the consequences of the publication.

If circumstances require, the publication may also take place in other gazettes or by public crier.

The complaint, appeal, and recourse do not suspend the decision unless the authority called to decide or its president orders otherwise. The parties are immediately informed of the suspension.

The term "mortgage" in the context of this law includes mortgages, mortgage certificates, real estate pledges under former law, land charges, special privileges on certain properties, and pledges on the appurtenances of a property.

The expression "movable pledge" includes pledging, livestock bailment, right of retention, pledge of receivables and other rights.

The term "pledge" used alone encompasses both movable and immovable pledges.

Enforcement aimed at a sum of money or securities to be provided is carried out through debt collection.

The collection process begins with the notification of the order to pay. It continues through seizure, realization of pledge, or bankruptcy.

The enforcement officer determines the method to be applied.

Enforcement continues through bankruptcy proceedings, either as "ordinary bankruptcy enforcement" (Art. 159 to 176), or as "enforcement for promissory notes" (Art. 177 to 189), when the debtor is registered in the commercial register under one of the following capacities: 1. head of a sole proprietorship (Art. 934 and 935 CO); 2. partner in a general partnership (Art. 554 CO); 3. general partner in a limited partnership (Art. 596 CO); 4. member of the management of a partnership limited by shares (Art. 765 CO); 5. ... 6. general partnership (Art. 552 CO); 7. limited partnership (Art. 594 CO); 8. public limited company or partnership limited by shares (Art. 620 and 764 CO); 9. limited liability company (Art. 772 CO); 10. cooperative society (Art. 828 CO); 11. association (Art. 60 CC); 12. foundation (Art. 80 CC); 13. variable capital investment company (Art. 36 of the Federal Act of June 23, 2006 on Collective Investment Schemes (CISLA)); 14. limited partnership for collective investment (Art. 98 CISLA).

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The registration takes effect, for the mode of enforcement, from the day following the publication in the Swiss Official Commercial Gazette.

Persons who were registered in the commercial register and have been removed shall remain subject to bankruptcy proceedings for six months following the publication of their removal in the Swiss Official Gazette of Commerce.

The proceedings continue by way of bankruptcy if, before the expiration of this period, the creditor has requested the continuation of the proceedings or the issuance of a payment order in the case of a bill of exchange proceeding.

When the purpose of the collection is a claim secured by a pledge, it proceeds with the realization of the pledge (Art. 151 to 158), even against debtors subject to collection by means of bankruptcy.

When a collection by seizure or bankruptcy is initiated for a claim secured by a pledge, the debtor may request, through a complaint (Art. 17), that the creditor first exercise his right over the pledged object.

The collection that deals with interest or annuities secured by real estate mortgage is conducted, at the creditor’s choice, either through the realization of the pledge or by means of seizure or bankruptcy, depending on the status of the debtor. The provisions concerning the collection for bills of exchange (Art. 177, para. 1) are reserved.

In all other cases, the proceedings continue through the means of seizure (Art. 89 to 150).

When a debtor is registered in the commercial register, any previous requests to continue proceedings against him are still executed through the means of seizure, as long as he has not been declared bankrupt.

In all cases, enforcement by means of bankruptcy is excluded for: 1. ... 1bis. ... 2. the collection of periodic maintenance and support contributions arising from family law or maintenance contributions arising from the Act of June 18, 2004, on Partnership; 3. the establishment of securities.

The liquidation of objects confiscated under federal or cantonal laws in criminal or fiscal matters, or under the Law of December 18, 2015, on Assets of Illicit Origin, shall be conducted in accordance with these laws.

The realization in the matter of pledged loans is governed by Art. 910 of the Civil Code (CC).

The forum for the debt collection is at the debtor's domicile.

Legal entities and companies registered in the commercial register are pursued at their registered office, while non-registered legal entities are pursued at the principal seat of their administration.

Each co-owner can be pursued, due to the debts of a joint ownership that does not have a representative, in the place where they jointly operate the joint ownership.

The community of condominium owners is pursued at the location of the property.

A debtor who does not have a fixed domicile may be pursued at the place where they are located.

As long as the division has not taken place, a contractual undivided estate has not been established, or an official liquidation has not been ordered, the estate is subject to proceedings at the place where the deceased could himself have been pursued at the time of his death and according to the procedure applicable to him.

A debtor domiciled abroad who possesses an establishment in Switzerland may be pursued for the debts of that establishment there.

A debtor domiciled abroad, who has elected a domicile in Switzerland for the performance of an obligation, may be pursued for that debt there.

When the claim is secured by a movable pledge, the enforcement may take place either at the location determined by Articles 46 to 50, or at the location where the pledge or the part of the pledge that holds the greatest value is situated.

When the claim is secured by a mortgage, enforcement takes place at the location of the real estate; if it concerns multiple properties located in different districts, at the location of the part of the properties that holds the greatest value.

The pursuit after attachment may take place at the location where the attached object is found; however, the summons and the petition for bankruptcy can only be notified at the ordinary venue.

If the debtor changes domicile after the notice of seizure, after the notice of bankruptcy, or after the notification of the order to pay for bills of exchange, the proceedings shall continue at the same domicile.

The bankruptcy of a fleeing debtor is declared at the place of their last domicile.

Bankruptcy cannot be initiated simultaneously in multiple locations within Switzerland. It is deemed to be opened where it was first pronounced.

Except in cases of attachment or urgent protective measures, no debt collection action may be carried out: 1. during prohibited times, specifically between 8 p.m. and 7 a.m., as well as on Sundays and legally recognized holidays; 2. during periods of suspension, namely seven days before and seven days after Easter and Christmas, as well as from July 15 to July 31; there are no suspension periods in the case of proceedings concerning bills of exchange; 3. when the debtor benefits from a stay (Art. 57 to 62).

Only the provisions of the CPC regarding the suspension of deadlines apply to all actions under this law that must be submitted to a judge.

Debt collection proceedings initiated against a debtor engaged in military service, civil service, or civil protection are suspended for the duration of such service.

If the debtor has completed at least thirty consecutive days of service before being discharged or going on leave, the proceedings remain suspended for the two weeks following discharge or the commencement of leave.

For periodic maintenance or support contributions arising from family law, the debtor can still be pursued even during the suspension.

Debtors who, based on an employment relationship with the Confederation or a canton, perform military service, civil service, or civil protection do not benefit from the suspension.

When an act of enforcement cannot be carried out because the debtor is engaged in military service, civil service, or civil protection, adult persons residing in the same household and, in the case of delivery of the act in an industrial or commercial establishment, the employees and, if applicable, the employer are obligated to provide the enforcement officer with the service address of the debtor and their year of birth, under penalty of criminal prosecution (Art. 324, ch. 5, Penal Code).

The enforcement officer shall inform the concerned individuals about their duties and the criminal consequences of failing to comply.

The competent command shall inform the enforcement office, if requested, about when the debtor will be discharged or granted leave.

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The security of the mortgage for interest (Art. 818, para. 1, sec. 3, CC) is extended for the duration of the suspension of proceedings against any debtor benefiting from the suspension due to military service, civil service, or civil protection.

In the proceedings for the realization of the pledge, the payment order must be notified even during the suspension, provided that it has lasted for three months.

If the debtor benefits from a suspension due to military service, civil service, or civil protection, the creditor may request the debt collection office to prepare an inventory which, for the duration of the suspension, has the effects provided for in Art. 164. However, the creditor must make it plausible that their claim exists and is jeopardized by acts of the debtor or third parties aimed at favoring certain creditors to the detriment of others or disadvantaging all creditors.

The inventory is not prepared if the debtor provides securities for the claimant creditor's demand.

The suspension of proceedings due to military service, civil service, or civil protection may be revoked with immediate effect by the judge ruling on the objection removal, either generally or for determined claims, at the request of a creditor who makes it plausible: 1. that the debtor has withdrawn assets from the action of his creditors or is taking measures to favor certain creditors to the detriment of others or to disadvantage all creditors, or 2. that the debtor, in the case of voluntary military service, civil service, or civil protection, does not need the suspension of proceedings to safeguard his financial situation, or 3. that the debtor is undertaking voluntary military service, civil service, or civil protection to evade his obligations.

The provisions relating to the suspension of proceedings are also applicable to individuals and companies whose legal representative is in military service, civil service, or civil protection, as long as they are unable to appoint another representative.

The proceedings initiated against a debtor whose spouse or registered partner, direct line parent or relative, or a person living in the same household has passed away, are suspended for two weeks from the day of the death.

Debt collection affecting an estate is suspended for two weeks from the day of death, as well as during the periods granted to accept or repudiate the inheritance.

Collection commenced before the death may be continued against the estate in accordance with Art. 49.

It is only continued against the heir if it involves the realization of pledges or if, in a collection by way of seizure, the participation deadlines provided for in Arts. 110 and 111 have expired.

When the debt collection is directed against a detainee who does not have a representative, the officer grants them a period to appoint one. The proceedings remain suspended until the expiration of this period.

In the event of a serious illness of the debtor, the officer may suspend the proceedings for a specified period.

In the event of an epidemic, public disaster, or war, the Federal Council or, with its consent, the cantonal government may order the suspension of debt enforcement in a portion of the territory or for the benefit of certain categories of persons.

Time limits do not cease to run during the period of legal holidays and suspensions of proceedings. However, if the expiration of a time limit available to the debtor, the creditor, or a third party coincides with a day of legal holiday or suspension, the time limit is extended until the third working day. For the calculation of the three-day period, Saturdays, Sundays, and legally recognized holidays are not counted.

The debt collection documents are served to the debtor at their residence or at the place where they habitually carry out their profession. If the debtor is absent, the document may be delivered to an adult member of their household or to an employee.

When none of the mentioned persons can be reached, the document is handed over to a municipal official or a police officer, who is responsible for serving it to the debtor.

When proceedings are initiated against a legal entity or a company, the documents related to the proceedings are served to its representative, namely: 1. to the president of the executive authority, or to the department designated by this authority, if it is a municipality, a canton, or the Confederation; 2. to a member of the administration or the committee, a director or a holder of a power of attorney, if it is a corporation, a partnership limited by shares, a limited liability company, a cooperative society, or an association registered in the commercial register; 3. to the president of the administration or the manager, if it is another legal entity; 4. to one of the managing partners or the holder of a power of attorney, if it is a general or limited partnership. When the above-mentioned persons are not available at their office, notification can be made to another officer or employee. If proceedings are initiated against an undivided estate, the procedural documents are served to the designated representative of the estate or, if there is no known representative, to one of the heirs.

When the debtor does not reside at the place of jurisdiction for the enforcement, the documents are delivered to the person or deposited at the location they may have indicated.

In the absence of such indication, notification is carried out through the office at their domicile or by post.

When the debtor resides abroad, notification is carried out through the authorities of their place of residence; notification may also be made by post if a treaty provides for it or if the state where the notification is to be made consents to it.

Notification is made by publication when: 1. the debtor has no known domicile; 2. the debtor stubbornly evades notification; 3. the debtor is domiciled abroad and the notification provided for in para. 3 cannot be conducted within a reasonable time.

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The application for debt collection is submitted to the office either in writing or verbally. It shall specify the following: 1. the name and domicile of the creditor and, if applicable, of their representative; the domicile chosen in Switzerland, if they reside abroad. In the absence of specific instructions, the office is considered the chosen domicile; 2. the name and domicile of the debtor, and, where applicable, of their legal representative; in applications for collection against an estate, the heirs to whom the notification must be made must be designated; 3. the amount in Swiss legal currency of the claim or the securities required; if the claim bears interest, the rate and the date from which they accrue; 4. the title and its date; in the absence of a title, the reason for the obligation.

The application made on the basis of a claim secured by a pledge must also contain the information specified in Art. 151.

A receipt for the application for debt collection is provided free of charge to the creditor upon request.

The costs of the enforcement proceedings are borne by the debtor. The creditor advances these costs. The office may postpone any operation for which the costs have not been advanced; however, it must notify the creditor of this.

The creditor may deduct the costs from the debtor's initial payments.

When the enforcement is directed against a spouse under a regime of community property, the payment order and all other enforcement actions must also be notified to the debtor's spouse; if it only becomes apparent during the procedure that the debtor is under a regime of community property, the office must proceed without delay to this notification.

Each spouse may object to the payment order.

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Each spouse may, by means of the claim procedure (Art. 106 to 109), assert that a seized property is part of the separate property of the debtor's spouse.

When the enforcement concerns only the debtor's separate property and their share of the communal property, each spouse may also, by means of the claim procedure (Art. 106 to 109), oppose the seizure of the communal property.

If the enforcement continues on the debtor's separate property and their share of the communal property, the seizure and realization of this share are governed by Art. 132; the seizure of future earned income of the pursued spouse is reserved (Art. 93).

A spouse's share of the communal property cannot be sold at auction.

The supervisory authority may request the judge to order the separation of property.

If the debtor is a minor, enforcement documents are served to their legal representative. In the case of a guardianship as provided in Art. 325 of the Civil Code (CC), notification must be made to the guardian and the holders of parental authority, provided that the appointment of the guardian has been communicated to the enforcement office.

Nevertheless, if the debt arises from the exercise of an authorized activity or is related to the administration of income from work or assets left at the minor's disposal (Art. 321, para. 2, 323, para. 1, and 327b CC), the enforcement documents are served to the debtor and their legal representative.

If a curator or an agent due to incapacity has the competence to manage the assets of an adult debtor and the appointment has been communicated to the debt collection office, the acts of debt collection are notified to the curator or the agent due to incapacity.

The acts of debt collection must also be notified to the debtor whose exercise of civil rights is not limited.

If the debtor is liable only with their available assets, it is possible to assert in the claims procedure (Art. 106 to 109) that a seized asset is not part of those assets.

Upon receipt of the debt collection request, the office drafts the payment order.

This document contains: 1. the details prescribed for the debt collection request; 2. the summons to pay the amount of the debt and the costs within twenty days, or, when the collection concerns securities, to provide them within this period; 3. the notice that the debtor must lodge an objection within ten days of the notification, if they intend to contest all or part of the debt or the creditor's right to pursue collection; 4. the warning that if the debtor fails to comply with the payment order or to lodge an objection, the collection will proceed as planned.

The payment order is drafted in duplicate. One copy is intended for the debtor, the other for the creditor. If the copies do not conform, the debtor’s copy prevails.

When co-debtors are pursued simultaneously, a payment order is served on each of them.

The payment order is notified to the debtor upon receipt of the pursuit requisition.

The office that receives multiple requisitions against the same debtor must notify all payment orders simultaneously.

No requisition can be executed before the older one.

The notification is carried out by the officer, an employee of the office, or by mail.

The person who carries out the notification certifies on each copy the day it took place and the person to whom the document was delivered.

From the moment the enforcement proceedings have begun, the debtor may at any time request that the creditor be summoned to present to the enforcement office the evidence related to their claim and a summary of all their rights against the debtor.

Deadlines continue to run notwithstanding the summons. If the creditor fails to comply or fails to comply in a timely manner, the judge, in a subsequent legal proceeding, takes into account, when deciding on procedural costs, the fact that the debtor was unable to review the evidence.

The debtor subject to proceedings who intends to file a defense must declare it immediately, either verbally or in writing, to the person delivering the payment order or to the office within ten days from the notification of the payment order.

A debtor who disputes only a portion of the debt must specify the exact amount contested, otherwise the entire debt is considered contested.

Upon the debtor's request, a record of the defense is provided to them free of charge.

It is not necessary to provide grounds for the objection. However, if the objection is motivated, the objector is not subsequently limited to the stated grounds.

A debtor who contests an improvement in their financial situation (Art. 265, 265a) must expressly mention this in their objection, or they will be deprived of the right to assert this ground.

The provisions on late objection (Art. 77) and on objection in enforcement for negotiable instruments (Art. 179, para. 1) are reserved.

The objection is recorded on the copy of the payment order intended for the creditor; if there has been no objection, this is also noted.

This copy is delivered to the creditor immediately after the objection or upon the expiration of the opposition period.

If the creditor changes during the debt collection proceedings, the pursued debtor may lodge an objection until the distribution of funds or until the declaration of bankruptcy.

The pursued debtor must lodge the objection before the judge of the venue of the proceedings with written and substantiated conclusions within ten days from when the change of creditor became known, making credible the exceptions that can be opposed to the new creditor.

The judge seized of this objection may order the suspension of the proceedings; he will rule on the admissibility of the objection after having heard the parties.

If the objection is admitted but a seizure has already been executed, the officer assigns the creditor a ten-day deadline to initiate action for acknowledgment of the claim. If the deadline is not used, the seizure becomes void.

The office notifies the debtor of any change of creditor.

The opposition suspends the enforcement proceedings.

If the debtor contests only a portion of the debt, the proceedings may be continued for the acknowledged sum.

The creditor, against whose enforcement an objection has been raised, must proceed through civil or administrative procedures to have their right recognized. They can only request the continuation of the enforcement based on an enforceable decision that expressly dismisses the objection.

A creditor who has the benefit of an enforceable judgment may request from the judge the definitive lifting of the objection.

The following are assimilated to judgments: 1. settlements or recognitions made in court; 1a. enforceable authentic instruments within the meaning of Articles 347 to 352 CPC; 2. decisions of Swiss administrative authorities; 3. ... 4. final decisions regarding control fees made by the control bodies pursuant to Article 16, paragraph 1, of the Act of June 17, 2005, on Undeclared Work; 5. in the area of value-added tax: tax returns and assessment notifications that have become final due to the statute of limitations on the right of taxation, as well as assessment notifications that have become final through written acknowledgment by the taxpayer.

When enforcement is based on an enforceable judgment rendered by a Swiss court or administrative authority, the judge orders the definitive lifting of the objection unless the opponent proves by means of a document that the debt has been extinguished or that he has obtained a deferment after the judgment, or pleads the statute of limitations.

When enforcement is based on an enforceable authentic instrument, the debtor subject to enforcement may only oppose objections to their obligation that can be immediately proven.

If the judgment was made in another State, the opponent can additionally invoke the means provided by a convention binding that State or, in the absence of such a convention, provided by the Federal Act of December 18, 1987, on Private International Law, unless a Swiss judge has already made a decision concerning these means.

A creditor whose collection is based on an acknowledgment of debt either by authentic instrument or privately signed may request provisional release.

The judge shall grant it if the debtor does not immediately render their discharge plausible.

When provisional enforcement has been granted, the creditor may, after the payment period has expired and depending on the status of the debtor, request provisional seizure or ask the judge to conduct an inventory pursuant to Art. 162.

Conversely, the debtor may, within 20 days from the enforcement, initiate an action to discharge the debt at the enforcement forum; the proceedings are conducted in the ordinary form.

If the debtor does not exercise this right or if the action is dismissed, the enforcement, as well as any provisional seizure, becomes final.

The deadline provided for in Art. 165, para. 2, does not run between the initiation of the action to discharge the debt and the judgment. However, the bankruptcy judge terminates the effects of the inventory when the conditions for ordering it are no longer met.

The judge of the district of enforcement rules on applications for the removal of objections.

Upon receipt of the application, the judge provides the debtor with an opportunity to respond either verbally or in writing, and then issues his decision within five days.

The debtor being pursued may at any time request the court of the place where the proceedings are taking place to annul the proceedings if he proves with documentation that the debt has been settled in principal, interest, and costs, or to suspend the proceedings if he proves with documentation that the creditor has granted him a respite.

Whether the debt collection proceedings have been opposed or not, the pursued debtor may at any time act within the jurisdiction of the debt collection to have it determined that the debt does not exist or no longer exists, or that a respite has been granted.

To the extent that, after initially hearing the parties and examining the submitted documents, the judge considers that the request is highly likely to be well-founded, they shall order the provisional suspension of the proceedings: 1. if it is a debt collection by seizure or realization of a pledge, before the realization or, if it has already taken place, before the distribution of the funds; 2. if it is a debt collection by bankruptcy, after the notification of the bankruptcy warning.

If the court accepts the request, it orders the annulment or suspension of the proceedings.

...

A person who has paid an amount they did not owe, as a result of uncontested proceedings or a judgment granting definitive relief, has the right to reclaim it within one year by filing a legal action.

The action is initiated either at the place of the proceedings or at the domicile of the defendant, according to the plaintiff's choice.

In derogation of Art. 63 of the Code of Obligations (CO), the proof that the amount was not owed is the only responsibility of the plaintiff.

In matters of the realization of pledges, the payment order is governed by the special provisions of Articles 151 to 153; the payment order and objection in the proceedings for bills of exchange are governed by the special provisions of Articles 178 to 189.

When the proceedings are not suspended by an objection or by a judgment, the creditor may request the continuation of the proceedings 20 days after the notification of the summons to pay.

This right lapses one year after the notification of the summons to pay. If an objection has been made, this period does not run between the initiation of judicial or administrative proceedings and the final judgment.

A receipt for the request to continue the proceedings is issued free of charge to the creditor upon request.

At the creditor's request, an amount in foreign currency may be reconverted into Swiss legal currency at the exchange rate on the day the request to continue the proceedings is made.

When the debtor is subject to debt collection by way of seizure, the office, upon receipt of the request to continue the proceedings, shall proceed without delay to carry out the seizure or have it carried out by the office at the location where the assets to be seized are situated.

The debtor must be notified of the seizure no later than the day before. The notice shall remind the debtor of the provisions of Art. 91.

The debtor is obliged, under threat of the penalties provided by law: 1. to be present at the seizure or to be represented there (Art. 323, Sec. 1, Penal Code); 2. to disclose up to the due extent all assets belonging to them, even those not in their possession, as well as their claims and other rights against third parties (Art. 163, Sec. 1, 323, Sec. 2, Penal Code).

If the debtor neglects without sufficient excuse to be present at the seizure or to be represented, the debt collection office may have them brought in by the police.

At the request of the official, the debtor is obliged to open their premises and furnishings. If necessary, the official may call upon the public force.

Third parties who hold the debtor’s assets or against whom the debtor has claims have the same obligation to provide information as the debtor, under threat of the penalties provided by law (Art. 324, Sec. 5, Penal Code).

Authorities have the same obligation to provide information as the debtor.

The debt collection office expressly draws the attention of the interested parties to their obligations as well as to the penal consequences of their non-compliance.

The following items are exempt from seizure: 1. objects reserved for the personal use of the debtor or their family, such as clothing, personal effects, household utensils, furniture, or other movable objects, to the extent that they are indispensable; 1a. animals that live in a domestic environment and are not kept for financial or gainful purposes; 2. objects and books of worship; 3. tools, devices, instruments, and books, insofar as they are necessary for the debtor and their family to exercise their profession; 4. either two dairy cows or heifers, or four goats or sheep, at the debtor's choice, along with small domestic animals, with sufficient fodder and bedding for four months, insofar as these animals are indispensable for the maintenance of the debtor and their family or the continuation of their business; 5. the food supplies and fuel necessary for the debtor and their family for the two months following the seizure, or the cash or claims necessary to acquire them; 6. clothing, equipment, weapons, horse, and pay of a person incorporated into the army, pocket money of a person subject to civil service, as well as the clothing, equipment, and compensation of a person required to serve in civil protection; 7. the right to annuities constituted under Articles 516 to 520 of the Swiss Code of Obligations (CO); 8. assistance benefits and subsidies allocated by a relief fund or society in case of illness, indigence, death, etc.; 9. pensions, capital indemnities, and other allowances awarded to the victim or their relatives for bodily injury, health impairment, or death, insofar as they constitute compensation for moral damages, are intended to cover treatment costs or the acquisition of assistive means; 9a. pensions within the meaning of Article 20 of the Federal Law of December 20, 1946 on Old-Age and Survivors' Insurance, or Article 50 of the Federal Law of June 19, 1959 on Disability Insurance, benefits under Article 12 of the Federal Law of March 19, 1965 on Supplementary Benefits to Old-Age, Survivors' and Disability Insurance, and benefits from family allowance compensation funds; 10. rights to pension benefits and vested benefits not yet due in relation to a occupational benefits institution; 11. properties belonging to a foreign state or foreign central bank allocated to tasks inherent to them as holders of public power.

Also non-seizable are objects for which it can be immediately assumed that the proceeds from their realization would so slightly exceed the amount of expenses that their seizure is not justified. However, they must be recorded with their estimated value in the seizure record.

Objects mentioned in paragraph 1, numbers 1 to 3, are seizable if they have high value; however, they can only be taken from the debtor if the creditor provides the debtor with replacement objects of the same usable value, or the necessary amount for their acquisition, before removing them.

Special provisions on non-seizability found in the Federal Law of April 2, 1908 on the Insurance Contract (Art. 79, para. 2, and 80 ICA), the Federal Law of October 9, 1992 on Copyright (Art. 18 CLA) and the Penal Code (PC) (Art. 378, para. 2, PC) are reserved.

All income from work, usufruits and their products, annuities, as well as maintenance contributions, pensions, and benefits of all kinds that are intended to cover a loss of income or a claim arising from the right to maintenance, in particular annuities and capital indemnities that are not exempt from seizure under Art. 92, may be subject to seizure, after deducting what the officer deems essential for the debtor and their family.

These incomes may be seized for a maximum of one year from the execution of the seizure. If multiple creditors participate in the seizure, the period starts from the day of the execution of the first seizure carried out at the request of a creditor of the concerned series (Art. 110 and 111).

If during this period, the office becomes aware of a significant change affecting the amount of the seizure, it will adjust the scope of the seizure to the new circumstances.

Upon the debtor's request, the office orders the debtor's employer to additionally pay to the office, for the duration of the income seizure procedure, the amount necessary to settle the ongoing claims for premiums and cost-sharing of compulsory health insurance, provided that these premiums and cost-sharing are part of the debtor's minimum subsistence level. The office uses this amount to directly settle the current claims for premiums and cost-sharing with the insurer.

Pending crops cannot be seized, specifically: 1. on meadows, before April 1st; 2. on fields, before June 1st; 3. in vineyards, before August 20th.

Alienation made by the debtor prior to or at these times is not enforceable against the seizing party.

The rights of creditors secured by real estate liens on pending crops that are an integral part of the encumbered property are reserved, provided that the creditor has himself initiated the proceedings to realize his lien before the seized crops have been realized.

The seizure primarily affects movable property, including claims and relatively seizable rights (Art. 93); items of current value should be seized first, those that the debtor can more easily do without, preferably over those that they would find difficult to forgo.

Real estate is only seized in the absence of sufficient movable property to cover the debt.

Items under sequestration, those the debtor indicates as belonging to third parties, and those claimed by third parties are seized last.

A debtor whose fodder is seized may demand that a corresponding number of livestock units be seized at the same time.

The official responsible may deviate from this order when justified by circumstances or when jointly requested by both the creditor and the debtor.

In general, the officer executing the seizure must balance the interests of the creditor and the debtor as much as possible.

Claims of a spouse against their partner or registered partner are seized only in the event of insufficiency of the debtor's assets.

The debtor is prohibited, under threat of the penalties provided for by law (Art. 169 Criminal Code), from disposing of the seized assets without the permission of the official in charge. The official executing the seizure expressly draws the debtor's attention to this prohibition and the penal consequences of its violation.

Subject to the effects of possession acquired by third parties in good faith, any acts of disposition carried out by the debtor are null and void to the extent that they infringe upon the rights conferred by the seizure to the creditors.

The official shall assess the value of the items he seizes. He may appoint experts to assist him.

He shall seize only the assets necessary to satisfy the claims of the seizing creditors, including principal, interest, and costs.

When the seizure concerns cash, banknotes, bearer securities, bills of exchange, or other transferable securities by endorsement, objects made of precious metals, or other valuable items, the office takes them into its custody.

Other movable assets may be temporarily left in the possession of the debtor or the third-party holder, provided they can be presented at any time.

However, these items are also placed under the custody of the office or a third party if the official deems this measure appropriate, or if the creditor makes it appear plausible that it is necessary to ensure the rights established in his favor by the seizure.

The office can also take into its custody items which a third party was holding as a pledge; it returns them if they are not realized.

When the seizure concerns a claim or another right not evidenced by a bearer instrument or transferable by endorsement, the enforcement officer shall notify the third-party debtor that henceforth they can only discharge the obligation by paying directly to the office.

The office ensures the preservation of seized rights and the collection of due claims.

The seizure of a real estate property results in a restriction on the right to dispose of it. The office shall immediately notify the land registry of the seizure for annotation, indicating the date and the amount for which the seizure was made. This notification is also made when new creditors participate in the seizure and when the seizure has ended.

The annotation shall be deleted if the realization is not requested within two years following the seizure.

The seizure of a real estate property includes the fruits and other proceeds, without prejudice to the rights assigned to creditors secured by a mortgage.

The office communicates the seizure to the creditors secured by a mortgage and, if applicable, to the tenants and farmers.

It provides for the management and exploitation of the property.

The office provides for the harvesting of fruits (Art. 94 and 102).

If the debtor lacks resources, what is necessary for his maintenance and that of his family is deducted.

When the seizure involves a usufruct or a share in an undivided inheritance, company or community, the office shall notify the interested third parties of the seizure.

The creditor who is required to do so is obliged to advance the costs of preserving the seized assets.

When it is alleged that a third party has a right of ownership, pledge, or another right on the seized property that opposes the seizure or must be considered in the subsequent execution proceedings, the debt collection office shall record the third party's claim in the record of seizure or inform the parties if the communication of the record has already occurred.

The third party may announce their claim as long as the proceeds from the realization of the seized property have not been distributed.

After the realization, the third party may assert claims based on civil law, outside the debt collection proceedings, in cases of theft, loss, or dispossession of a chattel (Articles 934 and 935 of the Civil Code) or in cases of acquisition in bad faith (Articles 936, 974, para. 3, of the Civil Code). A private sale made in accordance with Article 130 of this Act is equated with a public auction sale within the meaning of Article 934, para. 2, of the Civil Code.

The debtor and the creditor may dispute the third party's claim before the Debt Collection Office when it concerns: 1. a movable asset that is in the exclusive possession of the debtor; 2. a claim or another right and the debtor's claim appears to be better founded than that of the third party; 3. an immovable asset and the claim does not result from the land register.

The Debt Collection Office assigns them a period of ten days for this purpose.

At the request of the debtor or creditor, the third party is invited to present their evidence to the Debt Collection Office before the expiration of the opposition period. Art. 73, para. 2, applies by analogy.

If the claim is not disputed, it is deemed admitted in the respective debt collection procedure.

If the claim is disputed, the Debt Collection Office assigns a 20-day period to the third party to initiate an action to establish their right against the disputing party. If the third party does not initiate an action, their claim is not considered in the respective debt collection procedure.

The creditor and the debtor may initiate proceedings against the third party to contest their claim when it concerns: 1. a movable asset that is in the possession or co-possession of the third party; 2. a claim or another right and the third party's claim appears better founded than that of the debtor; 3. an immovable asset and the third party's claim results from the land register.

The enforcement office assigns them a period of 20 days for this purpose.

If no action has been initiated, the claim is deemed admitted in the enforcement proceedings in question.

At the request of the creditor or the debtor, the third party is invited to present their evidence to the enforcement office before the expiration of the period for initiating proceedings. Art. 73, para. 2, applies by analogy.

Lawsuits are brought at the venue of the enforcement: 1. actions based on Art. 107, para. 5; 2. actions based on Art. 108, para. 1, when the defendant is domiciled abroad.

When the action based on Art. 108, para. 1, is directed against a defendant domiciled in Switzerland, it is brought at the domicile of the latter.

The venue for actions related to rights over real estate is, in all cases, at the location of the property or the part of the property that has the highest value.

The judge informs the debt enforcement office of the initiation of the lawsuit and the final judgment. ...

Insofar as it concerns the disputed objects, the enforcement is suspended until the final judgment, and the deadlines for requesting execution (Art. 116) do not run.

Creditors who request the continuation of the proceedings within 30 days from the execution of the first seizure participate in it. The office completes it progressively as requisitions are made, insofar as it is necessary to satisfy all creditors of the same series.

Creditors who request the continuation of the proceedings after the 30 days form successive series in the same manner, for which new seizures are conducted.

Seized items can only be included in a new seizure to the extent that their proceeds do not serve to satisfy creditors of the previous series.

Have the right to participate in the seizure without prior proceedings and within a period of 40 days from the execution of the seizure: 1. the spouse or registered partner of the debtor; 2. the debtor's children due to their claims arising from parental authority, and adults due to their claims arising from a mandate for reasons of incapacity (Art. 360 to 369 CC); 3. the adult children and grandchildren of the debtor due to their claims based on Arts. 334 and 334bis CC; 4. the beneficiary of a lifetime maintenance contract due to their claim based on Art. 529 CO.

However, the persons mentioned in para. 1, items 1 and 2, may only exercise their right if the seizure was executed during the duration of the marriage, the registered partnership, the parental authority, the mandate for reasons of incapacity, or within the year following the end of these relationships; the duration of a trial or collection procedure is not taken into account. The child and adult protection authority may also participate in the seizure on behalf of the children or a person subject to an adult protection measure.

If the debt collection office is aware of the persons entitled to participate in the seizure, it informs them of this by simple mail.

The debt collection office brings participation requests to the attention of the debtor and creditors; it assigns them a ten-day period to file an objection.

If an objection is made, the participant is admitted only provisionally and must file their action within 20 days at the collection jurisdiction, under penalty of exclusion. ... .

A record of the seizure is prepared. The record is signed by the official or employee conducting the operation; it states the names of the creditor and the debtor, the amount of the claim, the date and time of the seizure, the seized property and its estimated value, as well as the claims of third parties.

If the seized objects are subject to attachment, the right of participation of the seizing creditor (Art. 281) is recorded in the report.

If the seizable assets are insufficient or entirely lacking, this is noted.

The participation of new creditors and the supplements to seizure are recorded at the end of the minutes.

At the expiration of the 30-day participation deadline, the debt enforcement office shall promptly notify the creditors and the debtor by providing a copy of the report.

If there are no seizable assets, the record of seizure serves as a notice of deficiency of assets within the meaning of Art. 149. It acts as a provisional notice of deficiency of assets and grants the creditor the rights mentioned in Art. 271, item 5, and Art. 285, when the seizable assets are deemed insufficient according to the valuation. The provisional notice of deficiency of assets also grants the creditor the right to demand the seizure of newly discovered assets within the one-year period stipulated in Art. 88, para. 2. The provisions on participation (Art. 110 and 111) are applicable.

The creditor may request the realization of seized assets no earlier than one month and no later than one year after the seizure, if they are movable assets, including claims and other rights; in the case of immovable property, he may do so no earlier than six months and no later than two years after the seizure.

When future wages have been seized and the employer has not delivered the seized amounts at maturity, the realization of the right to these amounts can be requested within fifteen months following the seizure.

When the participation of several creditors has led to an additional seizure, the time limits commence from the last successful additional seizure.

Every creditor may request the realization for the series to which they belong.

Creditors may even request the realization of assets of which they have seized only the surplus value (Art. 110, para. 3).

A creditor whose seizure is only provisional cannot request realization. The deadlines of Art. 116 do not apply to him.

The realization is carried out in accordance with Articles 122 to 143 a.

It is suspended as soon as the proceeds reach the amount of the claims for which the seizure is provisional or definitive. Article 144, paragraph 5, is reserved.

The debt enforcement office informs the debtor of the realization requisition within three days.

The enforcement lapses if the requisition has not been made within the legal time limit or if, having been withdrawn, it has not been renewed within this period.

Movable property, including claims, shall be realized by the enforcement office no earlier than ten days and no later than two months from the receipt of the request for realization.

Standing crops cannot be realized before maturity without the debtor's consent.

If the debtor makes it seem plausible that he can settle his debt through installments, and if he commits to paying the debt collection office regular and appropriate installments, the officer may defer the realization for up to twelve months once the first payment is made.

In collections required due to claims classified in the first class (Art. 219, para. 4), the realization may be deferred for up to six months.

The officer sets the amount of the installments and the payment dates; while doing so, he considers both the debtor's and the creditor's situations.

The deferment is extended, if necessary, by the duration of the suspension of proceedings. The installments and their due dates are then redefined upon the expiration of the suspension.

The officer modifies his decision either on his own initiative or at the request of the creditor or the debtor, to the extent that circumstances require it. The deferment becomes null and void automatically when an installment is not paid on time.

At the request of the debtor, realization may occur even before the creditor is entitled to request it.

The official may carry out the realization of items at any time if they are subject to rapid depreciation, are expensive to maintain, or if their storage results in disproportionate costs.

The sale is conducted through a public auction. It is preceded by a public announcement indicating the location, date, and time of the auction.

The method of advertising this notice, and the mode, location, and date of the auction, are determined by the officer in the way he deems most advantageous for those concerned. Publication in the official gazette is not mandatory.

If the debtor, creditor, and interested third parties have a known residence or a representative in Switzerland, the enforcement office informs them at least three days in advance, by ordinary mail, of the location, date, and time of the auction.

The object to be realized is awarded after three calls to the highest bidder, provided that the bid exceeds the sum of claims secured by prior charges over that of the pursuing creditor.

If no sufficient bid is made, the proceedings regarding the object to be realized cease.

If it becomes immediately apparent that an auction will not be possible according to Art. 126, the official may, at the request of the creditor, forgo the realization and issue a certificate of loss.

Objects made of precious metals cannot be sold for less than the value of the metal.

Payment must be made immediately after the auction. However, the enforcement officer may grant a term of up to 20 days. The handover only occurs when the enforcement office can dispose of the amount irreversibly.

Payment can be made in cash up to 100,000 francs. If the price is higher, the payment of the excess amount must be made through a financial intermediary as defined by the Anti-Money Laundering Act of October 10, 1997. The enforcement officer determines the method of payment.

If payment is not made within the deadline, the office orders a new auction to which Art. 126 applies.

The previous successful bidder and their guarantors are liable for the loss in value on the price from the first auction, as well as any other damages. The loss of interest is calculated at a rate of 5%.

The sale may take place by mutual agreement instead of at an auction: 1. when all interested parties expressly consent to it; 2. when it concerns a security or any other item listed on the market or stock exchange, for which a price equivalent to the current market rate is offered; 3. when it concerns objects made of precious metals which, having been put up for auction, did not reach the value of the metal and for which such a price is offered; 4. in the case provided for in Art. 124, para. 2.

If all seizing creditors request it, the debtor's claims not listed on the stock exchange or market are given to them in payment, or to one of them on their behalf, at nominal value. In this case, the creditors are subrogated to the rights of the debtor up to the amount of their claims.

If all seizing creditors agree, all or some of them may, without prejudice to their rights against the pursued debtor, assert seized claims in their own name, on their own account, and at their own risk and peril. They must be authorized to do so by the debt collection office. The sum they may obtain will, in this case, serve to cover their own claims and expenses. The balance is handed over to the debt collection office.

When dealing with assets not specified in the preceding articles, such as a usufruct, a share in an undivided estate, in a family ownership, in a partnership, or in another community, the officer shall request the supervisory authority to determine the method of realization.

The same rule applies to the realization of inventions, plant variety protection rights, industrial designs and models, trademarks, and copyrights.

After consulting the interested parties, the authority may order a public auction, appoint a manager for the realization, or take any other measure.

The realization can only be contested through a complaint against the award or the private sale action.

The complaint period provided for in Art. 17, para. 2, commences as soon as the complainant becomes aware of the contested action and could know the reason for the dispute.

The right to lodge a complaint expires one year after the realization.

Real estate is to be sold by the debt collection office at public auction no sooner than one month and no later than three months after the receipt of the request for realization.

At the debtor's request and with the express consent of all pledgee and attaching creditors, the realization may take place even before a creditor is entitled to request it.

The debt collection office sets the conditions for the auction according to local customs and in the most advantageous manner.

The conditions are kept on file at the office for at least ten days prior to the auction, where anyone can review them.

Auction conditions must state that real estate properties are sold with all encumbrances affecting them (easements, land charges, real estate liens, annotated personal rights) and that the personal obligations of the debtor will be transferred to the purchaser. However, the debtor of a debt thus transferred is released, in cases of mortgages and mortgage notes, if the creditor does not notify them within one year from the adjudication that they intend to retain their rights against them (Art. 832 CC). Debts due and secured by real estate liens are not transferred, but are paid preferentially from the proceeds of the sale.

The conditions indicate the expenses to be borne by the purchaser.

The enforcement officer determines the payment terms in the auction conditions; he may grant a deadline of up to six months.

Payment can be made in cash up to 100,000 francs. If the price is higher, the payment of the excess amount must be made through a financial intermediary within the meaning of the Anti-Money Laundering Act of October 10, 1997.

When a deferral has been granted for payment, the real estate is managed by the debt collection office at the expense and risk of the successful bidder until the award price is paid off. Until then, no registration can be made in the land register without the authorization of the office. The office may demand special securities as a guarantee for the award price.

Auctions must be announced at least one month in advance.

The announcement must include: 1. the indication of the place, date, and time of the auction; 2. the indication of the date from which the auction conditions will be available; 3. the summons to pledge creditors and other interested parties to present, within 20 days, their claims to the debt enforcement office, notably their claims for interest and expenses. They will be warned that, after this period, they will be excluded from distribution unless their rights are registered in the land register.

This summons also applies to those with servitude rights, if it is necessary to still apply cantonal legislation.

The debt collection office shall send, by ordinary mail, a copy of the publication to the creditor, the debtor, the third-party owner of the real estate, and any interested parties registered in the land register, provided they have a known residence or a representative.

Before proceeding to the auction, the officer prepares a statement of charges encumbering the real estate (easements, land charges, real estate mortgages, annotated personal rights) based on the submissions of the rightful claimants and extracts from the land register.

The officer communicates this statement to the interested parties, assigning them a ten-day period to file objections. Articles 106 to 109 are applicable.

The officer also ensures an appraisal of the property is conducted and communicates the result to the interested parties.

When a right listed in the schedule of charges is disputed, the auction is postponed until the resolution of the dispute if it can be assumed that the dispute affects the amount of the adjudication price, or that conducting the auction would harm other legitimate interests if done before the dispute is settled.

When only the classification as an accessory or the issue of whether an accessory serves as security exclusively for certain secured creditors and not others is disputed, the auction of the property and the accessory may take place before the dispute is resolved.

When a real estate property has been encumbered with a servitude, a land charge, or an annotated personal right without the consent of a prior-ranking pledgee and the prior ranking of the pledge results from the state of charges, the pledgee may request, within ten days from the notification of the state of charges, that the property be auctioned with or without the charge.

If the prior ranking of the pledge does not result from the state of charges, the request for a double auction price is only followed when the holder of a concerned right has acknowledged the prior ranking or when the pledgee has initiated an action to establish the prior ranking at the forum of the location of the property within ten days from the notification of the state of charges.

If the price offered for the property auctioned with the charge is insufficient to satisfy the pledgee, the latter may request the deletion of the charge in the land register as soon as the property thus relieved becomes realizable at a higher price. The excess, once the pledgee is satisfied, is intended first to satisfy the beneficiary up to the value of the charge.

The provisions regarding auction and the principle of sufficient bid (Art. 126) as well as the renunciation of realization (Art. 127) are applicable.

If payment is not made within the deadline, the adjudication is revoked, and the enforcement office immediately orders a new auction. Art. 126 is applicable.

The previous adjudicatee and their guarantors are liable for the loss in value on the price of the first auction as well as for any other damages. The loss of interest is calculated at a rate of 5%.

Art. 123 and 132 also apply to the realization of immovable property.

Instead of auctioning, the sale may take place by private agreement if all interested parties consent and the offered price is at least that of the appraisal.

The sale may only take place after the clearance of the charges status in accordance with Art. 138, para. 2, clause 3 and para. 3, and Art. 140, as well as by applying, by analogy, Arts. 135 to 137.

The distribution of funds takes place as soon as all assets included in a seizure are realized.

Provisional distributions may be made at any time.

The proceeds from the realization are primarily used to cover the costs of administration, realization, distribution, and, if applicable, the acquisition of a replacement object (Art. 92, para. 3).

The net proceeds are distributed to the creditors up to the amount of their claims, including interest up to the time of the last realization and enforcement costs (Art. 68).

The dividends related to provisional seizures are deposited with the deposit and consignment office until further notice.

When the proceeds from the realization are insufficient to satisfy the creditors, the enforcement office shall promptly execute a supplementary attachment and realize the seized assets as quickly as possible. Another creditor's demand is not required, and the office is not obliged to adhere to the regular deadlines.

If, in the meantime, the enforcement office has conducted another attachment, the rights thereby acquired are not affected by the supplementary attachment.

The provisions on participation (Art. 110 and 111) are applicable.

When the proceeds from the liquidation are insufficient to satisfy all creditors, the debt collection office prepares a schedule of claims and a distribution list.

Creditors are admitted to the rank they would be entitled to in the event of bankruptcy in accordance with Art. 219. The relevant date, replacing the date of the declaration of bankruptcy, is that of the request to continue the execution.

The schedule of claims and the distribution list are deposited at the office of the debt collection agency. The agency informs the interested parties and notifies each creditor with an extract concerning their claim.

A creditor who intends to contest the claim or the rank of another creditor must, within 20 days from receipt of the extract, initiate an action to contest the schedule of claims against the latter; the action is initiated in the jurisdiction of the debt collection proceedings.

...

When the action is admitted, the dividend pertaining to the defendant's claim according to the distribution table is allocated to the plaintiff, to the extent necessary to cover his loss and legal expenses. Any remaining balance is returned to the defendant.

The creditor who has participated in the seizure and has not been fully compensated receives a certificate of unpaid debt for the unpaid amount. The debtor receives a copy of the certificate of unpaid debt.

The debt collection office issues the certificate of unpaid debt as soon as the amount of the loss is determined.

This certificate serves as an acknowledgment of debt within the meaning of Art. 82 and grants the rights mentioned in Arts. 271, item 5, and 285.

The creditor is exempt from the payment order if they continue the proceedings within six months of receiving the certificate of unpaid debt.

The creditor cannot claim interest from the debtor for the claim established by the certificate of unpaid debt. Sureties, joint obligors, or other guarantors who have had to pay instead cannot demand reimbursement.

...

A claim evidenced by a certificate of unpaid debts is subject to a statute of limitations of 20 years from the issuance of the certificate; with respect to the debtor's heirs, the limitation period expires at the latest one year from the opening of the succession.

The debtor may settle the claim at any time by paying the amount to the debt enforcement office that issued the certificate of unpaid debts. The office forwards the amount to the creditor or, if applicable, deposits it with the deposit and consignation office.

Upon full payment of the debt, the entry of the certificate of unpaid debts is deleted from the register. This deletion is documented for the debtor upon request.

The fully satisfied creditor is obligated to return the receipt of payment to the debt collection office for the debtor’s benefit. The partially satisfied creditor retains their title; however, the office must certify, or have the competent authority certify, the amount for which the title remains valid. The debt collection office is responsible for the cancellations and modifications of servitudes, land charges, real estate mortgages, and personal rights annotated in the land register.

The request for enforcement made pursuant to a claim secured by a pledge (Art. 37) must state, in addition to the information required by Art. 67, the object of the pledge. Furthermore, the request shall mention: a. where applicable, the name of the third party who constituted the pledge or has become its owner; b. where applicable, the fact that the mortgaged property is the family home (Art. 169 of the Civil Code) or the joint residence (Art. 14 of the Partnership Act of June 18, 2004) of the debtor or the third party.

The creditor who requests an enforcement for the realization of a pledged movable asset on which a third party has a subsequent pledge right (Art. 886 of the Civil Code) must inform this third party of the request for enforcement.

Upon receipt of the payment order request, the debt collection office drafts the payment order in accordance with Art. 69, except for the following modifications: 1. the payment deadline is one month, if it concerns a movable pledge; six months if it concerns an immovable pledge; 2. the warning states that the pledge will be realized if the debtor does not comply with the payment order or does not file an objection.

If it concerns a rented or leased property and if the pursuing pledgee creditor requires that the pledge includes rents and lease payments (Art. 806 CC), the debt collection office informs the tenants and lessees of the proceedings and invites them to pay the due rents and lease payments to its hands.

The preparation of the payment order shall be in accordance with Article 70.

The Debt Collection Office shall also serve a payment order on the following persons: a. the third party who has pledged the property or acquired ownership of the pledged object; b. the spouse, registered partner, or male/female registered partner of the debtor or of the third party, if the pledged real estate serves as the family home (Art. 169 CC) or as the shared home (Art. 14 of the Same-Sex Partnership Act of June 18, 2004). The third party and the spouse may raise an objection in the same manner as the debtor.

The persons mentioned in paragraph 2 may raise an objection in the same manner as the debtor.

If the third party has initiated the redemption procedure (Arts. 828 and 829 CC), the real estate may only be realized if, upon completion of this procedure, the prosecuting creditor proves to the Debt Collection Office that they are still entitled to a pledge on the real estate for the claim put into enforcement.

In all other respects, the provisions of Articles 71–86 shall apply with regard to the payment order and the objection.

If opposition is lodged, the creditor may request the lifting of the opposition or initiate legal action to establish the claim or right of pledge within ten days from the notification of the opposition.

If the creditor does not prevail in the opposition lifting procedure, they may initiate legal action within ten days from the notification of the decision.

If these time limits are not observed, the notice to tenants and farmers is voided.

The creditor may request the realization of a pledged movable asset no sooner than one month and no later than one year, and the realization of a pledged immovable asset no sooner than six months and no later than two years after the notification of the payment order. If an objection has been filed, these time limits do not run between the initiation of the judicial proceedings and the final judgment.

The enforcement procedure is dismissed if the request has not been made within the legal time limit, or if, once withdrawn, it is not renewed within this period.

Articles 97, paragraph 1, 102, paragraph 3, 103, and 106 to 109 apply by analogy to the pledged asset for which realization is requested.

The debt collection office informs the debtor of the realization request within three days.

The realization of the pledge is carried out in accordance with Arts. 122 to 143b. However, the auction conditions (Art. 135) prescribe that the portion of the sale price related to the claim of the pursuing creditor must be paid in cash, unless otherwise agreed by the parties involved. They further prescribe that the encumbrances entered in the land register in favor of the pursuing creditor must be canceled.

The mortgage securities created in the name of the owner or to the bearer and pledged by the owner will be reduced to the amount of the proceeds of the realization in the event of a separate realization.

The proceeds from the liquidation are primarily used to cover the costs of administration, liquidation, and distribution.

The net proceeds are distributed to the secured creditors up to the amount of their claims, including interest up to the date of the last liquidation and collection costs.

When the proceeds are insufficient to fully pay the creditors, the officer in charge determines the rank and the dividend attributable to each of them, observing the provisions of Art. 219, paragraphs 2 and 3.

Articles 147, 148, and 150 are applicable.

When the realization of the pledge has not occurred due to insufficient offers (Art. 126 and 127) or the proceeds are insufficient to satisfy the pursuing creditor, the debt enforcement office issues a certificate of insufficient pledge to the latter.

The losing creditor may proceed by way of attachment or bankruptcy, depending on the status of the debtor, unless their right arises from an annuity bond (Art. 33 a, Final Title of the Civil Code) or another real charge. They are exempt from the payment order if they act within the month.

The certificate of insufficient pledge constitutes a recognition of debt within the meaning of Art. 82.

Upon receipt of the requisition to continue the proceedings, the debt collection office shall promptly send the bankruptcy notice to the debtor subject to proceedings by means of bankruptcy.

The bankruptcy notice states: 1. the prescribed information for the enforcement request; 2. the date of the payment order; 3. the warning that the creditor may request bankruptcy upon the expiration of a 20-day period; 4. the notice that the debtor may, within ten days, appeal to the supervisory authority (Art. 17) if they believe they are not subject to bankruptcy proceedings.

Moreover, it is reminded to the debtor that the law allows them to propose a composition agreement.

The bankruptcy warning is delivered in accordance with Art. 72.

The office provides a copy to the creditor immediately after the notification.

...

At the creditor's request, the bankruptcy judge shall decide, if this measure appears necessary to him, that an inventory of the debtor's assets will be prepared.

The debt collection office prepares the inventory. It cannot begin before the notification of the bankruptcy warning; exceptions are the cases mentioned in Arts. 83, para. 1, and 183.

The provisions of Arts. 90, 91, and 92 apply by analogy.

The debtor is required, under threat of penalties provided by law (Art. 169 of the Criminal Code), to present at all times, either in kind or in value, the inventoried assets, except for what the official may have left to him for his maintenance and that of his family. The official expressly draws the debtor’s attention to his obligations as well as to the criminal consequences of failing to comply with them.

The inventory taking is revoked by the officer if all enforcing creditors consent to it.

The effects of the inventory automatically cease four months after the date of its establishment.

Upon the expiration of the twenty-day period following the notification of the commination, the creditor may request the judge to declare bankruptcy. The creditor must attach the order to pay and the commination act to their application.

The right to request bankruptcy lapses fifteen months after the notification of the order to pay. If an objection is filed, this period does not run between the initiation of judicial proceedings and the final judgment.

The creditor who has withdrawn the bankruptcy petition may only renew it after one month.

The judge, upon receiving a petition for bankruptcy, shall notify the parties of the date and time of the hearing at least three days in advance. They may appear in person or be represented.

The party requesting bankruptcy is liable for costs up to and including the suspension of proceedings due to lack of assets (Art. 230) or until the call to creditors (Art. 232).

The judge may require that this party make an advance payment for such costs.

The judge may order any preliminary protective measures that he deems necessary in the interest of the creditors.

The judge shall make a decision without delay and even in the absence of the parties. He must declare bankruptcy except in the cases mentioned in Arts. 172 to 173a.

The judge shall dismiss the bankruptcy petition in the following cases: 1. when the supervisory authority has annulled the notice of bankruptcy; 2. when the debtor has been granted a restitution of a deadline (Art. 33, Para. 4) or the benefit of a late objection (Art. 77). 3. when the debtor provides evidence that the debt has been paid in principal, interest, and costs, or that the creditor has granted a deferment.

When the suspension of proceedings has been ordered by the supervisory authority seized of a complaint or by the judge according to Art. 85 or 85a, para. 2, the judge postpones his decision on the bankruptcy judgment.

If the judge himself considers that a null decision has been rendered in the previous procedure (Art. 22, para. 1), he also postpones his decision and submits the case to the supervisory authority.

He renders a decision on the bankruptcy request after receiving the decision of the said authority.

If the debtor or a creditor has filed a request for a composition moratorium or an extraordinary moratorium, the court may postpone the bankruptcy judgment.

The court may also postpone the bankruptcy judgment ex officio when an immediate reorganization or a composition agreement appears possible; in this case, it forwards the file to the composition judge.

...

If the bankruptcy petition concerns a debtor who, pursuant to the financial market laws cited in Art. 1 of the Federal Act of June 22, 2007, on Financial Market Supervision, is subject to the jurisdiction of the Swiss Financial Market Supervisory Authority (FINMA) in bankruptcy matters, the bankruptcy judge transmits the dossier to FINMA. FINMA proceeds according to the special laws.

Only debtors who hold the necessary authorization from FINMA are subject to its jurisdiction in bankruptcy matters.

The decision of the bankruptcy judge may be appealed within ten days in accordance with the Civil Procedure Code (CPC). The parties may bring forward new facts if they occurred before the first instance judgment.

The appellate authority may annul the opening of bankruptcy if the debtor makes a plausible case for their solvency and provides documentary evidence that one of the following conditions is fulfilled: 1. the debt, including interest and expenses, has been paid; 2. the entire amount to be reimbursed has been deposited with the higher judicial authority for the creditor's intention; 3. the creditor has withdrawn their bankruptcy requisition.

If the appellate authority grants a suspensive effect, it simultaneously orders provisional measures to protect the interests of the creditors.

Bankruptcy is initiated at the moment the judgment declares it.

The judgment determines this moment.

The judge shall without delay communicate to the offices of debt collection, the offices of bankruptcy, the commercial register, and the land register: 1. the declaration of bankruptcy; 2. the revocation of bankruptcy; 3. the closure of bankruptcy; 4. decisions granting suspensive effect to an appeal; 5. the contents of the conservatory measures ordered.

The bankruptcy shall be recorded in the land register no later than two days after its commencement.

A creditor acting by virtue of a bill of exchange or a check may, even if the claim is secured by a pledge, request proceedings for bills of exchange when the debtor is subject to bankruptcy proceedings.

The creditor shall attach the bill of exchange or the check to his request.

After confirming the existence of the aforementioned conditions, the enforcement office immediately notifies the payment order.

The payment order states: 1. the details of the enforcement request; 2. the demand to pay the amount of the claim and the costs within five days; 3. the notice that the debtor may file an objection (Art. 179) or appeal to the supervisory authority (Art. 17 and 20) due to a violation of the law; 4. the notice that the creditor may request bankruptcy if the debtor fails to comply with the payment order despite not having filed an objection, or if the objection has been dismissed (Art. 188).

Articles 70 and 72 are applicable.

The debtor may file an objection with the debt collection office in writing and within five days from the notification of the payment order, by asserting one of the grounds listed in Art. 182. The debtor who requests it is given a written acknowledgment of their objection free of charge.

The debtor is not restricted to the grounds initially invoked to support their objection; they may subsequently rely on other means provided in Art. 182.

Art. 33, para. 4, does not apply.

The objection is recorded on the duplicate of the payment order intended for the creditor; if none has occurred, a note to that effect is similarly made.

The office delivers this duplicate to the creditor immediately after the objection or the expiration of the objection period.

The debt enforcement office promptly submits the objection to the competent court of jurisdiction. The court summons the parties to appear and renders a decision, even in their absence, within ten days from the receipt of the objection.

The judge declares the objection admissible: 1. when the debtor proves by a document that the bearer of the bill or check has been paid, that he has agreed to the forgiveness of the debt, or granted a deferment; 2. when he alleges the falsity of the document and his assertion appears credible; 3. when the debtor raises an admissible exception related to a bill of exchange and it appears well-founded; 4. when he alleges another ground based on Art. 1007 of the Swiss Code of Obligations and makes his allegations plausible; in this case, the opponent is required to deposit the amount of the bill in cash or other securities or to provide equivalent sureties.

If the judge dismisses the objection, he may order the necessary conservatory measures, including an inventory in accordance with Art. 162 to 165.

He may also require the creditor to provide securities.

The decision on the admissibility of the opposition is immediately notified to the parties.

If the opposition has been admitted only upon deposit, the creditor is invited to initiate their action for payment within ten days. Failure to comply within this period will result in the restitution of the deposit.

The decision regarding the admissibility of the objection can be appealed within five days, in accordance with the CPC.

If the objection has been declared admissible, the enforcement proceedings are suspended and the creditor asserts their right through ordinary procedure.

Anyone who has paid an amount they did not owe, as a result of debt collection proceedings that remained uncontested, has the right to reclaim it in accordance with Art. 86. The same applies if they have paid after an objection was declared inadmissible.

If the debtor, who does not object or whose objection has been overruled, fails to comply with the payment order, the creditor may petition for bankruptcy by simply producing the title, the payment order, and, if applicable, the judgment overruling the objection.

The right to petition for bankruptcy expires one month after the notification of the payment order. If an objection has been made, the time elapsed until the judgment or, if applicable, from the introduction of the action until the final judgment is not counted.

The judge informs the parties of the location, date, and time at which he will rule on the bankruptcy petition. He rules, even in the absence of the parties, within ten days from the filing of the petition. Articles 169, 170, 172, section 3, 173, 173 a, 175, and 176 are applicable.

The creditor may apply for bankruptcy without prior enforcement: 1. if the debtor has no known residence, if he has fled with the intent to evade his obligations, if he has committed or attempted to commit acts in fraud of the rights of his creditors or concealed his assets during proceedings for seizure directed against him; 2. if the debtor subject to bankruptcy proceedings has suspended his payments; 3. ...

The debtor who has a residence or a representative in Switzerland is summoned promptly before the judge to be heard.

The debtor may personally request bankruptcy by declaring themselves insolvent in court.

When all possibilities for an amicable settlement of debts according to Art. 333 et seq. are excluded, the judge shall declare bankruptcy.

Bankruptcy is declared ex officio without prior proceedings in cases provided for by law.

The competent authority informs the bankruptcy judge that: 1. all heirs have expressly renounced the succession, or it is presumed to be renounced (Art. 566 et seq. and 573 of the Civil Code); 2. an estate for which official liquidation has been requested or ordered is found to be insolvent (Art. 597 of the Civil Code).

In these cases, the judge orders the liquidation according to the rules of bankruptcy.

The liquidation according to the rules of bankruptcy may also be requested by a creditor or by an heir.

Articles 169, 170, and 173a to 176 apply to bankruptcies without prior proceedings. However, Article 169 does not apply to the bankruptcy provided for in Article 192. Communication to the commercial register (Article 176) does not take place if the debtor was not subject to bankruptcy proceedings by way of execution.

The judge shall pronounce the annulment of the bankruptcy and the reinstatement of the debtor to the free disposition of their assets when: 1. the debtor establishes that all debts have been paid; 2. the debtor presents a declaration from all creditors attesting that they withdraw their claims; 3. a concordat has been approved.

The annulment may be pronounced upon the expiration of the deadline for claims and until the closure of the bankruptcy.

It shall be made public.

The liquidation through bankruptcy of a renounced succession is also halted when, before the closure, an entitled claimant appears who declares acceptance of the succession and provides security for the payment of debts.

All seizable assets of the bankrupt at the time of the opening of the bankruptcy form a single mass, regardless of their location, and are dedicated to the payment of creditors.

Assets that accrue to the bankrupt until the closure of the bankruptcy enter into the mass.

Assets that are subject to a pledge also form part of the estate, subject to the preferential rights of the pledgee creditor.

Assets seized but not realized at the time of the opening of the bankruptcy and the sequestered assets are included in the bankruptcy estate.

However, if the participation deadlines for the seizure (Art. 110 and 111) have expired at the opening of the bankruptcy, the amounts already collected as a result of seizures of cash, seizures of claims, and wages, as well as realizations of assets, are distributed in accordance with Art. 144 to 150; the excess is handed over to the bankruptcy estate.

The estate also includes everything that may be subject to an avoidance action in accordance with Art. 214 and 285 to 292.

Bearer instruments and order securities transferred to the bankrupt solely for collection or as collateral for specifically designated payments may be claimed by the rightful owner.

When the bankrupt party has sold a thing belonging to another and has not received the payment before the opening of the bankruptcy, the owner has the right to demand the assignment of the claim against the buyer or the restitution of the price, if it has been paid into the estate, all subject to reimbursement of what may be due to the estate for the said thing.

Goods sold and shipped that the debtor has not taken possession of before the declaration of bankruptcy may be reclaimed by the seller, unless the estate pays the price to him.

The right of reclamation cannot be exercised if, before the publication of the bankruptcy, the goods have been sold or pledged to a third party in good faith, under a bill of lading, consignment note, or loading order.

All acts by which the debtor has disposed of assets belonging to the bankruptcy estate since the opening of bankruptcy are null with respect to creditors. However, if the debtor, before the publication of the bankruptcy, has paid a promissory note at maturity that was subscribed by him or a bill of exchange drawn on him, the payment is valid, provided that the holder of the instrument had no knowledge of the bankruptcy and could have, in the event of a refusal of payment, effectively exercised against third parties the recourse permitted in matters of bill of exchange.

From the opening of the bankruptcy, the debtor may not receive any payment. Anyone who makes a payment into the debtor's hands is discharged, with respect to the creditors of the bankrupt, only up to the amount or value that is found in the estate.

However, a debtor who has made a payment to the bankrupt before the publication of the bankruptcy is discharged, unless they were aware of it.

Enforcements directed against the bankrupt are extinguished, and no enforcement can be initiated during the liquidation of the bankruptcy for claims arising before the opening of the bankruptcy. The exception to this rule applies to enforcements aimed at the realization of pledges belonging to a third party.

Enforcements for claims arising after the opening of the bankruptcy continue by way of seizure or realization of pledge during the liquidation of the bankruptcy.

During the bankruptcy procedure, the debtor cannot request the opening of another bankruptcy by declaring insolvency (Art. 191).

Except in cases of urgency, civil proceedings involving the bankrupt that affect the state of the bankruptcy estate are suspended. They may only be continued, in the case of an ordinary liquidation, after the ten days following the second creditors' meeting and, in the case of a summary liquidation, after the 20 days following the filing of the schedule of claims.

Administrative procedures may be suspended under the same conditions as civil proceedings.

Limitation and forfeiture periods do not run during the suspensions of proceedings.

This provision does not apply to actions for damages due to insults and bodily harm, nor to proceedings related to family law.

The opening of the bankruptcy makes the debts of the bankrupt due, with the exception, however, of those that are secured by pledges on the bankrupt's real estate. The creditor may claim, in addition to the principal, the current interest up to the day of the opening and the costs.

Non-matured claims that do not bear interest are reduced by a discount at the rate of 5 percent.

The opening of bankruptcy halts, with respect to the bankrupt party, the accrual of interest. However, the interest on secured claims continues to accrue until the realization, to the extent that the proceeds from the collateral exceed the amount of the claim and the interest due at the time of the opening of the bankruptcy.

When a claim is subject to a suspensive condition, the creditor may nevertheless assert it in full; however, he shall only receive the dividend when the condition is fulfilled.

Claims based on an annuity contract are governed by Art. 518, para. 3 of the Code of Obligations (CO).

A claim that is not for a sum of money transforms into a claim of equivalent value.

However, when the claim arises from a bilateral contract that has not yet been executed at the time of the opening of the bankruptcy, or only partially executed, the bankruptcy administration may undertake to perform it in kind in place of the debtor. The contracting party may demand security.

The right of the bankruptcy administration provided in para. 2 is, however, excluded in the case of strict term commitments (Art. 108, para. 3, CO), as well as in the case of financial term transactions, swaps, and options, when the value of the contractual performances on the day of the opening of the bankruptcy can be determined based on the current price or market rate. Both the bankruptcy administration and the co-contractor have the right to claim the difference between the agreed value of the contractual performances and their market value at the time of the opening of the bankruptcy.

The provisions of other federal laws regarding the termination of contracts within the framework of bankruptcy, as well as the provisions regarding the reservation of ownership (Art. 715 and 716 CC), are reserved.

Claims based on a long-term contract can be asserted as bankruptcy claims from the time of the opening of the bankruptcy, but no later than until the nearest contract termination date or until its expiration date. Any benefits that the creditor would have received during this period are credited to them.

If the bankruptcy estate has benefited from services based on the long-term contract, the corresponding counter-performances that arise after the opening of the bankruptcy are considered debts of the bankruptcy estate.

The continuation of a contractual relationship by the debtor, in a personal capacity, is reserved.

Anyone who, before the opening of bankruptcy proceedings, has sold and delivered an item to the debtor may neither rescind the contract nor reclaim the item, even if they have expressly reserved this right.

The creditor has the right to offset their claim with that which the bankrupt entity may have against them.

However, the right to offset is excluded in the following cases: 1. when the debtor of the bankrupt becomes their creditor after the commencement of the bankruptcy, unless they have fulfilled an obligation that arose prior to that or have released an item pledged for the debt of the bankrupt and possess a property right or a limited real right in that item (Art. 110, para. 1, CO); 2. when the creditor of the bankrupt becomes their debtor or the debtor of the estate after the commencement of the bankruptcy; 3. ...

Offset with claims arising from bearer instruments can occur if and to the extent that the creditor establishes that they acquired the securities in good faith before the commencement of the bankruptcy.

In the event of the bankruptcy of a limited partnership, a joint-stock company, a partnership limited by shares, a limited liability company, or a cooperative society, unpaid portions of the limited partnership interest or share capital, or arrears on statutory contributions of the cooperative society, may not be offset.

Set-off may be contested when the debtor of the bankrupt acquired a claim against the bankrupt before the opening of the bankruptcy, but with knowledge of the insolvency of their creditor, with the intent of obtaining, or procuring for a third party, an advantage by means of the set-off, to the detriment of the estate.

Claims arising from the bankrupt's sureties may be filed in the bankruptcy proceedings even if the claim is not yet due.

The estate is subrogated to the rights of the creditor against the principal debtor and the co-obligors up to the amount of the dividend paid by it (Art. 507 CO). In the event of the bankruptcy of the principal debtor or a co-obligor, Articles 216 and 217 shall apply.

When multiple persons liable for the same debt are simultaneously in bankruptcy, the creditor may assert their entire claim in each of the bankruptcies.

If the combined dividends exceed the amount of the claim, the surplus is allocated to the estates that have paid more than the share for which the bankrupt was liable in relation to their co-debtors.

The various estates do not have recourse against each other for the dividends they have paid, as long as the amount of these does not exceed the amount due to the creditor.

When a co-obligor of the bankrupt has made an advance payment on the debt, the debt is still admitted into the liabilities for the original amount, even if the co-obligor does not have recourse against the bankrupt.

The right to file a claim in the bankruptcy belongs to the creditor and the co-obligor.

The creditor receives the dividend up to the amount of his claim; the excess goes to the co-obligor for the dividend corresponding to his right of recourse, with the remainder going to the bankruptcy estate.

When a general partnership and a partner are simultaneously bankrupt, the creditors of the partnership may only claim in the partner’s bankruptcy the amount for which they are left unpaid in the partnership's bankruptcy. Articles 216 and 217 are applicable to the payment of this balance by the different partners.

If one of the partners becomes bankrupt without the partnership itself being bankrupt, the creditors of the partnership are admitted to the liabilities for the full amount of their claims, and the partner's estate is subrogated as stated in Article 215.

Paragraphs 1 and 2 apply by analogy to partners with unlimited liability in a limited partnership.

The claims secured by pledges shall be paid in priority from the proceeds of the realization of the pledges.

If several pledges secured the same claim, the amounts realized therefrom shall be used to cover the claim in proportion to their value.

The rank of registered mortgage creditors and the extent of the security provided by the mortgage for interest and other accessory claims shall be determined by the provisions governing mortgages.

Claims not secured by pledges as well as the uncovered amount of claims secured by pledges shall be covered in the following order of priority from the proceeds of the entire remaining bankruptcy estate

a. Claims of employees arising from the employment relationship that arose or became due no earlier than six months prior to the opening of bankruptcy, up to a maximum amount corresponding to the maximum insured annual earnings under compulsory accident insurance. abis. Claims for the return of deposits by employees. ater. Claims of employees arising from social plans that arose or became due no earlier than six months prior to the opening of bankruptcy. b. Claims of insured persons pursuant to the Federal Act of March 20, 1981 on Accident Insurance as well as from non-compulsory occupational pension plans, and claims of staff pension institutions against affiliated employers. c. Family law maintenance and support claims as well as maintenance contributions pursuant to the Registered Partnership Act of June 18, 2004 that arose in the last six months prior to the opening of bankruptcy and are to be fulfilled by cash payments.

a. Claims of persons whose property was entrusted to the debtor by virtue of parental authority, for everything that the debtor has become indebted to them in this capacity. This preferential right applies only if the bankruptcy was published during parental administration or within one year after its termination. b. Contribution claims pursuant to the Federal Act of December 20, 1946 on Old-Age and Survivors' Insurance, the Federal Act of June 19, 1959 on Disability Insurance, the Federal Act of March 20, 1981 on Accident Insurance, the Earnings Compensation Act of September 25, 1952, and the Unemployment Insurance Act of June 25, 1982. c. Premium and cost-sharing claims of social health insurance. d. Contributions to the family compensation fund. e. ... f. Deposits pursuant to Article 37a of the Banking Act of November 8, 1934.

All other claims.

For the time limits set in the first and second classes, the following shall not be included in the calculation: 1. the duration of a preceding composition proceedings; 2. the duration of litigation concerning the claim; 3. in the official bankruptcy liquidation of an estate, the time between the date of death and the order of liquidation.

The creditors share equally within each class.

As long as the creditors of a preceding class have not been fully satisfied, those of the subsequent classes receive nothing.

As soon as the office receives notice of the opening of bankruptcy, it proceeds to inventory the assets of the bankrupt and takes the necessary measures for their preservation.

...

The bankrupt is required, under the threat of penalties provided by law (Art. 163, Sec. 1, 323, Sec. 4 of the Criminal Code), to disclose all his assets to the office and make them available to it.

If the bankrupt has died or is in flight, these obligations fall, under the threat of penalties provided by law (Art. 324, Sec. 1 of the Criminal Code), on all adult persons who lived in a common household with him.

At the request of the officer, all persons having an obligation under paras. 1 and 2 are required to open their premises and furniture. If necessary, the officer may call upon the public authorities for assistance.

Third parties who hold assets of the bankrupt or against whom the bankrupt has claims have, under the threat of penalties provided by law (Art. 324, Sec. 5 of the Criminal Code), the same obligation to provide information and surrender items as the bankrupt.

Authorities have the same obligation to provide information as the bankrupt.

The office expressly draws the attention of those concerned to these obligations as well as to the criminal consequences of their non-compliance.

The bankruptcy office may request postal service providers to grant it access to postal items addressed to the debtor for the duration of the bankruptcy and to deliver them to it.

The bankruptcy office may open the postal items delivered to it, unless it is clearly evident that their contents are of no relevance to the processing of the bankruptcy.

The debtor has the right to be present at the opening of the postal items.

The office shall close and seal the stores, warehouses, workshops, retail outlets, etc., unless these establishments can be managed under supervision until the first meeting of creditors.

It takes into its custody the cash, securities, accounting books, household books, and documents of any significance.

As for other assets, it places them under seal until the inventory is conducted. The seals may be maintained if the office deems it necessary.

It ensures the safeguarding of items located outside the premises used by the bankrupt.

The office leaves at the bankrupt’s disposal the assets listed in Art. 92. However, it includes them in the inventory.

Items indicated as the property of third parties or claimed by third parties are likewise included in the inventory. The inventory mentions these claims.

The rights of third parties on the real estate of the bankrupt, as recorded in public registers, are officially noted in the inventory.

Each item listed in the inventory is appraised.

The office submits the inventory to the bankrupt and invites them to declare whether they recognize it as accurate and complete.

Their response is recorded in the inventory and signed by them.

The bankrupt is required, under threat of penalties provided by law (Art. 323, ch. 5, CP), to remain at the disposal of the administration for the duration of the liquidation, unless expressly exempted. If necessary, they may be compelled by public authority to appear. The administration explicitly draws their attention to this obligation as well as to the legal consequences of non-compliance.

The administration may grant reasonable assistance, particularly if keeping the individual at its disposal.

The administration sets the conditions under which the bankrupt and their family may remain in their residence and the duration of this stay, insofar as the residence is part of the bankruptcy estate.

When it is likely that the estate will not suffice to cover the costs of summary liquidation, the judge who ordered the bankruptcy shall, at the request of the office, pronounce the suspension of the bankruptcy.

The office shall publish this decision and communicate it by ordinary mail to the known creditors. The publication shall state that the bankruptcy will be closed if, within twenty days, the creditors do not request its liquidation and do not provide the security required for the costs not covered by the estate.

Within two years after the suspension of the liquidation, the debtor may also be pursued by way of attachment.

Enforcement proceedings initiated before the opening of the bankruptcy shall revive after the suspension thereof. The time elapsed between the opening and the suspension of the bankruptcy shall not count towards the calculation of deadlines provided by the present law.

If the office suspends the liquidation of an estate due to lack of assets, the heirs may demand the assignment in their favor or in favor of some of them of the assets included in the estate, provided they declare themselves personally liable for the payment of secured debts and uncovered liquidation costs. If none of the heirs exercise this right, it can be exercised by the creditors and, failing that, by third parties demonstrating an interest.

When the estate of a bankrupt legal entity includes assets encumbered with liens and the bankruptcy has been suspended due to lack of assets, each secured creditor may nevertheless demand the execution of their security interest from the office. The office shall set a deadline for this purpose.

In the absence of an assignment as referred to in para. 1, and if no creditor requests the execution of their security interest within the deadline set by the office, the assets are, after deducting costs, assigned to the state with the charges encumbering them, without the state assuming personal debt; however, this assignment only occurs if the competent cantonal authority does not refuse it.

If the competent cantonal authority refuses the assignment, the office proceeds with the execution of the assets.

The office proposes to the bankruptcy judge to apply the summary procedure when it finds that: 1. the proceeds from the inventoried assets will probably not suffice to cover the liquidation costs, or 2. the case is simple.

If the judge agrees with this proposal, a summary liquidation of the bankruptcy is carried out, unless a creditor requests, before the distribution of funds, that the liquidation take place in the ordinary form and provides sufficient security for the costs that will probably not be covered.

The summary liquidation is conducted according to the rules of the ordinary procedure, subject to the following exceptions: 1. generally, there is no need to convene a creditors' meeting. However, when special circumstances make consulting the creditors desirable, the office may call them to a meeting or prompt a decision from them using circulars; 2. upon expiration of the production deadline (Art. 232, para. 2, ch. 2), the office proceeds with the realization of the best interests of the creditors while observing the provisions of Art. 256, para. 2 to 4. Real property can only be realized once the schedule of charges is prepared; 3. the office designates the assets of strict necessity in the inventory it files simultaneously with the schedule of collocation; 4. it is not necessary to file the distribution list.

The office publishes the opening of the bankruptcy, as soon as it has been decided whether the liquidation will take place in the ordinary or summary form.

The publication shall indicate or contain: 1. the designation of the bankrupt and their domicile, as well as the indication of the date of the opening of the bankruptcy; 2. the summons to the creditors of the bankrupt and to those who have claims to assert, to file their claims or assertions with the office within one month following the publication and to deliver their means of proof (documents, book excerpts, etc.); 3. the summons to the debtors of the bankrupt to report to the office under threat of penalties provided by law (Art. 324, ch. 2, CP), within the same period; 4. the summons to those holding assets of the bankrupt, under any title, to make them available to the office within the same period, failing which they will incur the penalties provided by law (Art. 324, ch. 3, CP) and will lose their right of preference, unless there is a sufficient excuse; 5. the convening of the first meeting of creditors, which must take place no later than 20 days from the publication and at which co-debtors, guarantors, and other sureties of the bankrupt may also attend; 6. the notice that notifications intended for interested parties residing abroad will be addressed to the office, as long as they have not chosen another domicile for notification in Switzerland.

The office sends a copy of the publication to all known creditors by regular mail.

If, prior to the liquidation of a renounced estate or in a composition procedure preceding bankruptcy, creditors have already been called upon, the office reduces the deadline for filing to ten days and states in the publication that creditors who have already filed are exempt from doing so again.

The first meeting of creditors is presided over by an official of the office, who is assisted by two creditors forming, with him, the bureau of the meeting.

If individuals to whom the notice was not sent appear, the bureau decides on their admission to the deliberations.

The meeting is validly constituted when the creditors present or represented make up at least one-quarter of the known creditors. If there are only four or fewer, they must represent half of the creditors.

Decisions are made by an absolute majority of the voting creditors. In the event of a tie, the president utilizes their casting vote. The bureau resolves disputes related to the counting of votes.

If the quorum is not reached, the office takes note of it. It informs the creditors present about the status of the estate and manages it until the second creditors' meeting.

If the assembly is constituted, the office shall report to it on the inventory and on the estate.

The assembly decides whether the liquidation will be entrusted to the bankruptcy office or to a special administration composed of one or more persons of its choosing.

In either case, the assembly may establish within itself a supervisory commission which, unless decided otherwise by the assembly, shall have the following tasks: 1. to supervise the administration of the bankruptcy, to provide advice when requested, and to oppose any measure that appears contrary to the interests of the creditors; 2. to authorize the continuation of the business or industry of the bankrupt and to set the terms thereof; 3. to approve the accounts, to authorize the administration to litigate, to settle, or to conclude a compromise; 4. to contest claims admitted by the administration; 5. to authorize interim distributions during the liquidation process.

The assembly may adopt emergency resolutions, particularly regarding the continuation of the bankrupt's industry or business, the opening of their workshops, stores, or sales points, pending lawsuits, and private sales. If the bankrupt proposes a settlement, the assembly may suspend the liquidation.

A complaint against the decisions of the assembly can be filed within five days with the supervisory authority.

The supervisory authority shall decide without delay, after having heard the office and, if it deems it appropriate, the complainant and the creditors who requested it.

The administration is responsible for the interests of the estate and oversees its liquidation. It represents the estate in court.

The provisions of Art. 8 to 11, 13, 14, para. 2, sec. 1, 2, and 4, as well as Art. 17 to 19, 34, and 35 relating to the bankruptcy office apply to special administration.

The administration issues a decision regarding the restitution of items claimed by a third party.

It grants the party whose right it contests a period of 20 days to file an action in the bankruptcy forum. After this period, the third party's claim is extinguished.

If the body of creditors claims as the property of the bankrupt movable property found in the possession or co-possession of a third party, or immovable property registered in the land register in the name of a third party, it must initiate action against the third party.

The bankruptcy administration shall make a decision regarding the restitution of crypto-assets over which the bankrupt has the power of disposal at the commencement of bankruptcy and which are claimed by a third party.

The claim is justified when the bankrupt has undertaken to hold them at all times at the disposal of the third party and when these: a. are individually attributed to this third party, or b. are attributed to a community and the share due to the third party is clearly determined.

The bankruptcy administration shall grant the individual whose right is contested a period of 20 days to file legal action at the bankruptcy forum. After this period, the claim of the third party is extinguished.

The costs of restitution shall be borne by the claimant. The bankruptcy administration may require an advance payment for these costs.

A third party who claims a legal or contractual right to data over which the estate has the power of disposal may demand, depending on the nature of their right, access to such data or have them returned by the estate with the power of disposal.

The administration grants the party whose right is disputed a period of 20 days to initiate legal proceedings in the bankruptcy jurisdiction. The data must not be destroyed or executed as long as the judge's decision is not final.

The costs for accessing the data or their restitution are borne by the applicant. The bankruptcy administration may require them to provide an advance for such costs.

The right of access as provided for by federal or cantonal data protection provisions is reserved.

The administration collects the liquid claims of the estate, if necessary through enforcement proceedings.

It promptly realizes assets that are prone to rapid depreciation, costly to maintain, or whose storage incurs disproportionate expenses. It may also order the immediate realization of securities and items listed on the stock exchange or market.

Other assets are only realized after the second meeting of creditors.

After the expiration of the deadline set for submissions, the administration examines the claims and conducts the necessary verifications. It consults the bankrupt party on each submission.

The administration decides on the admission of claims; it is not bound by the statements of the bankrupt.

Claims registered in the land registry are accepted with the current interest, even if they have not been submitted.

Within 60 days following the expiration of the deadline for submissions, the administration shall prepare the schedule of claims in accordance with the provisions of Arts. 219 and 220.

If the estate includes real property, the administration shall, within the same period, prepare a list of encumbrances affecting it (mortgage rights, easements, land charges, and personal rights annotated). The list of encumbrances is an integral part of the schedule of claims.

If the creditors have constituted a supervisory commission, the schedule of claims and the list of encumbrances are subject to its approval; it has ten days to modify them.

The supervisory authority may, if necessary, extend the time limits set by this article.

The schedule of claims indicates the claims that have been dismissed and the reasons for this measure.

The schedule of claims is filed at the office.

The administration notifies the creditors by publication.

Creditors whose claims have been entirely or partially rejected, or who have not been admitted to the rank they claimed, are informed directly.

The creditor who disputes the schedule of claims because their claim has been partly or entirely dismissed or because it has not been ranked as claimed shall file an action against the bankruptcy estate before the judge at the place of bankruptcy, within 20 days following the publication of the schedule of claims.

If the creditor disputes a claim or the rank assigned to it, they shall direct the action against the relevant creditor. If the judge rules in favor of the action, the dividend corresponding to the disputed claim is allocated to the plaintiff up to the amount of their claim, including legal costs. Any remaining surplus is distributed according to the revised schedule of claims.

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Late filings are accepted until the closure of the bankruptcy.

The expenses incurred due to the delay are borne by the creditor, who may be required to advance them.

The creditor is not entitled to interim distributions made prior to their filing.

If the administration accepts the filing, it proceeds to correct the ranking and notifies the creditors through a publication.

Art. 250 is applicable.

After the lodging of the schedule of claims, the administration convenes the second meeting of creditors; those called are the ones whose claims have not yet been definitively dismissed. The convening must occur at least 20 days in advance.

If there is a need to deliberate on a proposal for a composition agreement, the notice must indicate this.

The meeting is presided over by a member of the administration. Art. 235, paras. 3 and 4, apply by analogy.

The administration shall present to the assembly a comprehensive report on the progress of the liquidation and the status of the assets and liabilities.

The assembly shall decide whether to confirm the administration and the members of the supervisory commission in their duties; it shall make all decisions it deems necessary in the interest of the collective body.

If the quorum is not met, the administration acknowledges this and informs the creditors present of the state of the estate. The administration and the supervisory commission remain in office until the liquidation is closed.

New meetings may be convened if a quarter of the creditors or the supervisory commission requests it, or if the administration deems it necessary.

When there is an urgent risk or the quorum has not been reached in one of the creditors' meetings, the administration may submit proposals to them via circular. A proposal is accepted when the majority of creditors have expressly or tacitly approved it within the set deadline.

If not all creditors are known, the administration may additionally publish its proposals.

The assets belonging to the estate are liquidated by the administration through public auction or private sale if the creditors deem it preferable.

Assets that are subject to security interests can only be sold privately with the consent of the secured creditors.

Assets of high value and real estate are only sold privately if the creditors have been given the opportunity to submit higher offers.

Claims based on Articles 286 to 288 must neither be auctioned publicly nor alienated.

The publication indicates the place, day, and time of the auction.

If it involves the sale of real estate, the publication takes place at least one month in advance and indicates the day from which the auction conditions can be consulted at the office.

Each mortgage creditor will receive a copy of the publication and will be notified simultaneously of the appraised value.

Assets put up for auction are awarded to the highest bidder after three announcements.

In the case of the liquidation of real estate, Art. 142, para. 1 and 3, is applicable. Additionally, creditors may decide to set a minimum auction price for the initial auction.

Articles 128, 129, 132a, 134 to 137, and 143 apply mutatis mutandis to the conditions of auctions. The responsibilities assigned to the debt enforcement office are carried out by the bankruptcy administration.

If all the creditors waive their right to assert a claim, any one of them may request its assignment to the estate.

The proceeds, after deduction of expenses, are used to cover the claims of the assignees in the order of their priority, and any surplus is paid to the estate.

If all the creditors waive their right to assert a claim and none of them requests its assignment, this claim may be realized in accordance with Art. 256.

When the schedule of claims is final and the administration is in possession of the proceeds from the realization of all assets, it prepares the distribution table of funds and establishes the final account.

The costs for the opening of the bankruptcy, liquidation, and inventory taking are covered first and foremost.

The proceeds from pledged assets are used only to cover the costs of inventory, administration, and realization of the pledge.

The distribution list and the final account shall remain filed at the office for ten days.

The filing is brought to the attention of the creditors; an extract concerning their dividend is sent to each of them.

Upon the expiration of the filing period, the administration shall proceed with the distribution of funds.

The provisions of Art. 150 apply mutatis mutandis.

Dividends pertaining to claims subordinated to a suspensive condition or to an uncertain term are deposited at the state deposit and consignation office.

During the distribution process, the administration issues a certificate of unpaid debts to each creditor who has not been fully paid, for the outstanding amount. The certificate indicates whether the bankrupt party has acknowledged or disputed the claim. In the former case, it serves as an acknowledgment of debt in the sense of Art. 82.

The certificate of unpaid debts allows for the request of attachment and produces the legal effects mentioned in Arts. 149, para. 4, and 149a. However, further enforcement proceedings based on this certificate can only be initiated if the debtor comes into better financial circumstances. Also considered as better financial circumstances are the assets that the debtor economically possesses.

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If the debtor raises an objection by contesting his return to better financial circumstances, the office submits the objection to the court of the pursuing jurisdiction. The judge makes a ruling after hearing the parties; his decision is not subject to any appeal.

The judge declares the objection admissible if the debtor presents his income and financial status and makes it plausible that he has not returned to better financial circumstances.

If the judge declares the objection inadmissible, he determines to what extent the debtor has returned to better financial circumstances (Art. 265, para. 2). The judge may declare assets belonging to a third party to be attachable when the debtor has economic control over them and the rights of the third party were established by the debtor with an intention recognizable by the third party to prevent the return to better financial circumstances.

The debtor and the creditor may file an action for a declaration of non-return or return to better financial circumstances before the court of the pursuing jurisdiction within 20 days from the notification of the decision on the objection.

If the debtor objects to enforcement by alleging the lack of a return to better financial circumstances, they cannot request their own bankruptcy (Art. 191) during the duration of this enforcement.

Provisional distributions may be carried out upon the expiration of the time limit for filing objections to the schedule of claims.

Art. 263 applies by analogy.

Claims whose holders did not participate in the bankruptcy are subject to the same restrictions as those for which a certificate of shortfall has been issued.

After the distribution, the administration submits a final report to the judge who declared the bankruptcy.

The judge pronounces the closure after having ascertained that the liquidation is completed.

If the administration of the bankruptcy appears to warrant comments, he communicates them to the supervisory authority.

The office publishes the closure.

When, after the closure of bankruptcy proceedings, assets that were not liquidated are discovered, the office takes possession of them, realizes them, and distributes the proceeds among the losing creditors without further formalities, according to their ranking.

The same applies to deposits that become available or are not withdrawn within ten years.

If it concerns a doubtful right, the office notifies the creditors by publication or letter, and actions are taken in accordance with the provisions of Art. 260.

The bankruptcy must be settled within one year from its commencement.

If necessary, the supervisory authority may extend the deadline.

A creditor of a due and unsecured debt may request the attachment of the debtor's assets located in Switzerland: 1. when the debtor has no fixed domicile; 2. when the debtor, with the intention of evading his obligations, conceals his assets, flees, or prepares to flee; 3. when the debtor is passing through or falls into the category of persons attending fairs and markets, if the claim is immediately due by its nature; 4. when the debtor does not reside in Switzerland and there is no other ground for attachment, provided the claim has a sufficient connection with Switzerland or is based on an acknowledgment of debt within the meaning of Art. 82, para. 1; 5. when the creditor holds a provisional or definitive debt recognition certificate against the debtor; 6. when the creditor holds a definitive enforcement order against the debtor.

In the cases mentioned in para. 1 and 2, attachment may be requested for a non-due debt; it renders the claim due with respect to the debtor.

In the cases mentioned in para. 1, subpara. 6, concerning a judgment rendered in a foreign state to which the Convention of October 30, 2007, on Jurisdiction and the Recognition and Enforcement of Judgments in Civil and Commercial Matters applies, the judge also rules on the determination of enforceability.

Attachment is authorized by the judge of the debt enforcement venue or by the judge of the location where the assets are situated, provided that the creditor makes it plausible: 1. that his claim exists; 2. that a case of attachment is present; 3. that there are assets belonging to the debtor.

When the creditor is domiciled abroad and has not chosen a domicile in Switzerland, he is deemed to be domiciled at the office of debt enforcement.

The creditor is liable for any damage that an unjustified attachment may cause to both the debtor and third parties. The judge may require the creditor to provide security.

The action for damages may also be brought in the jurisdiction where the attachment was ordered.

The judge shall assign the bailiff or another official or employee to execute the attachment and shall provide them with an attachment order for that purpose.

This order shall set forth: 1. the name and domicile of the creditor, their representative, if applicable, and the debtor; 2. the claim for which the attachment is executed; 3. the basis for the attachment; 4. the objects to be attached; 5. the provision that the creditor is liable for any damage and the indication of the securities to be provided.

Articles 91 to 109 concerning attachment shall apply mutatis mutandis to the enforcement of the seizure.

A record of the seizure is drawn up at the bottom of the order. The record contains a description of the items and their value. It is immediately transmitted to the enforcement office.

The enforcement office immediately notifies a copy to the creditor and the debtor and informs third parties whose rights are affected by the seizure.

The sequestered assets are left at the free disposal of the debtor, provided that they are presented in kind or in value in the event of seizure or declaration of bankruptcy, and to furnish securities for this purpose. These securities must be provided by deposit, by joint suretyship, or by another equivalent security.

Any person whose rights are affected by a seizure may file an objection with the judge within ten days from the day they became aware of it.

The judge shall hear the parties and decide without delay.

The decision on the objection may be appealed as defined by the CPC. The parties may allege new facts.

The objection and the appeal do not prevent the seizure from taking effect.

A creditor who has obtained an attachment without prior prosecution or action must initiate prosecution or file an action within ten days from the receipt of the official report.

If the debtor files an objection, the creditor must apply for its removal or file an action for recognition of the debt within ten days from the date the duplicate of the payment order has been served on them. If the request for removal is denied, the creditor must file an action within ten days from the notification of this decision.

If the debtor has not filed an objection, the creditor must request the continuation of the prosecution within twenty days from the date on which the duplicate of the payment order has been served on them. If the objection has been dismissed, the time limit begins to run from the effective date of the decision dismissing the objection. The prosecution is continued by means of seizure or bankruptcy, depending on the status of the debtor.

If the creditor has initiated an action for recognition of debt without prior prosecution, they must initiate prosecution within ten days from the notification of the judgment.

The time limits provided for in this article do not run: 1. during the objection procedure nor during the appeal procedure against the decision on objection; 2. during the procedure for establishing enforceability under the Convention of October 30, 2007, concerning judicial jurisdiction, recognition, and enforcement of decisions in civil and commercial matters nor during the appeal procedure against the establishment of enforceability.

The effects of the seizure cease when the creditor: 1. allows the deadlines assigned to them under Art. 279 to expire; 2. withdraws or lets their action or enforcement lapse; 3. sees their action definitively rejected.

When the sequestrated objects are seized by another creditor before the sequestrator is within the time limits to carry out the seizure, the latter automatically participates in the seizure provisionally.

The costs of sequestration are deducted from the proceeds of the liquidation.

The sequestration does not create any other preferential rights.

The lessor of commercial premises may request the office, even without prior prosecution, to provisionally protect them in their right of retention (Art. 268 et seq. and 299 c CO).

They may also, if there is imminent risk, request the assistance of the public authorities or municipal authorities.

The office draws up an inventory of the items subject to the right of retention and assigns the lessor a deadline to request the pursuit of the realization of the pledged items.

Objects clandestinely or violently removed can be reinstated with the assistance of public force within ten days of their removal. The rights of third parties acting in good faith are reserved. The judge decides in case of disputes.

When the assets of a trust, as defined in Chapter 9 of the PILA, are liable for a debt, the debt collection must be directed against a trustee in the capacity of the trust's representative.

The venue for the debt collection is the seat of the trust according to Art. 21, para. 3, PILA. When the designated place of administration is not in Switzerland, the trust is pursued in the place where it is actually administered.

The collection continues through bankruptcy proceedings. The bankruptcy is limited to the assets of the trust.

In the bankruptcy of a trustee, the assets of the trust are separated from the bankruptcy estate after deducting the trustee's claims against these assets.

The purpose of revocation is to subject to compulsory execution the assets that have been removed as a result of an act mentioned in Articles 286 to 288.

The following parties may request revocation: 1. any creditor holding a provisional or definitive certificate of deficiency after seizure; 2. the bankruptcy administration or any creditor, individually, in the cases referred to in Articles 260 and 269, paragraph 3.

Legal acts carried out during a composition moratorium are not revocable, to the extent they have been approved by a composition judge or by a creditors' committee (Art. 295 a).

Also non-revocable are other debts contracted with the consent of the commissioner during the moratorium.

All donations and dispositions made gratuitously, with the exception of customary gifts, are revocable if they have been made by the debtor within the year preceding the seizure or the declaration of bankruptcy.

The following are considered as donations: 1. acts by which the debtor has accepted a price significantly lower than the value of his performance; 2. acts by which the debtor has established in his favor or in favor of a third party an annuity, a lifelong maintenance, a usufruct, or a right of habitation.

In the event of the revocation of an act carried out in favor of a person close to the debtor, it is incumbent upon this person to establish that there is no disproportion between the performance and the counter-performance. A close person also refers to companies constituting a group.

The following acts are revocable when performed by an over-indebted debtor within the year preceding the seizure or the opening of bankruptcy: 1. any provision of securities for an existing debt that the debtor had not previously committed to secure; 2. any payment made other than in cash or usual values; 3. any payment of a debt not due.

Revocation is excluded when the beneficiary of the act proves that they did not know and could not have known of the debtor's over-indebtedness.

Revocation is particularly excluded when securities, intermediated securities, or other financial instruments traded on a representative market are given as collateral and the debtor fulfills one of the following conditions: 1. they had committed to replenish the collateral in the event of a change in the value of the collateral or the guaranteed debt; 2. they had been granted the right to replace the collateral with collateral of the same value.

All acts performed by the debtor within five years preceding the seizure or declaration of bankruptcy with the recognizable intent by the other party to harm their creditors or to favor certain creditors at the expense of others are subject to revocation.

In the case of the revocation of an act carried out in favor of a person close to the debtor, it is incumbent upon that person to establish that they could not recognize the intent to cause harm. A person close also includes companies forming a group.

Not included in the calculation of the deadlines provided for in Art. 286 to 288 are: 1. the duration of a moratorium preceding the opening of bankruptcy; 2. in the case of succession according to the rules of bankruptcy, the time elapsed from the date of death until the decision to proceed with liquidation; 3. the duration of the preliminary debt collection procedure.

The revocatory action is filed at the domicile of the defendant. If the defendant does not have a domicile in Switzerland, the action may be filed at the place of seizure or bankruptcy.

The revocatory action is brought against persons who have dealt with the debtor or who have benefited from advantages on their part, against their heirs or other universal successors, and against third parties in bad faith. It does not affect the rights of third parties in good faith.

Anyone who has benefited from a void act is obligated to make restitution. What they have paid will be returned to them, insofar as the item is still in the hands of the debtor or the debtor has been enriched by it. Any excess amounts cannot be claimed from the debtor except as a debt claim.

A creditor who has returned what was paid to them under a revocable act regains their rights.

A good faith donee is only required to make restitution for the amount by which they have been enriched.

The right to bring an action for revocation shall be subject to a limitation period: 1. of three years from the notification of the certificate of unpaid debts after seizure (Art. 285, para. 2, item 1); 2. of three years from the opening of bankruptcy proceedings (Art. 285, para. 2, item 2); 3. of three years from the approval of the composition agreement by surrender of assets.

In the event of recognition of a bankruptcy decision rendered abroad, the time elapsed between the request for recognition and the publication of the decision in accordance with Art. 169 of the Swiss Private International Law (PILA) is not counted in the calculation of the period.

The composition procedure is initiated by: a. the debtor's petition, accompanied by the following documents: an up-to-date balance sheet, an income statement, and a cash flow plan or other documents representing the current and future state of their assets, results or income, as well as a provisional reorganization plan; b. a petition by a creditor authorized to file for bankruptcy; c. the transmission of the file provided for in Art. 173a, para. 2.

The concordat judge shall grant, without delay, a provisional stay and shall, ex officio, take measures necessary to preserve the debtor's assets. Upon request, the provisional stay may be extended.

The duration of the provisional stay shall not exceed four months. When the situation justifies it, the provisional stay may, upon the request of the commissioner or, if no commissioner is appointed, the debtor, be extended by a maximum of four months.

The concordat judge shall declare bankruptcy ex officio if there is clearly no prospect of reorganization or approval of a concordat.

The composition judge appoints one or more provisional commissioners to thoroughly analyze the prospects for reorganization or approval of a composition agreement. Art. 295 applies by analogy.

In justified cases, the judge may forgo the appointment of a provisional commissioner.

The provisional stay has the same effects as the definitive stay. In justified cases, it is possible to refrain from making the provisional stay public until its expiration, provided that the protection of third-party interests is guaranteed and a request to this effect has been made. In this case: a. no communication is sent to the offices; b. the debtor may be subject to enforcement, but not to continuation of enforcement; c. the consequence provided in Art. 297, para. 4, does not take effect until the provisional stay has been communicated to the assignee; d. a provisional commissioner must be appointed.

The granting of provisional respite and the appointment of a provisional commissioner cannot be subject to an appeal.

If, during the provisional stay, prospects for rehabilitation or approval of a composition agreement appear, the composition judge shall definitively grant a stay of four to six months; he decides ex officio before the expiration of the provisional stay. The judge summons the debtor and, if applicable, the requesting creditor to appear at a preliminary hearing. The provisional commissioner reports orally or in writing. The judge may hear other creditors. The judge shall declare bankruptcy ex officio if there are no prospects for rehabilitation or approval of a composition agreement.

The composition judge appoints one or more commissioners.

The commissioner undertakes the following tasks, notably

a. prepare the draft composition agreement if necessary;

b. supervise the debtor's activities;

c. perform the functions provided under arts. 298 to 302 and 304;

d. submit interim reports upon the composition judge's request and inform the creditors about the development of the moratorium.

The composition judge may assign other tasks to the commissioner.

Arts. 8, 8 a, 10, 11, 14, 17 to 19, 34, and 35 apply mutatis mutandis to the commissioner’s management.

When circumstances require, the concordat judge establishes a creditors' committee; the various categories of creditors must be fairly represented on it.

The creditors' committee oversees the activities of the commissioner and can make recommendations to them. The commissioner informs the committee regularly about the progress of the procedure.

The creditors' committee authorizes, in place of the concordat judge, the actions referred to in Art. 298, para. 2.

Upon the request of the commissioner, the respite may be extended up to twelve months and, in particularly complex cases, up to 24 months.

When the respite is extended beyond 12 months, the commissioner shall convene a meeting of the creditors, which must be held before the expiration of the ninth month following the granting of the final respite. Art. 301 applies mutatis mutandis.

The commissioner informs the creditors of the progress of the procedure and the reasons for the extension. The creditors may constitute or revoke a committee, admit or revoke members, and appoint a new commissioner. Art. 302, para. 2, applies mutatis mutandis.

The debtor and the creditors may challenge the concordat judge's decision by way of appeal, in accordance with the Code of Civil Procedure (CPC).

A suspensive effect cannot be granted to an appeal directed against the decision granting the concordat moratorium.

The stay is made public by the court of concordat and communicated without delay to the debt collection office, the commercial register, and the land registry. The concordat stay is entered in the land registry no later than two days after its granting.

If the restructuring occurs before the expiration of the composition moratorium, the composition judge shall annul the moratorium ex officio. Art. 296 applies mutatis mutandis.

The judge summons the debtor and, if applicable, the petitioning creditor to appear at a hearing. The commissioner reports orally or in writing. The judge may hear other creditors.

The decision annulling the moratorium can be appealed in accordance with the CPC.

Bankruptcy is declared ex officio before the expiration of the moratorium in the following cases: a. this measure is essential to preserve the debtor's assets; b. there is clearly no longer any prospect of restructuring or approval of the composition agreement; c. the debtor contravenes Art. 298 or the instructions of the commissioner.

No proceedings may be initiated against the debtor during the duration of the moratorium, except in the case of a pledge realization due to claims secured by real estate collateral; however, such a pledge may not, under any circumstances, be realized.

Art. 199, para. 2, applies by analogy to seized assets.

Concordat claims may not be subject to sequestration or other conservatory measures.

The assignment of future claims concluded prior to the granting of a concordat moratorium has no effect if the assigned claim arises after the granting of the moratorium.

Except in cases of urgency, the concordat moratorium suspends civil proceedings and administrative procedures concerning concordat claims.

The prescription or forfeiture periods cease to run.

The moratorium stops the accrual of interest on any unsecured debt against the debtor unless the concordat provides otherwise.

Compensation is governed by Arts. 213 and 214. The granting of the moratorium is equivalent to the opening of bankruptcy.

Art. 211, para. 1, is applicable by analogy as soon as the commissioner notifies the contracting party of the claim conversion.

With the consent of the commissioner, the debtor may terminate at any time, for a period of their choosing, a long-term contract, provided that the objective of the restructuring cannot be achieved without such termination; they must compensate the other contracting party. The compensation is considered a concordat claim. Special provisions regarding the termination of employment contracts are reserved.

The debtor may continue his activity under the supervision of the commissioner. However, the concordat judge may prescribe that certain acts can only be validly carried out with the participation of the commissioner, or authorize the commissioner to continue the activity of the business in place of the debtor.

Unless authorized by the concordat judge or the creditors' committee, it is prohibited, under penalty of nullity, to alienate or encumber fixed assets, to constitute a pledge, to act as surety, and to dispose of assets gratuitously during the period of moratorium.

The rights of third parties in good faith are reserved.

If the debtor contravenes this provision or the injunctions of the commissioner, the concordat judge may, based on the commissioner’s report, withdraw the debtor's power to dispose of his assets or open bankruptcy proceedings ex officio.

Immediately after being appointed, the commissioner drafts an inventory of the debtor's assets and proceeds with their valuation.

The commissioner makes the decision regarding the valuation of the pledges available to the creditors; he communicates it in writing, prior to the creditors' meeting, to the secured creditors and the debtor.

Any interested party may request that the concordat judge conduct a new valuation of the pledges within ten days upon an advance of costs. If the new valuation has been requested by a creditor, the creditor may only demand reimbursement of the costs from the debtor if the initial valuation has been substantially modified.

The commissioner invites the creditors by means of a notice (Art. 35 and 296) to submit their claims within a period of one month, under penalty of being excluded from the deliberations concerning the composition agreement. He sends a copy of the notice by ordinary mail to all known creditors.

The commissioner invites the debtor to comment on the submitted claims.

When the concordat proposal has been drawn up, the commissioner convenes the meeting of creditors by publication, informing them that they may inspect the documents during the twenty days preceding the meeting. The meeting cannot be held earlier than one month after the publication.

The commissioner sends a copy of the publication to all known creditors by ordinary mail.

Repealed

The commissioner presides over the meeting of creditors and presents a report on the debtor's situation.

The debtor is required to attend the meeting to provide the necessary information.

The concordat proposal is submitted to the meeting of creditors for signature.

Repealed

The creditor who has not adhered to the composition agreement retains all their rights against the co-obligors, sureties, and guarantors of the debtor (Art. 216).

The same applies to the one who adheres, provided that they have informed them at least ten days in advance of the day and location of the meeting, offering to assign their rights against payment (Art. 114, 147, 501 CO).

The creditor may also, without prejudice to their recourse, authorize them to attend the deliberations themselves and rely on their decision.

Before the expiration of the stay, the commissioner shall transmit to the composition judge all documents relating to the composition agreement. In his report, he shall account for the declarations of assent already received and recommend the granting or refusal of the composition agreement.

The composition judge shall render a decision without delay.

The date and venue of the hearing are announced through publication. The opponents are notified that they may appear to present their grounds for opposition.

The composition agreement is accepted when, until the decision of ratification, it has been adhered to by: a. either a majority of creditors representing at least two-thirds of the claims to be recovered; b. or one-quarter of the creditors representing at least three-quarters of the claims to be recovered.

Privileged creditors and the spouse or registered partner of the debtor are not counted either by reason of their person or by reason of their claims. Claims secured by pledge are counted only for the amount deemed unsecured according to the commissioner’s estimation.

The judge of the composition agreement decides if and to what extent contested claims or those subject to a suspensive condition or uncertain term should be counted; all subject to judgments that may intervene subsequently.

The approval is subject to the following conditions: 1. the value of the services offered must be proportionate to the debtor's resources, with the concordat judge being able to consider the assets that may accrue to the debtor; 2. full payment of recognized privileged creditors and the fulfillment of obligations contracted during the deferment with the commissioner’s consent must be sufficiently guaranteed, unless each creditor has expressly waived the requirement for such security for their own claim; Art. 305, para. 3, applies analogously; 3. in the case of an ordinary composition agreement (Art. 314, para. 1), the share holders must make a fair contribution aimed at the rehabilitation of the debtor. The concordat judge may supplement an insufficient regulation ex officio or at the request of a participant.

The composition judge may, at the request of the debtor, suspend for a maximum of one year, starting from the ratification of the composition agreement, the enforcement of a mortgage on real estate due to a claim preceding the initiation of composition proceedings, provided that the interest on the mortgage debt has not remained unpaid for more than one year. However, the debtor must make it plausible that the property is necessary for the operation of their business and that the enforcement might jeopardize their financial situation.

Interested mortgage creditors are invited to present their written observations before the discussions on the ratification of the composition agreement (Art. 304); they are personally summoned to the creditors' meeting (Art. 302) and to the hearings before the composition authority.

The suspension of enforcement becomes null and void by operation of law if the debtor voluntarily alienates the collateral, is declared bankrupt, or passes away.

At the request of an interested creditor and after hearing the debtor, the composition judge shall revoke the suspension of the enforcement they ordered if the creditor makes it plausible that: 1. the debtor obtained it by providing inaccurate information to the composition authority, or 2. their assets or income have improved and they can repay the debt without jeopardizing their financial situation, or 3. the enforcement of the real estate mortgage no longer poses a risk to compromise the debtor's financial situation.

The judgment concerning the approval can be challenged by way of appeal, in accordance with the CPC.

The appeal has a suspensive effect unless the appellate body orders otherwise.

As soon as the judgment on ratification becomes enforceable: a. it is communicated without delay to the debt collection office, the bankruptcy office, the land registry, as well as to the commercial register if the debtor is registered there; b. it is made public. The effects of the stay cease as soon as the judgment becomes enforceable.

If the composition agreement is not approved, the bankruptcy judge shall declare bankruptcy ex officio.

The ratified composition agreement is binding on all creditors whose claims arose before the grant of the moratorium or during the moratorium without the commissioner’s approval (composition claims). Exceptions are claims secured by real estate collateral to the extent they are covered by the collateral.

Debts incurred during the moratorium with the commissioner’s consent constitute estate liabilities in a composition by surrender of assets or in a subsequent bankruptcy. The same applies to counter-performances arising from a fixed-term contract, provided the debtor has benefited from the services stipulated in that contract with the commissioner’s approval.

The ratification of the composition extinguishes all proceedings initiated against the debtor prior to the moratorium, with the exception of those for the realization of a pledge. Art. 199, para. 2, applies by analogy.

Any promise made by the debtor to one of his creditors beyond the stipulations of the composition agreement (Art. 20 CO) is null and void by operation of law.

Any creditor may request the revocation of a settlement agreement tainted with bad faith (Art. 20, 28, 29 CO). Articles 307 to 309 apply by analogy.

The composition agreement must state the extent to which the creditors waive their claims and how the debtor's obligations are to be fulfilled and, where applicable, secured.

The composition dividend may consist wholly or partially of equity or membership rights in the debtor or in a rescue company.

Supervisory, management and liquidation powers may be conferred upon the former administrator or a third party for the implementation and securing of the performance of the composition agreement.

When approving the composition agreement, the judge assigns creditors whose claims are contested a 20-day period to initiate legal proceedings at the venue of the composition, under penalty of losing their right to dividend guarantee.

The dividends related to contested claims are paid by the debtor into the deposit and consignments office until the final judgment, if the composition judge so orders.

Similarly, any creditor may request the revocation of an agreement tainted with bad faith.

Art. 307 applies by analogy.

A composition agreement involving the abandonment of assets may grant creditors the right to dispose of the debtor's property or may consist of the transfer of all or part of these assets to a third party.

Creditors exercise their rights through liquidators and a creditors' committee, elected by the meeting that decides on the composition agreement. Commissioners for the stay may act as liquidators.

The composition agreement shall contain provisions on: 1. the creditors' waiver of the portion of the claim that is not covered by the proceeds of the liquidation of the assets, or by the price of the transfer of these assets to a third party, or the precise regulation of the rights reserved in this regard; 2. the appointment of the liquidators and the number of members of the creditors' committee, as well as the delimitation of their powers; 3. the method of liquidation of the assets, to the extent not regulated by law, as well as the method and guarantees for the execution of the assignment if the assets are assigned to a third party; 4. bodies other than the official gazettes in which publications intended for creditors must be made.

The composition dividend may consist, in whole or in part, of participation rights or social rights that the creditor may exercise with respect to the debtor company or a company taking over.

When the composition agreement does not cover the debtor's entire estate, it shall clearly indicate all necessary distinctions.

When the ratification of the composition agreement by transfer of assets becomes enforceable, the debtor no longer has the right to dispose of their assets and the signing authority of the previous rights holders is terminated.

If the debtor is registered in the commercial register, the words "in composition liquidation" must be added to their business name. The estate can be pursued, under this name, for debts not included in the composition agreement.

The liquidators perform all necessary acts for the preservation and realization of the estate or, if necessary, for the transfer of the assets.

They represent the estate in court. Art. 242 applies by analogy.

The liquidators are subject to the supervision and control of the creditors' committee.

The decisions of the liquidators regarding the realization of the assets can be challenged before the creditors' committee, and the decisions of this committee can be appealed to the supervisory authority within ten days of notification.

Articles 8 to 11, 14, 34, and 35 also apply by analogy to the management of the liquidators.

To determine the individuals who will participate in the distribution of the liquidation proceeds and to establish their ranking, the liquidators shall prepare – without issuing a new call to creditors and by simply referring to the accounts and claims – a schedule of collocation which will be made available to the creditors. Articles 244 to 251 apply by analogy.

The assets comprising the estate are, as a general rule, realized separately or collectively. Realization is through collection or sale in the case of claims, and through private sale or public auction in the case of other assets. The liquidators determine the method and timing of the realization in agreement with the creditors' committee.

Unless the assets are transferred to a third party, immovable properties encumbered by a mortgage can only be sold privately by the liquidators with the consent of those secured creditors whose claims are not fully satisfied by the sale price. Failing this, said immovable properties may only be realized through public auctions (Articles 134 to 137, 142, 143, 257, and 258). The schedule of claims (Article 321) is decisive for the existence and rank of encumbrances (easements, land charges, immovable liens, annotated personal rights) that burden them.

Creditors holding pledges on movable assets are not required to hand them over to the liquidators. Unless otherwise provided by a concordat that grants a moratorium, they may realize their pledges at a time they deem appropriate, either through the process of realization of the pledge or, if authorized by the pledge agreement, through a private sale or a sale on the stock exchange.

However, if it is in the interest of the estate to have a pledge realized, the liquidators may grant the pledgee creditor a period of at least six months to proceed with the realization. They simultaneously summon, under the threat of penalties provided by law (Art. 324, Sec. 4, Penal Code), the pledgee creditor who does not act within this period to hand over the pledge, advising him that failing to comply, without sufficient excuse, will result in forfeiture of his preferential rights.

If the liquidators or the creditors' committee waive a contested claim or one that is difficult to recover, particularly a revocation action or a liability action against the debtor's bodies or employees, they shall inform the creditors by circular or official publication and offer them the assignment of these claims, in accordance with Art. 260 of this Act.

Before any distribution, even provisional, the liquidators shall prepare a distribution table, a copy of which shall be sent to each of the creditors. They shall hold this table at their disposal for ten days. During this period, the said table may be subject to a complaint to the supervisory authority.

Secured creditors whose collateral has already been realized at the time of filing a provisional distribution table participate in the provisional distribution for the amount of the actual shortfall. This amount is determined by the liquidators, whose decision can only be contested through a complaint as provided for in Art. 326.

If at the time of filing the provisional distribution table, the collateral has not yet been realized, the secured creditor will participate in the distribution for the presumed amount of the shortfall, according to the commissioner's estimation. If the secured creditor can prove that the proceeds from the realization of the collateral were lower than the estimation, they are entitled to the corresponding dividends and advances.

If the proceeds from the realization of the collateral, added to the provisional dividends already received, exceed the amount of the claim, the secured creditor is required to return the surplus.

With the final distribution schedule, the liquidators shall submit a final account that also includes the list of fees.

Dividends that have not been collected within the deadline set by the liquidators will be deposited with the deposit and consignment office.

Dividends that have not been collected within ten years will be distributed by the bankruptcy office; Art. 269 applies by analogy.

Once the liquidation is completed, the liquidators shall draw up a final report. They shall submit it for approval to the supervisory commission, which will forward it to the composition judge, who will make it available to the creditors.

If the liquidation lasts more than one year, the liquidators are required to prepare as of December 31 of each year a statement of the liquidated assets and of the assets not yet realized, as well as a report on their activities. Within the first two months of the following year, they shall communicate this statement and report to the composition judge through the creditors' commission and shall make them available to the creditors.

Legal acts carried out by the debtor before the approval of the concordat are subject to revocation, in accordance with the principles established in Articles 285 to 292.

The granting of the concordat moratorium is decisive, in place of attachment or the opening of bankruptcy, for the calculation of deadlines according to Articles 286 to 288.

To the extent that they allow for the partial or total dismissal of claims, the revocatory claims of the estate must be asserted by way of objection to the claims by the liquidators.

The debtor or a creditor may propose a composition agreement. The bankruptcy administration submits it with its recommendation to the creditors, who deliberate on it at their second meeting at the earliest.

Articles 302 to 307 and 310 to 331 apply by analogy. The administration performs the functions assigned to the commissioner. The realization is suspended until the composition court has ruled on the homologation.

The judgment regarding the composition is communicated to the administration; in case of homologation, the administration requests the revocation of the bankruptcy from the judge who pronounced it.

Any debtor not subject to bankruptcy may apply to the composition court to obtain an amicable settlement.

The debtor must include in their application a statement of their debts and income, as well as their financial situation.

When a settlement with creditors does not appear to be excluded from the outset and if the costs of the procedure are secured, the judge grants the debtor a stay of execution for a maximum of three months and appoints a commissioner.

Upon the request of the commissioner, the stay may be extended for up to a maximum of six months. It may also be revoked before the granted period expires, if it is clear that a settlement cannot be reached.

No enforcement actions can be taken against the debtor during the duration of the stay, except for periodic contributions for maintenance and alimony resulting from family law. The time limits stipulated in Articles 88, 93, para. 2, 116 and 154 are suspended.

The judge's decision is communicated to the creditors; Article 295 c applies analogously.

The commissioner assists the debtor in the development of a settlement. The debtor may, in particular, propose a dividend or an extension to the creditors and request any measures intended to facilitate the payment of the principal or the interest.

The commissioner conducts negotiations with the creditors with the aim of approving the debtor's settlement proposals.

The concordat judge can assign the commissioner to oversee the execution of the settlement.

In the event of a subsequent concordat procedure, the duration of the stay according to Art. 333 and following is credited to the duration of the concordat stay.

Under extraordinary circumstances, particularly in the event of a prolonged economic crisis, the cantonal government may, with the consent of the Confederation, declare the provisions of this title applicable, for a determined duration, to debtors in a certain territory affected by these circumstances.

A debtor who, due to extraordinary circumstances as provided in Art. 337, finds himself, through no fault of his own, unable to fulfill his obligations, may request from the concordat judge an extraordinary stay of no more than six months, if the circumstances allow the hope that, upon the expiration of the stay, he will be able to fully satisfy his creditors.

He must attach to his request the supporting documents of his financial situation and the list of his creditors, provide all information required by the concordat judge, and produce any documents that may be requested of him.

If the debtor is subject to bankruptcy proceedings, he must also attach his balance sheet and books to the request.

After the request has been filed, the concordat judge may, as a provisional measure, suspend ongoing proceedings, except those concerning claims referred to in Art. 342. He determines whether the duration of the suspension of proceedings should be counted toward the extraordinary stay and to what extent.

The concordat judge gathers any additional information deemed necessary and, if the request for a moratorium does not appear to be unjustified at first glance, sets the date for the hearing to which all creditors are summoned by publication; if necessary, he may appoint experts.

If the list of creditors provided by the debtor indicates a relatively small number of creditors and the concordat judge deems it credible, the public summons of creditors, guarantors, and co-debtors may be replaced by a personal summons.

Creditors may review the file before the hearing; they also have the opportunity to submit written objections against the request for a moratorium.

The concordat judge makes a ruling promptly. In granting the moratorium, he may impose on the debtor the payment of one or more installments.

The debtor and each of the creditors may challenge the decision by means of an appeal as defined by the CPC.

The debtor and the creditors who were present or represented before the first instance are summoned to the proceedings of the higher instance.

The extraordinary stay granted at the first instance remains in effect until the final decision of the appellate instance.

The composition judge shall order, no later than when granting the moratorium, the taking of an inventory. Articles 163 and 164 apply by analogy. The judge may take any other measures necessary to safeguard the rights of creditors.

He may, when granting the moratorium, appoint a commissioner to supervise the management of the debtor.

The decision granting the stay is communicated to the debt collection office and, if the debtor is subject to bankruptcy proceedings, to the bankruptcy judge. It is published as soon as it becomes enforceable.

During the duration of the moratorium, proceedings may be taken against the debtor and continued up to seizure or declaration of bankruptcy. Garnished wages are also collected during the moratorium. The same applies to rents and lease payments, insofar as they are included in the real security pursuant to proceedings initiated before or during the moratorium. However, no further action may be taken on a request for sale or a request for bankruptcy.

The time limits provided for in Arts. 116, 154, 166, 188, 219, 286, 287, and 288 are extended by the duration of the moratorium. The same applies to the real security for the interests of claims secured by real estate mortgage (Art. 818, para. 1, item 3, CC).

The debtor is permitted to continue their business activities, but is prohibited, during the duration of the stay, from performing legal acts that would harm the legitimate interests of the creditors or favor some of them to the detriment of others.

The concordat judge may, when granting a stay, rule that the debtor cannot validly, without the consent of the commissioner or, failing a commissioner, without the consent of the judge, alienate or encumber real estate, establish pledges, act as surety, dispose of assets gratuitously, nor make payments on debts incurred prior to the stay. However, consent is not required for the payment of second-class debts in accordance with Art. 219, para. 4, and for the disbursement of installments referred to in Art. 339, para. 4.

If the judge includes this reservation when granting the stay, he shall indicate it in the publication, and the stay shall be noted in the land register as a restriction on the right to alienate.

The respite does not apply to claims less than 100 francs, nor to claims ranked in the first class (Art. 219, para. 4). However, these claims can only lead, during the period of respite, to the pursuit by way of seizure or through the realization of a pledge, even if the debtor is subject to bankruptcy proceedings.

Within the deadline set in accordance with Art. 337, the concordat judge may, at the debtor's request, extend the respite granted to the debtor by no more than four months, provided the reasons for granting it persist without the debtor's fault.

The debtor must attach a supplementary list of their creditors to the request and, if subject to bankruptcy proceedings, a new balance sheet.

The concordat judge shall notify the creditors of the extension request via publication, assigning them a deadline to submit their written objections. If an administrator has been appointed, they are invited to present a report.

After the expiration of the deadline, the concordat judge issues a decision. This decision is subject to appeal on the same grounds as the extraordinary respite and must be published under the same conditions.

The higher authority shall render a decision based on the dossier.

The composition judge must order the revocation of the stay upon the request of a creditor or the commissioner: 1. when the debtor does not make the payments imposed on them in a timely manner; 2. when they violate the instructions of the commissioner, harm the legitimate interests of the creditors, or favor certain creditors at the expense of others; 3. when a creditor provides proof that the information given to the composition judge by the debtor is false or that the debtor is able to fulfill all their obligations.

The debtor shall be heard or invited to present their observations in writing. The composition judge, as well as the appellate authority, shall rule based on the dossier after, if necessary, obtaining additional information. The revocation is published under the same conditions as the granting of the stay.

If the stay is revoked pursuant to items 2 or 3 above, neither a composition stay nor a new extraordinary stay may be granted.

If the debtor intends to propose a composition agreement during the period of extraordinary stay, the draft composition agreement accompanied by the documents and the commissioner's preliminary report must be submitted before the end of the stay.

During the six months following the expiration of the stay, neither a composition stay nor a new extraordinary stay can be granted.

A debtor who has withdrawn their request for an extraordinary stay or whose request has been rejected may not submit a new application before six months.

This law will enter into force on January 1, 1892.

However, Art. 333 will enter into force with the insertion of the law into the Compendium of Federal Laws.

From the date this law enters into force, any conflicting provisions of federal law, cantonal legislations, and concordats will be repealed, except for the exceptions provided in the articles below.

The Federal Council is responsible, in accordance with the provisions of the Federal Law of June 17, 1874, concerning the popular votes on federal laws and decrees, for publishing this law.