Personal bankruptcy
Personal bankruptcy
In Switzerland, businesses can take a variety of different legal forms, the main ones being sole proprietorships, general partnerships, public limited companies and limited liability partnerships. Depending on the legal form of the business, its management has different obligations in the event of financial difficulties: in a sole proprietorship, the owner of the business assumes all the risks associated with his or her activity and is liable for the debts of the business without limit, using all his or her personal assets, whether private or commercial.For this reason, a self-employed person operating as a sole trader can only declare his or her business bankrupt by filing for personal bankruptcy under article 191 of the Federal Law on Debt Collection and Bankruptcy. In particular, you must demonstrate that your business is over-indebted, that there is no possibility of reaching an arrangement with your creditors and that you will be able to manage and balance your budget in the future. This last point is intended to prove that, once bankruptcy has been declared and liquidation has taken place, you will once again be able to control your finances and meet your expenses. The conditions for personal bankruptcy are therefore strict, and this option should only be used as a last resort. If this is the case, you can submit your complete file to the registry of the Court of First Instance and will be asked to pay an advance of approximately CHF 4,000. You will then be invited to a hearing at which the judge will analyse your case and decide whether or not to declare your voluntary bankruptcy. It is true that the past year has been particularly trying for businesses, for which several types of support measures have nevertheless been put in place by the public authorities. May you all, dear Tribune readers, have a soothing end-of-year festive season and fill up with positive vibes to embrace the challenges that 2021 is sure to bring!
