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Debt Collection – Part 2: Default Summons and Objection

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

 

Default Summons

Once a debt collection procedure is launched (see part 1), the competent Debt Collection Authority issues a default summons against a debtor (article 69 of the Debt Collection and Bankruptcy Act), in which the following information is provided to him or her:

  1. Details of the debt collection request.
  2. Call to satisfy within 20 days the creditor’s claim, including the cost of the debt collection procedure, or to secure it if a procedure to provide collateral has been launched.
  3. Call to file within ten days an objection with the Debt Collection Authority if the debtor contests the claim or any portion thereof or the very right to launch the debt collection procedure.
  4. Warning that the debt collection procedure is continued if neither the claim is paid nor the objection is filed.

Objection

To stop the debt collection procedure, the debtor has ten days to file an objection (articles 69 II 3 and 74 I of the Debt Collection and Bankruptcy Act). The only thing the debtor has to do is to inform the Debt Collection Authority, either orally or in writing, that he or she files an objection. If the debtor contests only a portion of the claim, he or she has to specify the exact amount contested (article 74 II of the Debt Collection and Bankruptcy Act). The objection does not need to be accompanied by any reasoning (article 75). The fact whether or not the debtor states the reasons behind his or her objection does not matter for what kind of  defences he or she may want to resort to at a later stage of the procedure.

 

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