As a representative of the Association of Swiss Debt Collection Agencies (vsi) Patrik Odermatt was appointed as a member of the expert group for restructuring procedures for private individuals appointed by the Federal Office of Justice.
Under current Swiss law, highly indebted and destitute private individuals have no possibility to sustainably restructure their finances. Creditors, in turn, have only limited possibilities to benefit from future debtor income. In contrast to Switzerland, most European countries and also the USA have procedures that enable private individuals to be released from their debts. In a report adopted on 9 March 2018, the Federal Council concluded that there is also a need for legislative action in Swiss debt collection and bankruptcy law.
If an insolvency debtor is given a second chance to live a debt-free life through debt relief proceedings and can be motivated to earn an income, this will benefit not only him but also the public sector and other creditors.
The group of experts around Patrik Odermatt will examine the different implementation options on behalf of the parliament and develop a draft.