Debt Collection - Which Assets Can Debt Collectors Claim in Switzerland?

What assets are debt collectors allowed to claim in Switzerland? After a marriage-gone-terribly-wrong and the accompanying financial catastrophe, I have been left with heavy debts. I have begun to receive debt collection notices and knowing how much debt I have (in the 6-figure range), I've been up at night wondering how I will ever be able to survive, much less retire. My question is: what assets can debt collectors claim. Can they claim everything? Is anything protected from debt collection claims?

Hi there,

In Switzerland, debt collection offices and private debt collectors can seize most financial assets and personal property in order to repay a debt. Even a portion of a person's salary can be collected, provided they are left with an income that meets minimum existence norms. However, there are certain assets which cannot be seized for the repayment of debts.

Assets which cannot be seized by creditors include:

1. Life insurance: Life insurance policies which cover your spouse or children cannot be seized by debt collectors. Revocable policies can be seized when beneficiaries are not members of your immediate family, but only if the policyholder revokes the policy. Irrevocable life insurance policies generally cannot be seized regardless of your relation to the beneficiary. See article 79, section 2 and articles 80 and 81 of the VVG (Swiss insurance law). it may be possible under certain circumstances for creditors to sue for seizure of life insurance assets in court.

2. 1a assets (AHV/AVS): Your social security old-age benefits cannot be seized - both while they are held by the social security office and when they are paid out in the form of old-age or disability pensions. See article 92, section 1, paragraph 11 of the SchKG (swiss law governing debt collection) and article 50 of the IVG (swiss law governing disability insurance).

3. Supplementary benefits: Supplementary old-age benefits from social security offices (in addition to your old-age pension) cannot be seized by debt collectors.

4. 2a assets: The benefits managed by your employer's pension fund or held in your vested benefits accounts cannot be seized by debt collectors. However, when you withdraw assets in the form of a pension or cash out of a vested benefits account, the money can be seized, in part. Real estate financed with 2a assets can be seized.

5. 3a assets: Private retirement assets which fall under the 3a retirement saving category cannot be seized until they are withdrawn (when you reach retirement age, for example).

6. Child benefits: Child benefits cannot be seized by creditors. See article 92 section 1 paragraph 9a SchKG (Swiss law governing debt collection).

7. Welfare: Welfare subsidies cannot be seized by debt collectors.

8. Claims to life annuities: Life annuity entitlements cannot be transferred to creditors. See article 92, section 1, paragraph 7 of the SchKG (Swiss law governing debt collection).

There are other assets which cannot be seized, or are only partially seizable. However, the ones listed here are the most important and widely applicable.

Best regards from Moneyguru

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