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Can outstanding debts still be collected if the debtor goes abroad?
It is a bitter experience that a woman from Zurich is currently having. Three years ago she helped a colleague out of financial difficulties and loaned him 20,000 francs. In the written loan agreement, the man agreed to repay the money in monthly installments. But not a single black horse has come so far.
Now the woman has run her former colleague. But at the debt collection office she finds out that he has fled abroad and is leaving behind a considerable mountain of debt in Switzerland.
What to do if the debtor goes abroad?
“I was told at the debt collection office that there was nothing I could do anymore,” the woman wrote in her email and wanted to know: “Is it really the case that debts are no longer valid when someone moves abroad?”
Debts do not become void if the debtor moves abroad. It is also possible to prosecute a debtor abroad. However, the associated procedure is complex and expensive.
To do this, the creditor would have to have the payment order issued by the debt enforcement office enforced by the court responsible there at the debtor’s foreign place of residence. The procedure is based on the local legal regulations and is likely to not only take several months, but also cost a lot of money.
Such procedures are often more complicated abroad than in Switzerland. For smaller claims or for debtors with no assets and high debts, this effort is hardly worth it.
Arrest proceedings lead to success in some cases
But there is another way the cheated woman could possibly get her money. If the debtor has left a bank account or other assets behind in Switzerland, they could have these assets subject to a so-called arrest.
In an attachment proceeding, the court blocks the debtor’s assets and the creditors can access them in the debt collection process.
The arrest procedure is complicated and is subject to various requirements. Against this background, it makes sense to seek advice from your legal protection insurance or a lawyer.