Switzerland Announced New Rules on Bankruptcy to Help Swiss Business Hit by Corona.

SWISS GOVERNMENT EASED THE BANKRUPTCY LAW IN ORDER TO PREVENT THE CORONA-RELATED BANKRUPTCIES AMONG COMPANIES IN SWITZERLAND.

The new rules will be effective on 20th April 2020. The main purpose of this “life-saving” is to keep the number of job loss as low as possible.

The government said in a statement “The regulation provides temporary relief from the requirement to report indebtedness that would normally lead to immediate bankruptcy, as well as an option for a limited, unbureaucratic deferral of debt linked to the epidemic, in particular for small- and medium-size businesses,” .

Companies need to show that they were in good standing at the end of 2019 and are now severely affected by the Covid-19 situation. Companies who meet these criteria are allowed to delay their financial-difficulty declaration at courts and small companies can send an application to extend the period of paying back their debts from 3 to 6 months.