Does a director bear personal liability for company debts?

Generally no, but CO 754 imposes liability for breaches (e.g., failure to notify over‑indebtedness, trading while insolvent, preferential payments). Joint and several; business judgment rule applies; duty to monitor solvency is non‑delegable.

What happens to employees in case of company bankruptcy?

Contracts don’t end automatically. The Konkursamt may terminate with notice or pay in lieu. Wage, vacation and social security claims are first‑priority. If funds are short, employees may seek cantonal insolvency support or receive a Verlustschein.

How long does company liquidation take in Switzerland?

Voluntary liquidation: 6–12 months; 3 months if an auditor confirms all debts are paid. Bankruptcy varies from several months to over 2 years depending on assets, disputes, and cross‑border issues.

What is the typical cost of bankruptcy and restructuring services?

Judicial costs: several thousand CHF (advance often required). Administrators: CHF 150–400/hour. Restructuring advisory: about CHF 50,000–200,000. Notary costs vary by canton. If assets can’t cover costs, the court may suspend proceedings.

What is the priority of creditor claims in Swiss bankruptcy?

Admin expenses first; then priority wage and social security claims; secured creditors from collateral; tax/public claims; unsecured trade and loans; subordinated (e.g., shareholder loans, penalty interest). Pro‑rata within classes.

How does bankruptcy affect contracts, leases, and intellectual property?

Konkursamt can continue or terminate executory contracts; ipso facto clauses may apply. Leases may continue or end with statutory notice; landlords have secured claims for due rent. IP forms part of the estate and can be sold or licensed.

Can a foreign company or non-resident director be involved in Swiss bankruptcy?

Yes. Swiss rules apply to Swiss entities regardless of nationality. Foreign directors have the same CO 725/754 duties and liability, must cooperate with the Konkursamt, and cross‑border coordination may occur under PILA.

What documents should I prepare for the first consultation with a restructuring advisor?

Audited and interim financials, AP/AR aging, 90‑day cash forecast, bank statements, loan/security docs, articles/bylaws and cap table, key contracts, org chart and payroll, tax filings/status, social security status, licenses, disputes, interim balance sheets.

What are the tax implications of restructuring and bankruptcy in Switzerland?

Debt forgiveness tax‑free up to over‑indebtedness; asset sales may trigger gains/losses; loss carryforwards 7 years (watch change‑of‑control); VAT on asset sales and bad‑debt relief; 35% WHT on liquidation distributions; cantonal variations—use a tax advisor.

20.12.2025 • 20 min read

Bankruptcy, restructuring and insolvency of business in Switzerland

When a Swiss company faces financial distress, three paths emerge: immediate liquidation through bankruptcy (Konkurs), operational rescue via restructuring (Sanierung), or early intervention before crisis escalates. The choice depends on solvency status, creditor pressure, and realistic recovery prospects.

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By Markus Pritzker

Swiss Business Lawyer & Corporate Formation Specialist. Off-counsel at SwissFirma network.

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