Swiss corporate bankruptcies surged in 2025, but the country’s economy is not necessarily collapsing. Much of the increase stems instead from a legal reform that has made it easier to force insolvent firms into formal bankruptcy proceedings.
According to figures released by the Federal Statistical Office (FSO), 13,612 bankruptcy proceedings were opened last year under Switzerland’s debt-enforcement law. Of these, 12,485 concerned companies and 1,127 private individuals.
The rise was dramatic. Overall bankruptcies increased by 48.5% compared with the previous year, while corporate bankruptcies jumped by more than 61%. Personal bankruptcies, by contrast, fell by roughly one-fifth.
At first glance the figures might suggest a wave of economic distress. Yet the main explanation lies in a revision to the Federal Act on Debt Enforcement and Bankruptcy, which came into force on January 1st 2025. Previously, public creditors such as tax authorities or social-security agencies could often recover unpaid debts only through asset seizures. Under the new rules, they are now more likely to initiate bankruptcy proceedings directly against delinquent firms.
The reform effectively lowers the threshold for removing chronically indebted companies from the market. Policymakers argue that this will strengthen the long-term health of the economy by eliminating businesses that survive despite being effectively insolvent. Switzerland has long tolerated a surprising number of such zombie firms, kept alive through delayed enforcement and creditor patience.
In the short run, however, the clean-up produced alarming statistics. Many companies that might once have lingered in legal limbo are now entering formal bankruptcy proceedings instead. The authorities acknowledge that the reform is responsible for much of the increase, though they say it is impossible to determine precisely how many cases stem directly from the legislative change.
The number of completed bankruptcy proceedings also rose by around 10% during the year. Financial losses recorded through bankruptcy certificates—a document recognising unpaid debts after insolvency proceedings—amounted to nearly CHF 1.8bn ($2.3bn).
The figures therefore reveal less about a sudden deterioration in the Swiss economy than about a shift in how insolvency is handled. Even so, they hint at broader pressures facing businesses. Higher borrowing costs, slowing European growth and weak industrial demand have all made life harder for smaller firms in particular.
For now, Switzerland’s bankruptcy boom looks less like a crisis than an overdue reckoning. Whether it ultimately produces a healthier corporate landscape—or simply exposes deeper fragilities—will become clearer only after the legal dust settles.
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