Authorities in several Swiss cantons are gearing up for a sharp rise in the number of bankruptcies this year, possibly double the number in 2024, reported SRF.
Some cantons are employing new staff to deal with the sharp rise, which is partly due to a change in the rules. Many companies on the edge of bankruptcy are kept alive by the forebearance of cantonal and municipal creditors.
Unsurprisingly, the public sector is the largest creditor in Switzerland. These debts are mainly unpaid taxes, interest and penalties.
A new law that came into force on 1 January 2025 requires insolvent companies to be liquidated to pay outstanding balances owed to public creditors.
Insolvent companies owe more than they own. Forcing them to liquidate means not everyone owed money will get it back. However, outstanding taxes take priority and are the first bite, so the new rule will mean more money faster for the public sector.
Previously, insolvent companies had assets seized and were given two years to turn things around. However, some claimed this gave these companies an unfair advantage, a form of financing that competitors were unable to access.
More on this:
SRF article (in German)
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