Freezing Orders

Charges and fees

The costs of distraint order proceedings are basically equal to those of bankruptcy proceedings. The costs of these proceedings are therefore relatively economical. The costs depend on the value in litigation and are calculated according to the following tariffs:

Proceedings to obtain distraint order	Value in litigation in CHF	Charges in CHF
	up to 1.000.–	40 – 150
	1.000 to 10.000	50 – 300
	10.000 to 100.000	60 – 500
	100.000 to 1.000.000	70 – 1’000
	exceeding 1.000.000	120 – 2’000

Execution of distraint order	Value in litigation in CHF	Charges in CHF
	up to 100	10
	100 to 500	25
	500 to 1.000	45
	1.000 to 10.000	65
	10.000 to 100.000	90
	100.000 to 1.000.000	190
	exceeding 1.000.000	400

Should legal action be unavoidable, e.g. action for recognition of debt, the charges are calculated on the basis of the court tariffs. This means that the charges depend on the procedural law at the place of jurisdiction. These tariffs may be a multiple of the fees detailed above. Therefore it is important to assess the risks and benefits before starting the validation of a distraint order, especially, if it is unknown whether the value of the seized assets matches the value of the creditor’s claim. Problems may arise if for example a bank account of the debtor is known but not its balance or if real estate is subject to the distraint order but it is unknown how high a mortgage the asset is subject to.

The creditor is obliged to pay all charges in advance. The creditor may only demand compensation for his expenditures in the course of the validation proceedings. Compensation again depends on the rules in the procedural code at the place of jurisdiction.

Apart from these charges, the creditor has to pay the fees of his legal councillor. The fees depend on the agreement and on the necessary expenditure of work.

Security bond

The creditor initiating the distraint order can be held responsible for damage caused to the debtor if the seizure is unjustified. Thus the judge may oblige the creditor to provide security. This precautionary measure may constitute a rather large hindrance for the prosecuting creditor. Legal action can be taken against the court’s decision to demand security.