Cost of proceedings

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.

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