In Switzerland, Loss Certificates document the results of an unsuccessful debt collection. In Switzerland, loss certificates are either regarded as an acknowledgement of debt or they show the loss of a company.
The debt collection office or the bankruptcy court issues the loss certificate as soon as the amount of the loss has been determined. For the creditor, a loss certificate can also serve as a means of payment and be transferred or sold to other persons or companies.
Of course, the debtor does not escape his obligation to pay, but he does not have to pay interest rate on the outstanding debt. As a rule, loss certificates expire after 20 years.