Seizure of Assets
In Switzerland, Seizure of Assets is a form of compulsory execution to collect money claims from a debtor. An attachment can be initiated if legally recognised claims are not paid after several requests.
If the debtor has a wage that is higher than the non-garnishable minimum wage, a wage garnishment can be agreed with the debtor's employer. The employer then forwards the garnishable part of the wage directly to the debt collection office.
If the wage is too small, it can be garnished "for realisation". This means that the debtor's valuables are sold in order to pay the debt.
If the seizure does not bring in enough money to pay the outstanding debts, loss certificates are issued to the creditors.
Garnishments are registered with the debt collection office and are thus entered into the databases of the recognised credit bureau. Lenders usually wait between three and five years for a person who has been garnished in the past to be reassessed for credit. This period does not begin until the debt has been repaid in full.