Switzerland advances landmark debt relief reforms for struggling individuals
Switzerland is moving closer to reforming its debt laws for struggling individuals. The Council of States has now backed a bill to amend the Debt Enforcement and Bankruptcy Act (SchKG), offering new options for private debt restructuring. This follows earlier approval by the National Council last winter.
The proposed changes aim to help hopelessly indebted individuals restructure their debts under certain conditions. One key feature includes a debt haircut for those unable to reduce what they owe on their own. The bill must still pass through detailed discussions in the Council of States, where several minority motions remain on the table.
As of March 2026, 12 cantons have taken public positions on the reforms. Eight—including Zurich, Bern, and Geneva—support the amendments, while four, such as Valais, Schwyz, and Thurgau, oppose them. The Council of States recently approved the bill in a 33-to-8 vote, pushing it closer to becoming law.
The reforms would introduce structured bankruptcy proceedings for eligible individuals. If finalised, the changes will provide a clearer path for private debt relief in Switzerland. The next steps depend on the Council of States resolving remaining motions before implementation.
