The Federal Assembly passed the Federal Act on Combating Abusive Bankruptcy in March 2022. This step builds on previous efforts such as the
banking act revision, which enhanced the legal infrastructure of Switzerland’s financial system to prevent structural loopholes. The law on combating abusive bankruptcy includes amendments to several laws, namely
the Code of Obligations (CO),
the Debt Enforcement and Bankruptcy Act (SchKG), the Criminal Code (SCC), and the Federal Direct Federal Tax Act (DBG). These changes are a response to findings like those in the
Risk Monitor 2023, which identified legal abuse and insolvency fraud as emerging risks to financial sector integrity. The Federal Council brought the various legislative and ordinance amendments into force on January 1, 2025. These include the amendment to
Art. 43 SchKG, according to which claims under public law are now also subject to bankruptcy proceedings.