Document background
The Debt Recovery Letter of Demand is a crucial document in Swiss business operations, used when formal attempts to collect outstanding payments are necessary. It serves as a prerequisite to initiating formal debt collection proceedings under Swiss law, particularly under the Swiss Debt Enforcement and Bankruptcy Act (SchKG/LP). This document is typically issued after informal payment reminders have been unsuccessful and before engaging debt enforcement authorities. It must contain specific information including the exact amount owed, payment deadline, and consequences of non-payment, while complying with Swiss legal requirements regarding form and content. The letter establishes a clear paper trail and demonstrates the creditor's attempt to resolve the matter before pursuing legal enforcement.
