Document background
A Demand Letter For Loan Payment is a critical document in the Swiss debt collection process, utilized when a borrower has failed to meet their loan repayment obligations. This formal notice, governed by Swiss law and particularly the Swiss Code of Obligations, serves as an essential step before initiating formal debt enforcement proceedings. The document is typically issued after informal payment requests have been unsuccessful and before pursuing legal action. It must contain specific elements required under Swiss law, including clear identification of the parties, precise loan details, exact outstanding amounts, payment instructions, and a reasonable deadline for payment. The letter also serves as important evidence in any subsequent legal proceedings, demonstrating the creditor's attempt to resolve the matter before pursuing more formal collection measures.
