Document background
The Formal Demand for Payment is a critical document in Swiss commercial and civil practice, used when informal attempts to collect payment have been unsuccessful. It serves as a final warning before initiating formal debt collection proceedings through Swiss authorities. This document must comply with requirements set forth in the Swiss Code of Obligations and the Federal Act on Debt Collection and Bankruptcy, including specific content requirements such as clear identification of parties, precise debt amounts, payment terms, and consequences of non-payment. Typically issued after payment deadlines have passed, it represents an escalation in the debt collection process and may be prepared by creditors directly or through legal representatives. The document's format and content must be carefully considered to ensure its validity under Swiss law and its effectiveness as a potential exhibit in subsequent legal proceedings.
