Document background
A Payment Plan Contract is utilized when parties need to establish a structured approach to debt repayment through scheduled installments. This document is particularly relevant in situations where a debtor requires extended time to fulfill financial obligations, whether in business-to-business or business-to-consumer contexts. Under Swiss law, these agreements must comply with the Swiss Code of Obligations and, where applicable, consumer credit regulations. The contract typically details payment schedules, default provisions, and any security arrangements, while considering Swiss debt collection procedures. It serves as a risk management tool for creditors while providing debtors with a manageable repayment structure. The agreement can be customized for various debt types, from commercial credits to consumer payments, and may include provisions for early repayment or default scenarios.
