Document background
The Debt Resolution Agreement is utilized when parties seek to formally document the terms of settling outstanding financial obligations under Swiss law. This document becomes necessary when a debtor and creditor agree to resolve debt through structured payments, potential partial debt forgiveness, or restructuring. It's particularly relevant in situations involving commercial debts, consumer debts, or corporate financial restructuring. The agreement must comply with Swiss legal requirements, particularly the Swiss Code of Obligations and the Federal Debt Enforcement and Bankruptcy Act. It typically includes detailed payment schedules, consequences of default, and may incorporate provisions for interest adjustment or debt write-offs. This document is crucial for both parties as it provides legal certainty and clear terms for debt resolution, while ensuring enforceability under Swiss jurisdiction.
