Debt Forgiveness Agreement for Switzerland

Debt Forgiveness Agreement Template for Switzerland

A Swiss law-governed Debt Forgiveness Agreement is a formal legal document that establishes the terms and conditions under which a creditor agrees to cancel, release, or forgive all or part of a debt owed by a debtor. The agreement must comply with Swiss Code of Obligations requirements and addresses key aspects including the amount of debt being forgiven, tax implications, and mutual releases. It includes specific provisions required under Swiss law for the valid waiver of obligations and typically requires careful consideration of both civil law requirements and tax consequences under Swiss federal and cantonal regulations.

Your data doesn't train Genie's AI

You keep IP ownership of your information

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Download a Standard Template

4.6 / 5
4.8 / 5
Access for free
OR

Alternatively: Run an advanced review of an existing
Debt Forgiveness Agreement

Let Genie AI's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.
Upload your Doc

What is a Debt Forgiveness Agreement?

The Debt Forgiveness Agreement is utilized when a creditor decides to formally release a debtor from their obligation to repay a debt, either partially or in full. This document is particularly important in Swiss business and financial contexts, where formal requirements for the release of obligations must be strictly followed under the Swiss Code of Obligations. The agreement serves multiple purposes: it provides legal certainty for both parties, addresses tax implications (as debt forgiveness may be treated as taxable income in Switzerland), and helps prevent future disputes. It's commonly used in business restructuring, financial hardship situations, or as part of settlement negotiations. The document must be carefully drafted to ensure compliance with Swiss federal and cantonal laws, particularly regarding formal requirements for contract validity and tax reporting obligations.

What sections should be included in a Debt Forgiveness Agreement?

1. Parties: Identification of the creditor and debtor, including full legal names, addresses, and any registration numbers

2. Background: Context of the original debt, including its origin, nature, and current status

3. Definitions: Definitions of key terms used throughout the agreement

4. Acknowledgment of Debt: Clear statement of the existing debt amount and its components (principal, interest, fees)

5. Debt Forgiveness: Explicit terms of the debt forgiveness, including amount forgiven and any remaining obligations

6. Effective Date: Specification of when the debt forgiveness takes effect

7. Release and Waiver: Mutual release of claims related to the forgiven debt

8. Tax Implications: Acknowledgment of tax consequences and responsibilities

9. Representations and Warranties: Statements by both parties confirming their authority and capacity to enter into the agreement

10. Governing Law and Jurisdiction: Confirmation of Swiss law application and jurisdiction for disputes

11. Entire Agreement: Integration clause confirming this document represents the complete agreement

12. Execution: Signature blocks and execution requirements

What sections are optional to include in a Debt Forgiveness Agreement?

1. Partial Forgiveness Terms: Used when only a portion of the debt is being forgiven, specifying remaining payment obligations

2. Conditions Precedent: Include when debt forgiveness is contingent on certain conditions being met

3. Confidentiality: Include when parties wish to keep the terms of the forgiveness private

4. Future Cooperation: Include when parties anticipate ongoing business relationship

5. Regulatory Compliance: Include when the debt forgiveness requires specific regulatory notifications or compliance

6. Third Party Rights: Include when the debt involves guarantors or other third parties

7. Severability: Include when parties want to ensure partial invalidity doesn't affect entire agreement

8. Force Majeure: Include when forgiveness is linked to extraordinary circumstances

What schedules should be included in a Debt Forgiveness Agreement?

1. Schedule A - Debt Details: Detailed breakdown of the debt being forgiven, including calculation of principal, interest, and other charges

2. Schedule B - Payment History: Record of previous payments made on the debt

3. Schedule C - Related Security Interests: List of any security interests or collateral to be released

4. Appendix 1 - Original Loan Agreement: Copy of the original agreement creating the debt

5. Appendix 2 - Corporate Authorizations: Copies of corporate resolutions or authorizations for debt forgiveness

6. Appendix 3 - Tax Forms: Relevant tax forms or declarations required for debt forgiveness

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Switzerland

Publisher

Genie AI

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant Industries

Banking and Financial Services

Real Estate

Manufacturing

Retail

Professional Services

Healthcare

Technology

Construction

Hospitality

Agriculture

Education

Non-profit Organizations

Relevant Teams

Legal

Finance

Tax

Treasury

Credit Control

Accounts Receivable

Risk Management

Compliance

Corporate Governance

Business Recovery

Debt Collection

Relevant Roles

Chief Financial Officer

Finance Director

Credit Manager

Accounts Receivable Manager

Legal Counsel

Tax Director

Risk Manager

Treasury Manager

Debt Collection Officer

Corporate Controller

Restructuring Officer

Chief Executive Officer

Company Secretary

Compliance Officer

Financial Analyst

Business Recovery Specialist

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

Find the exact document you need

Personal Loan Contract Between Family

Swiss-law governed agreement formalizing loan arrangements between family members, including terms for amount, repayment, and interest.

find out more

Legally Binding Loan Agreement

Swiss law-governed loan agreement establishing terms and conditions for lending arrangements, including loan amount, interest, repayment terms, and party obligations.

find out more

Simple Shareholder Loan Agreement

A Swiss-law governed agreement documenting the terms of a loan from a shareholder to their company, including key commercial terms and compliance requirements.

find out more

Employer Loan To Employee Agreement

A Swiss law-governed agreement establishing terms for an employer-provided loan to an employee, including loan amount, repayment terms, and employment-related provisions.

find out more

Unsecured Personal Loan Agreement

Swiss law-governed agreement for unsecured personal lending, compliant with Swiss Code of Obligations and Consumer Credit Act requirements.

find out more

Term Loan Facility Agreement

Swiss law-governed agreement establishing terms and conditions for a term loan facility, including loan amount, interest, repayment, and security arrangements.

find out more

Personal Loan Letter

A Swiss-law governed Personal Loan Letter documenting terms and conditions of a personal loan, including amount, interest, and repayment terms.

find out more

Family Member Promissory Note

A Swiss-law governed promissory note documenting loan arrangements between family members, incorporating specific provisions for familial financial arrangements and Swiss legal requirements.

find out more

Loan Agreement Between Family Members

Swiss law-governed loan agreement template for structured lending arrangements between family members, incorporating key Swiss legal requirements and family law considerations.

find out more

Facility Loan Agreement

Swiss law-governed agreement establishing terms and conditions for providing loan facilities, including key lending terms, security arrangements, and regulatory compliance requirements.

find out more

Overagreement

A Swiss law framework agreement establishing master terms for ongoing business relationships and future transactions.

find out more

Loan Note Register

A Swiss law-governed register documenting the ownership and transfer of loan notes, serving as the official record under Swiss securities regulations.

find out more

Litigation Financing Agreement

Swiss law-governed agreement establishing terms for third-party litigation funding, including funding scope, returns, and control mechanisms.

find out more

Inter Corporate Loan Agreement

A Swiss law-governed agreement establishing terms for corporate-to-corporate lending, structured under Swiss Code of Obligations and financial regulations.

find out more

House Loan Contract

A Swiss law-governed agreement between a lender and borrower for residential property financing, detailing loan terms, security arrangements, and obligations under Swiss banking regulations.

find out more

Money Lending Form

A Swiss-law governed agreement establishing terms and conditions for lending money, compliant with Swiss banking and financial regulations.

find out more

Subordinated Loan Agreement

A Swiss law financing agreement documenting a subordinated loan arrangement where the lender's claims rank behind senior creditors, incorporating specific Swiss legal and regulatory requirements.

find out more

Promise Note

A Swiss law-governed formal instrument containing an unconditional promise to pay a specified sum of money to a designated party at a future date.

find out more

Interest Loan Agreement

A Swiss law-governed agreement establishing terms for an interest-bearing loan, including loan amount, interest rates, and repayment conditions.

find out more

Personal Loan Between Friends Contract

A Swiss law-governed agreement formalizing a personal loan arrangement between friends, including loan terms, repayment conditions, and parties' obligations.

find out more

Contract For Land Purchase

Swiss law-governed agreement for land transfer, requiring notarization and land registry registration, detailing property specifications, price, and transfer conditions.

find out more

Loan Participation Agreement

Swiss law-governed agreement establishing terms for a financial institution's participation in a loan made by another lender, including payment mechanics and risk allocation.

find out more

Investment Loan Contract

A Swiss law-governed agreement establishing terms for providing and managing investment-focused loan facilities, incorporating key Swiss regulatory requirements and investment criteria.

find out more

Facility Agreement

A Swiss law-governed agreement establishing terms and conditions for providing financial facilities, incorporating Swiss legal requirements and international lending practices.

find out more

Small Business Loan Contract

Swiss law-governed loan agreement for small business financing, compliant with Swiss banking regulations and commercial law.

find out more

Simple Loan Term Sheet

A preliminary document under Swiss law outlining key commercial and legal terms of a proposed loan arrangement, serving as the foundation for a detailed loan agreement.

find out more

Loan Forgiveness Agreement

A Swiss law-governed agreement documenting the release of a borrower from their obligation to repay all or part of an existing loan, including associated terms and conditions.

find out more

Loan And Mortgage Agreement

A Swiss law-governed agreement combining loan provisions with mortgage security arrangements, establishing terms for lending and property security in Switzerland.

find out more

Loan Agreement Term Sheet

A Swiss law-governed term sheet outlining key commercial and legal terms for a proposed loan facility, serving as the foundation for detailed loan documentation.

find out more

Line Of Credit Contract

A Swiss law-governed agreement establishing a flexible credit facility between a lender and borrower, setting out terms for accessing and repaying credit up to a predetermined limit.

find out more

International Loan Agreement

Swiss law-governed agreement establishing terms for international lending arrangements, including loan terms, security, and cross-border considerations.

find out more

Equipment Loan Agreement Form

Swiss law-governed agreement establishing terms for temporary equipment loans, including maintenance, liability, and return conditions.

find out more

Short Term Loan Agreement

Swiss law-governed agreement establishing terms and conditions for a short-term loan, including loan amount, interest, and repayment provisions.

find out more

Real Estate Mortgage Agreement

A Swiss law-governed agreement establishing a mortgage over real estate property, detailing loan terms and security arrangements under the Swiss mortgage certificate (Schuldbrief) system.

find out more

Real Estate Loan Agreement

A Swiss law-governed agreement setting out terms and conditions for real estate-secured financing, including loan terms, security arrangements, and compliance with Swiss banking and property regulations.

find out more

Mezzanine Loan Agreement

A Swiss law-governed agreement for subordinated debt financing with equity-like features, establishing terms for mezzanine lending including security, subordination, and potential equity conversion rights.

find out more

Master Loan Agreement

Swiss law-governed framework agreement establishing terms and conditions for ongoing lending relationships between financial institutions and borrowers.

find out more

Margin Loan Agreement

A Swiss law agreement governing margin lending facilities secured by financial instruments, compliant with Swiss financial services regulations and banking requirements.

find out more

Loan Note Agreement

A Swiss law-governed agreement documenting terms of loan notes issuance, including interest, repayment, and noteholder rights.

find out more

Loan Guarantee Agreement

A Swiss law-governed agreement where a guarantor secures a borrower's loan obligations, subject to Swiss Code of Obligations requirements.

find out more
See more related templates

Genie’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; Genie’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

You have full control over your data and who gets to see it

2 Docs LeftAccess Now