Dismissal of the appeal against the bankruptcy petition

Facts

Parties: Appellant [A.] against respondent [B. AG] .

Facts:

• On January 7, 2022, [B. AG] applied for the opening of bankruptcy proceedings against [A.] based on a claim of CHF 2,131.45.
• On February 15, 2022, the District Court of Uster opened the bankruptcy proceedings.
• On February 25, 2022, [A.] filed an appeal with the Higher Court of the Canton of Zurich, which was dismissed on March 29, 2022.
• On May 16, 2022, [A.] approached the Federal Supreme Court and requested the annulment of the higher court's judgment and the dismissal of the bankruptcy petition.
• The Federal Supreme Court granted the appeal suspensive effect, meaning that no enforcement measures may be taken until the decision is rendered.

Considerations

The Federal Supreme Court first examined the admissibility of the appeal and found that the appellant, as a co-debtor, has a legitimate interest in the annulment of the bankruptcy and is thus entitled to appeal.

According to Art. 174 para. 2 DEBA, the opening of bankruptcy proceedings can be annulled if the debtor proves his solvency and the debt is settled or the creditor waives the enforcement of the bankruptcy. The lower court had considered the deposit as fulfilled but did not find the debtor's solvency credible enough.

The Federal Supreme Court confirmed the lower court's assessment that the debtor's solvency…