Bankruptcy of individuals
Since 2023, Kazakhstan has a law on bankruptcy of individuals. During this time, thousands of citizens used the procedure to get rid of debts and start their financial life from scratch.
However, in 2025, the law was significantly finalized. The amendments made the procedure more flexible, and for many Kazakhstanis - affordable.
On June 30, 2025, the Law of the Republic of Kazakhstan "On Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on the Development of the Financial Market, Protection of the Rights of Consumers of Financial Services, Communications and the Exclusion of Unnecessary Legislative Regulation" was signed.
This Law provides for amendments to the Law of the Republic of Kazakhstan "On the Restoration of Solvency and Bankruptcy of Citizens of the Republic of Kazakhstan" (hereinafter referred to as the Law).
The amendments are effective from August 31, 2025 and include the following key changes:
1. canceled the requirement to settle debt under bank loan agreements and microcredit agreements concluded before January 1, 2025 (subparagraph 3) of paragraph 1 of Article 5 and subparagraph 5) of paragraph 2 of Article 6 of the Law);
2. the right was granted to the debtor to terminate the procedure of out-of-court bankruptcy without specifying the reason (subparagraph 1) of paragraph 1 of Article 18 of the Law);
3. a 6-month period has been established for re-applying for the application of the extrajudicial bankruptcy procedure after the previous termination by the authorized body (new paragraph 4 of Article 18 of the Law);
4. It is determined that after the completion of the out-of-court bankruptcy procedure, all bankruptcy obligations to creditors specified in subparagraph 11) of Article 1 of the Law are subject to termination, including those not reflected in the databases of credit bureaus, except for guarantors, guarantors and (or) pledgers (paragraph 2 of Article 19 of the Law);
5. clarified the powers of the financial manager when conducting bankruptcy proceedings and restoring solvency (new paragraph 1-1 of Article 23 of the Law)