The commonly used concept of bankruptcy in the world practice means the continuing state of insolvency of the enterprise, the inability to pay for its obligations.
The law of the Republic of Kazakhstan "on rehabilitation and bankruptcy "in article 6 of Chapter 1 formulates the concept of bankruptcy as"the insolvency of the debtor recognized by a court decision, which is the basis for its liquidation".
Article 7 of Chapter 1 of the law defines bankruptcy procedure as a procedure carried out for the purpose of satisfying creditors ' claims at the expense of the bankruptcy estate in accordance with the procedure established by the laws of the Republic of Kazakhstan.
The rehabilitation procedure is a settlement of creditors ' claims under the protection of the court. If it is imposed on the debtor, rehabilitation provides, among other things, for suspending the execution of any judicial acts against the debtor (for example, on the recovery of funds, including tax arrears), prohibiting the collection of money from the debtor's Bank accounts, as well as suspending the accrual of any penalties and remuneration in respect of the debt, etc. Any claims of creditors against the debtor can only be made as part of the rehabilitation procedure.