The Republic of Kazakhstan continues implementing legislation aimed at restoring citizens’ solvency and regulating problematic debt obligations. Rehabilitation and bankruptcy procedures allow debtors to legally settle obligations with creditors and reduce their debt burden.
In accordance with the current legislation, citizens of the Republic of Kazakhstan may apply procedures of out-of-court bankruptcy, judicial bankruptcy, and solvency restoration. The primary purpose of these mechanisms is to provide citizens with an opportunity to regulate their financial obligations while complying with the requirements established by law.
The out-of-court bankruptcy procedure applies to citizens who have no property and are unable to fulfill their obligations. This procedure concerns debts owed to banks, microfinance organizations, and collection agencies. Applications may be submitted through the e-Government portal, mobile applications of second-tier banks, or information services of the state revenue authorities.
The judicial bankruptcy procedure is applied in cases where a debtor owns property or where disputed obligations exist. Within this procedure, an assessment of the debtor’s financial situation is conducted, creditors’ claims are reviewed, and a court decision is issued.
The legislation also provides for a solvency restoration procedure. This mechanism allows citizens to retain their property and repay debts according to an approved payment schedule. The measure is intended for individuals who have stable income and the ability to gradually fulfill their obligations.
It should be noted that being declared bankrupt entails certain legal consequences, including restrictions on obtaining loans for a specified period and financial monitoring procedures.
The State Revenue Department of the Aktobe region recommends that citizens carefully study the conditions and conditions of rehabilitation and bankruptcy procedures and seek timely advice through official public services.