Restoration of solvency and bankruptcy of citizens of the Republic of Kazakhstan

The legislation of the Republic of Kazakhstan on the restoration of solvency and bankruptcy of citizens of the Republic of Kazakhstan is based on the Constitution of the Republic of Kazakhstan and consists of the Civil Code of the Republic of Kazakhstan, this Law and other regulatory legal acts..

This Law applies to relations arising in connection with the insolvency of a citizen of the Republic of Kazakhstan who is not registered as an individual entrepreneur.

This Law regulates public relations arising from the insolvency of a citizen of the Republic of Kazakhstan, establishes the grounds for the application of the procedure for restoring solvency, as well as the procedures for out-of-court and judicial bankruptcy, the procedure and conditions for their conduct.

Out-of-court bankruptcy.

Considered by the State Revenue Department.

On debts to:

1. Second-tier banks;
2. Microfinance organizations;
3. Collection agencies.

 Conditions:

1. The debt does not exceed 1600 MCI and is not repaid for more than 12 months.
2. There is no property subject to state registration (real estate, land and vehicles).
3. The presence of a document on the settlement of debt with a bank, a microfinance organization (for collectors is not required).

Judicial bankruptcy.

It is considered in court at the debtor's place of residence.

Conditions:

For all types of debts to all creditors.

What do you need to know:

1. In the course of judicial bankruptcy, the debtor's property is sold at auction.
2. If the only housing is the subject of collateral, the creditor will have the right to withdraw it in the course of bankruptcy proceedings.
3. If the only housing is not a pledge, it is not included in the estate.
4. A financial manager is appointed.
5. Payment for the services of the financial manager is made at the expense of the debtor's property (1 minimum wage per month).

The term of bankruptcy is 6 months, with the possibility of extension for 6 months.

Consequences of bankruptcy.

1. It is prohibited to receive loans from banks and microfinance organizations for 5 years.
2. Repeated bankruptcy is possible after 7 years.
3. Control (monitoring) of the acquisition of property is carried out within 3 years after bankruptcy.

Restoration of solvency.

Considered in court. The application is submitted to the court at the debtor's place of residence.

Condition:

The amount of the debt does not exceed the value of the property owned.

 Wellness activities:

1. Sale of part of the property, lease of the property.
2. Sale of housing with the purchase of a new one, exchange for housing with a lower cost, etc.

Advantages:

1. The status of "bankrupt" is not assigned.
2. Without negative consequences (financial monitoring is not carried out, there are no restrictions in obtaining a loan.
3. Installments on debts (up to 5 years).
4. Assistance of the financial manager in developing a plan to restore solvency.
5. The possibility of writing off part of the debt.

The application of the procedure for restoring solvency to citizens, as well as the procedure for out-of-court and judicial bankruptcy, is based on the principles of:

1) legality;

2) justice;

3) publicity and openness;

4) state regulation;

5) conscientiousness of citizens;

6) the onset of consequences.