Draft Law “On Restoring Solvency and Bankruptcy of Citizens of the Republic of Kazakhstan”

Dear citizens, we bring to your attention some points of the Draft Law “On the restoration of solvency and bankruptcy of citizens of the Republic of Kazakhstan”.

This Draft Law provides for three types of procedures: out-of-court bankruptcy, restoration of solvency, judicial bankruptcy. Out-of-court bankruptcy procedure is a procedure carried out in respect of a debtor out of court in order to terminate obligations. This procedure is available for people who do not have a stable income and prospects for debt repayment.

The procedure for restoring solvency is a procedure applied in court, within the framework of which financial, legal and other measures not contradicting the legislation of the Republic of Kazakhstan are applied to the debtor, aimed at restoring the solvency of the debtor.

This procedure is possible for persons with a stable income, who, together with the financial manager, develops a plan for restoring solvency for up to five years. Judicial bankruptcy procedure is a procedure carried out in relation to the debtor in a judicial proceeding in order to satisfy the claims of creditors at the expense of the bankrupt's estate.

This procedure can be applied by persons with a debt of more than 5 million tenge and in the presence of property that will be sold through auction. Before deciding to use one of the above procedures, every citizen must be aware of the responsibility before the law, understand that this bill was developed in order to support citizens who find themselves in a difficult financial situation by coincidence.