What is important for citizens to know when applying for out-of-court bankruptcy

What is important for citizens to know when applying for out-of-court bankruptcy

Since March 3, the reception of applications from citizens for bankruptcy has begun, more than 18 thousand applications have already been received. Basically, applications are received through the e-government portal eGov.kz (94%), as well as through the e-Salyq Azamat mobile application (6%).

        According to the requirements of the Law "On the Restoration of Solvency and Bankruptcy of Citizens of the Republic of Kazakhstan", within 15 working days, the state revenue authorities check the citizen's compliance with the following conditions:

  1. debt to banks, microfinance organizations (MFOs) and/or collection agencies should not exceed 5.5 million tenge (1600 MCI);
  2. the delay in payment of debts must exceed 12 months;
  3. there is no property, including jointly acquired in marriage (car, apartment, house, plot, bank deposit, etc.);
  4. the procedure of settlement with banks and MFOs on debts has been carried out.

       Verification of compliance with the specified criteria is carried out automatically, by checking with electronic databases of registering state bodies, banks and credit bureaus.

         According to preliminary data, it has already been revealed that individual citizens cannot apply for bankruptcy for the following reasons:

- there is a partial repayment of the debt within 12 months;

- does the debtor or his spouse have property;

- there is no document on debt settlement with a bank or MFO;

- the presence of registration of individual entrepreneurship;

- receipt of the TSA for a period of less than 6 months.

       These citizens will be notified of the refusal to apply the out-of-court bankruptcy procedure via the 1414 service to the phone.

If such Notification is received, the application can be submitted again after 3 months if the criteria for out-of-court bankruptcy are met.

       To eliminate the reasons for refusal, it is necessary to contact the appropriate authorized body:

  1. on the availability of property, on participation in legal entities – to the justice authorities (PSC, E-Government portal);
  2. about land plots, farm animals and special equipment – to the local akimat.
  3. by motor transport – to territorial divisions of departments of internal affairs or to Specialized PSC (if available);
  4. on the availability of individual entrepreneurship – to the district State Revenue Department;
  5. about the amount of the loan, the maturity dates – to the appropriate bank, MFO or collection organization. If a bank or an MFI or a collection agency does not issue a relevant document, citizens can contact the regional branch of the Agency for Regulation and Development of the Financial Market.

    If the debtor is denied out-of-court bankruptcy due to the presence of property, he has the right to file an application to the district court at the place of residence for the application of the procedure for restoring solvency or judicial bankruptcy (articles 6, 20-22 of the Law).