Q&A

1. Where can I find the reason for a refusal and/or the decision regarding personal bankruptcy?

According to subparagraph 1) of paragraph 1 of Article 47 of the Law of the Republic of Kazakhstan “On Restoration of Solvency and Bankruptcy of Citizens of the Republic of Kazakhstan,” the authorized body publishes on its website and on the “electronic government” web portal:

1. a list of citizens in respect of whom an out-of-court bankruptcy procedure has been applied, terminated, or completed;

2. a list of citizens in respect of whom the relevant court rulings and decisions have entered into legal force.

Information on the status of an application, the decision to apply or complete the bankruptcy procedure, or to refuse to apply the procedure, as well as the grounds for the decision, is available in the personal account on the eGov.kz web portal and on the Tazalau (Qoldau) portal.

Thus, information regarding a bankruptcy application can be viewed through the above-mentioned electronic services.

2. Once a person has been declared bankrupt, how long does it take for the debts to be written off?

The debtor’s obligations to creditors are terminated from the date on which an announcement concerning the completion of the out-of-court bankruptcy procedure and recognition of the debtor as bankrupt is published on the “electronic government” web portal.

3. I was declared bankrupt three years ago, and after three years the bankruptcy was revoked. Where can I find the grounds for the revocation?

The authorized body monitors the financial condition of a bankrupt for three years after the debtor has been declared bankrupt.

Upon receiving information from the authorized body, creditors have the right to apply to the court for cancellation of the recognition of the debtor as bankrupt and resumption of the bankruptcy procedure in accordance with the Civil Procedure Code of the Republic of Kazakhstan.

According to subparagraph 1) of paragraph 1 of Article 47 of the Law, the authorized body publishes on its website and on the “electronic government” web portal:

1. a list of citizens in respect of whom an out-of-court bankruptcy procedure has been applied, terminated, or completed;

2. a list of citizens in respect of whom the relevant court rulings and decisions have entered into legal force.

Information on the status of an application, the decision to apply or complete the bankruptcy procedure, or to refuse to apply the procedure, as well as the grounds for the decision, is available in the personal account on the eGov.kz web portal and on the Tazalau (Qoldau) portal.

4. Can I apply for restoration of solvency if I have a stable income of KZT 250,000, while my monthly loan payments amount to KZT 220,000 and my total debt is KZT 4 million?

If a citizen has a stable income, they have the right to apply to the court for the application of a solvency restoration procedure.

The possibility of applying the procedure and the conditions for restoring solvency are determined by the court, taking into account the debtor’s financial condition and the conclusion of the financial administrator.

5. Can I work as a self-employed person or individual entrepreneur after being declared bankrupt?

A bankrupt person cannot be granted a loan for five years from the date on which the announcement of completion of the out-of-court bankruptcy procedure is published. In addition, collateral, guarantees, and sureties from such a person cannot be accepted under bank loan and microcredit agreements (paragraphs 2 and 3 of Article 19 of the Law of the Republic of Kazakhstan “On Restoration of Solvency and Bankruptcy of Citizens of the Republic of Kazakhstan”).

At the same time, these restrictions do not deprive a citizen of the right to engage in employment or entrepreneurial activities in accordance with the procedure established by law.

Thus, being declared bankrupt does not prevent a citizen from obtaining employment, working as a self-employed person, registering as an individual entrepreneur, or engaging in entrepreneurial activities.

6. More than six months have passed since we submitted an application for bankruptcy, but there is still no decision. Where can I find the application/decision on the Qoldau portal? Six months ago, I received an SMS saying that the application was under review, but I cannot find it now.

According to paragraph 1 of Article 17 of the Law “On Restoration of Solvency and Bankruptcy of Citizens of the Republic of Kazakhstan,” the period for conducting an out-of-court bankruptcy procedure by the authorized body is six months from the date on which information about the debtor is posted on the “electronic government” web portal.

Information on the status of an application, the decision to apply or complete the bankruptcy procedure, or to refuse to apply the procedure, as well as the grounds for the decision, is available in the personal account on the eGov.kz web portal and on the Tazalau (Qoldau) portal.

7. I received a positive decision regarding bankruptcy and was declared bankrupt. A private bailiff is asking me to pay for their services and categorically refuses to remove the seizure unless I pay. Is this correct?

The debtor’s obligations to creditors are terminated from the date on which an announcement concerning the completion of the out-of-court bankruptcy procedure and recognition of the debtor as bankrupt is published on the “electronic government” web portal.

Regarding the refusal to remove a seizure imposed by a private bailiff, it is recommended to contact the Ministry of Justice of the Republic of Kazakhstan and/or the Republican Chamber of Private Bailiffs of the Republic of Kazakhstan.

8. I am applying for out-of-court bankruptcy through eGov. My debts are only to banks, while there are enforcement proceedings with private bailiffs. Will my salary be seized? Or will I be unable to use my bank accounts until the six-month period ends because of the seizure?

After the out-of-court bankruptcy procedure is applied, enforcement proceedings concerning claims of creditors covered by this procedure are suspended. Seizures imposed by private bailiffs are removed only after the out-of-court bankruptcy procedure has been completed and the debtor has been declared bankrupt.

9. If a debtor has not made any voluntary payments toward their debt during the 12 months preceding the application, but the bank automatically (forcibly) debited money from the debtor’s account, including on the basis of a notarial writ of execution, is this considered repayment of the debt that prevents the application of the out-of-court bankruptcy procedure?

According to subparagraph 2) of paragraph 1 of Article 5 of the Law, the absence of repayment of obligations for twelve consec