The legislation of the Republic of Kazakhstan on the restorating solvency and bankruptcy of citizens of the Republic of Kazakhstan is based on the Constitution Of the Republic of Kazakhstan and consists of Civil Code of of the Republic of Kazakhstan, this Law and other regulatory legal acts.
This Law applies to relations arising in connection with insolvency of a citizen of the Republic of Kazakhstan who is not registered as an individual entrepreneur.
This Law regulates public relations arising from insolvency of a citizen of the Republic of Kazakhstan, defines the reasons 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 such actions.
Out-of-court bankruptcy.
is considered by the State Revenue Department at the debtor's place of residence.
On debts owed to:
Second-tier banks;
Microfinance organizations;
Collection agencies.
Conditions:
The debt does not exceed 1600 MCI and not repaid for 12 consecutive months.
There is no property subject to state registration (real estate, transport means).
Debt settlement with a bank or microfinance organization is carried out within a period not exceeding 12 months from the date of the occurrence of overdue debt.
Judicial bankruptcy.
is considered in court at the debtor's place of residence.
Conditions:
On all types of debts owed to all creditors.
What you need to know:
During judicial bankruptcy, the debtor's property is sold by auction.
If the debtor's only residential property is the subject of pledge, the creditor entitled to withdraw it during judicial bankruptcy.
If the debtor's only residential property is not a pledge, it is not included in the insolvency estate.
A financial manager is appointed.
Payment for the services of the financial manager is made paid out of the assets of the debtors. (1 minimum wage per month).
The term of bankruptcy is 6 months, with the possibility of extension for 6 months.
Effects of bankruptcy.
It is prohibited to receive loans from banks and microfinance organizations for 5 years.
New bankruptcy is possible after 7 years.
Monitoring ( control) of the acquisition of property for 3 years after bankruptcy.
Restoring solvency.
is considered in court. An application is submitted to the court at the debtor's place of residence.
Condition:
Late charges are not required to apply this procedure. The amount of debt exceeds the value of the owned property and income.
Actions for restoring:
Sale of part of the property, lease of the property.
Sale of housing with the purchase of a new one, exchange for housing with a lower cost, etc..
Benefits:
The status of bankrupt is not assigned.
Without negative consequences (financial monitoring is not carried out, no restrictions on getting a loan.
Installment payment on debts (up to 5 years).
Financial manager's assistance in developing a solvency recovery plan.
Options for reduction of a part of the debt.
Applying 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) government regulation;
5) honesty of citizens;
6) occurrence of the consequences.