On extrajudicial and judicial bankruptcy, as well as procedures for restoring the solvency of individuals

In accordance with the provisions of the Law “On the Restoration of Solvency and Bankruptcy of Citizens of the Republic of Kazakhstan,” three main procedures are in effect:

1. Extrajudicial bankruptcy

Considered by the Department of State Revenue

The application is submitted via the e‑government portal EGOV.

For debts owed to:

1. Second‑tier banks;
2. Microfinance organizations;
3. Debt collection agencies.

Conditions:

1. The debt does not exceed 6.9 million tenge (1,600 MCI) and has not been repaid for more than 12 months.

Information is available on the website https://id.mkb.kz

2. There is no property owned, including property held in joint ownership (real estate, land, vehicles, etc.).

Information is available on the website E.gov.kz

Special conditions:

1. For recipients of targeted social assistance (TSA) for a period of 6 months, condition 1 regarding the period of non‑repayment of the debt is not taken into account.
2. If the debt remains unpaid for more than 5 years, all the conditions listed above are not taken into account.
3. Judicial bankruptcy

It is considered in court

The application is filed with the court at the debtor’s place of residence.

Conditions:

For all types of debts owed to all creditors.

What you need to know:

1. During judicial bankruptcy, the debtor’s property is sold at auction.
2. If the sole residence is subject to a mortgage, the creditor will have the right to seize it during judicial bankruptcy.
3. If the only home is not pledged, it is not included in the property mass.
4. A financial manager is appointed.
5. Payment for the financial manager’s services is made from the debtor’s assets (1 minimum wage per month).

The bankruptcy procedure lasts 6 months, with the possibility of an extension for another 6 months.

Restrictions during the procedure:

1. It is prohibited to carry out transactions involving the alienation of property or the assumption of new obligations (obtaining loans, issuing guarantees and sureties).
2. A ban on traveling abroad during the period

 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. The acquisition of property is monitored for 3 years after bankruptcy.

 

3. Restoring 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.

Restructuring measures:

1. Sale of part of the property, leasing of property.
2. Sale of housing with the purchase of new housing, exchange for housing of lower value, etc.

Advantages:

1. The status of “bankrupt” is not assigned.
2. No negative consequences (no financial monitoring is carried out, no restrictions on obtaining a loan).
3. Debt installment plan (up to 5 years).
4. Assistance from a financial manager in developing a plan to restore solvency.
5. The possibility of writing off part of the debt.

The following are attached to the application:

2. A list of creditors (banks, microfinance organizations, collection agencies).
3. A document confirming the settlement of the debt with the bank or microfinance organizations (no document required for collection agencies).