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Since 2023, Kazakhstan has enacted the Law “On the Restoration of Solvency and Bankruptcy of Citizens,” which regulates the procedure for individuals to get out of debt. It applies to citizens who are not registered as individual entrepreneurs and offers three possible solutions.
Restoration of Solvency
This is a court-based procedure aimed at helping the debtor restore their financial stability. The citizen submits a restoration plan, specifying how and within what time frame they will repay their debts. If the plan is realistic and feasible, the court allows the person to avoid bankruptcy.
Out-of-Court Bankruptcy
This procedure is intended for citizens who have no income and no property. It is carried out without going to court and allows debts to be written off for the following creditors:
– second-tier banks;
– microfinance organizations;
– collection agencies;
– other entities holding claims under credit agreements.
An application for out-of-court bankruptcy can be submitted online via the eGov.kz portal.
Judicial Bankruptcy
If a citizen has a large amount of debt, is unable to repay it, and has no possibility of restoring solvency, they may file a petition in court. In this case, the debtor’s property is assessed and may be used to repay the debts. Once the procedure is completed, the citizen is officially declared bankrupt and released from the remaining obligations.