QUESTIONS -ANSWERS
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№ |
QUESTION |
ANSWER |
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1 |
Where can I see the reason for the refusal and/or the decision regarding the bankruptcy of an individual? |
Pursuant 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 shall publish on its official website and on the “digital 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 the application, the decision to apply, complete, or refuse to apply the bankruptcy 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 concerning a bankruptcy application can be viewed through the above-mentioned electronic services. |
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2 |
Once a person is declared bankrupt, how long does it take for their debts to be written off? |
The debtor’s obligations to creditors shall be terminated from the date when the announcement on the completion of the out-of-court bankruptcy procedure and the recognition of the debtor as bankrupt is posted on the “electronic government” web portal. |
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3 |
I was declared bankrupt three years ago, but after three years my bankruptcy status was revoked. Where can I see the grounds for this decision? |
Monitoring of the bankrupt person’s financial condition is carried out by the authorized body for three years after the debtor is declared bankrupt. Upon receiving information from the authorized body, creditors have the right to apply to the court for the cancellation of the debtor’s bankruptcy status and the resumption of the bankruptcy procedure in accordance with the Civil Procedure Code of the Republic of Kazakhstan. Pursuant to subparagraph 1) of paragraph 1 of Article 47 of the Law, the authorized body publishes on its official website and on the “digital government” web portal: 1.a list of citizens in respect of whom the 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 the application, the decision to apply, complete, or refuse to apply the bankruptcy 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. |
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4 |
Can I apply for restoration of solvency if I have a stable income of 250,000 tenge per month, while my monthly loan payments amount to 220,000 tenge and my total debt is 4 million tenge? |
If a citizen has a stable income, they have the right to apply to the court for the application of the 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 situation and the opinion of the financial manager. |
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5 |
Can I work as a self-employed person or as an individual entrepreneur (IE) after being declared bankrupt? |
A bankrupt person cannot be granted a loan for five years from the date the announcement on the completion of the out-of-court bankruptcy procedure is posted. During this period, the person also cannot provide collateral, a guarantee, or a surety 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, or registering as an individual entrepreneur, and does not deprive them of the right to engage in entrepreneurial activities. |
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6 |
It has been more than six months since we submitted the bankruptcy application, but no decision has been issued yet. Where can we find the application or decision on the Qoldau portal? We received an SMS six months ago stating that the application was under review, but we cannot find it now. |
According to paragraph 1 of Article 17 of the Law of the Republic of Kazakhstan “On Restoration of Solvency and Bankruptcy of Citizens of the Republic of Kazakhstan,” the period for conducting the out-of-court bankruptcy procedure by the authorized body is six months from the date when information about the debtor is posted on the “electronic government” web portal. Information on the status of the application, the decision to apply, complete, or refuse to apply the bankruptcy 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. |
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7 |
There is a positive decision regarding my bankruptcy, meaning that I have been declared bankrupt. The private bailiff is asking me to pay for his services and categorically refuses to remove the seizure unless I pay. Is this correct? |
The debtor’s obligations to creditors shall be terminated from the date when the announcement on the completion of the out-of-court bankruptcy procedure and the recognition of the debtor as bankrupt is posted on the “electronic government” web portal. Regarding the refusal to remove the seizure imposed by the private bailiff, we recommend contacting the Ministry of Justice of the Republic of Kazakhstan and/or the Republican Chamber of Private Bailiffs of the Republic of Kazakhstan. |
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8 |
I am applying for out-of-court bankruptcy through eGov. My debts are only to banks, and there are enforcement proceedings with private bailiffs. Will my salary be subject to seizure? Or, because of the seizure, will I be unable to use my bank accounts until the six-month bankruptcy procedure is completed? |
After the out-of-court bankruptcy procedure is initiated with respect to creditors’ claims covered by the procedure, enforcement proceedings are suspended. This means that seizures imposed by private bailiffs are removed only after the out-of-court bankruptcy procedure is completed and the debtor is declared bankrupt. |
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9 |
Does the automatic (forced) debiting of funds by a bank from a debtor's account, without the debtor's voluntary consent, including pursuant to a notarial writ of execution, constitute repayment of debt that would preclude the application of the out-of-court bankruptcy procedure, if the debtor has not made any voluntary payments toward the debt during the 12 months preceding the submission of the application? |
Pursuant to subparagraph 2) of paragraph 1 of Article 5 of the Law, one of the grounds is the absence of repayment of obligations for twelve consecutive months. Repayment shall be deemed to have occurred where a payment is made in an amount exceeding one monthly calculation index (MCI) established by the Law on the Republican Budget and effective as of the date of the payment. The period of non-repayment shall be calculated from the date of the last payment made under each bank loan agreement and/or microcredit agreement. It follows from the above that a payment means an amount paid toward the repayment of outstanding debt. At the same time, the Law does not specify the nature of the payment or the manner in which the repayment is made (voluntary or compulsory). Accordingly, for the purposes of the out-of-court bankruptcy procedure, a payment in an amount exceeding one monthly calculation index shall be considered repayment, regardless of whether it was made voluntarily or enforced. Furthermore, information regarding the absence of payments toward obligations during the specified period is provided to the authorized body by credit bureaus in accordance with Article 20 of the Law of the Republic of Kazakhstan "On Credit Bureaus and Formation of Credit Histories in the Republic of Kazakhstan." The information provided does not contain any indication as to whether a payment was made voluntarily or compulsorily. |
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10 |
Does the fact that the debtor's spouse owns property acquired prior to the registration of the marriage, which constitutes the spouse's separate property, constitute grounds for refusing to apply the out-of-court bankruptcy procedure? |
When considering a debtor's application for the application of the out-of-court bankruptcy procedure, information on the debtor's property is provided by the relevant registration authorities. If the debtor has no property, while the debtor's spouse owns property that constitutes her separate property pursuant to Articles 35 and 41 of the Code of the Republic of Kazakhstan "On Marriage (Matrimony) and Family," the registration authorities, within the framework of the out-of-court bankruptcy procedure, provide information confirming that the debtor has no property, including property held in common ownership. In this regard, the fact that the debtor's spouse owns property that constitutes her separate property does not constitute an obstacle to the application of the out-of-court bankruptcy procedure in respect of the debtor-spouse. |
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11 |
Is outstanding utility debt subject to write-off under the out-of-court bankruptcy procedure if the debtor is insolvent, has been registered as unemployed for a long period, does not receive any benefits, and has no income? |
Pursuant to subparagraph 11) of Article 1 of the Law of the Republic of Kazakhstan "On Restoration of Solvency and Bankruptcy of Citizens of the Republic of Kazakhstan" (hereinafter – the Law), the out-of-court bankruptcy procedure is a procedure carried out in respect of a debtor without court proceedings for the purpose of terminating obligations to banks, microfinance organizations, and collection agencies (regardless of their status, including whether their licenses have been revoked, whether they have been liquidated or are undergoing liquidation, or whether they have been excluded from the relevant register), as well as other organizations that hold claims under bank loan agreements, loan (credit) agreements, and microcredit agreements with individuals. At the same time, within the framework of the out-of-court bankruptcy procedure, the authorized body obtains information on outstanding obligations to the aforementioned entities from credit bureaus (Article 20 of the Law of the Republic of Kazakhstan "On Credit Bureaus and Formation of Credit Histories in the Republic of Kazakhstan"). Article 17 of the Law provides that the out-of-court bankruptcy procedure lasts six months from the date on which information about the debtor is posted on the "electronic government" web portal. From that date, certain legal consequences arise in respect of obligations to the creditors specified in subparagraph 11) of Article 1 of the Law, provided that information on such obligations is reflected in the credit bureaus' databases. These consequences include the expiry of the terms for performance of obligations, a prohibition on creditors demanding performance of obligations from the debtor, and the termination of the accrual of penalties (fines and late-payment interest) and interest on all types of the debtor's indebtedness to creditors. It follows from the above provisions that the out-of-court bankruptcy procedure applies only to a debtor's obligations to the creditors specified in subparagraph 11) of Article 1 of the Law, provided that information on such obligations is reflected in the credit bureaus' databases. Accordingly, upon completion of the out-of-court bankruptcy procedure, such obligations are terminated (paragraph 2 of Article 19 of the Law). Utility payment arrears are not subject to consideration within the framework of the out-of-court bankruptcy procedure. |
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12 |
What restrictions apply to a citizen after being declared bankrupt under the out-of-court bankruptcy procedure with regard to employment, registration as an individual entrepreneur, and receiving wages?
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Upon completion of the out-of-court bankruptcy procedure, the consequences specified in Article 19 of the Law of the Republic of Kazakhstan "On Restoration of Solvency and Bankruptcy of Citizens of the Republic of Kazakhstan" (hereinafter – the Law) shall apply. For a period of five years from the date of publication of the notice on completion of the out-of-court bankruptcy procedure, a bankrupt shall not be granted loans, nor shall security in the form of collateral, guarantees, or suretyships be accepted from the bankrupt under bank loan agreements and microcredit agreements (paragraphs 2 and 3 of Article 19 of the Law). Furthermore, pursuant to paragraph 2 of Article 48 of the Law, the authorized body shall monitor the bankrupt's financial condition for three years after the debtor has been declared bankrupt. If the authorized body identifies the acquisition by the bankrupt of property subject to state registration, including property held in joint ownership, it shall provide the creditors with the results of the monitoring of the bankrupt's financial condition. Upon receiving such information from the authorized body, creditors shall have the right to apply to the court for cancellation of the debtor's bankruptcy status and resumption of the bankruptcy procedure in accordance with the Civil Procedure Code of the Republic of Kazakhstan. It follows from the above that being declared bankrupt does not prevent a citizen from subsequently engaging in entrepreneurial activities, including registering as an individual entrepreneur. Such a person is also not subject to any restrictions on the right to employment or on receiving remuneration in the amount stipulated by the employment contract. |
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13 |
Is the financial manager entitled to remuneration from the budgetary funds if the debtor belongs to a socially vulnerable category (a large family), has no property or official income, and is registered as unemployed? |
Pursuant to paragraph 2 of Article 44 of the Law of the Republic of Kazakhstan "On Restoration of Solvency and Bankruptcy of Citizens of the Republic of Kazakhstan" (hereinafter – the Law), remuneration to the financial manager shall be paid from budgetary funds if, in the course of the judicial bankruptcy procedure, the following circumstances are established cumulatively: 1) the debtor belongs to a socially vulnerable group of the population in accordance with the housing legislation of the Republic of Kazakhstan; 2) the debtor has no property that may be subject to enforcement in accordance with the legislation of the Republic of Kazakhstan on enforcement proceedings and the status of enforcement officers. If the above conditions are met, the authorized body shall submit a corresponding motion when the court considers the final report. The procedure for payment of remuneration to the financial manager by the authorized body was approved by Order No. 524 of the Minister of Finance of the Republic of Kazakhstan dated September 23, 2025. Thus, the financial manager's remuneration for a mother of a large family who has no property shall be paid from budgetary funds. |