Out-of-court bankruptcy

Out-of-court bankruptcy

Out-of-court bankruptcy procedure is a procedure carried out in relation to a debtor out of court in order to terminate obligations to second-tier banks, organizations engaged in certain types of banking operations, organizations engaged in microfinance activities, or collection agencies.

I.e., out-of-court bankruptcy can be applied exclusively for debts to banks, MFOs and collection agencies.

The grounds for filing an application to the authorized body for the application of the out-of-court bankruptcy procedure are the existence of obligations not exceeding 1,600 times the monthly calculation index (5.9 million tenge) established by the law on the republican budget and effective on the date of filing the application, and compliance with the following conditions in aggregate:

1) the absence of property on the right of ownership, including property that is in common ownership;

2) at the date of filing the application, within 12 consecutive months, he must have no repayment of obligations to creditors, collectors;

3) procedures have been carried out with respect to the debtor to settle or recover unfulfilled obligations under a bank loan agreement and (or) a micro-loan agreement;

4) non-application of the out-of-court or judicial bankruptcy procedure for 7 years as of the date of filing the application.

Out-of-court bankruptcy can also be applied to by borrowers-individuals who have not repaid their debts for more than 5 years at the date of filing the application. In this case, the listed conditions do not apply to such a debtor.

Also, a debtor who has been a recipient of targeted social assistance (TSA) for six months can apply for this procedure without taking into account the delay period.

The application shall be accompanied by a list of creditors indicating their name, amount of debt, location; a copy of the document confirming the debtor's acceptance of measures to settle and (or) collect debts under a bank loan agreement and (or) a micro-loan agreement.

            Department of State Bodies for the district of Beimbet Mailin