An application for this procedure can be submitted from March 3, 2023 in paper or electronic form through the state corporation "Government for Citizens" according to the established pattern. At the same time, the debt to banks, microfinance organizations, collection agencies should not exceed 5.5 million tenge, that is, 1600 monthly calculation indices. After applying this procedure, the debtor is assigned the status of "bankrupt".
There are several other conditions for citizens wishing to apply out-of-court bankruptcy:
- non-application of the out-of-court bankruptcy procedure for 7 years on the date of filing the application;
- absence of property on the right of ownership, including property in common ownership;
- the absence of repayment of obligations to creditors specified in the application within 12 consecutive months as of the date of filing such an application;
- in relation to the debtor, procedures should be carried out to settle and (or) recover outstanding obligations under a bank loan agreement and (or) a micro-loan agreement in accordance with the laws of the Republic of Kazakhstan "On Banks and Banking Activities in the Republic of Kazakhstan" and "On Microfinance activities". At the same time, measures for the settlement or collection of debt must be carried out within a period not exceeding 18 months from the date of occurrence of overdue debt.
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. At the same time, the listed conditions do not apply to such a debtor.
Debtors who have been recipients of targeted social assistance for six months can apply for the application of this procedure without taking into account the delay period.
As for the debt settlement procedure, it should be known that in Kazakhstan, since October 1, 2021, the procedure for settling overdue debts of citizens experiencing difficulties in repaying the loan has been in effect. It applies to all credit organizations – banks and MFOs.
In accordance with legal requirements, the lender is obliged to notify the borrower of the delay within 20 days from the date of its occurrence. In the notification, credit organizations inform citizens that it is necessary to make payments on the loan and repay the overdue debt, indicating its size, as well as that it is possible to contact the lender on the issue of restructuring.
In turn, borrowers who have a delay must apply to a credit institution for loan restructuring within 30 days from the date of its occurrence.
The borrower's application is subject to mandatory acceptance, registration, accounting and consideration by the bank and the MFO. In his application, the debtor must indicate what caused the delay, offer his options for possible restructuring and provide supporting documents indicating a decrease in income and the inability to pay for his obligations.
If the borrower failed to reach an agreement with the lender on the terms of the loan restructuring, he has the right to apply to the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market. At the same time, the borrower must provide confirmation of his appeal to the bank or the MFI and the failure to reach a mutually acceptable solution. Also, borrowers can apply to the Banking Ombudsman in accordance with the Law on Banks to settle disputes arising from the mortgage loan agreement.