The main ways of resolving insolvency

In accordance with the Law of the Republic of Kazakhstan "On Rehabilitation and Bankruptcy", the basis for a debtor or creditor to file an application to the court on the application of the rehabilitation procedure or on the application of the debt restructuring procedure is the temporary insolvency of the debtor.

Debt restructuring can be promising if the debtor is able to agree with all creditors to resolve the insolvency (by, for example, a discount, deferred payment of debt, and otherwise).

The procedure provides for the debtor to apply to the court, the court makes a decision within 10 working days and gives the debtor a two-month period to reach an agreement with the creditors on the settlement of the debt.

If the debtor enters into an agreement with the creditors within two months, the agreement is submitted for the approval of the court, after which the debtor, among other things, receives protection from the claims of the creditors for the period of the agreement, is released from forfeit, remuneration, arrests are lifted, the execution of judicial acts against the debtor is terminated, and etc.

The restructuring procedure gives the debtor the opportunity to pay off the debt during the execution of the agreement. Violation of the agreement entails its termination, which deprives the debtor of the above protection measures.

The rehabilitation procedure can be useful in a situation where the debtor is not able to agree on the settlement of the debt with each creditor, but if creditors are ready to support such a decision, to whom the debtor has a large part of the debt.

In accordance with this procedure, the debtor or creditor goes to court with a statement. In the course of the trial, the issue of the presence / absence of grounds for the introduction of a rehabilitation procedure against the debtor is resolved. For this, a temporary administrator is involved, who studies the financial situation of the debtor and expresses a judgment regarding the presence / absence of grounds for the rehabilitation of the debtor.

If the court satisfies the application, the debtor and creditors are given a three-month period to draw up and approve a rehabilitation plan (the plan provides for measures that the debtor will take to pay off the debt, as well as the timing of repayment of the debt to creditors). The rehabilitation plan is approved by a majority of the creditors’ votes (on the principle of one tenge stands for one vote). Failure to approve the rehabilitation plan entails termination of the rehabilitation procedure.

As part of the rehabilitation procedure, the debtor receives protection from creditors. The accrual of penalties, fines, as well as the execution of judicial acts against the debtor are suspended. Claims against the debtor are only possible within the framework of the rehabilitation procedure. The debtor acquires the opportunity to continue activities in accordance with the rehabilitation plan. Meanwhile, serious restrictions are imposed on it, for example, on the conclusion of new transactions.

For consulting assistance, you can contact the RSD "Department of State Revenues for NKR SRC MF RK" (Department of Rehabilitation and Bankruptcy), NKR Petropavlovsk, K. Sutyushev Street, 56, office 309, tel. 8-7152-46-73-32.

Debt Management Department
RSE "Department of State Revenues in North Kazakhstan region"