About bankruptcy

The Law “On restoration of solvency and bankruptcy of citizens of the Republic of Kazakhstan” providesthree types of procedures– extrajudicial bankruptcy, judicial bankruptcy and restoration of solvency.

When is out-of-court bankruptcy used?

If an individual borrower's debt to banks, microfinance organizations, and collection agencies does not exceed 1,600 monthly calculation indices (KZT 5,520,000), then he may consider an extrajudicial bankruptcy procedure.

• property should not be registered on it, including in common ownership;
• on the date of filing the application, for 12 consecutive months, he must not have repaid his obligations to creditors or collectors;
• procedures have been carried out in relation to the debtor to settle or collect unfulfilled obligations under the loan agreement within a period not exceeding 18 months from the date of occurrence of the overdue debt;
• bankruptcy had not been applied to him for 7 years as of the date of filing the application.

Individual borrowers who have not repaid their debt for more than 5 years as of the date of filing the application can also apply for extrajudicial bankruptcy.

Attention!

How to apply?

The application can be submitted through the web portal"Electronic government".

When is judicial bankruptcy used?

Citizens can apply the procedure for debts over 1,600 MCI (5,520,000 tenge) and for all types of debts to creditors.

Attention!

• make transactions for the alienation of property;
• accept new obligations (obtaining loans, issuing guarantees and guarantees);
• travel abroad.

After applying this procedure, the debtor is assigned the status of “bankrupt”.

How to apply?

The application is accepted by the court at the debtor’s place of residence.

When is the solvency restoration procedure applied?

Citizens with a stable income can apply this procedure.

Attention!

How to apply?

The application can be submitted to the court at the debtor’s place of residence.

What are the consequences for “bankrupts”?

Debtors who decide to apply extrajudicial or judicial bankruptcy procedures need to know:

• for 5 years there will be a ban on receiving loans and microcredits (except for microcredits from pawnshops);
• repeated bankruptcy is possible only after 7 years;
• The financial condition of the bankrupt will be monitored for 3 years after bankruptcy.

Attention!