Bankruptcy of Individuals

The Law "On Restoration of Solvency and Bankruptcy of Citizens of the Republic of Kazakhstan" has entered into force in March 2023.

Everyone has the right to apply for bankruptcy. But before doing so, the Debtor needs to make sure that the Debtor:

• Failed to make payments on all loans for 12 months
• Received the bank's refusal to settle the overdue debt

If the overdue debt settlement procedure has not been initiated, it must be carried out in one of the following ways:

1. Apply to the Problem Loan Management subdivisions (the list of addresses below) on all issues related to overdue debt settlement, including write an application for settlement and (or) collection of outstanding obligations under the Bank Loan Contract.

2. Apply for settlement - loan restructuring (deferral, extension, etc.) in the following BCC.KZ section  -> Private Customers -> Loans -> Applications on existing loans for Individuals -> Loan Term Modification -> Loan Term Reduction.

If settlement is denied, the Debtor may apply to the authorized body to declare it bankrupt.

If you have any questions, please call 505

(applicable to debts owed to second-tier banks, microcredit organizations and collectors)

CONDITIONS:

1. No property, including jointly owned property

2. Overdue debt settlement with the Bank.
Measures for debt settlement and (or) collection must be taken within a period not exceeding eighteen months following the occurrence of overdue debts.

3. No bankruptcy has been applied for 7 years

4. There has been no repayment of liabilities to creditors for twelve consecutive months as of the application date 

5. The debtor may submit an application if he/she is a recipient of the state targeted social assistance for six months preceding the date of application.

CONDITIONS:

1. Overdue debt settlement with the Bank.

Measures for debt settlement and (or) collection must be taken within a period not exceeding eighteen months following the occurrence of overdue debts

2. No bankruptcy has been applied for 7 years

3. There has been no repayment of liabilities to creditors for twelve consecutive months as of the application date

1. A debtor, whose amount of total obligations (including unmatured obligations) does not exceed the value of owned property, may apply to the court only with an application for solvency restoration

2. The solvency restoration plan may be executed ahead of schedule.

3. The solvency restoration plan shall provide for one or more of the following instruments:

1) change of the deadline for fulfilling the obligations (deferral and (or) payment of indebtedness by installments);

2) cancellation of debt or its part, including forfeit (fine, penalty);

3) lowering the interest rate charged for loan use;

4) reduction of the amount of regular current payments with simultaneous extension of the total term of the Loan Contract;

5) change in the method of fulfilling the obligation;

6) satisfaction of the secured creditor's claims by transferring the collateralized item, provided that the secured creditor cancels the obligations under the Loan Contract;

7) other instruments not provided for by this paragraph.

4. The solvency restoration plan may include the following measures:

1) sale of the part of property;

2) lease of property for hire (rent);

3) collection of receivables;

4) exchange of housing (vehicles) for housing (motor vehicles) of a lower value;

5) sale of housing (vehicles) with subsequent purchase of housing (vehicles) of a lower value;

6) employment of the debtor;

7) other measures not contradicting the legislation of the Republic of Kazakhstan.

5. The draft solvency restoration plan shall be submitted for consideration to creditors whose claims are included in the creditors' register. Creditors shall make proposals and comments within ten business days from the date of receipt of the draft solvency restoration plan.

5.1. Submission of proposals and (or) comments later than the specified term shall be equivalent to the creditor's lack of any proposals and comments.

Based on the results of the Out-of-Court Bankruptcy and Bankruptcy through the Court

Consequences

A 5-year ban to receive loans from banks and microfinance organizations (except pawnshops)

Repeated bankruptcy is possible after 7 years

Financial standing monitoring for 3 years after bankruptcy

No debts are written off

For payment of alimony

For compensation of damage caused to life or health

Compensation of damages for criminal offences, as well as payments to the budget collected by a court decision