How the law works today

         The purpose of the law is not only to write off debts, but also to increase financial literacy of the population, protect citizens from pressure from creditors and encourage responsible attitude to loans.

What changes have already been made?

               In August 2024, the first amendments were made to the law on bankruptcy of citizens aimed at eliminating the shortcomings identified during the year of law enforcement practice. In particular, the delay period is not taken into account if the amount of debt is less than one monthly calculation index, and when transferring debt to collectors, the deadline is calculated from the moment of the last payment.

              The procedure for restoring solvency is now available even without delays and property - if you have a stable income. The debtor is allowed to travel abroad after the approval of the plan.

             The financial manager is obliged to form a register of creditors even in the absence of applications from them, and his remuneration is paid after the completion of the procedure. Regulations have also been introduced to prevent conflicts of interest on the part of the manager.

What will change in 2025

          The Mazhilis is already considering additional amendments aimed at optimizing the procedure and protecting the rights of debtors. Among them:

Cancellation of the requirement to settle debt on loans concluded before January 1, 2025. This is especially important for those who cannot contact the lender.
The debtor's right to terminate the out-of-court procedure at any stage. Today there is no such possibility, and practice has shown the need for this step.
A clear consolidation of the powers of the financial manager in the law, which will eliminate legal uncertainty.
Complete termination of all obligations after bankruptcy, including those that are not reflected in the databases of the credit bureau.

The procedure becomes more accessible

             The amendments make the procedure more accessible, understandable and fair. Citizens receive a real mechanism for debt relief, and the state is a tool for regulating credit policy against the background of the growing debt burden of the population.

               Taking into account the new law enforcement experience and feedback from citizens, it is expected that the changes will take effect before the end of 2025. This will allow us to build a more stable support system for those who find themselves in a difficult financial situation.

              It is useful to know that you can apply for an out-of-court bankruptcy procedure online through the portal eGov.kz . The consent of the spouse is required for the application. You can re-use the bankruptcy procedure no more than once every seven years.

Source : https://www.gov.kz/memleket/entities/kgd-kyzylorda/press/news/details/1025304?lang=kk