📌 Information on Personal Bankruptcy Procedures

Since 2023, the Republic of Kazakhstan has implemented the Law “On Restoring Solvency and Bankruptcy of Citizens”, which offers three legal procedures for individuals facing financial difficulties:

1️⃣ Out-of-Court Bankruptcy
Applicable if:
– total debt does not exceed 1600 MCI (approx. 5.52 million KZT);
– no loan repayments were made for 12 consecutive months;
– no prior bankruptcy within the past 7 years.
Also allowed without these conditions if:
– the debt has remained unpaid for over 5 years;
– the applicant has received Targeted Social Assistance (TSA) for at least 6 months.

2️⃣ Court Bankruptcy
Applicable if debt exceeds 1600 MCI.
– All assets (except one non-mortgaged residence) are subject to sale;
– Restrictions apply: no new obligations, no asset transfers, and no travel abroad;
– A full set of documents is required to confirm the debt, assets, and settlement attempts.

3️⃣ Restoration of Solvency
For individuals with stable income and assets exceeding the amount of debt.
– Allows debt restructuring for up to 5 years;
– No bankruptcy status is assigned, and no related restrictions apply.

⚠️ Consequences of bankruptcy status:
– Ban on taking loans for 5 years;
– Reapplication possible only after 7 years;
– Financial monitoring for 3 years;
– Does not apply to debts from alimony or criminal court decisions.

📊 Statistics for West Kazakhstan Region (as of 2025):
• Out-of-Court Bankruptcy:
 – Applications submitted: 3,800
 – In process: 735, Completed: 951 (Total: 1.4 billion KZT)
• Court Bankruptcy:
 – Applications submitted: 44
 – Procedure applied: 15 cases (1.5 billion KZT)
 – Previously initiated cases completed: 29 (748.3 million KZT)
• Solvency Restoration:
 – Applications submitted: 8, Applied: 6
 – Plans approved: 3 cases, Total: 8.5 billion KZT

📎 Applications can be submitted via eGov.kz, eGov Mobile, or at Public Service Centers (PSC).

Source : https://www.gov.kz/memleket/entities/kgd-zko/press/news/details/1053222?lang=kk