Citizens of the Republic of Kazakhstan, if you are facing financial difficulties and are considering out-of-court bankruptcy as a way to restore your solvency, it is crucial to know and comply with all the necessary conditions. The legislation of the Republic of Kazakhstan clearly regulates this process, and understanding the key requirements will help you to successfully apply.

Here are the mandatory conditions that a debtor must fulfill in order to file an application for out-of-court bankruptcy:

- The amount of liabilities must not exceed 1,600 times the amount of the monthly calculation index (MCI) established by the national budget law and in effect on the date of filing. This threshold determines whether you are eligible for the simplified procedure.

- No property in ownership: The debtor must not have any property in ownership, including property in common ownership.

- No repayment of debts within 12 months: There has been no repayment of obligations to the creditors named in the application for twelve consecutive months as of the date of filing the application.

At the same time, a payment is considered to be an amount exceeding one times the amount of the MRP. It is important to note that this term is calculated from the date of the last payment under each bank loan or microcredit agreement. If the debt was assigned to a collection agency, the term is also counted from the date of the last payment before the assignment, unless the collection agency confirms a different term.

- Conducting debt settlement procedures (with important exceptions!):

o General rule: The creditor and debtor were obliged to conduct procedures to settle and/or collect outstanding obligations under the bank loan agreement and/or microcredit agreement. These measures must be carried out within a period not exceeding twelve months from the date of arising of the overdue debt.

o Key exceptions: The requirement to carry out such measures does NOT apply to:

 Obligations to creditors that have been stripped of their licenses, removed from the registers or are in the process of liquidation (as specified in part two of subparagraph 11) of Article 1 of the Law on Restoration of Solvency and Bankruptcy of Citizens of the Republic of Kazakhstan).

 Bank loan agreements and (or) microcredit agreements concluded BEFORE January 1, 2025. This is a significant change that simplifies the process for citizens with "old" debts, freeing them from the need to confirm settlement attempts.

- No previous bankruptcy proceedings: The debtor has not filed an out-of-court or judicial bankruptcy within seven years as of the filing date.

Important nuances and exceptions:

Even if you do not meet some of the above conditions, you may still be eligible for out-of-court bankruptcy in the following cases:

- You have been a recipient of state targeted social assistance for six months preceding the date of filing.

- Your period of default is more than five years as of the date of filing.

Careful preparation and full compliance with these conditions significantly increase your chances of successfully applying for out-of-court bankruptcy, which may be the first step to your financial freedom!

Source : https://www.gov.kz/memleket/entities/kgd-zhetysu/press/news/details/1057870?lang=kk