The institution of personal bankruptcy, introduced by the Law of the Republic of Kazakhstan "On restoration of solvency and bankruptcy of citizens of the Republic of Kazakhstan" (hereinafter - the Law), has become a vital mechanism for the social protection of citizens facing financial difficulties. Its primary objective is not merely the settlement of outstanding liabilities, but also providing debtors with the opportunity to restore their financial solvency and resume economic activities unburdened by unsustainable debt. The authorized body, represented by the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan and its territorial divisions, plays a key role in the practical implementation of this mechanism.

The powers of the authorized body are defined in Article 9 of the Law. The authorized body provides regulatory, supervisory, and organizational oversight for both out-of-court and judicial bankruptcy procedures, approves mandatory documentation forms, develops frameworks for monitoring the financial condition of debtors, and ensures the uniform enforcement of relevant legislation throughout the country.

The authorized body carries particular role during the administration of out-of-court bankruptcy proceedings. It is responsible for receiving and reviewing citizens' applications, verifying compliance with the eligibility criteria established by law, and requesting the necessary verified data from state authorities and external organizations before rendering a final decision to initiate or deny the procedure. This centralized approach guarantees objectivity during the verification process and minimizes the risk of abuse.

The role of the authorized body is critical within judicial bankruptcy proceedings as well. Upon the initiation of court proceedings, the authorized body appoints a financial manager, provides them with exhaustive intelligence regarding the debtor’s financial standing, assets, and liabilities, and exercises state control over the professional activities of financial managers.  This contributes to the legality, transparency, and overall efficiency of the bankruptcy process.

An equally important statutory function is monitoring the financial condition of an individual post-completion of the out-of-court bankruptcy procedure. This monitoring is designed to detect instances where the debtor subsequently acquires property subject to mandatory state registration, thereby ensuring compliance with legal provisions while maintaining a balance between the interests of debtors and creditors.

Thus, the authorized body serves as the central element of the personal bankruptcy framework in Kazakhstan. Its activities are directed toward maintaining procedural legality, protecting the rights of both citizens and creditors, enhancing structural transparency, and reinforcing public trust in the institution of bankruptcy. Optimization of digital services alongside ongoing legislative developments will ensure that these bankruptcy procedures remain accessible, efficient, and socially oriented.

Source : https://www.gov.kz/memleket/entities/kgd-vko/press/news/details/1252762?lang=ru