BANKRUPTCY OF INDIVIDUALS: WHAT DO I NEED TO KNOW?

In Kazakhstan, there are three procedures for citizens experiencing difficulties with debt repayment:

, out - of - court bankruptcy;
, judicial bankruptcy;
restoration of solvency.

1 . OUT - OF - COURT BANKRUPTCY

The application is submitted through the eGov portal or the eGov Mobile application.

Applications are considered by the territorial Departments of State Revenue 

The procedure applies to debts owed to banks, microfinance organizations, and collection agencies.

Basic conditions:

💰 debt — no more than 1,600 MCI;
⏳ the debt is not repaid for 12 months or more;
There is no property subject to state registration, including those in common ownership.

The legislation provides for special conditions for certain categories of citizens.

2 . JUDICIAL BANKRUPTCY

The application is submitted to the court at the debtor's place of residence.

The procedure applies to obligations owed to creditors, with the exception of obligations that, in accordance with the law, are not subject to write-off.

What is important to know:

The debtor 's property can be sold to repay the debt;

If the only housing is the subject of collateral, the creditor has the right to claim its withdrawal;

if the only housing is not the subject of collateral, it is not included in the estate;

A financial manager is appointed.

The duration of the procedure is 6 months, with the possibility of extension in cases provided for by law.

3️⃣ RESTORATION OF SOLVENCY

The application is also submitted to the court at the place of residence.

This procedure can be applied if you have a stable income and/or property that allows you to fulfill your obligations.

A plan is being drawn up to restore solvency for up to 5 years.

As part of the procedure, the following may be applied:

, sale of a part of the property;
🏢 transfer of property for rent;
, sale of housing with the purchase of another;
🔄 exchange of housing for lower-cost housing and other measures.

The main advantage is that the citizen is not given the status of "bankrupt".

CONSEQUENCES OF BANKRUPTCY

After the bankruptcy procedure is completed, the legislation provides for certain restrictions:

for 5 years — restrictions on obtaining loans from banks and MFIs;

Repeated bankruptcy is possible after 7 years;

The acquisition of property has been monitored for 3 years.

Important: before choosing a procedure, it is necessary to take into account the amount of debt, the availability of property, income and other circumstances.

The Department of Internal Affairs of the Karaganda region recommends that citizens carefully familiarize themselves with the conditions and consequences of each procedure before submitting an application.

Source : https://www.gov.kz/memleket/entities/kgd-karaganda/press/news/details/1301563?lang=ru