Extrajudicial bankruptcy is a debt relief procedure implemented at the debtor's request through government online platforms such as Egov.kz, e-Salyq Azamat, and the Public Service Center.
When is out-of-court bankruptcy appropriate?
The extrajudicial bankruptcy procedure may be applied if the following conditions are met:
- You are a citizen of Kazakhstan.
- You have no registered property or share in property.
- You have debts to banks, microfinance organizations (MFOs) and collection agencies, and you cannot pay them.
- The total debt does not exceed 1,600 MCIs. In 2024, this will amount to up to 5,907,200 tenge.
Extrajudicial bankruptcy procedure
The extrajudicial bankruptcy process involves several stages, starting with the filing of an application and ending with the completion of the procedure and the termination of the debtor's obligations.
Stages of the extrajudicial bankruptcy procedure:
- Submitting an application
- Consent of the spouse
- Checking the availability of property
- A document settling a debt with a creditor
- Registering a phone number
- Filing for bankruptcy
- Consent of the spouse to the processing of personal data
- Consideration of the application
To receive the extrajudicial bankruptcy service, you must provide the following documents:
- Application of the debtor for the application of extrajudicial bankruptcy procedure.
- A list of creditors indicating their names, amount of debt and location as attached to the application.
- A copy of a document confirming the adoption of measures to settle the debt (for example, a bank or microfinance organization’s refusal to settle the debt).
Result of extrajudicial bankruptcy:
- Full debt write-off if all conditions are met.
- Release from further debt obligations if they do not exceed the limit and the debtor has no assets to cover the debts.
- The ability to conduct financial activities, including working, opening an account, receiving an official salary, and traveling abroad.
