Judicial bankruptcy is a debt relief procedure implemented upon the debtor's application to the district court at the place of its registration. The process is carried out with the participation of a financial manager, who distributes the debtor's property (if any) to fairly satisfy the creditors' claims.
When is a judicial bankruptcy appropriate?
The procedure can be applied in the following cases: it is important to consider the possibility of judicial bankruptcy as a way of resolving financial difficulties.
- You are a citizen of Kazakhstan.
- You have debts that you can't pay.
- The amount of debts exceeds 1,600 MRP
Stages of the procedure:
- Filing an application with the court
- Assessment of the debtor's financial position
- Foreclosure defense
- Valuation and distribution of assets
- Bankruptcy recognition and debt relief
- Control over financial condition after bankruptcy
Result:
- Full debt forgiveness if the debtor's property does not cover all liabilitiesis the primary result of judicial bankruptcy..
- Prohibition on obtaining new loans - within 5 years after declaring bankruptcy the debtor cannot take a loan or credit (except for microcredits).
- Monitoring of the debtor's financial condition for 3 years after the completion of bankruptcy proceedings.
- Restriction on re-bankruptcy - re-bankruptcy proceedings are possible not earlier than after 7 years.
