Out-of-court bankruptcy is a debt forgiveness procedure initiated 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 an option?
The out-of-court bankruptcy procedure may be applied if the following conditions are met:
- You are a citizen of Kazakhstan.
- You do not have any registered property or ownership interest in any property.
- You have debts to banks, microfinance organizations (MFOs), and collection agencies, and you are unable to pay them off.
- The total amount of debt does not exceed 1,600 MPR. In 2024, this amounts to up to 5,907,200 tenge.
Out-of-Court Bankruptcy Proceedings
The out-of-court bankruptcy process consists of several stages, beginning with the filing of a petition and ending with the completion of the proceedings and the discharge of the debtor's obligations.
Stages of the out-of-court bankruptcy procedure:
- Submitting an Application
- Consent of the Spouse
- Verification of Asset Ownership
- Document Regarding the Settlement of a Debt with a Creditor
- Phone Number Registration
- Filing for Bankruptcy
- Consent of the Spouse(s) to the Processing of Personal Data
- Review of the Application
To obtain out-of-court bankruptcy services, you must submit the following documents:
- Debtor's Petition for Extrajudicial Bankruptcy Proceedings.
- A list of creditors, including their names, the amounts owed, and their locations, as set forth in the attachment to the petition.
- A copy of a document confirming that steps have been taken to settle the debt (for example, a refusal by a bank or microfinance organization to settle the debt).
The outcome of an out-of-court bankruptcy:
- Full debt forgiveness if all conditions are met.
- Discharge from further debt obligations, provided they do not exceed the limit and the debtor has no assets to cover the debts.
- The ability to engage in financial activities, including working, opening a bank account, receiving an official salary, and traveling abroad.
