Out-of-court bankruptcy is a debt relief procedure that is implemented upon the debtor's application through state-owned online platforms such as Egov.kz, e-Salyq Azamat and the Population Service Center.
When is an out-of-court bankruptcy appropriate?
An out-of-court bankruptcy procedure may be applied if the following conditions are met:
- You are a citizen of Kazakhstan.
- You have no registered property or interest in property.
- You have debts to banks, microfinance organizations (MFIs) and collection agencies and you cannot pay them.
- The amount of debts does not exceed 1,600 MRP. In 2024, this amounts up to 5,907,200 tenge.
Out-of-court bankruptcy procedure
The process of out-of-court bankruptcy includes several stages, starting with the filing of the petition and ending with the finalization of the procedure and the termination of the debtor's obligations.
Stages of out-of-court bankruptcy proceedings:
- Submitting an application
- Consent of spouse
- Physical verification of assets
- Debt settlement document with the creditor
- Phone number registration
- Filing for bankruptcy
- Spouse's consent to the processing of personal data
- Application review
The following documents must be submitted to obtain out-of-court bankruptcy services:
- Debtor's application for an out-of-court bankruptcy procedure.
- List of creditors with their name, amount owed and location according to the annex to the application.
- A copy of the document confirming that debt settlement measures have been taken (e.g., bank or MFI refusal to settle the debt).
The result of out-of-court bankruptcy:
- Complete debt forgiveness if all conditions are met.
- Exemption from further debt obligations if they do not exceed the limit and the debtor has no assets to cover the debts.
- Ability to conduct financial activities, including working, opening an account, receiving an official salary and traveling abroad.
