Out-of-court bankruptcy of individuals

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    The RSU State Revenue Department of East Kazakhstan region of the SRC MF RK, hereby informs the public that the Law of the Republic of Kazakhstan "On the restoration of solvency and bankruptcy of citizens of the Republic of Kazakhstan" (hereinafter - the Law) has been in effect since March 3, 2023.

    One of the provisions of this Law for addressing individual debt is the out-of-court bankruptcy procedure.

    Out-of-court bankruptcy in the Republic of Kazakhstan is a simplified process that allows citizens to discharge their debts without applying to a court.

    The out-of-court bankruptcy procedure is available for debts totaling less than 1,600 MCI (approximately 6.9 million tenge) owed to banks, microfinance organizations, and collection agencies, to qualify, a debtor must have no recorded property and must not have made any debt repayments for twelve consecutive months as of the application date. Certain categories of citizens (socially vulnerable persons or those with long-term overdue payments) are eligible for a simplified version of this procedure. However, the legislation establishes limitations: alimony payments and compensation for damage caused to life or health cannot be written off. Applications can be submitted through PSCs, the e-government portal (eGov.kz), or the mobile applications e-Salyq Azamat and eGov Mobile.

    The procedure lasts for 6 months, at which point the debtor's obligations are formally terminated.

    Declaring bankruptcy consequences include the cancellation of debts (with some exceptions), a five-year prohibition on obtaining loans, repeated bankruptcy only after a seven-year interval, the individual’s monitoring for 3 years following the declaration.

    Since the Law came into effect on March 3, 2023, as of March 30, 2026, a total of 10 595 applications have been filed for the out-of-court bankruptcy procedure, resulting in 1 680 citizens being officially declared bankrupt in EKR.

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