Out-of-court bankruptcy of individuals in the Republic of Kazakhstan: current legislative amendments

Since March 3, 2023, the Law of the Republic of Kazakhstan "On Restoration of Solvency and Bankruptcy of Citizens of the Republic of Kazakhstan" has been in force in the Republic of Kazakhstan, which provides for three procedures for resolving debts of citizens: out-of-court bankruptcy, judicial bankruptcy and restoring solvency. The most popular procedure is out-of-court bankruptcy, which makes it possible for citizens to get rid of debt obligations without visiting the court.

Out-of-court bankruptcy applies to obligations to second-tier banks, microfinance organizations, collection agencies, as well as other organizations that have claims under loan and microcredit agreements for individuals. One of the main conditions is the availability of debt not exceeding 1600 monthly calculation indices (MCI). In 2026, this threshold is 6 920 200 tenge. In addition, the obligations must remain outstanding for at least 12 months on the date of the application.

During the period of the Law operation, the State has made significant work to improve the procedure. In 2025, amendments were adopted according to which the requirement for mandatory debt settlement with a creditor does not apply to bank loan and microcredit agreements concluded before January 1, 2025. Debtors are also given the right to terminate the out-of-court bankruptcy procedure at their own request without giving reasons.

Significant amendments will take effect in 2026. Pawnshops are excluded from the list of creditors whose claims can be written off as part of an out-of-court bankruptcy. In addition, for certain categories of debtors, the duration of the procedure has been reduced from six months to one month. This opportunity is provided to citizens with debts of less than 1600 MCI and not fulfilled their obligations for more than five years at the time of the application submitting. It makes possible to significantly speed up the process of freeing citizens from bad debts.

In order to simplify the procedure, it is also not required to provide information on creditors, amounts owed, and attach supporting documents when submitting an application. Applications can be submitted through the eGov e-government portal, eGov Mobile and e-Salyq Azamat mobile applications, as well as through PSCs.

At the same time, declaring a citizen bankrupt entails certain legal consequences. After completing the procedure, debt obligations are written off, except for alimony and obligations to compensate for harm to life and health. A ban on obtaining new loans for a period of five years is imposed on a bankrupt, the procedure can be re-applied only after seven years, and the financial condition of a citizen is subject to monitoring for three years.

Thus, out-of-court bankruptcy is an important mechanism of social support for citizens in a difficult financial situation. Recent legislative amendments are aimed at further simplifying the procedure, shortening its duration and expanding the opportunities for citizens to become legally free from the unbearable debt burden.

Since 03 March, 2023, i.e. since the Law came into force as of 24 June 2026, 12 162 applications have been submitted for the application of the out–of-court bankruptcy procedure in EKR, including:

2023-1927;

2024 – 2180;

2025 – 4983;

2026 – 3072 applications.

From 12 162 applications:

Rejected – 9240 applications;

Under consideration - 919 applicatios.

Completed – 2003 applications.

Thus, to date, 2003 citizens have been declared bankrupt through the out–of-court bankruptcy procedure, debts to second-tier banks, microfinance organizations and collection organizations have been written off in the amount of 4 221 861 417, 0 tenge, including:

2023 - 209 people for the sum of of 817 050 906, 10 tenge.;

2024 – 305 people for the sum of 765 125 137, 30 tenge;

2025 – 1101 people for the sum of 1 988 982 140, 60 tenge;

2026 - 388 citizens for the sum of 650 703 233, 00 tenge.