The Republic of Kazakhstan enforces Law No. 178-VII "On Solvency Restoration and Bankruptcy of Citizens of the Republic of Kazakhstan" dated December 30, 2022. This law is aimed at settling the debts of citizens finding themselves in a difficult financial situation and provides legal mechanisms for restoring solvency or being discharged from certain debt obligations.
The legislation provides for three procedures: out-of-court bankruptcy, judicial bankruptcy, and solvency restoration. Each of them has its own application conditions and legal consequences.
Out-of-Court Bankruptcy
Out-of-court bankruptcy applies to citizens with debts to second-tier banks, microfinance organizations, and collection agencies, as well as to other creditors in cases specified by legislation.
To apply this procedure, the amount of debt must not exceed 1,600 monthly calculation indices (MCI). In 2026, this threshold stands at 6,920,200 tenge.
The main conditions for applying the procedure are the absence of registered property, the absence of debt repayment for 12 consecutive months, and compliance with the requirements for debt settlement with the creditor in cases provided for by law.
At the same time, the legislation establishes specific exceptions. In particular, citizens who have received targeted social assistance within the last six months may use the procedure without complying with the 12-month non-repayment requirement.
Special conditions are also provided for citizens whose debts have not been repaid for more than five years.
An application for out-of-court bankruptcy can be submitted through the eGov.kz e-government portal, the eGov Mobile app, or by contacting a Public Service Center (PSC).
The duration of the procedure is six months, and in specific cases provided for by law — one month.
Judicial Bankruptcy
Judicial bankruptcy applies to citizens who do not meet the criteria for out-of-court bankruptcy or have debts subject to judicial review.
This procedure can be applied when there is a debt to creditors exceeding the amount set for out-of-court bankruptcy, as well as in the presence of obligations to other creditors regardless of the amount of debt.
Under this procedure, the citizen files an application with the court at their place of residence. Once the case is initiated, a financial manager is appointed to analyze the debtor's financial position, assets, and liabilities to creditors.
If there is property subject to liquidation in accordance with legislation, it may be used to settle the debt.
Upon completion of the procedure, the court rules to declare the citizen bankrupt. The discharge of obligations is considered taking into account statutory requirements and exceptions.
Solvency Restoration
Solvency restoration is a procedure aimed at settling debt without declaring the citizen bankrupt.
This procedure applies to citizens who have a stable income and the capacity to meet their obligations to creditors, as well as in cases where the value of the debtor's assets exceeds the amount of their liabilities.
To apply this procedure, an application must be filed with the court. Subsequently, a solvency restoration plan is developed, outlining the procedure and timeline for debt repayment based on the citizen's financial capabilities.
The plan may include granting deferrals or installments of payments, altering repayment terms, reducing interest rates, and other measures provided for by law.
The execution period of the solvency restoration plan must not exceed five years.
The main advantage of this procedure is the opportunity to settle debt while retaining the status of a non-bankrupt individual.
Consequences of Being Declared Bankrupt
The application of bankruptcy procedures entails certain restrictions for the citizen.
In particular, after being declared bankrupt:
For five years, the citizen is not entitled to obtain loans or microloans, except for microloans provided by pawnshops in cases stipulated by law.
Re-application of the bankruptcy procedure is allowed no earlier than seven years later.
Monitoring of the citizen's financial condition is conducted for three years.
It should be noted that not all obligations are subject to discharge through bankruptcy. In particular, obligations to pay alimony and to compensate for damage caused to life or health of another person remain in force.
Procedure for Obtaining Information and Filing Applications
To obtain detailed information regarding the conditions for applying these procedures, citizens can use the eGov.kz e-government portal, contact a Public Service Center, or receive consultation via the 1414 single contact center.
Additional clarifications on issues related to solvency restoration and individual bankruptcy are also available through the information resources of the Ministry of Finance of the Republic of Kazakhstan and the SalyqBot Telegram bot.
Solvency restoration and bankruptcy are statutory mechanisms for individual debt settlement.
Choosing the appropriate procedure depends on the debt amount, availability of property, income level, and other circumstances of the citizen's financial position.
Before applying for any of the procedures, it is recommended to carefully examine the statutory requirements and potential legal consequences. This will allow for selecting the most suitable debt settlement method and making an informed decision.