Bankruptcy is the insolvency of a debtor recognized by a court decision and serving as grounds for its liquidation.
A debtor is a legal entity whose insolvency constitutes grounds for applying the procedures provided for under the Law of the Republic of Kazakhstan “On Rehabilitation and Bankruptcy.”
The bankruptcy of a legal entity is established:
Voluntarily — on the basis of an application filed by the debtor with the court;
Compulsorily — on the basis of an application filed with the court by creditors or other persons authorized under the Law.
The grounds for a creditor to apply to the court for a declaration of bankruptcy or for the application of rehabilitation proceedings against a debtor are the debtor’s insolvency.
The grounds for a debtor to apply to the court for a declaration of its own bankruptcy are its insolvency and the absence of any possibility of restoring its solvency.
Before being declared bankrupt, a debtor may be subject to rehabilitation proceedings, including an accelerated rehabilitation procedure based on a rehabilitation plan agreed upon with creditors out of court.
The bankruptcy procedure is administered by a bankruptcy administrator appointed by the authorized body responsible for rehabilitation and bankruptcy.
Creditors’ claims, including claims relating to mandatory payments to the state budget, are satisfied in the order of priority established by law.
