Bankruptcy of Individuals
Only the debtor can file for bankruptcy. In the presence of property, with a debt of up to 1,600 monthly calculation indices (MCI), the debtor files for judicial bankruptcy. No settlement is required for debts 5 years overdue.
Types of bankruptcy proceedings:
- Extrajudicial bankruptcy (simplified form)
- Judicial bankruptcy (by court decision)
- Restoration of solvency (by court decision)
Extrajudicial bankruptcy (applicable to debts owed to second-tier banks, microcredit companies and collectors). Conditions: no property, including common property; settlement of overdue debt within 18 months from the date of occurrence; bankruptcy not applied for in the last 7 years; no repayments for 12 consecutive months on the filing date; recipients of state targeted social assistance in the preceding 6 months may also file.
| Category | Amount owed | No payment | Duration |
|---|---|---|---|
| All individuals | up to ₸5,520 thousand (1,600 MCI) | 12 consecutive months | 6 months |
| Regardless of debt amount | more than 5 years overdue | — | — |
Judicial bankruptcy. Conditions: settlement of overdue debt within 18 months; no bankruptcy in the last 7 years; no repayments for 12 consecutive months. Amount owed — more than ₸5,520 thousand (1,600 MCI), all types of debt, no payment for 12 months; duration — 6 months, may be extended by 6 months.
Restoration of solvency — for a debtor whose obligations (including not-yet overdue ones) do not exceed the value of their property; application to court only for this procedure; the plan may be implemented ahead of schedule.
Plan instruments (one or more): change of deadline (deferral/instalments); waiver of debt or part of it, including fines and penalties; reduction of the interest rate; reduction of current payments with simultaneous extension of the loan term; change of the method of fulfilment; satisfaction of a secured creditor's claims by transferring the pledged property, subject to debt forgiveness; other instruments.
Measures for plan implementation: sale of part of the property; leasing of property; collection of receivables; exchange of housing/vehicle for a cheaper one; employment of the debtor; other measures not contradicting RK legislation.
The draft plan is sent to creditors on the claims register; creditors submit proposals within 10 business days of receipt; late proposals are treated as no proposal.
Consequences (following extrajudicial and judicial bankruptcy): a 5-year ban on loans from banks and microfinance organisations (except pawnshops); repeated bankruptcy possible after 7 years; monitoring of financial condition for 3 years after bankruptcy.
Debts not subject to write-off: alimony payments; compensation for damage to life or health; compensation for damage from criminal offences, and budget payments collected under a court ruling.