Citizens who have debts to creditors, banks, microfinance organizations, and other debts may use the bankruptcy procedure.
The legislation provides for two main mechanisms: out-of-court bankruptcy and judicial bankruptcy.
Out-of-Court Bankruptcy
Out-of-court bankruptcy applies to debts owed to banks, microfinance organizations (MFOs), and collection agencies (pawnshops have been excluded since March 2026).
Requirements:
-
Total debt must not exceed 1,600 MCI, which in 2026 amounts to no more than KZT 6,920,000.
-
The applicant must have no registered individually or jointly owned property. For debts outstanding for more than 5 years, this requirement does not apply.
-
No payments must have been made for 12 consecutive months. This period does not apply to persons who have received targeted social assistance during the last 6 months.
-
Debt settlement procedures with the creditor must have been completed. This requirement does not apply to agreements concluded before January 1, 2025.
-
Bankruptcy procedures must not have been applied during the previous 7 years.
Application and timeframes:
-
Applications may be submitted through eGov.kz, the eGov Mobile application, or branches of the Non-Profit Joint-Stock Company “Government for Citizens” (Public Service Centers).
-
The duration of the procedure is 6 months.
-
An accelerated period of 1 month applies where the debt is less than 1,600 MCI and has remained unpaid for 5 years.
Judicial Bankruptcy
Judicial bankruptcy applies when the conditions for the out-of-court procedure are not met and is initiated by submitting an application to the court.
Requirements:
-
Debt exceeds 1,600 MCI (more than KZT 6,920,000).
-
Debts to banks, MFOs, individuals, tax debts, and other debts may be written off.
-
No payments must have been made for 12 consecutive months.
-
When submitting an application to the court, a state fee must be paid (0.3 MCI / KZT 1,297.5), as well as the services of a financial manager (1 minimum wage per month / KZT 85,000; for socially vulnerable groups with no property, the cost is covered by the state budget).
Consequences of Bankruptcy
-
5 years — prohibition on obtaining new loans and microloans.
-
7 years — bankruptcy cannot be applied for again.
-
3 years — the citizen’s financial condition is subject to financial monitoring.
Restoration of Solvency
Restoration of solvency is an alternative to bankruptcy that does not result in obtaining the status of a “bankrupt.” It applies where a person has a stable income or property exceeding the amount of debt.
Conditions and procedure:
-
An application is submitted to the court at the place of residence.
-
A restoration plan is approved by the court for a period of up to 5 years.
-
Measures may include installment payments, reduction of interest rates, partial write-off of debt/penalties, and the sale or exchange of property.
-
Advantages: accrual of interest and fines is stopped, and seizures imposed on property are lifted.
-
Restrictions: taking out new loans and selling property outside the approved plan are prohibited.
-
Implementation: the individual implements the plan independently; in case of non-compliance, the debtor proceeds to judicial bankruptcy.