Kazakh residents declaring bankruptcy to face some restrictions
Kazakhstan sets to introduce three types of bankruptcy procedures for individuals. First Vice Minister of Finance Marat Sultangaziev explained that, for example, an out-of-court procedure will be available to those who could not repay their debts within 12 months. In this case, the amount should not exceed 300,000 tenge (US$701) and there should be no property at the expense of which it is possible to repay the debt. In addition, citizens whose debt is less than 5 million tenge (US$11,683) and the debt payment is overdue for no more than six months can begin bankruptcy proceedings. The procedure for solvency provides for the possibility of obtaining installments in court to pay debts for up to five years, if a person has a stable income. The so-called "judicial bankruptcy" will be applied by citizens for outstanding debts over 5 million tenge (US$11,683). "Some experts have proposed banning bankrupts from holding public positions or positions in financial institutions. These issues will be considered," the Vice Minister added.
“During this procedure, a debtor's property is subject to sale at auction. The proceeds are used to repay debts to creditors in accordance with the established order. If the only housing is the subject of collateral, then the creditor will have the right to withdraw it only in the course of bankruptcy proceedings. If the only housing is not a pledge, creditors will not be able to claim it. The remaining outstanding amount is subject to write-off, provided there are no signs of dishonesty of the debtor. However, at the same time, alimony debts and damage caused to the life and health of another person are not subject to write-off,” said Marat Sultangaziyev, Kazakh First Vice Minister of Finance.
Translation by Ademi Serikbay, Aruzhan Bizhigitova
Editing by Saule Mukhamejanova