Having debts to banks, microfinance organizations and other creditors does not automatically give a Kazakh citizen the right to declare bankruptcy — the borrower must meet the requirements set by law. The Almaty Department of State Revenue issued this reminder, the website infohub.kz reports.

Kazakhstan offers three procedures for those facing unmanageable obligations: out-of-court bankruptcy, court bankruptcy and rehabilitation of solvency. Each has its own features and requirements for borrowers.

Out-of-court bankruptcy covers debts to banks, microfinance organizations and collection agencies. The borrower must meet the following conditions: the debt does not exceed 1,600 monthly calculation indices, or 6,920,000 tenge in 2026; the debtor has no registered property, including property held in joint ownership; the debt has not been repaid for 12 consecutive months; debt settlement with the creditor has been carried out; and the citizen has not gone through bankruptcy in the past seven years. An application for out-of-court bankruptcy is filed through the e-government portal, the eGov Mobile app or a public service center.

Court bankruptcy covers not only debts to banks and microfinance organizations but also tax arrears. The procedure is carried out through the courts and applies if the debt exceeds 1,600 monthly calculation indices or if the citizen owns property, such as a car or real estate. It is important to understand that court bankruptcy is not a simple "write-off of debts" — creditors are paid from the sale of the debtor's property, and the state duty and fees for a financial manager are also deducted from the total.

Once a citizen is declared bankrupt, restrictions apply: for five years they are barred from taking out new bank loans and microcredits; they can go through bankruptcy again only after seven years; and the state monitors the citizen's financial situation for three years.

For Kazakh citizens with a stable income who can gradually repay their debts, there is an alternative — rehabilitation of solvency. Its purpose is not to write off debts but to help the citizen pay them: a court may approve an individual debt repayment plan of up to 5 years. The main advantage of the procedure is that the citizen does not receive bankrupt status and therefore does not face its negative consequences.

Therefore, to legally get rid of debts and avoid unnecessary financial problems in the future, tax authorities advise Kazakh citizens to honestly assess their income before filing for bankruptcy and to choose the appropriate procedure. It is important to remember that some types of debt are not discharged through bankruptcy and will still have to be repaid by the debtor — alimony, for example.

We previously reported on whether a bankrupt person can leave Kazakhstan, and on why Kazakh citizens may be denied bankruptcy.