Article 1.The basic concepts used in this Law are the Law on the Restoration of Solvency and Bankruptcy of Citizens of the Republic of Kazakhstan

Home / RLA / Article 1.The basic concepts used in this Law are the Law on the Restoration of Solvency and Bankruptcy of Citizens of the Republic of Kazakhstan

The following basic concepts are used in this Law:

1) current expenses – expenses of a citizen incurred after the date of acceptance by the court of an application for the application of the procedure for restoring solvency or judicial bankruptcy, including remuneration of the financial manager;

2) intentional bankruptcy – actions of a citizen of the Republic of Kazakhstan committed in personal interests in order to evade obligations to creditors by alienating, concealing or destroying property within three years prior to the application of out-of-court or judicial bankruptcy procedures.;

3) bankrupt – a debtor in respect of whom the out-of-court bankruptcy procedure has been completed or a court decision on the completion of the judicial bankruptcy procedure has entered into legal force.;

4) the debtor is a citizen of the Republic of Kazakhstan, whose insolvency is the basis for the application of procedures for restoring solvency, as well as out–of-court and judicial bankruptcy;

5) the debtor's estate is the debtor's property, which may be foreclosed upon in the bankruptcy proceedings.;

6) a settlement agreement is a procedure applied at any stage of the judicial bankruptcy procedure in order to terminate it by concluding an agreement between the debtor and creditors, approved by the court.;

7) creditor – a person who has claims against the debtor arising from civil and (or) other obligations, including obligations, the fulfillment of which is secured by a pledge of the debtor's property;

8) register of creditors' claims – a list of creditors' claims against the debtor, indicating their size, grounds and date of occurrence;

9) financial manager – a person who carries out activities in the procedures of restoration of solvency and judicial bankruptcy;

10) judicial bankruptcy procedure is a procedure carried out against a debtor in court in order to satisfy creditors' claims at the expense of the debtor's estate;

IZPI's note! The first part of subparagraph 11) is provided for in the wording of the Law of the Republic of Kazakhstan dated 30.06.2025 No. 205-VIII (effective sixty calendar days after the date of its first official publication).

11) out–of–court bankruptcy procedure is a procedure carried out against a debtor out of court in order to terminate obligations under bank loan agreements and microcredit agreements for individuals to second-tier banks, branches of a non-resident bank of the Republic of Kazakhstan, organizations engaged in certain types of banking operations, organizations engaged in microfinance activities, or collection agencies.

The obligations specified in this subparagraph also include obligations to second-tier banks and bank branches. – of a non-resident of the Republic of Kazakhstan, organizations that carried out certain types of banking operations, microfinance activities, or collection agencies that were deprived by the authorized body for regulation, control and supervision of the financial market and financial organizations of licenses to conduct all banking operations, conduct microfinance activities, or excluded from the registers of microfinance organizations, collection agencies, including liquidated, located on stages of liquidation, as well as by other organizations, who have the rights of claim under bank loan agreements, loan (loan) agreements and micro-credit agreements for individuals;

12) insolvency – the debtor's inability to fully fulfill monetary obligations and other monetary requirements;

13) a solvency restoration plan is a document containing a set of measures aimed at restoring the debtor's solvency, indicating the timing of implementation;

14) the procedure for restoring solvency is a procedure applied in court, in which financial, legal and other measures aimed at restoring the debtor's solvency are applied to the debtor that do not contradict the legislation of the Republic of Kazakhstan.;

15) authorized body – a state body that provides leadership in the field of public administration for the restoration of solvency and bankruptcy of citizens of the Republic of Kazakhstan.

This Law regulates public relations arising in the event of the insolvency of a citizen of the Republic of Kazakhstan, establishes the grounds for the application of the procedure for restoring solvency, as well as the procedures for out-of-court and judicial bankruptcy, the procedure and conditions for their conduct.

President

Republic of Kazakhstan

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