250 billion tenge of debt to be written off for Kazakhstanis

Tengrinews.kz — More than 66,000 people in Kazakhstan are eligible for debt write-offs. This was announced on the sidelines of the Senate by Meruert Sisembayeva, head of the Department for Work with Insolvent Debtors at the State Revenue Committee.
Details
According to Sisembayeva, approximately 132 billion tenge in debt is expected to be written off through the out-of-court bankruptcy procedure alone.
Note. Out-of-court bankruptcy is a simplified debt relief procedure conducted without litigation. An individual simply files an application, the state verifies their debts and assets, and if they meet the criteria, the debts are cleared without a court process.
In total, about 66,600 people have already been declared bankrupt under two types of bankruptcy proceedings, she continued.

"Altogether, 66,600 people have been recognized as bankrupt under the two procedures, and 250 billion tenge of their debt is subject to write-off," the department head stated.

Earlier, the Agency for Regulation and Development of the Financial Market reported that some Kazakhstani citizens will be able to write off overdue loans without an income or asset check.
If an individual has not made loan payments for more than 5 years, their debt may be written off automatically—in this case, earnings and assets are not considered. Kazakhstan is also introducing "proactive bankruptcy," where the state identifies such debtors and sends them an SMS offering to process the debt write-off.
Consequences of bankruptcy
However, it is crucial to understand that bankruptcy is not just about debt relief; it also entails certain restrictions. Once debts are cleared, the individual:

is prohibited from taking out loans for 5 years;
will have their financial status monitored by authorized bodies for 3 years;
can only file for bankruptcy again after 7 years;
will have their bankruptcy information published in open sources.

How to file for bankruptcy
The bankruptcy process takes an average of up to 6 months and comes in two forms: out-of-court and judicial.
Note. Out-of-court bankruptcy applies when debt to banks or microfinance organizations does not exceed 1,600 MCI (Monthly Calculation Index), there are no assets, and the default has lasted more than 12 months despite attempts at settlement.
Out-of-court bankruptcy is the simplest option:

submitting an application only requires an IIN (Individual Identification Number);
spousal consent is required (if applicable);
only citizens of Kazakhstan who are not registered as individual entrepreneurs can file for bankruptcy.

This can be done via the eGov.kz portal, the e-Salyq Azamat or eGov Mobile apps, or in person at the nearest Public Service Center (PSC).
Judicial bankruptcy applies in more complex situations—where debt exceeds 1,600 MCI (approximately 7 million tenge in 2024) or the debtor owns assets. In such cases, it is necessary to:

prepare a list of creditors and debtors;
provide documents confirming the debts;
provide details regarding assets.

This information must be submitted to the court, which will then issue a ruling.
As a reminder: starting July 1, loan issuance rules will change in Kazakhstan. Banks will begin evaluating client solvency more strictly. This involves implementing new indicators—the debt service ratio and the debt-to-income ratio. These will show what portion of an individual's income is already spent on loans and other mandatory payments. The higher this ratio, the lower the chances of securing a new loan.