Kazakhstanis see $100 million in loans forgiven due to bankruptcy

Since March 2023, when the individual bankruptcy law came into effect, Kazakhstanis have had approximately $100 million in loans written off, according to the Ministry of Finance.

Data from Qoldau, a digital platform for businesses and citizens, shows that more than 158,000 citizens have applied for bankruptcy in Kazakhstan. Out of these, 116,300 applications were rejected, over 13,000 were approved and 19,600 cases were finalized.

Nearly two-thirds (62%) of applicants are aged 18 to 40. The Turkestan and Almaty regions lead in the number of applicants, with 18,000 in each region. Almaty city ranks third with 12,800 applicants. In contrast, the northern and central regions — Ulytau, North Kazakhstan and Kostanay — recorded the fewest applications.

Kazakhstan offers three types of bankruptcy procedures: judicial bankruptcy, extrajudicial bankruptcy and solvency restoration. So far, 448 individuals have been declared bankrupt through judicial procedures, 48 have been declared insolvent and 19,600 cases were resolved through extrajudicial procedures.

The cabinet recently revised the rules for filing out-of-court bankruptcy, now requiring spousal consent to initiate the process.