Kazakhstan considers Personal Bankruptcy law

Kazakhstan is considering adopting a personal bankruptcy law, reports Tengrinews citing Kazakhstan Minister of Finance Bakhyt Sultanov. “We are cooperating with consultants, with the World Bank regarding the personal bankruptcy law. This year we have been studying international practices. Next year we are going to adapt the international practices to the Kazakhstan legislation. Our consultants are going to develop proposals for our legal framework by 2014,” said Mr. Sultanov at the sidelines of the Parliament meeting. He explained that the personal bankruptcy law is closely connected with introduction of universal declaration that requires all the citizens of Kazakhstan to file income statements, not just government officials. “It is a very delicate question. To introduce “personal bankruptcy” we need to have a clear picture of incomes and expenditures. That is why we need to introduce universal declaring,” said the Minister of Finance. According to the Minister, universal declaring of revenues will be introduced by 2017. In 2011 then-member of the Majilis (lower chamber) Vladimir Nekhoroshev suggested adoption of a personal bankruptcy law. “People are struggling to repay their loans after losing their jobs as a result of the crisis. A whole new movement has been born. When is the personal bankruptcy law going to be submitted? ” inquired Mr. Nekhoroshev expressively back then. This week MP Aigul Soloveva has brought up the question again. “When are you going to submit the law that will set clear criteria to identify bankrupt individuals? It sometimes happens that a person who obtains a loan dies or falls ill. When is this law going to be adopted? What is your opinion regarding this issue?” Ms. Soloveva asked Minister of Finance Bakhyt Sultanov. The corporate bankruptcy law became part of the Kazakhstan legislation in 1997. Corporate bankruptcy allows a protected space in which a company can reorganize itself and restart, personal bankruptcy gives a relief from creditors to an individual who is declared a bankrupt by the court. By Asel Satayeva