When the court receives valid Oklahoma bankruptcy filing documents, there are specific steps it needs to take when it opens your case. The first step involves alerting your creditors that you are filing bankruptcy pleadings. This is done for several reasons. Of most importance to you is that the court will usually issue what’s known as an Automatic Stay.
An Automatic Stay is the order from the court that provides you with instant relief, as it’s basically an order that prevents your creditors from continuing their collection efforts. The court also provides notice to the creditors that they need to file what’s known as a Notice of Claim, which is a legal document that will allow that creditor’s debt to remain relevant to your case in their hopes that they will recover at least some of what you owe them.
The court will also schedule a hearing or creditors’ meeting, depending on the chapter of the code under which you file and alert the creditors of this date. The purpose of this hearing is to provide an opportunity for the debtor to assert that everything contained in the petitions is true and accurate and for the creditors to either challenge the schedules or to provide input on a payment plan if the debtor is filing bankruptcy pleadings under Chapter 13 or Chapter 11 of the United States Bankruptcy Code.