Once a debtor declares bankruptcy creditors can no longer start or continue proceedings against the debtor without the Court’s permission. If you are a secured creditor (ie. someone who has a lien on a debtor’s property or assets) you are still able to take possession of the item for which you have a lien despite the declaration of bankruptcy unless the Court orders otherwise.
Once the debtor has filed for bankruptcy the LIT will send you a notice of bankruptcy as well as a Proof of Claim form. You must complete the form to share in the dividends and vote in the first meeting of creditors. If you are an unsecured creditor, before the first meeting of the creditors is held the LIT will look at your claim and decide if it should be allowed, dismissed, or allowed in part. If you claim is dismissed, you can appeal this decision to the Court within 30 days.
The LIT will provide notice of the meeting of the Creditors within 5 days of the bankruptcy being filed. At the creditors meeting you will appoint inspectors, review the LIT’s reports, review other creditors statement of claims and vote on any resolutions.