What is a Creditor’s Committee?
The U.S. Trustee appoints the creditor’s committee if requested, possible, or deemed necessary. The creditor’s committee usually consists of several creditors who hold the largest unsecured claims in the Chapter 11 Bankruptcy Case. A creditor’s committee may consult with the Debtor on the administration of the case, investigate the debtor’s conduct or business operations, and participate in the formulation of a plan of reorganization. Also, the committee can hire its own lawyer, and the legal fees are usually paid from the Debtor’s bankruptcy estate. Basically a creditor’s committee is appointed by the U.S. Trustee and monitors the Debtor’s affairs.
