Creditors’ Committee

A group of unsecured creditors appointed by the United States Trustee charged with being a watchdog to protect the interests of similarly situated creditors in a bankruptcy case.

Usually consists of five to seven creditors chosen from the 20 largest unsecured creditors in the case. Although the term is normally used to refer to the official committee of unsecured creditors, other committees often exist in bankruptcy cases, such as bondholders committees, employee and retiree committees, and equity holders committees.

Committees are represented by counsel at the expense of the bankruptcy estate and often at the expense of secured creditors—sometimes with, and sometimes without, their consent.

Bankruptcy Code §§ 705, 1102, 1103. See also Carveout, Creditors’ Committee, Equity Holders’ Committee, Retirees’ Committee, Surcharge.

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