Creditors' Committees' Roles in Bankruptcy


This practice note addresses creditors' committee' role in Chapter 11 as well as Chapter 7 and Chapter 9 of the Bankruptcy Code. The creditors' committee is the official committee of general unsecured creditors organized pursuant to Section 705, Section 901, or Section 1102, as applicable, of the Bankruptcy Code. Creditors' committees are formed with the ultimate goal of maximizing the recovery of all unsecured creditors from the bankruptcy estate. Accordingly, the committee members have a fiduciary duty to represent all of the debtor's unsecured creditors.