Creditors' Committee (U.S. Bankruptcy Law)

A Creditors' Committee is a group formed during Chapter 11 bankruptcy proceedings in the United States. It is made up of a representative selection of unsecured creditors—those who are owed money without collateral backing. The committee's role is to advocate for the interests of all unsecured creditors, ensuring fair treatment in the bankruptcy process. They collaborate with the debtor and can influence the restructuring plan, negotiate terms, and monitor the case. Essentially, the committee helps ensure that creditors have a voice and that their interests are considered in the resolution of the bankruptcy.