Official Committee of Unsecured Creditors

The Official Committee of Unsecured Creditors is a group formed during bankruptcy proceedings to represent the interests of unsecured creditors—those owed money without collateral backing the debt. This committee typically includes a few key creditors chosen to advocate for the group's collective interests, negotiate with the debtor, and help shape the bankruptcy plan. Their goal is to maximize recoveries for all unsecured creditors, ensuring their rights are protected throughout the process. This committee plays a critical role in ensuring transparency and fairness in a bankruptcy case.