Creditor’s Committee Law and Legal Definition

Creditor’s committee refers to the official committee of unsecured creditors appointed by the U.S. trustee in the case, as reconstituted from time to time. The creditors' committee is intended to represent the diverse interests and concerns of all the creditors, and is not merely a tool which the debtor uses to negotiate with the creditors. The committee is not intended to be merely an arbiter but a partisan which will aid, assist, and monitor the debtor pursuant to its own self-interest. A creditors' committee is considered a party in interest in a bankruptcy case. As a party in interest, a creditors' committee may raise and may appear and be heard on any issue in a case under the bankruptcy Act. [In re Parks Jaggers Aerospace Co., 129 B.R. 265 (M.D. Fla. 1991)].