Why Form 843 Bankruptcy 2011-2023

Welcome to the 5-minute legal master series where expert attorneys help you master important legal topics today board-certified creditors rights and business bankruptcy attorney Kirk B Berkeley discusses the unsecured creditors committee welcome and today we're going to be talking about unsecured creditors committees in bankruptcy proceedings so what is it unsecured creditors committee an unsecured creditors committee is a committee that is formed by the Office of United States trustee in most large chapter 11 bankruptcy cases and some of the smaller and mid-sized chapter 11 bankruptcy cases as well and the committee is chosen from the debtors largest unsecured creditors typically what happens is the beginning of the case the debtor will file its list of largest 20 unsecured creditors sometimes 30 to 50 largest unsecured creditors and then the office of United States trustee will go out and solicit those creditors to see if they want to participate on the creditors committee they'll then take those responses of creditors that are willing to serve participation is voluntary and form a committee of the three to seven largest creditors that want to participate and they usually try and mix up the creditors to participate maybe a few creditors that represent trade creditors maybe a couple bondholders to try and get some differing positions or views of the case on the committee the committee is then charged with representing the interest of all unsecured creditors not just those creditors on the committee and they are to look out for the interest of all unsecured creditors for a number of number of reasons one perhaps to try and get the largest recovery the largest financial recovery as possible sometimes maybe the committee is an ally of the debtor in helping the debtors stay alive and conducting business because then creditors...