Creditors’ Committees
Many businesses with unmanageable debt loads choose to file for Chapter 11 bankruptcy. When a business files for Chapter 11 bankruptcy, the purpose is usually to pay off creditors through business reorganization. As part of this process, the creditors will be notified of the bankruptcy proceedings and offered a place on a creditors’ committee designed to help represent the interests of all unsecured creditors involved with the business.
If your business has filed or is considering filing for Chapter 11 bankruptcy, it is important that you pursue effective legal representation to ensure that your business receives the most favorable treatment possible. Contact the Boca Raton bankruptcy lawyers of Eric N. Klein & Associates, P.A., at 561-353-2800 today to discuss your situation with an experienced legal professional.
Creditors’ Committee Duties and Powers
In order to maximize recovery for all unsecured debtors, the creditors’ committee is given a number of different duties and powers, including:
- Investigating the debtor’s financial situation
- Participating in the formulation of a reorganization plan
- Requesting that the court appoint an examiner
- Requesting that a trustee be appointed
- Requesting that the case be dismissed or transferred to Ch. 7 proceedings
These duties and powers give the creditors’ committee considerable leverage during the bankruptcy proceedings.
Contact Us
If your business has an unmanageable debt burden, it may be necessary to file for bankruptcy protection. Contact the Boca Raton bankruptcy attorneys of Eric N. Klein & Associates, P.A., by calling 561-353-2800 to discuss your legal options with a qualified member of our knowledgeable legal staff.
