What is a Creditor Committee?
Many aspects of bankruptcy can be confusing and unfamiliar. As such, understanding the unfamiliar parts of bankruptcy can better enable debtors to tackle their debt head-on. One commonly confusing aspect of bankruptcy is creditor committees, which are a part of Chapter 11 bankruptcy, a more specialized type of bankruptcy. These committees serve a number of functions and can be important to understand if you are going through Chapter 11 bankruptcy in the Cedar Rapids area. Fortunately, the attorneys of Hong Law, PLC can help debtors understand creditor committees and other aspects of their Chapter 11 bankruptcy case.
Functions of a Creditor Committee
A creditor committee is typically a committee of the top 7 creditors for an individual debtor (the creditors owed the most money). This committee has numerous functions. For instance, it may perform the following:
- Consults with debtors about bankruptcy administration
- Investigates the conduct of a debtor
- Formulates a plan of action for debtor
- Possibly hires an attorney for assistance
These functions of a creditor committee can directly impact a Cedar Rapids debtor’s financial situation as well as his or her bankruptcy case. Thus, it is important to consult with an experienced bankruptcy attorney like the ones at Hong Law, PLC, to make sure you understand your legal position.
Contact a Bankruptcy Attorney in Cedar Rapids
If you or someone you know is going through Chapter 11 bankruptcy and want to know more about creditor committees and how they might affect you, the attorneys of Hong Law, PLC can help. Talk with us today by calling our Cedar Rapids offices at (319) 294-5853 to learn more.
Coralville, IA 52241
Phone: (319) 354-1804
Map to our Coralville Office