Should I serve on a creditor committee?
In chapter 11 cases, the largest unsecured creditors are invited by the United States Trustee to serve on a committee, which is sometimes known as the “OCC” (for “Official Creditor’s Committee”). The function of the committee is to investigate the affairs of the debtor, assist in formulating a plan, and to take positions on all matters that come up during the chapter 11 case. For example, the OCC is liable to be heeded by the Court on issues like proposals to compensate the debtor’s officers or borrow money during the bankruptcy case. The committee is permitted to hire an attorney at the expense of the debtor. Generally, it is good to serve on the OCC if you are willing to devote the time and attention necessary.