Creditors' committee

A creditors’ committee is a group that represents the interests of an organization’s creditors during bankruptcy proceedings. The members of this group are comprised of both secured and unsecured creditors, where secured creditors have the most power, followed by those unsecured creditors with the largest unpaid balances. The collective opinion of the creditors’ committee is taken into consideration by the bankruptcy court when deciding how to apportion the proceeds from a bankrupt entity.