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Legal Representation for the Creditor's Committee
Members of the official unsecured creditor’s committee in a Chapter 11 Bankruptcy are permitted to have legal counsel to protect the rights of all unsecured creditors. The reasonable costs of the attorney’s services are paid by the debtor in bankruptcy. The Committee should attempt to hire an attorney with the experience necessary to advise the Committee.
Legal counsel is normally chosen through an interview process conducted by the members of the Committee. The key questions to ask an attorney that wants to represent the Committee are: (a) Does the attorney have any prior experience with the debtor, the counsel for the debtor or the judge in the case? (b) What are the hourly rates of the attorney and other professionals he/she plans to use? (c) What makes the candidate most qualified for this position?
The attorney for the creditor’s committee can offer valuable advice to the creditor’s committee. However, committee members must remember that professionals hired by them work for them. Committee members are not required to accept the advice offered by their professionals.
Copyright 2010. Michael C. Dennis. All Rights Reserved