Troutman Pepper's Creditor’s Rights Toolkit is a series that provides practical insights to help creditors confront the challenges of commercial bankruptcy.

Careful consideration should be given to the amount owed to the creditor, how important it is to have an ongoing business partner in the debtor, and the anticipated time commitment when determining whether to serve on the creditor’s committee. Even if a creditor decides to serve, the creditor’s committee does not represent the individual interests of any creditor, and as such, the creditor should consult its own counsel to address issues unique to it.

This article discusses the key benefits and drawbacks of serving on a creditors committee.