Milwaukee Archdiocese Files Reorganization Plan; Criticized As Inadequate By Victims

AP reports that the Catholic Archdiocese of Milwaukee yesterday filed its Plan of Reorganization with federal bankruptcy court. Under the Plan, $4 million will be set aside to compensate 125 clergy sex abuse victims-- the smallest per victim payments yet in any of the 11 bankruptcy reorganizations of dioceses around the country. Over 400 individuals filing claims as victims will not receive payment-- including those beyond the statute of limitations, claimants who already received a settlement from the archdiocese and those abused by priests from religious orders or by parish employees. Also $500,000 will be set aside in a lifetime Therapy Fund for victims.  A Q&A on the Plan of Reorganization posted on the Archdiocese's website gives details on the plan. In a letter posted on the Archdiocese's website, Archbishop Listecki said that the Archdiocese will emerge from bankruptcy with at least $7 million in debt, adding:

The archdiocese has historically operated on a balanced budget, so the burden of paying off this debt will certainly be part of our penance.  I wish we wouldn’t have had to spend the past three years and millions of dollars on attorneys’ fees to get to this point, but now we have a Plan that moves us forward.

Abuse victims strongly criticized the Plan as insufficient, one saying: "It is much like being raped all over again...." The victim advocacy group SNAP issued a statement calling the Plan "breath-taking in its callousness, selfishness and arrogance."