Wednesday, November 23, 2011

Archdiocese To Ask Bankruptcy Court For Approval of Therapy Fund

As previously reported, the Catholic Archdiocese of Milwaukee (WI) filed for Chapter 11 bankruptcy reorganization last January. This week the Milwaukee Journal-Sentinel reported that the Archdiocese will ask the bankruptcy court for permission to create a $300,000 fund to be used for counseling and therapy for sex-abuse victims whose claims are disallowed because the statute of limitations has run, because the abuser was not employed by the diocese or the victim has already reached a settlement with the Archdiocese (Archbishop's letter announcing the plan.) Jim Stang, the attorney for the creditors committee, says he fears this is a prelude to the Archdiocese beginning to file objections to claims.  One of the contested issues is whether the Archdiocese is responsible for claims involving priests who belong to religious orders, but needed the Archbishop's approval to operate in the Archdiocese.