"Victims/survivors cannot be compensated until a Plan of Reorganization is finalized and approved. The longer the process lasts, more money is spent on attorneys’ fees and bankruptcy expenses; and, in turn, less money is available for victims/survivors. In other dioceses, that approval process has taken years. For example, in Milwaukee, the process took more than five years and only $21 million was available to compensate claimants. We are submitting our Plan now in the hope of compensating victims/survivors and promoting healing sooner rather than later."In the Milwaukee case an Order Approving Certain Final Fee Applications (page 4) shows fees and expenses for one of our Archdiocese's law firms totaled over $10 million.
Thursday, May 26, 2016
The object lesson
At the Twin Cities Archbankruptcy, a Letter to Faithful from Archbishop Hebda Regarding Reorganization Plan Filing from Archishop Hebda includes this cautionary tale.