The Archdiocese of Wisconsin filed for bankruptcy about three years ago due to pending litigation regarding sexual abuse and costs that it has, as reported by ABC News in a February 13, 2014 article. The Church said it took precautions because if the Court ruled against it, it would have to compensate the plaintiffs or complaintents, and it did not have enough money to do so. So far, the cases have cost the Church over $12 million in recovery and attorney costs. Also, if the Court does not approve the Church’s plan which was filed this past week, then the Church might have to put out an additional $13 million.

The proposed plan is aimed at paying those who were abused by the Church members about four million dollars, and this is only about 25% of the claims pending against the Church. It is believed that the remaining claimants would just get counseling, rather than being compensated as there are not enough funds.  It is estimated that the Church spent about $7 million in just attorney fees for the bankruptcy, and close to $6 million to pay the legal fees for its lenders.

When the injured parties initially filed their claim, they were hoping to recover from a trust which contains about one hundred million dollars as this includes funds from the entire Archdiocese. However, the Wisconsin Archdiocese argues that it does not regulate the trust; thus it is unable to use the money and the Court sides with them.  The Archdiocese argues that it is independent from the entire Archdiocese, however, in the past the Archdioceses have used money from this fund to pay its injured parties. The Church also has another trust, and the plan suggests using some of the land it owns as security to obtain loans.

If you are considering filing for a personal bankruptcy, then you should speak with a qualified attorney. Jayson Lutzky is Bronx, New York lawyer who handles bankruptcies. He has helped thousands of highly satisfied clients over the past 30 years. Mr. Lutzky offers free in person initial consultations. To arrange for a consultation, call 718-514-6619 or visit