Boy Scouts of America Files Chapter 11 Bankruptcy Amid Child Sex Abuse Lawsuits

2 Mar, 2020 0 comments
Boy Scouts of America Files Chapter 11 Bankruptcy Amid Child Sex Abuse Lawsuits

On February 17, 2020, the Boy Scouts of America announced that the organization filed Chapter 11 Bankruptcy. This filing complicates an already complicated situation. This highly nuanced legal tactic can also confuse people who may not be familiar with this type of bankruptcy, and it can prevent survivors of child sexual abuse from pursuing legal tactics. As exemplified over the years by Catholic dioceses facing similar situations, this option stands to benefit the organization far more than adult survivors who were sexually abused as children by perpetrators employed by or affiliated with the organization.

What is important for child sexual abuse victims to understand about this process is that they still have rights, but the time to take legal action is limited.

Impact of Chapter 11 Bankruptcy on the Sexual Abuse Lawsuit Against the Boys Scouts of America

Simply put, even though the Boy Scouts of America filed Chapter 11 Bankruptcy, the organization is still allowed to keep doing “business as usual” while actively settling its debts – the debts here being BSA’s liability for sexual abuse claims by Scouts and former Scouts. If you are considering filing a sexual abuse against the Boy Scouts, you need to consider two major factors a claims bar date and financial reorganization.

– Claims bar date: As part of the bankruptcy process, the court will set a “claims bar date” that marks the deadline by which all survivors must formally file a claim with the court. If child sex abuse victims fail to file their claim before the claims bar date, they could be denied any sort of recovery from the Boys Scouts of America.

– Financial reorganization: This is a technical term for moving money and assets around timely to allow debts incurred by the claims bar date to be more easily paid without disrupting the flow of business.

Impact of Chapter 11 Bankruptcy on Scout Abuse Survivors

The Chapter 11 Bankruptcy filing by the Boy Scouts puts pressure on sexual abuse survivors to timely file their claim or forever be barred from seeking compensation. As mentioned above, once the bankruptcy court sets the claims bar date, survivors need to act quick to file what’s called a proof of claim with the bankruptcy court.
This make it even more important for victims of child sexual abuse to immediately consult with an experienced NYC child sex abuse attorney to protect their legal rights.

NYC Child Sex Abuse Attorney

If you or a loved one has been the victim of child sexual abuse, including by the Boy Scouts of America, you may be entitled to monetary compensation. Although no amount of money will undo the harm caused, it can bring a sense of justice and closure for victims. For more information or to consult with an experienced NYC child sex abuse attorney, please call Gersowitz Libo & Korek, P.C. at 1-646-798-1535.

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Jeff S. Korek
Author: Jeff S. Korek

Jeff S. Korek joined Gersowitz, Libo and Korek, P.C. in 1992 as partner and trial attorney representing victims of medical malpractice and construction accidents. Known for his meticulous preparation and dedication to his clients, he has obtained substantial verdicts.