Boy Scouts of America Files Chapter 11 Bankruptcy
The Boy Scouts of America filed for bankruptcy as a result of lawsuits brought by survivors of childhood sexual abuse. Although the bankruptcy filing does not mean that the Boy Scouts do not have assets or insurance, it does complicate an already complicated situation. The bankruptcy simply means that the Boy Scouts need a bankruptcy judge to decide a fair way to compensate abuse survivors. Just like the Catholic dioceses cases, this tactic legal move stands to benefit the organization far more than adult survivors who were sexual abused as children by perpetrators employed by or affiliated with the organization.
As a child sexual abuse victim, it is important that you understand that even though the Boy Scouts file for bankruptcy, you still have certain legal rights and must take immediate action to protect these rights.
The Impact of Bankruptcy on the Sexual Abuse Lawsuit Against the Boys Scouts of America
The Chapter 11 Bankruptcy allows the Boy Scouts of America 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 or a loved one is considering filing a sexual abuse claim against the organization, you need to consider two major factors discussed below:
- Claims bar date: The bankruptcy filing obligates the court to set a “claims bar date” that marks the deadline by which all survivors must formally file a claim with the court. Failure to file a claim before the claims bar date could deny victims 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 off without disrupting the flow of business.
What Chapter 11 Bankruptcy Means for Boy Scout Sexual Abuse Survivors
The Boy Scouts’ bankruptcy filing puts pressure on sexual abuse survivors to timely file their claim in order to seek compensation from the organization. As discussed above, as soon as the bankruptcy court sets the claims bar date, survivors need to act quick to file a proof of claim with the bankruptcy court.
This makes it even more important for victims of child sexual abuse to immediately consult with an experienced Los Angeles child sex abuse attorney to protect their legal rights.
Contact Our Boy Scouts Child Sex Abuse Attorneys
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 Los Angeles child sex abuse attorney, please call The Carrillo Law Firm at 626-799-9375.