UPDATE: Claimants have until Nov. 16 to get their claims filed. Those seeking legal advice should contact a Boy Scouts sexual abuse attorney as soon as possible.

The Boy Scouts of America is a beloved American institution, providing generations of young men with practical knowledge and nostalgic memories. However, the Boy Scouts of America has filed for bankruptcy. How did it come to this for the venerable institution? And what does it mean for the future of the organization?

Why Did Boy Scouts File Bankruptcy?

The Boy Scouts of America bankruptcy can be attributed to one primary cause:Boy Scouts sexual abuse. A slew of litigation filed against the more than a century-old organization has been filed by hundreds of now-adult men who allege they were sexually abused by organization leaders during their time as scouts.

Facing hundreds of these abuse lawsuits (along with the potential for another 1,400 or so to be filed), has caused serious damage to the organization’s reputation, resulting in the Boy Scouts of America filing Chapter 11 bankruptcy.

Talk of a Boy Scouts bankruptcy filing has been bubbling since at least December 2018, when the organization hired a law firm to help them.

Along with the bankruptcy filing, Boy Scouts of America published an open letter to sex abuse victims. Written by the Boy Scouts’ National Chair, Jim Turley, the letter apologizes for the harm done to victims within the organization.

“I am devastated that there were times in the past when we failed the very children we were supposed to protect,” the letter reads.

The open letter refers to the bankruptcy filing as a “voluntary financial restructuring to ensure we can equitably compensate all victims of past abuse in our programs, through a proposed Victim’s Compensation Trust.”

Does the Boy Scout Chapter 11 Bankruptcy Filing Violate Their Honor Code?

Critics of the Boy Scouts of America bankruptcy filing have suggested that the decision to file for bankruptcy is a dishonorable one. Victims will likely receive less compensation than they would have without the bankruptcy filing, though exactly how much less is still unclear.

The Boy Scouts honor code reads in part: “to do my duty…help other people at all times” and “keep myself…morally straight,” which raises the question of whether or not filing for bankruptcy under these circumstances adheres to this honor code.

Will Boy Scouts Continue After Bankruptcy?

As the bankruptcy makes its way through the courts and provides compensation to abuse victims, Boy Scouts of America plans to continue its scouting programs.

While the word “bankruptcy” may seem synonymous with a company going out of business, a Chapter 11 bankruptcy filing does not necessarily spell the end. Under a Chapter 11 filing, a debtor is allowed to reorganize their business affairs, debts, and assets. While they are given time to restructure their debts, they must then be beholden to whatever obligations they put forward in their reorganization plan.

For instance, the Boy Scouts of America bankruptcy plan includes the creation of a trust to compensate victims.

How Will the Boy Scouts of America Bankruptcy Affect Sexual Abuse Settlements?

Compensation for Boy Scouts sexual abuse claims may be significantly lessened by the organization’s decision to file for Chapter 11 bankruptcy, though how much less is yet to be determined. The judicial process will vet claims by victims, who will then be entitled to a share of the available settlement funds.

Other organizations have also filed for bankruptcy after being leveled with sex abuse claims, such as USA Gymnastics and several Catholic Church dioceses. Bankruptcy law provides organizations like these with a method of potentially escaping payment of the full scope of its debts.

Abuse Victims to Take Part in Bankruptcy Talks

The Boy Scouts of America bankruptcy proceedings will include input from a coalition of individuals who say they survived child sexual abuse while participating in the BSA, according to a recent ruling by the bankruptcy judge.

Legal news source Law360 reports that U.S. Bankruptcy Judge Laurie Selber Silverstein agreed that the Coalition for Abused Scouts for Justice should be a part of the mediation process in the bankruptcy proceedings. Judge Silverstein noted that the confidentiality of those claiming they were abused should be maintained and directed the parties to figure out a way to protect the alleged victims’ identity.

According to the judge’s ruling, the Coalition’s participation is in line with bankruptcy laws that require groups representing creditors to take part in proceedings. The Coalition reportedly represents 7,500 individuals who are currently suing the Boy Scouts of America over allegations of child sex abuse.

A BSA insurer, Century Indemnity Co., objected to including the Coalition in the bankruptcy proceedings. The insurance company will reportedly be responsible for paying the majority of the claims. Century argued that the Coalition used dubious advertising to seek out victims, increasing the number of claims against BSA to nearly 10,000, according to the Washington Post.

Judge Silverstein concluded that the BSA bankruptcy proceeding is not the appropriate forum to determine whether victims’ claims are valid or how they were obtained. The judge rejected Century’s motion to depose attorneys that had been involved with the Coalition.

Should You File a Boy Scout Sexual Abuse Lawsuit?

If you were a victim of Boy Scouts sexual abuse, you may be able to file a lawsuit and pursue compensation. Of course, filing a lawsuit cannot take away the pain and suffering or emotional distress caused by abuse, but it can at least help to provide some amount of financial compensation, as well as hold those responsible accountable for their actions and inactions.

Filing a lawsuit can be a daunting prospect, especially over an issue as traumatic as child abuse, so Top Class Actions has laid the groundwork by connecting you with an experienced attorney. Consulting an attorney can help you determine if you have a claim, navigate the complexities of litigation, and maximize your potential compensation.

This article is not legal advice. It is presented
for informational purposes only.