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Boy Scouts of America Filed for Bankruptcy Amidst Sex Abuse Lawsuits

Bankruptcy Filing - Child Sexual Abuse Lawyer New YorkThe Boy Scouts of America (BSA) filed for Chapter 11 Bankruptcy protection on February 17, 2020 amidst several expensive sex-abuse lawsuits. The BSA intends to use the bankruptcy filing to “equitably compensate victims” of abuse while keeping the organization from folding. The bankruptcy filing will halt ongoing lawsuits pending the decision. Although the organization is addressing victims in its bankruptcy filing, this move can also be viewed as a legal ploy or legal tool used by the BSA to avoid fully being exposed.

If you or a loved one alleges having been sexually abused by the BSA or its leaders, it is important that you fully understand the implications of the bankruptcy filing on your legal rights and ability to file suit.

What Does the Boys Scouts Chapter 11 Bankruptcy Mean for Abuse Survivors?

If you were abused by a Boys Scout leader or anyone associated with the BSA, the organization’s move to file bankruptcy could impact your rights. Simply put, this legal move only means the BSA is facing so many lawsuits that they need a bankruptcy judge to decide a fair way to divide their substantial assets and insurance among the abuse survivors who file claims.

Filing bankruptcy does not mean the abuse survivors are not entitled to and not able to seek compensation if they file a claim. In fact, some reports even reveal that the BSA has more than 1 billion dollars in assets to potentially compensate abuse survivors.

Implications of Bankruptcy Filing

If you are planning to file a sexual abuse lawsuit against the Boy Scouts of America, you must file a claim with the bankruptcy court by a certain time. The deadline by which you must file your claim, known as the “claims bar date,” is set by the bankruptcy judge. Claims bar dates are generally significantly shorter than you would otherwise have to file a claim under state law. This shorter time frame may be one of the reasons they BSA filed for bankruptcy.
This makes it even more important for victims of child sexual abuse to act immediately to protect their legal rights to recovery.

Call Us for More Information!

If you or a loved one is the victim of child sexual abuse, you need to know how the Child Victims Act can help you get the justice you deserve. For more information or to better understand how this law can help you, please call our professional help center at 212-385-4410.

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