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What Does Bankruptcy Mean For Boy Scouts

What Is The Bar Date Deadline

What Does the Boy Scouts of America Filing Chapter 11 Bankruptcy Mean? Attorney Josh Peck Explains

In order to be compensated, abuse survivors must file a claim in the bankruptcy by the court-ordered deadline of November 16, 2020, or they will likely forever forfeit their right to pursue a claim or compensation from the Boy Scouts. This deadline may well be shorter than the length of time allowed for by state law, including the one year window for New York that went into effect on August 14, 2019, but may be extended. For that reason it is critically important that abuse survivors contact a lawyer to learn their legal options and timely file a claim. You can call us toll free at 1-888-811-8689 for a free, confidential consultation, click this link to send us a confidential note, or send a confidential email to .

How Will The Bankruptcy Affect Victims’ Payments

In bankruptcy, people who have won lawsuits against the debtor are typically paid less than what they are owed.

The exact amount will be determined based on the organization’s total assets, the amount of money the nonprofit owes to other entities and consideration of how payouts will affect the organization’s survival.

It’s a complex and often contentious process that could be handled with a broad settlement with victims or could be litigated in court for years.

The Boy Scouts on Tuesday filed a plan of reorganization, which is the customary document that dictates what percentage of its debts it plans to pay. But the organization did not specify what percentage it proposes to pay victims.

Background: Boy Scouts Bankruptcy

The group that has filed for bankruptcy is the national group that governs all 272 local Boy Scout councils. It is important to note that the independent councils are fiscally and legally independent.

The goal of this filing is to protect the organization and those local councils from the approximately 275 current lawsuits and to try to control the flood of legal actions that have been filed. This filing has effectively, though only temporarily, halted the legal cases while they create a reorganization plan. This temporary stay will eventually be lifted and the legal process will continue. We will continue to update you, but what we do know is that this stay will end and they will have to respond to the legal cases.

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How Does Declaring Bankruptcy Work

I asked Howard Dvorkin, chairman and CEO of, to help me figure it out. He told me that bankruptcy is a way for people to get rid of their debt and start fresh when all else fails. Thats how the Supreme Court described it in a 1934 opinion, saying bankruptcy gives the honest but unfortunate debtor an opportunity to thrive unhampered by the pressure and discouragement of pre-existing debt.

Declaring bankruptcy isnt super common. In 2020, only about 523,000 people did so the lowest number of filings since 1986, and down from 752,000 the year before.

There are two primary types of personal bankruptcy: Chapter 7 and Chapter 13. Dvorkin says Chapter 7 is what most people think of when they imagine bankruptcy, where the court sells some of my assets to pay off my debts. Chapter 13, on the other hand, is more of a reorganization where I repay some of what I owe through a court-ordered plan.

Chapter 7 is largely for low-income people. Its fast, taking about 120 days compared to Chapter 13, which can take up to five years.

Both types get rid of unsecured debt, which includes credit card debt and medical bills but usually not student loans or back taxes, according to Sheereen Middleton, a bankruptcy attorney in Maryland. Bankruptcy can be a strategic move to eliminate that debt, which would then leave you with a favorable debt-to-income ratio, she adds.

Its something where it can literally change your life, Middleton says.

Breaking Down The Law: What Does Boy Scouts Of America’s Bankruptcy Mean For Victims

What does the Boy Scouts bankruptcy mean for victims ...

LAS VEGAS Yesterday, the Boy Scouts of America filed for Chapter 11 Bankruptcy protection in Delaware. The bankruptcy comes as a result of hundreds of lawsuits filed against the organization by men claiming to have been victims of sexual abuse while they were minors.

According to the organization, the bankruptcy filing will allow the establishment of a compensation trust for alleged victims rather than fighting individual lawsuits.

What led to the bankruptcy filing and where do things go from here? And why now?

The biggest reason is recent changes in the law by various states, which revive the statute of limitations for victims of sexual abuse as a minor.

Last year, we discussed the new law in California extending the statute of limitations for survivors of childhood sexual abuse in California. It gives everyone regardless of their age a 3 year lookback window to file suit for sexual abuse that occurred when they were a minor.

That 3 year window started January 1, 2020. So, any claim that was previously barred by the statute of limitations is now revived, regardless of how long ago the alleged abuse occurred, so long as it was not previously litigated to final judgment.

The good news for potential victims is that a Chapter 11 filing does not require creditors to file a proof of claim in the Bankruptcy court. Instead, the Boy Scouts, the debtor, must file a Schedule of Assets and Liabilities, listing every known victim who has a claim.

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Sexual Abuse Survivors Are Voting On The Boy Scouts Bankruptcy Settlement: 5 Questions Answered

The Boy Scouts bankruptcy casecrossed an important milestone on Sept. 29, 2021, when Judge Laura Selber Silverstein approved the Boy Scouts statement that explains its plan to exit bankruptcy. That statement includes a proposal for compensating the tens of thousands of people who filed claims attesting that they were sexually abused while participating in the Boy Scouts programs. Survivors now get a chance to vote on the Boy Scouts exit plan. But for the Boy Scouts to exit bankruptcy and continue operating, the judge must sign off on it.

What Are Some Of The Boy Scouts’ Most Valuable Assets

The national group owns a wide range of properties. They include:

The 150,000-acre Philmont Scout Ranch in the rugged mountain wilderness of northeastern New Mexico. This property is worth more than $40 million, according to the organization’s plan of reorganization.

The 14,000-acre Summit Bechtel Family National Scout Reserve in West Virginia, where the World Scout Jamboree took place in 2019. More than 45,000 Scouts from 167 countries attended.

The Northern Tier high-adventure facility on the boundary waters of Minnesota and Canada.

Sea Base in Florida, where Scouts swim, snorkel, scuba dive and fish.

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Boy Scouts Of America Files For Bankruptcy Amid Wave Of Potential Lawsuits

Facing a wave of lawsuits over sexual abuse allegations, the Boy Scouts of America filed for bankruptcy Tuesday in an effort to protect the future of the embattled century-old organization.

The long-anticipated Chapter 11 filing will allow the Boy Scouts to keep operating as it reorganizes its finances and creates a trust to pay hundreds of potential victims. It will also give alleged victims a limited amount of time to come forward before being barred indefinitely from seeking compensation.

The declaration sets the stage for what could be one of the countrys most complicated bankruptcy cases in history, lawyers say, and raises questions about the possible impact on local Boy Scout councils, which are independently corporated and offer programming to troops across all 50 states and U.S. territories. In the bankruptcy petition, the organization reported $1 billion to $10 billion in assets and $500 million to $1 billion in liabilities.

The BSA cares deeply about all victims of abuse and sincerely apologizes to anyone who was harmed during their time in Scouting, Roger Mosby, the president and chief executive of the Boy Scouts of America, said in a statement released at about 1 a.m. Tuesday, shortly after the filing. While we know nothing can undo the tragic abuse that victims suffered, we believe the Chapter 11 process with the proposed Trust structure will provide equitable compensation to all victims while maintaining the BSAs important mission.

What Does Boy Scouts Abuse Settlement Approval Mean For New Jersey Victims

Phoenix-area man fears what Boy Scouts bankruptcy could mean for abuse victims

Child sex abuse has been a constant topic in the news for years, with the Boy Scouts of America being one of the more recent organizations to face tens of thousands of claims that date back decades. Thanks to the newly introduced look-back windows and extension to the statute of limitations in New Jersey, more survivors of childhood sexual abuse have the opportunity to pursue legal action against their perpetrators and the Boy Scouts.

Since victims of sexual abuse often suppress the assault, feel extreme shame, or are convinced by their attacker that no one will believe them, its common for survivors to take decades before speaking out. In New Jersey, the look-back window allows survivors of any age to make a claim until November 30, 2021. This, combined with the Boy Scouts filing for Chapter 11 bankruptcy, has resulted in an influx of childhood sex abuse claims against the organization.

Like other organizations facing mass sex abuse claims, the Boy Scouts filed for Chapter 11 due to the significant financial cost of widespread lawsuits. Part of the reorganization process during Chapter 11 requires a bankruptcy judge to sign off on a proposed settlement amount for survivors. On August 19, that settlement was approved.

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What Does Chapter 11 Bankruptcy Mean For Scout Abuse Survivors

The Boy Scouts filing for Chapter 11 bankruptcy greatly compresses the timeline for survivors of abuse to file a claim. The bankruptcy judge have set a claims bar date November 16, 2020 a date by which all sexual abuse survivors must file whats called a proof of claim with the bankruptcy court. If you are a survivor of sexual abuse while in Scouts, you have a right to justice and healing. Your claim may also lead to the release of secret Perversion Files that will expose predators and help stop what happened to you from happening to other kids. We have created a searchable database of publicly available Perversion Files here . Most importantly, your identity throughout the process can remain completely confidential unless you choose to make your identity public. The majority of cases weve handled in our 35+ years of working with survivors of childhood sexual abuse have been filed as John Done or Jane Doe. The decision to use your name is completely up to you. If you wish, your identity will be kept confidential by your lawyers, the court and the media.

Why Should I File A Claim

People with any type of claim against the Boy Scouts need to know about the bar date deadline of November 16, 2020. All people with claims against the Boy Scouts, including sexual abuse survivors, must file a claim with the bankruptcy court by November 16, 2020. This deadline is called a bar date because people who come forward after the deadline are usually barred from ever filing a claim against the entities that declared bankruptcy. The bar date deadline may also extend to other entities who participate in the bankruptcy, such as the local councils and sponsoring organizations.

As you may know, New York recently passed a new law that gives all abuse survivors, regardless of their current age, one year from August 14, 2019, to file a civil lawsuit for the abuse they suffered. That one year window may be extended, but anyone with a claim against the Boy Scouts must still file a claim in the bankruptcy by November 16, 2020.

If you have a claim against the Boy Scouts, or anyone associated with the Boy Scouts, the time to act is now. Please contact us to learn how to protect your rights.

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Boy Scouts Delays Bankruptcy Step After Judge Questions Legal Fees Insurer Deal

Attorneys for the Boy Scouts of America are postponing a key bankruptcy hearing that was scheduled to start this week, following a court ruling that casts uncertainty on the future of the case.

Attorneys on Friday filed court papers postponing a hearing until Sept. 21 that had been set to begin Wednesday. The hearing is to determine whether the judge approves a disclosure statement that explains the Boy Scouts reorganization plan to creditors. Approval of the disclosure statement is required before creditors can vote on the plan.

The move comes one day after the judge approved BSAs proposal to enter into an agreement that includes an $850 million fund to compensate tens of thousands of men who say they were sexually abused as youngsters by Scout leaders and others. Importantly, however, she rejected two key provisions of the deal, potentially jeopardizing the agreement that the Boy Scouts had been hoping to use as a springboard to emerge from bankruptcy later this year.

The agreement involves the national Boy Scouts organization, roughly 250 local Boy Scout councils, and attorneys representing some 70,000 men who say they were sexually abused as youngsters decades ago while engaged in Boy Scout-related activities. It is opposed by insurers who issued policies to the Boy Scouts and local councils, attorneys representing thousands of other abuse victims, and various church denominations that have sponsored local Boy Scout troops.

What Does The Boy Scouts Of America Bankruptcy Mean

What Does the Boy Scouts Bankruptcy Mean for Victims of ...

Essentially, the United States Constitution allows for organizations who can no longer pay their debts the option to file for bankruptcy so that they can reduce their liabilities. While the bankruptcy process was ultimately designed to provide organizations with a second chance, it doesnt always work out that way. Companies like General Motors ultimately survived their recent bankruptcy filing while others like Toys R Us did not.

The Boy Scouts of Americas goal in this bankruptcy filing is two fold. For starters, the organization hopes to reach a settlement with sexual abuse victims that allows for fair compensation for all victims. Additionally, Boy Scouts of America hopes that it can continue functioning during this process and eventually re emerge as a more financially stable entity after the dust settles.

However, the national Boy Scouts of America could potentially be sold off in pieces or entirely dissolved as a result of this Chapter 11 bankruptcy depending on what the courts ultimately decide. The more likely scenario is that the BSA would sell off some of its properties so that it could pay off its creditors without completely dissolving the organization. According to the Wall Street Journal, nearly 70 percent of BSAs assets involve property, which could potentially net them significant liquid funds if they choose to sell camps and other properties.

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Why The Boy Scouts Are Bankrupt And What It Means For Families

The Boy Scouts of America has formally filed for Chapter 11 bankruptcy protection in a Delaware court. The move pauses hundreds of lawsuits from men who say they were sexually abused while Scouts, crimes that in many cases were covered up by the powers-that-be.

And while it doesnt immediately disrupt scouting activities, which will continue as scheduled for the time being, the filing could mean that your kids might not have the option of joining the Boy Scouts when they come of age. Heres why.

The aforementioned lawsuits, many made possible by recent changes in states statue-of-limitation-laws, have put an untenable strain on the finances of the organization. The crux of this Chapter 11 bankruptcy, sometimes known as a reorganization bankruptcy, is a Victims Compensation Trust. The BSA hopes the trust is enough to satisfy the alleged victims and the court-appointed trustee.

Michael Pfau, a lawyer whos represented hundreds of plaintiffs in lawsuits against the Scouts in 34 states, told the New York Daily News that the goal of the proposed trust is for the Scouts to emerge with the settlement of all claims and then release from the claimants, which means, in exchange for some compensation, the claimants will not sue the Boy Scouts in the future.

A collapse of the proposed plan might also pave the way for legal actions against the 272 local Scout councils that could wipe them out, as past lawsuits have resulted in tens of millions of dollars in damages per victim.

Does This Mean The Boy Scouts Will Automatically Shut Down

No. There have been 20 Catholic bankruptcies across the United States, and one of the lead Catholic attorneys is now on record as admitting that the Catholic church has not had to shut down parishes or schools, or reduce their services, as a result of these bankruptcies. For example, most Catholic Dioceses own a significant amount of property, and rather than sell their property, they take out a loan against their property to help compensate abuse survivors. Moreover, insurance companies have contributed a significant amount toward the prior bankruptcies, such as an insurance company that paid more than $100 million toward the bankruptcy of the Jesuits. It is too early to tell how this bankruptcy will affect the Boy Scouts, but keep in mind that their membership numbers have been dwindling for many years.

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Boy Scouts Bankruptcy Plan Set For Vote By Abuse Claimants

Tens of thousands of men who say they were molested as children by scoutmasters and others will soon get a chance to vote on the Boy Scouts of America’s reorganization plan

On Location: November 1, 2021

DOVER, Del. — More than a year and a half after the Boy Scouts of America sought bankruptcy protection amid an onslaught of child sex abuse allegations, tens of thousands of men who say they were molested as children by scoutmasters and others will soon get a chance to vote on a BSA reorganization plan.

The Boy Scouts, based in Irving, Texas, sought bankruptcy protection in February 2020, seeking to halt hundreds of individual lawsuits and create a fund for men who say they were sexually abused as children. Although the organization was facing 275 lawsuits at the time, its now facing more than 82,000 sexual abuse claims in the bankruptcy case.

Despite the plan being sent out to abuse claimants for a vote, there are several issues involving Boy Scouts insurers and local troop sponsoring organizations that remain unresolved.

Here is a look at where the case stands:


Following a hearing that stretched over two weeks, a judge on Thursday approved a revised disclosure statement that outlines and explains the Boy Scouts reorganization plan.

Approval of the disclosure statement was required before the Boy Scouts could begin sending out ballots to abuse claimants and other creditors to vote on the plan.





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