Bankruptcy court rules Milwaukee parish assets not included in settlement
Catholic World News - December 07, 2012
A federal bankruptcy-court judge in Wisconsin has ruled that creditors of the Milwaukee archdiocese cannot tap into the assets of over 200 individual parishes.
Rejecting an argument by lawyers for sex-abuse victims, Judge Susan Kelley ruled that individual parishes are distinct legal corporations. Creditors can only divide up the legal assets of the archdiocese itself, the judge said.
Victims’ lawyers continue to argue that the archdiocese improperly transferred funds to a trust fund for parishes, in order to shield those assets from bankruptcy proceedings. A lawyer for the archdiocese dismisses that claim as “ridiculous.” Judge Kelley will rule separately on that argument.
An appeal from our founder, Dr. Jeffrey Mirus:
Dear reader: If you found the information on this page helpful in your pursuit of a better Catholic life, please support our work with a donation. Your donation will help us reach seven million Truth-seeking readers worldwide this year. Thank you!
Our Spring Challenge Grant
Progress toward our Spring Challenge Grant goal ($34,071 to go):
All comments are moderated. To lighten our editing burden, only current donors are allowed to Sound Off. If you are a donor, log in to see the comment form; otherwise please support our work, and Sound Off!