(The Conversation is an independent and nonprofit source of news, analysis and commentary from academic experts.)
(THE CONVERSATION) 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.
1. What does it mean that survivors will vote on the plan?
The Boy Scouts filed bankruptcy in February 2020 in the wake of lawsuits publicly exposing the decades-long sexual abuse of Scouts, with the intent to use bankruptcy to set up a fund to compensate survivors. The Boy Scouts plan to exit bankruptcy includes settlements with insurance companies, the Church of Jesus Christ of Latter-day Saints, which previously funded scouting activities, the Boy Scouts and its local councils. These settlement deals total almost US$1.9 billion.
The roughly 250 local councils will contribute $500 million, and the national umbrella organization, the Boy Scouts, will put in up to $320 million. Insurers and the Church of Jesus Christ of Latter-day Saints will collectively contribute a bit under $1.1 million. If the plan is approved, the settlement will prohibit further lawsuits against the Boy Scouts and its local councils.
For the judge to approve the Boy Scouts plan, a majority of the nearly 82,000 survivors who filed claims in the bankruptcy case and businesses owed money by the Boy Scouts that is, its creditors must vote in favor of it. The survivors will receive ballots and informational packets by mid-October. Survivors must return the ballots by Dec. 15, 2021. The votes will be tallied by Jan. 4, 2022. The judge has scheduled a hearing on Jan. 24, 2022, to consider the results of the voting and whether to approve the Boy Scouts bankruptcy exit plan.
Abuse claimants face a tough decision. Throughout the bankruptcy case, survivors and their attorneys have called out the Boy Scouts for neglecting to protect children for decades and instead shielding abusers. The committee that represents abuse survivors as a whole in the bankruptcy case has counseled survivors to reject the plan and has stated that the plan is grossly unfair. In contrast, attorneys separately representing tens of thousands of abuse claimants have encouraged survivors to vote in favor of the plan because they believe it is the best possible outcome.
2. How much money may abuse survivors receive?
In addition to voting in favor of or against the plan, the ballot that survivors will receive requires them to choose between two options for payment. They can get an expedited distribution payment of $3,500, with almost no questions asked. Or they can choose to go through an evaluation process of their abuse claim. If they choose the process, survivors will receive amounts based on the severity of the abuse they suffered and other criteria. Based on the criteria, a survivor could receive as little as $3,500 or as much as $2.7 million.
3. How could approval of the plan help the Boy Scouts?
The Boy Scouts membership has plunged in recent years, decreasing by 43% from about 2 million in 2019 to 1.1 million in 2020. The decline is partly due to the publics growing awareness of the alleged widespread molestation of Scouts and the Boy Scouts decades-long cover-up of the abuse.
There likely are other causes, such as the COVID-19 pandemic, the Boy Scouts battles over the inclusion of LGBTQ individuals and the Church of Jesus Christ of Latter-day Saints decision in 2019 to pull its 400,000 members from the Boy Scouts to start its own youth program.
Every time there is news from the case, the Boy Scouts history of turning a blind eye to the abuse is put on display again. As the case continues, churches and other organizations that historically have hosted Boy Scout troops and events may think twice about continuing their relationships, especially if they worry about their own liability for the abuse suits.
Approval of the Boy Scouts plan and settlement will finally close this chapter of the Boy Scouts history. This may allow the Boy Scouts to focus on rebuilding its programs, maintaining relationships with churches and other organizations, and forging new relationships.
4. What happens if the plan is not confirmed?
A possible outcome of the hearing scheduled in January 2022 is that the judge does not approve the plan. This might happen for several reasons. Not enough abuse survivors or other creditors may vote in favor of the plan. There also are a few elements of the settlement that the judge still must consider before signing off.
If the judge does not approve the plan, the Boy Scouts bankruptcy case will continue. The Boy Scouts will return to negotiations with insurers, abuse survivors and others to try to craft another settlement agreement and bankruptcy exit plan. This outcome could make the bankruptcy case drag on even longer.
5. Whats the significance of the voting process for survivors?
Each survivors decision about how to vote is their own. Although survivors can seek guidance from their attorneys, the decision ultimately must be made by each of them. In bankruptcy, voting on the plan is the moment when everyone has a voice.
Abuse survivors finally have the chance to have their voice heard. They have the power to tell the Boy Scouts, through their vote, how they feel about how the Boy Scouts has responded to a deluge of abuse claims and the price tag that has been attached to their pain.
[Over 110,000 readers rely on The Conversations newsletter to understand the world. Sign up today.]
This article is republished from The Conversation under a Creative Commons license. Read the original article here: https://theconversation.com/sexual-abuse-survivors-are-voting-on-the-boy-scouts-bankruptcy-settlement-5-questions-answered-168337.
Read the original:
- Famous Anthony's owners filing for bankruptcy in wake of hepatitis A outbreak - Food Safety News - January 11th, 2022
- Purdue Pharma can appeal rejection of bankruptcy plan - Reuters - January 11th, 2022
- This Beloved Seafood Chain Is Making a Comeback After Bankruptcy Eat This Not That - Eat This, Not That - January 11th, 2022
- Puerto Rico To Get Bankruptcy OK With Plan Modifications - Law360 - January 11th, 2022
- Bankruptcy Court Holds Arbitration Clause Unenforceable When Underlying Contract Is Rejected Pursuant to Section 365 of the Bankruptcy Code - Lexology - January 11th, 2022
- COMPLIANCE WITH OFFICIAL BANKRUPTCY FORM 105 SATISFIES ASHCROFT V. IQBAL - JD Supra - January 11th, 2022
- The Hong Kong approach where debtors lodge a petition for their own bankruptcy - how to prevent abuse of process - JD Supra - January 11th, 2022
- Corporate Bankruptcy Wave Turns to Dust, Defying Expectations - Bloomberg Law - January 7th, 2022
- Bowlski's will keep on rolling in El Jebel through bankruptcy - The Aspen Times - January 7th, 2022
- The Inside Story Of How Jessica Simpson Launched, Sold Then Re-Acquired Her Billion Dollar Retail Empire From Bankruptcy - Celebrity Net Worth - January 7th, 2022
- The Law Amending The Enforcement And Bankruptcy Law And Certain Laws Is Published - Insolvency/Bankruptcy/Re-structuring - Turkey - Mondaq News Alerts - January 7th, 2022
- $2000 an hour for a bankruptcy lawyer? 2022 could be the year - Reuters - January 3rd, 2022
- Jake Paul: 2022 goals include saving Mayweather Promotions from bankruptcy, heal back from carrying the sp - MMA Fighting - January 3rd, 2022
- Trustee in Tomaszewski bankruptcy seeks order to obtain tax refunds - The Batavian - January 3rd, 2022
- I Recently Received A Bankruptcy Discharge But Have Fallen Behind On My House Payments And Am Facing Foreclosure, Is There Anything I Can Do? -... - January 3rd, 2022
- Avoiding Technical Bankruptcy: a Whole-Organization Perspective on Technical Debt - InfoQ.com - December 25th, 2021
- Sean 'Diddy' Combs approved to buy fashion line out of bankruptcy - Reuters - December 25th, 2021
- Red River bankruptcy hearing delayed in Texas court - WANE - December 25th, 2021
- Hello Living staves off foreclosure on East Flatbush project, for now - The Real Deal - December 25th, 2021
- IndyBar: Thank You, US Bankruptcy Court for the Southern District of Indiana Pro Bono Volunteers! - Indiana Lawyer - December 25th, 2021
- These are the measures that transporters have agreed to avoid bankruptcy in the sector - Market Research Telecast - December 19th, 2021
- US judge annuls pharmaceutical company Purdue's bankruptcy agreement - La Prensa Latina - December 17th, 2021
- Litigation Funding In Bankruptcy And Distressed Situations - Above the LawAbove the Law - Above the Law - December 17th, 2021
- Bradleys Bankruptcy Basics: The Automatic Stay and the Why Behind the Warnings: What Happens Once a Debtor Files for Bankruptcy? - JD Supra - December 17th, 2021
- Healthcare Organizations and Bankruptcy: Is Telemedicine the Savior? - JD Supra - December 17th, 2021
- Pandemic drives Carlson family out of the business where they made a fortune - Minneapolis Star Tribune - December 17th, 2021
- Bankruptcy Matters: The New Pandemic Wave is Coming - JD Supra - December 17th, 2021
- Boy Scouts of America bankruptcy updates: What we know about settlements, payouts, more - USA TODAY - December 15th, 2021
- The Automatic Stay and Debtors Filing for Bankruptcy - The National Law Review - December 15th, 2021
- Directors Duties: a stark reality following the recent Marka Ruling and subsequent amendments to the UAE Bankruptcy Law - JD Supra - December 15th, 2021
- Matt Collard: Because of poor spending decisions town is heading toward bankruptcy - Conway Daily Sun - December 15th, 2021
- This Week At The Ninth: Telescopes And Tax Returns - Insolvency/Bankruptcy/Re-structuring - United States - Mondaq News Alerts - December 15th, 2021
- Fraud allegation in Intelsat bankruptcy | - Advanced Television - December 13th, 2021
- Protecting creditors' administrative claims in Chapter 11 bankruptcy cases - Reuters - December 13th, 2021
- Sri Lanka : Country is being pushed towards bankruptcy - Eran - Colombo Page - December 13th, 2021
- Elizabeth Warren Wants to Know How Hertz Went From Bankruptcy to Buybacks in Six Months - The New Republic - December 13th, 2021
- IBBI to make panel of professionals to speed up bankruptcy process - Livemint - December 3rd, 2021
- RBI moves NCLT Mumbai for bankruptcy proceedings against Reliance Capital - Business Standard - December 3rd, 2021
- Can Johnson & Johnson put the taint of scandal behind it? - The Economist - December 3rd, 2021
- Bankruptcy Filings | United States Courts - November 28th, 2021
- More colleges face bankruptcy even as top schools experience record wealth - CNBC - November 28th, 2021
- Boy Scouts will lobby on bill to curb tactics used in bankruptcy proceedings - Politico - November 28th, 2021
- Man who sought to conceal interest in 5m Dalkey property has bankruptcy extended - The Irish Times - November 28th, 2021
- Evergrande's bankruptcy still just a matter of time - Asia Times - November 28th, 2021
- TfL crisis latest: entire Tube line may have to close and bankruptcy notice issued - Evening Standard - November 28th, 2021
- Where Westlife are now from breakup and bankruptcy to successful comeback - Birmingham Live - November 28th, 2021
- Avianca to reoffer jobs to around 100 pilots amid restructuring - Reuters - November 28th, 2021
- Trainer hit with bankruptcy and forced to muck out completes remarkable comeback with Cheltenham and... - The Sun - November 28th, 2021
- Katie Price swerves final bankruptcy hearing AGAIN as court date is pushed back to February 2022... - The Sun - November 23rd, 2021
- Steel Magnate Ordered To Produce Docs In Bankruptcy Row - Law360 - November 23rd, 2021
- The new extension of the bankruptcy moratorium increases the risk of judicial collapse and zombie companies - Central Valley Business Journal - November 23rd, 2021
- Interjet Appoints A New CEO What Does It Mean For The Carrier? - Simple Flying - November 23rd, 2021
- Assured MSP for 23 crops will drive the country to bankruptcy: SC panel member Anil Ghanwat - Economic Times - November 23rd, 2021
- Initiation of the CIRP process under the Insolvency and Bankruptcy Code - Lexology - November 23rd, 2021
- Opinion: In appreciation of Neil E. Harl making farm credit work for everybody - Ames Tribune - November 23rd, 2021
- Riverbed Technologies files for Chapter 11 bankruptcy protection following pandemic 'headwinds' - The Register - November 19th, 2021
- Czech Airlines Reorganization Will Not Turn Into Bankruptcy - Simple Flying - November 19th, 2021
- Is Nash Engineering the Latest Company Bankrupted by Asbestos Litigation? - JD Supra - November 19th, 2021
- MONTENEGRO - The Bill on amendments of the Bankruptcy Law - Lexology - November 19th, 2021
- Six-year fight to end with Williamsburg bankruptcy sale - The Real Deal - November 17th, 2021
- CWT Emerges From Bankruptcy With $100 Million to Invest in Business Travel Tech - Skift - November 17th, 2021
- NBA star Antoine Walker bounced back from bankruptcy in two years. Here's his advice for rebuilding finances - CNBC - November 17th, 2021
- The Boy Scouts Are Abusing the Bankruptcy System - Bloomberg Law - November 17th, 2021
- Another Bankruptcy Court Joins the Debate on the Validity of Bankruptcy Blocking Restrictions - JD Supra - November 17th, 2021
- Best Credit Cards After Bankruptcy | The Ascent - Motley Fool - November 17th, 2021
- Remington Arms returns from bankruptcy and moves to Georgia - We Are The Mighty - November 17th, 2021
- Hike in deaths by suicide in 2020 due to main causes of poverty, bankruptcy, and unemployment - thepolicytimes.com - November 17th, 2021
- Le Chateau's return from bankruptcy includes online sales, stores within stores - AM800 (iHeartRadio) - November 17th, 2021
- Jerry Funk: 28 years on the bankruptcy bench - Jacksonville Daily Record - November 5th, 2021
- Byton Close To Bankruptcy With Missed Payments, Production Halted - InsideEVs - November 5th, 2021
- Ingram and Debitetto on Bankruptcy and Compliance Programs | Health Care Compliance Association (HCCA) - JDSupra - JD Supra - November 5th, 2021
- Sixth Circuit Affirms Holding that Contributions to a 401(k) Plan Made More than Six Months Prior to Bankruptcy Cannot be Excluded from Disposable... - November 5th, 2021
- Bankruptcy Alert for New England States, NY, RI, and DE - The National Law Review - November 3rd, 2021
- The Purdue bankruptcy plan was approved. Where is the money? - STAT - November 3rd, 2021
- $500 million Los Angeles mega mansion The One now in bankruptcy - The Mercury News - November 3rd, 2021
- [COLUMN] Bankruptcy can be the first step to financial recovery - Asian Journal News - November 3rd, 2021
- Subtle Form of Implicit Bias?: Study Finds Black Americans Are More Likely to Have Their Bankruptcy Filing Dismissed or Steered Toward Filing Chapter... - November 1st, 2021
- Medical debt is the leading cause of bankruptcy, data shows: How to reduce your hospital bills - Fox Business - November 1st, 2021
- How to file for bankruptcy or liquidation in case of business failure in the UAE? - Khaleej Times - November 1st, 2021
- Couple behind Issue 7 in Columbus have history of bankruptcies - The Columbus Dispatch - November 1st, 2021