Boy Scouts Bankruptcy Update – Navigating the Path to Compensation

July 1, 2023

Hello again from Jason J. Joy & Associates. We're reaching out to share the latest developments in the Boy Scouts of America (BSA) bankruptcy case, a matter that affects thousands of former scouts. As you may know, the BSA's $2.4 billion sex abuse settlement, the largest in US history, was activated in April this year. However, the journey to distribute these funds to the victims is anticipated to be intricate and lengthy.

This settlement comes after the Third Circuit Court of Appeals decided not to halt the BSA's bankruptcy plan. The next step involves transferring the settlement amount to a victims' trust and processing the 82,000 claims. The evaluation of each claim will be based on complex formulas, considering the harm suffered and the state where the abuse took place.

It's important to note that the trust will not be immediately fully funded. Several insurance companies are holding off on contributing to the settlement trust until the appeals process concludes. Barbara Houser, a retired bankruptcy judge appointed as settlement trustee, anticipates that the distribution of funds to survivors could span several years.

The BSA's Chapter 11 bankruptcy itself took three years to finalize. The actual disbursement of funds to survivors, given the structure of the payment scheme and the sheer volume of claims, is expected to be a drawn-out process.

The settlement plan includes a provision allowing victims to delay claim determination for up to 12 months, pending potential statute of limitation revival legislation in more states. However, this has raised concerns among survivors due to geographical disparities in claim values.

While the settlement is a significant stride towards justice, it's crucial to acknowledge the challenges ahead. The complexity of the claims process, geographical disparities in claim values, and the delay in fund disbursement are key issues that need to be addressed.

We remain committed to keeping you informed and will provide updates as more information becomes available. If your contact information has changed, please reach out to Jason J. Joy & Associates at 713-221-6500. Thank you for your patience and trust in us during this complex process.


While this article provides general legal information, it does not constitute legal advice. The best way to get guidance on your specific legal issue is to contact a lawyer.

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