MILWAUKEE (WI)
Marquette Tribune

October 25, 2012

By Seamus Doyle

The Archdiocese of Milwaukee, which filed for Chapter 11 bankruptcy on January 4, 2011, failed last week to reach an out-of-court settlement with those to whom it owed money, namely victims of sexual abuse.

With mediation over, the archdiocese must now return to costly bankruptcy court proceedings to come to an agreement with those filing suit against it.

“The archdiocese had spent about $7.2 million as of Aug. 1 for attorneys and consultants on both sides, and more than $300,000 in fees has been added since then, according to court records,” the Milwaukee Journal Sentinel reported on Oct. 15.

Unlike many other court proceedings, in bankruptcy court, the debtor (in this case the archdiocese) has to pay legal and court fees for both sides.