Harrisburg Diocese $18M settlement, bankruptcy reorganization plan approved

The reorganization plan for the Harrisburg Catholic Diocese has been approved following a settlement hearing on Wednesday in federal bankruptcy court.

The settlement is the culmination of years of litigation, following the 2018 Pennsylvania Grand Jury Report into child sex abuse in the Catholic Church across Pennsylvania. That report found hundreds of children had been abused at the hands of priests for decades, while being covered up by the church.

The plan set aside $18.25 million for 59 survivors who filed lawsuits against the diocese.

An attorney for the claimants tells CBS 21 that money will be placed into a trust, and a third party attorney will figure out how that money is allocated to the survivors. The attorney said it would be based on the survivors’ stories.

The Harrisburg Diocese filed for bankruptcy in February of 2020. In the original filing, church leaders only claimed between $1 and $10…