Clergy abuse survivors await settlement payments months after bankruptcy approval

NEW ORLEANS (LA)
WVUE - Fox 8 [New Orleans LA]

May 22, 2026

By Thanh Truong

Roughly six months have passed since a federal judge confirmed the multimillion-dollar bankruptcy plan to settle hundreds of clergy sex abuse claims against the Archdiocese of New Orleans. Some survivors of alleged sex abuse say it is taking too long to receive their share of the settlement.

Johnny Krummel says clergy sexually and physically abused him when he was a boy at the Madonna Manor Orphanage in the 1980s. He is among the many claimants awaiting payment.

“I mean, it’s been frustrating because, you know, you can’t get too many answers and, you know, it’s just taking a while,” Krummel said.

Attorney Richard Trahant represented 75 survivors in the bankruptcy, which took more than five years to settle. He says some survivors have been dealing with decadeslong trauma and are now being forced to wait for compensation.

“If you remember payments were actually slated to begin at the end of the first quarter, which would’ve been April 1st. This has been the most excruciating period for survivors,” Trahant said.

“That’s against the backdrop of all of these lawyers and professionals fighting over fees, you know, people who have made millions of dollars from this bankruptcy,” Trahant said.

The money is ready to go. In a status report filed in federal court this week, the trustee for the settlement says the Archdiocese of New Orleans has met its obligation to contribute to what is expected to be a $304 million settlement fund.

According to the status report, hundreds of abuse claims are still being reviewed, and the “best guess” for when payments will begin is the fall.

Trahant acknowledges the review process can be lengthy, but says survivors deserve something swifter.

“You don’t give a date or an anticipated date range and keep moving those goal posts back, that’s not fair,” Trahant said.

“It’s like it’s never going to end, you know. You got the money they just don’t want to distribute it,” Krummel said.

The bankruptcy is one of the costliest and longest church bankruptcies in recent history.

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https://www.fox8live.com/2026/05/22/clergy-abuse-survivors-await-settlement-payments-months-after-bankruptcy-approval/