As the Archdiocese of Baltimore’s bankruptcy begins to work its way through the legal system, court officials have selected a group of sexual abuse victims who, with an assist from several attorneys, will eventually negotiate settlement terms for the hundreds of fellow survivors.
Known as an unsecured creditors committee, the seven victims will play a key role throughout the archdiocese’s bankruptcy — a process that is expected to last years.
In a typical bankruptcy, meaning one that is not based around allegations of sexual assault and child abuse, such a committee is composed of people or financial institutions who hold liens or have outstanding invoices against the debtor. They’re in line behind secured creditors, who have collateral such as real estate. Unsecured creditors sometimes get as little as pennies on the dollar for what they’re owed.
But in cases where the debt…
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