Judge lays out path in Milwaukee church bankruptcy

By: Associated Press//October 3, 2014//

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MILWAUKEE (AP) — A federal bankruptcy judge is laying out how the Archdiocese of Milwaukee’s long-running bankruptcy case will proceed after mediation failed.

Bankruptcy Judge Susan Kelley met Friday with attorneys for the archdiocese, victims of clergy sexual abuse and others involved in the case.

She outlined a plan to address sticking points including insurance-related issues, the value of archdiocese bank accounts and which abuse victims have valid claims. She also ordered the archdiocese to provide financial statements for 15 parishes to attorneys representing abuse victims and other debtors.

All involved are due back in court Oct. 22.

Kelley is sidestepping the main sticking point in the case, a $55 million cemetery trust fund, while waiting for an appeals court to rule whether it can be used to compensate victims.

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