A Roman Catholic organization that runs schools called the Christian Brotherhood has filed for bankruptcy in a New York, according to Reuters. The filing comes from sexual abuse lawsuits filed against the Brotherhood, who runs schools across the US and Canada.
The majority of the sexual abuse claims come from Seattle, but there are others pending from Washington State and Canada. An attorney in Seattle has settled over fifty cases totaling $25.6 million for clients against the Christian Brotherhood, who is headquartered in New York.
Michael Pfau, a lawyer representing the sexual abuse victims believes the bankruptcy filing is a way to shield the organizations assets in Rome. He also feels as though the bankruptcy filing is a way to avoid responsibility for their actions.
Under bankruptcy a person or an organization can stop a lawsuit or judgment. If the a lawsuit is pending against a person and they have a good defense then bankruptcy might not be the best way a avoid a lawsuit, but the advice of a bankruptcy attorney can inform a person of their best options in this instance.
A lawsuit can deplete an organization funds and make them unable to continue, in this case a bankruptcy lawyer can work to avoid financial disaster. A bankruptcy filing after a lawsuit can be good or bad depending on circumstances and a bankruptcy attorney can determine the right course of action.