The BSA closes the chapter on bankruptcy

It may still be a (very) long time before abuse survivors are compensated.

The BSA closes the chapter on bankruptcy
Photo by Tingey Injury Law Firm on Unsplash

You surely have already seen the headlines, from a couple of weeks ago, that the Boy Scouts of America has emerged from Chapter 11 bankruptcy, with court approval to create a $2.4 billion trust that will compensate survivors of sexual abuse.

I read this news with a mix of emotions: relief, that finally this sordid chapter of the BSA’s history is drawing to a close; sadness, for the horrifying scale of sexual abuse that the bankruptcy represents; and a small bit hope, that this will be an opportunity for the organization to climb its way back from what can only be described as rock bottom.

Though I have been following the bankruptcy process over the past three years, as I’m sure many of you have, I am not an expert on its many twists and turns. So I’m not going to attempt to make any grand conclusions or sweeping claims on what the end of bankruptcy portends for the BSA.

I did, however, want to share some content from around the internet that helped me make sense of this news.

‘A bankruptcy expert explains what’s next’

This article from The Conversation (a publication where I once worked) lays out some of the logistics of what happens next for the BSA and for survivors.

What I found most fascinating about it were the details on the settlement trust, especially the breakdown of where the $2.4 billion will come from: $220 million from the BSA organization; $515 million from local councils; a few hundred million from chartered organizations, including churches; and $1.6 billion from the BSA’s insurance companies.

Equally interesting is how the money will be distributed. About 7,000 survivors have already opted to accepted a cash payment of $3,500. But the vast majority—the remaining 75,000 claimants—might be waiting much longer before they see any money. They can choose to “submit additional information and have the trustee determine the amount based on agreed-upon factors, including the severity of the abuse,” according to The Conversation. Or they can “sue in state court and have a jury determine the amount.”

Either way, “payments will not start to flow until the trust determines the payment amount of each claim,” writes Marie T. Reilly, a professor of law at Penn State. “Among other things, the trust will need to hire and onboard staff and to set up secure systems to gather and evaluate personal information from tens of thousands of people. This is likely to be both expensive and slow.”

‘An Open Letter to Scouts, Survivors’

The BSA published an open letter at the end of April, to coincide with the bankruptcy news. I was struck by its sincerity. Here’s a brief excerpt:

“To the thousands of lives that were forever changed when individuals took advantage of Scouting programs to abuse innocent children—we have failed you and we are truly, deeply sorry. Survivors, your bravery has moved us beyond words. On behalf of the BSA and all who hold the future of the mission close to our hearts, please know: we will make it our lives’ work to honor you. Your courage will serve as a permanent reminder of the obligations we have to all young people in our programs.”

This line caught my eye, too:

“May the stories of survivors and the trauma they have suffered be heard, believed, respected, and never forgotten.”

‘Leave No Trace’

Last summer, Hulu released a documentary that chronicles the BSA’s long history of covering up known sexual abuse within the ranks.

It’s called “Leave No Trace,” and I highly recommend giving it a watch. I was equally shocked and disturbed by much of what I learned from this film. It’s not only the abuse itself that is tragic, but also the near century of BSA officials downplaying—and outright hiding—what it knew about abusers, that is truly heartbreaking.

The basics of the story are likely already familiar to you: Since the 1920s, the BSA had known about the pedophile problem, and kept a list of abusers colloquially known as the “perversion files,” that it did not disclose to the public, or the police. It also failed, for decades, to implement any kind of effective safety policies or procedures to protect youth from abuse.

Needless to say, “Leave No Trace” is very heavy, but I consider it essential viewing.