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Chicago personal injury lawyer for Boy Scouts sex abuse claimsOver the past decade, many victims of sexual abuse have begun to speak out against their abusers and take legal action against the organizations that allowed this abuse to occur. The Boy Scouts of America, which recently changed its name to Scouts BSA, is one such organization that has faced hundreds of lawsuits from people who have suffered sexual abuse by scout leaders and other volunteers. In February of 2020, the Boy Scouts filed for bankruptcy, leaving many wondering about how this will affect current and future personal injury claims against the organization. 

Bankruptcy and Civil Lawsuits

Chapter 11 bankruptcy allows a company or organization to reorganize its assets and finances and work with creditors to determine how to pay off outstanding debts. One effect of the bankruptcy filing is that it automatically halts any civil lawsuits against the organization. In most cases, bankruptcy will prevent additional lawsuits against an organization based on events that occurred prior to the bankruptcy filing.

Legal experts have stated that the Boy Scouts likely began to consider bankruptcy due to changes to the laws in multiple states that extended the statutes of limitations in civil lawsuits for sex abuse. Between 2017 and 2019, the Boy Scouts paid out $150 million in settlements and other legal expenses. The organization is currently facing 275 lawsuits, and it estimates that between 1,000 and 5,000 more victims could potentially file claims seeking compensation for sex abuse. According to tax documents, the organization owns more than $1 billion in assets, and it may be able to work with insurers to ensure that victims are fairly compensated.

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