Archdiocese, parishes win key victory in bankruptcy

The Catholic Archdiocese of Milwaukee's 200-plus parishes are separate legal entities and their assets will not be consolidated with the archdiocese's as part of its bankruptcy, U.S. Bankruptcy Judge Susan V. Kelley ruled Thursday in a major victory for the church.

ut the parishes could still face separate lawsuits over more than $35 million in parish investment funds that the archdiocese moved off its books in 2005.

Kelley could decide as early as Friday whether to allow the bankruptcy creditors - including hundreds of sexual abuse victims, the archdiocese's pension and health care funds, and others - to sue to recover at least a portion of those millions.

Attorneys for the creditors argued in a Thursday hearing that the archdiocese fraudulently transferred the money to shield it from sex abuse claims.

They pointed to the minutes of a 2003 meeting of the archdiocese's finance committee in which it discussed "setting up a trust fund to shelter the Parish Deposit Fund."

Archdiocese attorn...


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  • Robert Verhoff
    commented 2012-12-08 12:22:59 -0600
    the church and the priests are now the victims? amazing. the children aren’t allowed to have lawyers to protect their rights against the churchs best and highest paid lawyers. this church could care less about the children. all it cares about are the mansions, the ruby rings, handmade shoes, first class air tickets, 5 star hotels and big pensions. these people supporting this evil organisation are not human. born catholic, not by choice. I now chose and it’s not the devil.

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