By Doug Kennedy
The question we get the most from Survivors who find themselves pulled into a bankruptcy is either “How long is this going to take?” or after a while, “When will this be over?” For many Survivors, after decades of dealing with the impact of their abuse, these are understandable questions because bankruptcy often represents the first time their abuse has been recognized by others and some degree of resolution is a possibility. I remember well asking the same questions. I had just been appointed to the “Official Committee of Survivors” in an organization’s bankruptcy and turned to the Survivor next to me to ask how long he thought things would take. His answer was “I’m guessing two years. There’s a lot to be settled.” I remember thinking “Two years? Let’s all get in a room, negotiate, and get this done.” We were both wrong! It took five years, and appeals are now dragging it out longer. So, while no one can accurately predict how long a bankruptcy will take, it’s important for Survivors to understand what’s involved so their expectations can be realistic.
Bankruptcy is initiated by a Diocese voluntarily to “reorganize” its debts, pay those it owes what it can, and then continue to operate under the terms of a bankruptcy plan approved by the Court. To do that, bankruptcy must include complex agreements with creditors (including Survivors) and often many insurance companies that issued policies to the Diocese. This involves the discovery process and often multiple mediation sessions spanning a great deal of time. Unfortunately, mediation follows strict confidentiality rules that prevent the parties from sharing very much information. So, it can often seem like nothing is happening when in fact a great deal of negotiation is taking place. It’s important to know though that the Official Committee of Survivors is engaged in all facets and along with its legal professionals is working hard to resolve the bankruptcy. Unfortunately, because of the complexity involved it just takes a lot of time.
Perhaps the best expectation of how long a Diocese bankruptcy might take comes from looking at other cases. Since 2004 there have been 36 Diocese bankruptcies either settled or ongoing. The average length of time that they lasted, or continue to be ongoing is between three and five years (our numbers include 21 cases that are ongoing so that average number of months may actually increase when they are settled).
As my own bankruptcy went on, there were moments of hope that a resolution was near, and many more moments when I realized that it wasn’t. It was hard not to be disappointed and wonder if it would ever end, and when it did, if the result would be worth the wait. Being a Survivor is a very long and often very bumpy road. It’s important that your expectations for this phase of the journey are realistic. So, I hope this message helps your thinking. I got tired of telling my family “I don’t know what’s going to happen.”
There were many days when the most positive thing I could think was “Well, another day, but one more day closer to this being over.” Please take care of your mental health so you can weather those periods when resolution seems far off or unknown, keep in contact with your attorney, check your Official Committee’s website, and remember that your Official Committee and its legal professionals are laser-focused on all that needs to be accomplished to bring an end to the bankruptcy. If you have a question at any time regarding the bankruptcy process just email santarosasurvivorteam@stinson.com. Every Survivor’s message is important and will receive a reply. Stay strong.