Author Archives: admin

Bankruptcy Court Grants Relief From Stay

On March 12, 2025, Judge Littlefield granted seven survivors relief from the automatic stay to pursue their cases against the Diocese in state court. The automatic stay is a mechanism in bankruptcy cases that “stays” or suspends various actions, including lawsuits, against the bankrupt entity during the life of the bankruptcy case. Here, when the Diocese filed for bankruptcy, survivors were prevented from continuing their lawsuits against the Diocese because of the automatic stay.

With the support of the Committee, the seven survivors obtained relief from the automatic stay and can now proceed with their cases against the Diocese in state court. The Committee believes that these cases will spur progress in the ongoing mediation in the bankruptcy case as they (1) will provide information regarding the value of survivor claims; and (2) alter the current mediation dynamics, which are ongoing, but have been unsuccessful so far. Each of the survivors has indicated that they will not seek to collect on any settlement or judgment obtained in connection with their lawsuits, and that their efforts are designed to drive progress in the bankruptcy case.  

Mediation in February 2025

Mediation is ongoing between the Committee, the Diocese, and the Diocese’s Insurers. Another mediation session was held in February 2025, and additional mediation sessions have been scheduled in March and April of 2025. The rules of bankruptcy require the parties to these sessions to keep everything said and done within the mediation strictly confidential. We know that this can be difficult but please know that the Committee and its professionals are fully engaged in all facets of the mediation and we will continue to provide updates as we are able.

Update – December 2024

Mediation

The Committee participated in several mediation sessions over the course of 2024 with the Debtor, the Debtor’s affiliates, the Official Committee of Unsecured Creditors, and the Debtor’s insurers. The latest session occurred on December 5, 2024. While the Committee has made progress toward a global resolution, mediation remains ongoing. The Committee is hopeful that future sessions in 2025 will produce a favorable resolution for Survivors.

Survivor Resources

The Committee understands that survivors of abuse may find the bankruptcy process confusing and frustrating. Members of the Committee are survivors of abuse themselves and they are dedicated to representing all survivors in the case. Updates about the case will continue to be added to this website. Keep in mind also that this site includes an overview of the bankruptcy process, answers to frequently asked questions, and mental health resources.

We hope that this website will continue to serve as a helpful resource for you. If you would like to contact the Committee, please reach out to its legal team at Stinson by e-mailing this address:  albanysurvivorteam@stinson.com.

Mediation Continues to be Ongoing

Mediation continues to be ongoing. Previous mediation sessions were held in March, May, August, and September 2024, and two more mediation session are set for November and December 2024. As required by the Court, the Committee must keep negotiations with the Diocese during mediation confidential. We understand that survivors sometimes find this challenging because they do not have information about how things are progressing. If you have questions or are experiencing frustration during the mediation stage, remember that the Committee is made up of survivors, and they are dedicated to representing all survivors in the case as effectively as possible. If you have questions about your claims, please do not hesitate to reach out to your personal counsel. If you have questions about the bankruptcy process, you or your counsel are also welcome to reach out to Committee counsel. In addition, the Bankruptcy Process resource tab at tab at the top of this webpage may provide some answers to your questions, and the Mental Health Resources for Survivors tab provides a list of resources that may be helpful during this time.