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updated: 2/13/2014 9:23 AM

Milwaukee archdiocese proposes $4M for sex abuse victims

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Associated Press

MILWAUKEE -- The Archdiocese of Milwaukee has proposed setting aside $4 million to compensate the victims of clergy sexual abuse in its bankruptcy reorganization plan.

Milwaukee archbishop Jerome Listecki said Wednesday morning that the bankruptcy plan will be filed later in the day.

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The archdiocese filed for bankruptcy in 2011, saying pending sexual abuse lawsuits could leave it with debts it can't pay. Its creditors include hundreds of people who were sexually abused by clergy.

A statement the archdiocese provided to The Associated Press says the bankruptcy plan will include $4 million for sexual abuse victims. Some of that also could be used to sue the archdiocese's former insurers to get them to pay victims.

The reorganization plan also includes money to provide victims with therapy for the remainder of their lives.

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