Iowa Diocese Leaves Bankruptcy After Abuse Scandal

By: Associated Press
By: Associated Press

DAVENPORT, Iowa (AP) -- The Diocese of Davenport in Iowa has emerged from bankruptcy after following through with plans to pay $37 million to more than 150 people who said they were sexually abused by priests and change key policies.

Judge Lee Jackwig has closed the bankruptcy case filed by the diocese in 2006, saying the reorganization plan has been completed as envisioned.

A plan approved in 2008 called for the diocese to pay $17.5 million to victims of abuse, and its insurer to pay an additional $19.5 million. The diocese also had to take several steps to prevent sexual abuse and help potential victims.

Bishop Martin Amos said Thursday the process allowed victims to receive "just and fair compensation" and the church to continue its mission throughout the diocese that covers southeastern Iowa.

(Copyright 2012 by The Associated Press. All Rights Reserved.)


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