Camden Diocese Bankruptcy Plan Rejected Over Insurer Treatment

The bankrupt Diocese of Camden’s plan to create an $87.5 million trust for sexual abuse victims was rejected by a New Jersey bankruptcy judge over concerns that it’s unfair to insurers.

The diocese’s proposed bankruptcy plan and procedures for distributing funds to survivors needs more clarity on how the insurers’ rights would be treated, Judge Jerrold N. Poslusny Jr. of the US Bankruptcy Court for the District of New Jersey ruled Tuesday.

The opinion is a setback for the diocese and more than 300 survivors who say they were sexually abused by the church’s clergy. The decision effectively rejects a ...