Sex Abuse Claims Drive Boy Scouts of America to Bankruptcy (2)

The Boy Scouts of America sought bankruptcy protection to cope with a rising tide of claims tied to sexual abuse of children in its ranks.

The group filed in Delaware early Tuesday under Chapter 11 of the U.S. bankruptcy code, which allows the organization to keep operating while it works out a plan to pay its debts and design a recovery plan.

Court papers listed liabilities of up to $1 billion and assets as much as $10 billion. The Irving, Texas-based group said it’s setting up a trust fund to compensate victims.

“The BSA cares deeply about all victims of ...