The Archdiocese of Milwaukee said it is going broke and wants a bankruptcy judge to allow it to suspend payments to attorneys and consultants.
Archdiocese spokesman Jerry Topczewski said savings, reserves and investment earnings have all been exhausted. And if it doesn't stop paying attorneys and consultants the archdiocese will be unable to pay its monthly operating expenses beginning in April.
The archdiocese would continue to pay its own attorneys to challenge sex abuse claims from its insurance carriers.
The attorney for the bankruptcy creditors committee, James Stang, blames the archdiocese's cash flow problems on its aggressive efforts to throw out hundreds of sex abuse claims. The Milwaukee Journal Sentinel reports Stang said nearly $9 million in fees have been paid so far.