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Settlement Proposed In Gallup Diocese Bankruptcy Case

Attorneys for a New Mexico diocese have submitted a proposed settlement for a bankruptcy case that has spanned more than two years.

Attorneys for the Diocese of Gallup on Monday filed a reorganization plan that would use cash contributions of $21 million from nearly a dozen sources to settle claims filed by 57 alleged victims of clerical sexual abuse.

The Albuquerque Journal reports the settlement would also be used to establish a trust to pay for future claims.

U.S. Bankruptcy Judge David Thuma will consider the proposal at a hearing next month. The plan must also be approved by the claimants.

An attorney for the claimants says some terms are still being negotiated, including policies to protect children.

The diocese filed Chapter 11 reorganization bankruptcy in November 2013.

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