Why did BSA file for bankruptcy? Cause explored ahead of Hulu documentary Leave No Trace

With Hulu's latest documentary about BSA, Leave No Trace: A Hidden History of Boy Scouts, almost ready for its theatrical and online release, there have been a large number of questions surrounding the prolific organization, also known as the Boy Scouts of America, one of the oldest active institutions, that is over a century old.

Irene Taylor will try to uncover the dark times of s*xual assault and coverups by the BSA in the upcoming film, which has affected over 82,000 scouts over the decades. The organization has also allegedly actively hidden and protected perpetrators in its ranks for years.

Though claims of s*xual abuse kept piling on for a long time, by 2018 the cases had mounted to the point where BSA's insurance companies began to refuse payouts. This paired with a falling number of memberships and ample negative coverage, led to the BSA filing for bankruptcy in the Delaware court.

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Reasons behind the BSA filing for bankruptcy

The Boy Scouts of America is one of the oldest institutions that was founded in 1910. With over 1.2 million members, it is one of the biggest scouting institutions in the world. However, over the last decade, multiple allegations of s*xual misconduct, abuse, and r*pe have surfaced against the organization, with the number now mounting to over 82,000.

The organization had been planning to file for bankruptcy since 2018, when multiple lawsuits emerged from hundreds of victims from all around the country, amidst a failing rate of membership and negative media coverage. After a lengthy legal battle, the BSA reportedly filed for bankruptcy in 2020 under the pressure of an increasing number of s*xual abuse claims. The insurance companies also withdrew their support, refusing to pay for malpractice inside the BSA.

The BSA reportedly filed for bankruptcy under Chapter 11, which involves reorganizing a business and keeping it alive to pay the involved party over time. The Boy Scouts addressed the victims of abuse in an open letter, which said:

"I am outraged that individuals took advantage of our programs to commit these heinous acts. I am also outraged that there were times when volunteers and employees ignored our procedures or forgave transgressions that are unforgivable. In some cases, this led to tragic acts of abuse. While those instances were limited, they mean we didn't do enough to protect the children in our care — to protect you.

It was signed by BSA chairman Jim Turley. It continued:

"On behalf of myself and the entire Scouting community: I am sorry. I am devastated that there were times in the past when we failed the very children we were supposed to protect."

The court later gave a deadline for victims to step forward and file a lawsuit. This time, the number mounted to 82,000 victims from the initial 300.

Leave No Trace: A Hidden History of Boy Scouts will look into this rampant history of abuse and the subsequent cover-up measures that the organization undertook to protect perpetrators of s*xual violence. The organization also allegedly kept a record of these instances in a file, reportedly termed the "perversion files." Despite all this, the organization refused to take action in a worthwhile manner when it mattered.

Paul Mones, an attorney in Los Angeles who is representing many victims of abuse in this case said:

"If the largest youth organization by far in the United States can be crippled under the weight of doing nothing about their s*xual abuse allegations and covering the problem up, I think it is a warning shot across the bow to all churches and youth organizations and schools that have this problem and don't act proactively to resolve it,"

The Boy Scouts of America will allegedly pay out a $2.7 billion settlement to the survivors of the abuse.

Leave No Trace: A Hidden History of Boy Scouts will premiere on June 16, 2022.