Updated: The archdiocese described the bankruptcy as "the fairest way" to resolve existing and future claims of sexual abuse; Archbishop John Nienstedt restates he is not resigning.
Financial records for the archdiocese show a $9 million deficit in operating activities for the 2014 fiscal year and uncertainty about the costs of its sexual abuse scandal.
"We are committed to transparency with the people we serve. We cannot change the past but we hope we can rebuild trust through honest and open dialogue."
Lawyers for the man, identified only as John Doe, said the archdiocese had provided false information in getting the man to agree to an $80,000 settlement in 2007.
The settlement of a Minnesota lawsuit produced more than financial compensation for the alleged survivor of clergy sex abuse. It also saw the formation of an unlikely partnership.
In a 107-page sworn affidavit, Jennifer Haselberger alleges her former employer had a "cavalier attitude towards the safety of other children."
Archbishop Robert J. Carlson said in a deposition he was uncertain that abuse of a child by a priest was a crime when he was in the Twin Cities archdiocese.
Lawyers have asked the appeals court to remove a judge's decision, saying that the concern was for "his endorsement of the religious faith."
A former top official on two separate occasions advised St. Paul-Minneapolis Archbishop John Nienstedt to resign in response to accusations of mishandled clergy sex abuse allegations. While Nienstedt has not done so, Fr. Peter Laird heeded his own counsel.
There are still major hurdles before the Milwaukee archdiocese's bankruptcy plan is presented for a vote by claimants, of whom 575 are survivors of sexual abuse.