SPOKANE, Wash. (AP) – The Catholic Diocese of Spokane has emerged from bankruptcy 2 1/2 years after filing for Chapter 11 protection because of sex abuse cases. Now, Bishop William Skylstad and parishioners must raise $48 million to settle victims’ claims.

“This is the end of a difficult chapter for the diocese and the start of a new day for it,” diocese bankruptcy lawyer Greg Arpin said Friday. “We’re very pleased to come out of this tragic and difficult period, and looking forward to a new life for the Catholic Church in Eastern Washington.”

Bishop Skylstad, president of the U.S. Conference of Catholic Bishops, had no immediate comment, said the Reverend Steven Dublinski, a diocesan spokesman.

Paperwork certifying that the 95,000-member diocese had complied with requirements set forth in a bankruptcy reorganization plan was e-mailed to lawyers Thursday, effectively marking the end of bankruptcy, Arpin said.

He said the next step was to pay for the plan, which calls for dividing the $48 million among about 175 people who claimed they were sexually abused in the past by diocese clergy. The majority of claims involve sexual molestation of boys by priests, about nine of whom have been publicly identified.

Among the claimants is a woman who said she was sexually abused by Bishop Skylstad in the early 1960s. Bishop Skylstad has denied violating his vow of chastity and said an investigator hired by his lawyer found no credence in the woman’s story.

Shawn Cross, another bankruptcy lawyer hired by the diocese, said he had no specifics on that claim, except that it “is not one of the ones rejected to date. It is going through the process.”

About 35 victims who reached settlements with the diocese will receive payments within 45 to 60 days, while the remainder will begin receiving them by the end of the year, Messrs. Arpin and Cross said. A blanket claim covers people who come forward in the future.

Victims will receive from $15,000 to $1.5 million each, depending on the severity and length of abuse. A former U.S. attorney is reviewing each claim to determine how much each person receives.

Insurance settlements of $20 million were forwarded to a bankruptcy trustee on Thursday.

Bishop Skylstad is raising $18 million through sales of property and contributions from Catholic entities and loans, while the diocese’s 82 parishes are raising $10 million. Cross said nearly $24 million has been raised so far.

Bob Hailey, a Spokane lawyer and executive in a grass-roots capital campaign to help parishes raise their share of the settlement, said the effort was going “quite well.” Parishes have an incentive to raise the money by Oct. 1 because interest begins accruing then, Mr. Cross said.

The Spokane Diocese is the smallest and poorest of five nationwide that have sought bankruptcy protection against clergy sex abuse lawsuits. The others are San Diego; Davenport, Iowa; Portland, Ore.; and Tucson, Ariz. Tucson has emerged from bankruptcy protection, while Portland’s reorganization plan also has been approved.

Most dioceses in America have implemented new rules for reporting and dealing with clergy suspected of abusing children since the crisis unfolded five years ago.

Mike Shea, whose May 2002 lawsuit alleging he was molested in 1956 at St. Augustine Parish in Spokane helped force the bankruptcy, said Friday he was satisfied with the outcome.

The settlement requires Bishop Skylstad to write letters of apology to victims and their families, to allow victims to tell their stories in parishes where abuse occurred and to publicly support efforts to eliminate statutes of limitations on child abuse crimes.

“I accomplished what I wanted to do. What I wanted to do was to expose them, and boy, we did that,” Mr. Shea said. “I want the truth. I want it exposed to make sure it doesn’t happen again.”

Mr. Shea said he wasn’t sure if he would ask to address parishioners at St. Augustine.

“If I can see it might do some good, I think I’ll do it,” he said. “If we could wake up one more parent to keep an eye on their children, then it would be worth it.”