The Christian Brothers in June announced the entity would be broke by September and unable to pay hundreds of civil claims from abuse survivors.
The registered charity and legal entity announced a proposed scheme to distribute its remaining assets, valued at about $216 million, but no plan to cover the cost of future claims.
On Friday, Christian Brothers advised creditors they had entered into a memorandum of understanding with the Trustees of Edmund Rice Education Australia (EREA) to develop and implement a new scheme to ensure all current and future victims and survivors would be paid.
"This means that not only will current claimants with settlements or judgments be paid in full, but EREA will assume responsibility and liability for all current and future legal proceedings as well as for claims before the National Redress Scheme," a statement read.
"Again, as with the earlier proposal, the revised scheme must be approved by both creditors and the court."
Lawyer and long-time advocate for survivors of institutional abuse Judy Courtin said more than 1000 survivors of abuse were unnecessarily put through weeks of hell after being told the Catholic entity was broke.
"It's very traumatising to be suddenly told we are going broke, you might get only a few cents in the dollar. That's horrific and really quite profound," Dr Courtin told AAP.
"Some people have been almost suicidal. This shouldn't have happened. It's disgraceful.
"Overall there's still a lot of work to do. Everyone stood up and we're winning and they shouldn't give up and we we won't give up."
There were reports the Christian Brothers had been transferring its most valuable Australian colleges to Edmund Rice for just $1 in recent years.
At least three prominent schools in NSW and three others in Victoria were reportedly transferred to the trust for the nominal consideration of $1 each.
Those schools charge fees between $8000 and $23,000 per year.
Dr Courtin represents 50 victim-survivors who are in different stages in their claims.
She said the Christian Brothers had a vast portfolio of properties which were sold off to Edmund Rice Education Australia.
"They cried poor, they are not poor," she said.
In the past 45 years, the group has made total payments - including compensation and claimants' legal costs - of more than $480 million.
Members of the Congregation of Christian Brothers first arrived in Australia in 1843, operating institutions where many of Australia's most notorious instances of child sexual abuse took place.
Survivors had lived in fear that organisations such as Christian Brothers might seek to step away from full accountability by raising the prospect of insolvency, Slater and Gordon Lawyers head of abuse law Stephanie Brown said.
"This outcome has not arrived by accident. It reflects the power of survivors acting collectively, supported by claimant firms, to challenge unfair positions and to press for a structure that keeps a responsible entity accountable for the harm done," she said.
"It shows that when survivors' voices are sustained and united, institutions can be moved towards more just arrangements."
There were concerns Australian taxpayers would be expected to foot the $65 million shortfall if the organisation could not find the funds.
Social Services Minister Tanya Plibersek said victims of abuse at the hands of Christian Brothers should never have been put in the position of wondering whether their claims would be met.
"No level of compensation can undo the profound harm experienced by victim-survivors of child sexual abuse," she said.
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National Sexual Abuse and Redress Support Service 1800 211 028
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