Louisiana: Alexandria diocese files for bankruptcy over clergy abuse claims | Louisiana
The number of Roman Catholic dioceses in the U.S. declaring federal bankruptcy amid the worldwide church’s clergy abuse scandal increased recently after a bishop in central Louisiana filed for chapter 11 protection.
The Diocese of Alexandria issued a statement expression It joined more than 40 Catholic institutions in the U.S. that filed for bankruptcy protection on Friday. Accordingly Penn State’s law school28 of these bankruptcies resulted in one of the most obvious manifestations of the consequences of the clergy abuse scandal.
Robert W Marshall, bishop of Alexandria, announced in a statement that he is seeking financial restructuring due to the number of clergy sexual abuse allegations his diocese is facing.
“This action occurs because some priest-perpetrators in the past have sexually abused minors, committing acts that are evil, sinful, and contrary to everything the church and the priesthood stand for,” said a letter from Marshall, who has led the diocese of Alexandria since August 2020. “As a result, there are outstanding financial claims against the diocese that exceed our resources.
“We have two goals in taking this action. First, we want to do what we can, as fairly as we can, to compensate those who have been harmed. Second, we want to maintain the essential ministries of the diocese so that we can continue to meet the needs of our parishes, parishioners, and others who rely on the Church for assistance.”
The Guardian reported in October 2024 that the diocese of Alexandria plans to file for bankruptcy protection, as the other institution in Louisiana, the archdiocese of New Orleans, did in 2020.
On Thursday, nearly unanimously, hundreds of victims of child sexual abuse by clergy in New Orleans approved a $230 million bankruptcy settlement with the archdiocese there.
Although the results of the vote are not expected to be officially announced until Nov. 6, the archdiocese said in its court filing that unofficial results showed the agreement was accepted by 99.63% of those who voted. A small group of bond investors who opposed the deal sued the archdiocese, alleging it committed securities fraud by withholding interest payments it promised investors when purchasing the church’s bonds.
The New Orleans archdiocese’s bankruptcy settlement also includes agreements to release files on some abusive priests and deacons and also provides protections for children and vulnerable adults.
