Joshua Bennett
More than two dozen Catholic dioceses in the US have declared bankruptcy, with the majority doing so in the past decade. The main reason for this is the high cost of settling abuse claims. For example, the Milwaukee archdiocese paid out over $29 million to settle 200 cases over 20 years. The Portland Archdiocese was the first to file for bankruptcy in 2004, and since then, many others have followed suit, including those in Sacramento, San Francisco, Oakland, Santa Rosa, Davenport, Spokane, Tucson, Stockton, and more.
| Characteristics | Values |
|---|---|
| Number of Catholic Dioceses that have declared bankruptcy | More than two dozen, including two in U.S. overseas territories |
| Number of U.S. Catholic religious organizations that have sought bankruptcy protection | 40 |
| Number of U.S. states and territories that have temporarily "revived" the statute of limitations on claims of abuse | 24 states and 3 territories |
| Number of Catholic Dioceses currently in bankruptcy proceedings | 12 |
| Number of Catholic Dioceses that have completed bankruptcy proceedings | 25 |
| Number of Catholic Dioceses that plan to file for bankruptcy | 2 |
| Number of Catholic Dioceses that have filed for bankruptcy in California | 4 |
| Number of Catholic Dioceses in Minnesota that have filed for bankruptcy protection | 3 |
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What You'll Learn
More than two dozen US dioceses have filed for bankruptcy
The high cost of settling abuse claims has been cited as a major factor in the decision to declare bankruptcy. For example, the Diocese of Fresno announced it would file for Chapter 11 bankruptcy in August 2024 after 154 claims of sexual abuse of minors by clergy were brought forward. The previous month, the Diocese of Sacramento filed for bankruptcy after more than 250 similar lawsuits.
The Archdiocese of Portland in Oregon was the first Roman Catholic diocese to file for bankruptcy, doing so in 2004. Other dioceses that have completed bankruptcy proceedings include Davenport, Duluth, Fairbanks, Gallup, Great Falls-Billings, Harrisburg, Helena, Milwaukee, New Ulm, Portland in Oregon, St. Paul and Minneapolis, Spokane, Stockton, Tucson, Wilmington, and Winona-Rochester.
Dioceses that are currently in the midst of bankruptcy proceedings include Albany, Buffalo, Camden, New Orleans, Norwich, Oakland, Ogdensburg, Rochester, Rockville Centre, San Juan (Puerto Rico), Santa Fe, and Syracuse.
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High costs of settling abuse claims
The high costs of settling abuse claims have been a significant factor in the decision of many Catholic dioceses to declare bankruptcy. As of December 20, 2024, forty US Catholic religious organizations have sought bankruptcy protection under Chapter 11, with 25 cases concluded and 15 pending.
The financial burden of settling abuse claims has led multiple Catholic dioceses to seek bankruptcy protection. For example, the Diocese of Sacramento filed for bankruptcy after facing more than 250 lawsuits alleging childhood sexual abuse. Similarly, the Archdioceses in San Francisco, Oakland, and Santa Rosa filed for bankruptcy due to mounting legal challenges. The Diocese of Fresno also announced plans to file for Chapter 11 bankruptcy in August 2024, following 154 claims of sexual abuse of minors by clergy.
The Milwaukee Archdiocese had already paid out over $29 million to settle 200 cases over 20 years, and the prospect of additional cases and associated legal fees prompted them to file for bankruptcy as well. The Archdiocese of Portland, Oregon, became the first Roman Catholic diocese to file for bankruptcy in 2004, just hours before two abuse trials were scheduled to commence.
The costs of settling abuse claims have resulted in significant financial payouts by Catholic dioceses. For instance, the Diocese of Spokane, Washington, agreed to pay at least $48 million as compensation to victims of priest abuse as part of its bankruptcy filing in 2004. The Diocese of Tucson filed for bankruptcy in 2004 and reached a $22.2 million settlement with its victims in 2005. The Archdiocese of St. Paul and Minneapolis filed for bankruptcy reorganization in 2015, and the Diocese of New Ulm filed for Chapter 11 bankruptcy protection in 2017, leading Minnesota to become the first state with three Roman Catholic dioceses seeking bankruptcy protection.
The high costs of settling abuse claims have indeed been a critical factor in the bankruptcy declarations of numerous Catholic dioceses. The financial strain of addressing these claims has led to significant payouts and legal challenges, with the ultimate goal of resolving the claims and providing compensation to the victims.
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The Vatican will not provide financial aid
More than two dozen US Catholic dioceses have filed for bankruptcy, with the vast majority doing so in the past decade. The primary reason for this is the high cost of settling abuse claims. As of December 20, 2024, 40 US Catholic religious organizations have sought bankruptcy protection in Chapter 11.
The Diocese of Fresno, for example, announced plans to file for Chapter 11 bankruptcy in August 2024 after 154 claims of sexual abuse of minors by clergy were brought forward. The Diocese of Sacramento also filed for bankruptcy in 2024 after more than 250 lawsuits alleged childhood sexual abuse. The Archdioceses in San Francisco, Oakland, and Santa Rosa filed for bankruptcy in the same year. The Diocese of Monterey is also considering bankruptcy amid piling lawsuits.
The flood of cases against these dioceses followed a 2019 law that expanded the statute of limitations on old cases that may have expired. This law, signed by Gov. Gavin Newsom, also affected other institutions, including the Boy Scouts of America (now known as Scouting America).
The decision to file for bankruptcy is often made to protect parish assets, school money, and trust funds from abuse victims. However, this has been criticized as an attempt to delay turning over church records and paying out settlements to victims.
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Parish assets, school money, and trust funds are protected
The high cost of settling abuse claims is a major factor in the decision to declare bankruptcy. As of December 20, 2024, forty US Catholic religious organizations have sought bankruptcy protection in Chapter 11. Twenty-five cases have concluded, and fifteen are pending. This includes dioceses in California, such as Fresno, Sacramento, San Francisco, Oakland, and Santa Rosa. In 2004, the Archdiocese of Portland (Oregon) became the first Roman Catholic diocese to file for bankruptcy, with many others following suit in the years since.
The Diocese of Tucson filed for bankruptcy in September 2004 and agreed to a $22.2 million settlement with its victims, which the bankruptcy judge approved in June 2005. In December 2004, the Diocese of Spokane, Washington agreed to pay at least $48 million in compensation to those abused by priests as part of its bankruptcy filing. In 2014, the Diocese of Stockton filed for Chapter 11 Bankruptcy and, under the bankruptcy agreement, paid out $15 million to over two dozen sex abuse victims.
The Milwaukee archdiocese has already paid out over $29 million to settle 200 cases over the last 20 years, and the Diocese of Davenport filed for Chapter 11 protection in 2006 due to numerous claims against Bishop Lawrence Soens. The Diocese of San Diego filed for Chapter 11 protection in 2007, and the Diocese of Fairbanks followed in 2008 after 130 civil suits were filed. These are just a few examples of the many Catholic dioceses that have sought bankruptcy protection, and in doing so, have protected their parish assets, school money, and trust funds.
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Victims receive compensation payments
The decision of Catholic dioceses to declare bankruptcy is often driven by the high cost of settling abuse claims. As of December 20, 2024, forty US Catholic religious organizations have sought bankruptcy protection in Chapter 11, with 25 cases concluded and 15 pending.
The compensation payments made by Catholic dioceses in the United States have totaled billions of dollars. By the mid-1990s, it was estimated that more than half a billion dollars had been paid in jury awards, settlements, and legal fees. This figure rose to about one billion dollars by 2002, and in 2007, Roman Catholics spent around $615 million on sex abuse cases.
The Archdiocese of Portland, Oregon, filed for Chapter 11 bankruptcy in 2004, becoming the first Roman Catholic diocese to do so. The archdiocese had settled more than a hundred previous claims for a sum of over $53 million. The Diocese of Tucson filed for bankruptcy in 2004 and agreed to a $22.2 million settlement with its victims, which the bankruptcy judge approved in 2005. The Diocese of Spokane, Washington, agreed to pay at least $48 million as compensation to those abused by priests as part of its bankruptcy filing in 2004. The payout required the approval of the victims and another judge.
The Milwaukee archdiocese paid out over $29 million to settle 200 cases over 20 years, and the Archdiocese of Saint Paul and Minneapolis filed for Chapter 11 bankruptcy reorganization in 2015. The Diocese of Stockton filed for Chapter 11 bankruptcy in 2014, and a payout of $15 million was given to over two dozen sex abuse victims under the bankruptcy agreement approved in 2017.
The Diocese of New Ulm filed for Chapter 11 bankruptcy protection in 2017 following numerous lawsuits surrounding sexual abuse by Catholic clergy. In 2020, it was agreed that the Diocese could undergo bankruptcy if $22.5 million was forfeited to compensate 70 sex abuse survivors. The Diocese of Fresno announced plans to file for Chapter 11 bankruptcy in 2024 after 154 claims of sexual abuse of minors by clergy were brought forward.
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Frequently asked questions
As of December 20, 2024, 40 Catholic Dioceses have filed for bankruptcy, with 25 cases concluded and 15 pending.
The high cost of settling abuse claims has been cited as a major factor in the decision to declare bankruptcy.
Albany, Buffalo, Camden, New Orleans, Norwich, Oakland, Ogdensburg, Rochester, Rockville Centre, San Juan (Puerto Rico), Santa Fe, and Syracuse.
Agaña (Guam), Davenport, Duluth, Fairbanks, Gallup, Great Falls-Billings, Harrisburg, Helena, Milwaukee, New Ulm, Portland in Oregon, St. Paul and Minneapolis, Spokane, Stockton, Tucson, Wilmington, and Winona-Rochester.
Yes, the Dioceses of Sacramento, Fresno, San Francisco, Oakland, and Santa Rosa have all filed for bankruptcy.
