Sacramento to be the 33rd US Diocese to Declare Bankruptcy, by Brandon Downs

By Brandon Downs, CBS News, December 10, 2023

The Diocese of Sacramento will seek Chapter 11 bankruptcy protection after more than 250 lawsuits claiming sexual abuse by clergy and other staff, Bishop Jaime Soto said on Saturday.

Soto said the diocese intends to seek Chapter 11 protection by March 2024.

“There are many victim-survivors awaiting compensation for the reprehensible sins committed against them,” Soto said in a statement to his parishioners. “The diocese faces more than 250 lawsuits alleging sexual abuse by clergy or other church staff. The reorganization process will allow me to equitably respond to the large number of those who are victim-survivors of abuse.”

Under Chapter 11 protection, a court would oversee how available assets would be distributed to fulfill claims against the diocese. Victim-survivors would be represented in a court-supervised proceeding, the diocese said.

A fund would be created to distribute to all victims, the diocese said.

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