The Diocese of Alexandria, Louisiana, announced Oct. 31 that it has filed for Chapter 11 bankruptcy in an attempt to equitably compensate survivors of clergy sex abuse.
Bishop Robert Marshall said in a letter to parishioners that the diocese made the decision to file for bankruptcy after long consideration, saying that he considers it to be “the most prudent course of action.” He wrote that due to past instances of clergy sex abuse, there are claims against the diocese that it does not have sufficient funds to settle.
Bishop Marshall said the diocese has two goals in reorganizing its finances under Chapter 11: fairly compensating survivors and continuing diocesan ministry.
“Chapter 11 will allow the diocese to use available funds to compensate all abuse survivors with unresolved claims in a single process overseen by a court, ensuring that all are treated equitably,” he wrote. “Second, by serving as a final call for legal claims against the diocese, the proceeding will allow the Church to move forward on stable financial ground, focused on its Gospel mission.”
Bishop Marshall said that the bankruptcy only applies to the diocese, not to its parishes or affiliated entities. He said he hopes that the diocese can reach a settlement soon with those claiming that clergy abused them, adding that the diocese has already been negotiating with lawyers who represent most survivors.
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The bishop wrote that the actions of the clergy who abused minors “are evil, sinful and go against everything the Church and the priesthood represents.” He apologized both to the survivors and to priests and other clergy and laity “whose ministry may have a shadow cast upon them.” Bishop Marshall also reminded the faithful that the diocese is “committed to making sure that nothing like this can ever happen again” by ministering to survivors and adhering to policies to keep children safe.
