Acute danger of insolvency?

Acute danger of insolvency?

Dark clouds over a church © Karen H Black (shutterstock)

Several of the eight Catholic dioceses in New York State appear to be in acute danger of insolvency due to hundreds of sexual abuse lawsuits. The cause is a change in the law.

Since mid-August, this has made it possible for victims to have cases prosecuted that go back decades, US media reported at the weekend.

Since then, according to the report, more than 400 complaints have been received in the eight dioceses. The Buffalo, Rockville Centre, Albany and Ogdensburg dioceses have not decided to file for bankruptcy at this time, it said. All four would be in talks with legal, financial and insurance experts. Bankruptcy remains an option, says Ogdensburg diocese spokeswoman Darcy Fargo.

Some U.S. dioceses have already declared bankruptcy

The Buffalo diocese is about to file for bankruptcy protection, according to Bishop Richard Malone, who said it has received nearly 140 new lawsuits. Rochester became the first of New York's eight dioceses to file for bankruptcy in the middle of the month. A total of 20 U.S. dioceses have taken this step so far.

Leave a Reply

Your email address will not be published.