Wednesday, January 13, 2010

Bankruptcy Judge Orders Trial On Whether Parish Assets Are Shielded From Diocese Creditors

A Delaware federal bankruptcy judge yesterday decided that the Catholic Diocese of Wilmington cannot develop a plan of reorganization and exit bankruptcy without first obtaining a determination of whether funds belonging to individual parishes and Catholic Charities are shielded from Diocese creditors (mostly abuse victims). Bloomberg News reports that Judge Christopher Sontchi ordered a trial to take place in June on the issue.