Wednesday, September 04, 2013

Gallup, NM Catholic Diocese To File Chapter 11 Bankruptcy

The St. Louis Post-Dispatch reports that the Catholic Diocese of Gallup, New Mexico plans to file in federal bankruptcy court for Chapter 11 reorganization.  In an August 29 announcement, the Diocese said that the decision was impelled by the increasing number of claims by clergy sex-abuse victims. Bishop James S. Wall explained:
It is very important to me that everyone understands that I have not taken this step to avoid responsibility for what happened or to hide anything. On the contrary, I firmly believe that Chapter 11 is the most merciful and equitable way for the Diocese to address its responsibility, to continue to meet its commitment to institute programs and prevent abuse, and to continue its mission to all those who depend on the outreach of the Church....
The Gallup diocese will be the ninth U.S. Catholic diocese or archdiocese to seek Chapter 11 protection.