Diocese of Sacramento officially files for Chapter 11 bankruptcy protection
SACRAMENTO – The Diocese of Sacramento announced on Monday that they had officially filed for Chapter 11 bankruptcy protection.
It comes months after the diocese announced its intentions to file for bankruptcy in the wake of more than 250 lawsuits claiming sexual abuse by clergy and other staff.
In a statement, Bishop of Sacramento Jaime Soto said the filing was the "best" way the diocese could compensate victims.
"There are many victim-survivors who have long suffered from the reprehensible sins committed against them," Bishop Soto said. "This reorganization process will allow me to respond to them as equitably as possible."
When the diocese announced its intention to file for bankruptcy protection back in December 2023, a victims' group criticized the move.
"It is simply not true that bankruptcy is the only way to achieve a 'fair consideration' of all of the survivor's lawsuits," the group Survivors Network of those Abused by Priests (SNAP) said in a statement.
Chapter 11 bankruptcy protection for the diocese would mean that a court will oversee how assets will be distributed.
The diocese has said that a fund will be created to distribute to all victims.
"It is the sickening sin of sexual abuse – and the failure of church leadership to address it appropriately -- that brought us to this place. I must atone for these sins." Bishop Soto said in a statement on Monday.
Over 200 filings have been received by the Diocese of Sacramento relating to the alleged sexual abuse by clergy, according to a previous letter sent out to the congregation.
