Ninth Catholic Diocese will file for bankruptcy protection

NEW MEXICO
Deseret News

Compiled by Jamshid Ghazi Askar, Deseret News
Published: Sunday, Sept. 8 2013

The Roman Catholic Diocese of Gallup, N.M., confirmed this week that it will soon seek bankruptcy protection.

The diocese “plans to file for Chapter 11 bankruptcy this month to cope with mounting costs of litigation arising from claims of child sexual abuse by members of its clergy,” Reuters reported Tuesday. “… The Gallup Diocese, which includes several Native American reservations, would become the ninth U.S. diocese or archdiocese to file for bankruptcy protection since 2004 in financial fallout from child molestation cases against the church.”

The Catholic New Service wrote, “The strategy, Bishop (James) Wall explained in his letter (to parishioners) will give the diocese the opportunity to present a reorganization plan that provides for a fair and equitable way to compensate those who were sexually abused as children by church workers and ministers as well as anyone who has not yet come forward with allegations of abuse but may do so in the future.”

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