New Mexico diocese begins bankruptcy process

NEW MEXICO
National Catholic Reporter

NCR Staff | Nov. 18, 2013

The diocese of Gallup, N.M., has formally started the process of bankruptcy, citing the costs incurred by a growing number of sex-abuse claims.

On Nov. 12, the diocese filed for Chapter 11 reorganization in the U.S. Bankruptcy Court in Albuquerque, N.M., Bishop James Wall said in a letter to parishioners that was posted on the diocesan website Nov. 11.

“In early September I told you that I had made the decision that the only way to equitably and mercifully deal with the mounting sex abuse claims, still meet our commitment to you and continue the outreach mission of the Church was to file a Chapter 11 reorganization in the United States Bankruptcy Court. Since that time, we have been preparing for the filing,” Wall said in the letter. “I wanted to tell you that the Chapter 11 filing…