A Tale of Two (or three or four) Bankruptcies

MINNESOTA
Canonical Consultation

01/16/2015

Jennifer Haselberger

In a move that surprised no one (except perhaps the priests, who were not notified in advance of news bulletins by the AP and others), this morning the Archdiocese of Saint Paul and Minneapolis became the 12th Catholic diocese in the United States to file for bankruptcy protection. Being the twelfth to file should mean that the Archdiocese has the benefit of the hard won experiences of other dioceses. However, not all Catholic bankruptcy filings are equal.

When the Diocese of Helena filed for bankruptcy in January of 2014 (becoming the 11th to file) the move was heralded by plaintiffs’ attorneys as well as diocesan officials as being ‘in the best interests’ of the 362 victims that had filed sexual abuse cases against the diocese, the Ursuline Sisters, and the Jesuits. Described as a ‘consensual, prepackaged bankruptcy’ the reorganization plan filed by the…