Archdiocese files for bankruptcy amid clergy abuse costs

Associated Press

May 1, 2020

By Kevin McGill

The Roman Catholic Archdiocese of New Orleans announced Friday that it is seeking federal Chapter 11 bankruptcy protection amid growing legal costs related to sexual abuse by priests.

The filing for reorganization could free the archdiocese from the threat of creditors’ lawsuits while it reorganizes its finances. The New Orleans archdiocese is the latest of more than 20 dioceses nationwide to take such action.

Friday’s statement said costs associated with preventing the spread of coronavirus also have contributed to financial pressures.

The archdiocese said the filing applies only to the administrative offices of the archdiocese. “The Archdiocese’s action will not affect individual church parishes, their schools, schools run by the various religious orders, or ministries of the church,” the statement said.

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