FRESNO (CA)
The Business Journal [Fresno CA]
July 1, 2025
By Gabriel Dillard
A long-anticipated bankruptcy filing from The Roman Catholic Bishop of Fresno was made in federal court Tuesday arising from claims made by the victims of clergy sexual abuse.
Joseph V. Brennan, bishop of the Diocese of Fresno, first announced in May 2024 the intention to file for Chapter 11 bankruptcy protection in the face of 154 cases filed against the Diocese, which covers the entirety of the Central Valley from Merced to Kern County.
During the reorganization process, the court will oversee ‘the allocation of available assets to satisfy the claims against the Diocese,” according to an open letter from Brennan dated July 1. Victim survivors of clergy sexual abuse will be represented in the proceedings and a fund will be established by the court for distribution.
“I am clear-sighted that this path is the only path that will allow us to handle claims of sexual abuse with fair, equitable compassion while simultaneously ensuring the continuation of ministry within our Diocese,” Brennan wrote.
According to a court filing, Brennan had to obtain a “nihil obstat” from the Vatican to file for bankruptcy. The Latin phrase means “nothing obstructs,” and is generally used by the Catholic Church to indicate a church book or publication follows doctrinal teachings.
Brennan also said the Diocese has implemented “safe environment” protocols including background checks, fingerprinting, training and more to ensure youth and the vulnerable are safe.
“I will continue to confront allegations of abuse or any wrongdoing with diligence and care,” Brennan wrote.
According to the court filing, the Diocese estimates its number of creditors from 1,000-5,000, estimated assets from $50,000,001-$100 million and estimated liabilities of $50,000,001-$100 million.
Hagop Bedoyan of McCormick, Barstow, Sheppard, Wayte & Carruth is representing the diocese in the bankruptcy proceedings. A Church website has been devoted to the proceedings.
The Diocese website includes a list of more than 60 “credibly accused” priests and clergy that served in the Diocese and are suspected of sexually abusing minors.
“It is these evil acts that brought us to this place – not the survivors of sexual abuse seeking justice,” according to a frequently asked questions (FAQ) section of the Diocese website.
As far as impacts to church parishes and schools, with the exception of seven parish schools, all of the schools in the Diocese are owned and operated by a separate nonprofit.
The Roman Catholic Bishop of Fresno (RCBF) is the secular corporation for the Diocese that is filing for bankruptcy.
“The expectation is that the parishes, the school corporation and Catholic Charities would be largely unaffected by the RCBF filing a bankruptcy petition,” according to the FAQ.
All of the cemeteries in the Diocese are owned and operated by the Diocese as Fresno Catholic Cemeteries, and will be included in the Chapter 11 filing, according to the FAQ. The Diocese said will continue to own its cemeteries and fulfill its obligations under the terms of both its paid in full and financed pre-need contracts.