BURLINGTON (VT)
WCAX [South Burlington VT]
October 1, 2026
By Ike Bendavid
BURLINGTON, Vt. (WCAX) – Attorneys representing sexual abuse survivors are vowing to fight a sudden move by the Roman Catholic Diocese of Burlington on Wednesday to dismiss its two-year-old bankruptcy case, calling it an effort to avoid fair compensation.
The Roman Catholic Diocese of Burlington filed for bankruptcy to liquidate assets and help pay off settlements with sexual abuse survivors in 2024. Two years after filing, they are now trying to dismiss their own bankruptcy case.
Attorneys representing survivors call it a bad-faith move to dodge accountability. “The diocese made the choice to file for bankruptcy two years ago. The diocese does not get to just pull the plug because the case is not going in the direction it wants it to be going,” said Brittany Michael, an attorney representing abuse survivors.
He says they are just looking for fair compensation, rejecting the diocese’s settlement proposal of about $30 million. They argue the church has assets in the hundreds of millions, meaning payouts to survivors should be higher. “And we believe that fair compensation can be reached in a manner that still allows the diocese and the churches and schools to continue to operate and do the work that they do, but that there can be fairer compensation than what the diocese is putting on the table right now,” Michael said.
To help raise money to pay the victims, court paperwork shows the church has been working to sell properties, including Rice Memorial High School. But lawyers for the survivors rejected that move, saying the agreed-upon price for the school property was too low.
“Because the diocese was seeking to sell the high school to the high school without having ever marketed the property or tested to see if the price that they were selling the high school for was a fair market value price,” Michael said.
In a statement, Bishop John McDermott explained that since filing for bankruptcy, the diocese has tried to sell off properties and reduce staff and spending to pay survivors’ claims. But he says after two years, they haven’t made the progress they had hoped for, and the cost of the bankruptcy filing is getting too expensive. The bishop says it has cost the church $2 million in legal and administrative fees so far.
“To all the claimants, I apologize if this action causes you further distress. I believe the diocese has made a good faith effort to resolve this process in a timely and just manner,” McDermott said. “I am extremely disappointed that we have not been able to resolve the Chapter 11 process and ask that you pray for the diocese, the claimants, and for me, as we take the next steps in this process.”
Victims’ lawyers say they plan to oppose the church’s motion to dismiss the bankruptcy filing. Both sides will be back in court in December.
Copyright 2026 WCAX. All rights reserved.