Archdiocese of Baltimore files new Chapter 11 bankruptcy reorganization plan

BALTIMORE (MD)
WBALTV 11 [Baltimore, MD]

May 18, 2026

By David Collins

Almost $169 million would be available to settle 900 claims, court documents reveal

There are possible changes to Chapter 11 plans for the Archdiocese of Baltimore.

The church on Friday filed a 175-page Chapter 11 reorganization plan that contains a new dollar amount and includes contributions from parishes and schools, WBAL-TV 11 News Investigates has learned.

COURT DOCUMENTRead the new Chapter 11 reorganization plan

The archdiocese called the reorganization plan a step toward recognizing child abuse survivors’ rightful desire for a resolution of their claims.

According to court documents obtained by WBAL-TV 11 News Investigates, almost $169 million would be available to settle 900 claims.

David Lorenz, the director of the Maryland Survivors Network of those Abused by Priests, expressed relief that the process may be moving forward.

“I have two reactions. First, is kind of relief; finally, they’re stepping up, they’re doing something. Although they were given a deadline by the judge, the bankruptcy judge, who basically told them they have to come up with something, and they did. It shows a little bit. It shows. It looks hurried. It looks inadequate,” Lorenz told WBAL-TV 11 News Investigates.

But Lorenz said he’s disappointed that, in his words, the church is “lowballing them.”

“With roughly 900 claimants, that comes in at under $200,000 per claimant on average,” Lorenz told WBAL-TV 11 News Investigates. “Survivors, most of the ones I’ve talked to, are (saying), ‘I think this is … an extreme lowball,’ and that the church should step forward.”

The archdiocese wants to channel settled abuse litigation into a survivor compensation trust.

  • The proposal calls for the archdiocese to contribute almost $49 million, which would include one-time contributions from parishes and diocese schools and related Catholic entities. How much those contributions would be has not been determined.
  • The total amount from insurance companies would be $125 million.
  • A second trust would be established for insurers that did not agree to settlements.

The plan calls for a review committee to decide how much money each abuse survivor would receive.

“It’s one of the most horrible aspects of, this is what a review committee has to do, is say, ‘Well, your abuse was worse than this person’s abuse, and therefore you get more money,'” Lorenz told WBAL-TV 11 News Investigates.

Objections to the plan must be filed by May 29. The federal bankruptcy judge set up a schedule for hearings from early June through September.

Archdiocese statement on Chapter 11 reorganization plan

In a statement posted on its website, the archdiocese wrote:

“As mediation in the Chapter 11 bankruptcy process continues, the Archdiocese of Baltimore has submitted a proposed plan of reorganization to the court. This step is in furtherance of the archdiocese’s pursuit of accomplishing its dual objectives in its bankruptcy proceeding, in recognition of child abuse survivors’ rightful desire for a resolution of their claims, and in response to the court’s direction to any party who intends to file a plan to do so by May 15. At its core, the proposed plan seeks to provide equitable compensation to survivors while sustaining the church’s mission and ministries. It reflects a commitment to transparency and a realistic assessment of available resources.

“While the archdiocese remains firmly committed to reaching an agreed-upon resolution through mediation with representatives of survivors and insurers, no final agreement has yet been achieved. The proposed plan is intended to advance discussions, provide a framework for resolution and support continued dialogue among all parties. The proposal includes establishing an independent Survivor Compensation Trust to evaluate claims and distribute compensation to survivors. The trust would be funded by contributions from the archdiocese, its insurers, and participating parishes, schools, and related Catholic entities.

“In order to achieve a unified and coordinated resolution, the plan contemplates parishes and certain Catholic entities choosing to participate in the archdiocese’s plan of reorganization by filing, at a later stage, an abbreviated and streamlined version of Chapter 11. Should this prepackaged reorganization be filed, operations in the parishes and schools would continue without interruption. The terms of such bankruptcies would be established in advance, thus enabling them to be resolved in a short period of time and provide certainty and finality to the process.

“The archdiocese will continue to listen, to learn, and to seek a resolution that honors the dignity of survivors and strengthens the mission of the church for generations to come.

“Please continue to pray for all who have been harmed, for their healing and peace.”

https://www.wbaltv.com/article/archdiocese-baltimore-new-bankruptcy-reorganization-plan/71340794