Vermont’s Catholic Diocese filed for bankruptcy amid clergy abuse lawsuits, leaving survivors in legal limbo while a $500 million trust dispute drags on.
The Roman Catholic Diocese of Burlington, Vermont’s sole Catholic diocese, filed for Chapter 11 bankruptcy on September 30, 2024, to address a mounting wave of clergy sexual abuse lawsuits it could no longer afford to settle individually. The filing consolidated more than 100 abuse claims into a single federal proceeding, halting all pending and future litigation against the church while a reorganization plan is developed. As of mid-2026, the case remains unresolved, with legal fees exceeding $2 million, no reorganization plan submitted, and a central dispute over whether hundreds of millions of dollars in parish assets can be tapped to compensate survivors.
Decades of Abuse Allegations
The abuse at the heart of the litigation spans roughly half a century. Most of the substantiated allegations involve conduct by diocesan priests…
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