The Diocese of Fresno has announced a plan to file for bankruptcy as it faces over 154 claims from victims of sexual abuse by clergy members.
The diocese says the first few court cases or settlements would likely wipe out its finances.
Instead, the diocese says filing for Chapter 11 bankruptcy would help ensure all its creditors and victims are ‘compensated fairly and equitably.’
It says that it provides a framework to bring all parties together under the bankruptcy court’s supervision to resolve claims with the resources available.
The diocese says that an unsecured creditors’ committee would represent victims of sexual abuse, and a fund would be established for distribution to victims.
Advocates from the Survivors Network of those Abused by Priests, also known as SNAP, disagree with the diocese’s plan to declare bankruptcy.
“I think it’s an indication of their moral bankruptcy, not their financial bankruptcy,” said Melanie Sakoda…
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