A year after seeking to reorganize its depleting finances in U.S. Bankruptcy Court, the Vermont Roman Catholic Diocese is struggling to cover about $1.5 million and counting in related legal bills.
Under federal law, an institution requesting Chapter 11 protection must pay attorney fees not only for itself but also for officially recognized creditors — which, in the diocese’s case, includes more than 100 claimants alleging sexual abuse by clergy.
The state’s largest religious denomination filed for bankruptcy on Sept. 30, 2024, after a series of misconduct settlements reduced its assets by half, to about $35 million. Since then, the diocese has spent almost 5% of its remaining money on legal bills, forcing it to cut the workweek for staff at its South Burlington headquarters to 30 hours.
“We also have encouraged employees to seek other possible employment opportunities because we cannot guarantee any position at…
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Pope Leo XIV arrives at an audience with the Lasallian Brothers on May 15, 2025. (Credit: Vatican Media.