The Roman Catholic Diocese of Sacramento will file for Chapter 11 bankruptcy on April 1.
After announcing intentions to file for bankruptcy last December, Bishop Jaime Soto revealed the plan on Saturday.
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The backstory: Last December Soto said the plan to file for bankruptcy was fueled by the large number of sexual abuse lawsuits that have been brought against the diocese.
- The diocese is facing over 250 lawsuits alleging sexual abuse by clergy or other staff.
The big picture: Soto said in the announcement that the bankruptcy process is the only respectful and equitable way to address the number of lawsuits.
- “Bankruptcy is a lengthy process, but it provides supervision and transparency for all the parties involved so that an equitable resolution is offered to the victim-survivors of abuse,” Soto said. “The court-supervised reorganization will also allow me to sustain the sanctifying, teaching, and charitable work of the Catholic community in Northern California.”
- The diocese will create a Chapter 11 Bankruptcy page on its website, which will post all communications pertaining to the bankruptcy and all court filings and documentation.
What they’re saying: “As this journey of atonement continues, join me in prayer for all the victim-survivors of abuse,” Soto said. “May the Lord of mercies also renew us in our commitment to be the disciples of Jesus. Only by God’s grace will we emerge from this penitential exercise with greater resolve to be a humble sanctuary of holiness and healing for all the sons and daughters of God in Northern California.”
