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New Orleans Archdiocese files for bankruptcy

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Posted at 2:37 PM, May 01, 2020
and last updated 2020-05-01 16:30:33-04

NEW ORLEANS, La. — The Roman Catholic Archdiocese of New Orleans says it is seeking federal bankruptcy protection amid growing legal costs related to sexual abuse by priests.

Friday's announcement says the filing for Chapter 11 reorganization applies only to the administrative offices of the Archdiocese.

It says the filing doesn't include individual church parishes or schools run by the churches or various religious orders.

A Chapter 11 action can free the filer from the threat of creditors’ lawsuits while it reorganizes its finances.

In 2018, the Archdiocese released a list identifying more than 50 clergy members removed from the ministry over the years due to “credible accusations” of sexual abuse.