Multiple Catholic Dioceses Declare Bankruptcy Amidst Abuse Claims

The Roman Catholic Diocese of Albany has filed for Chapter 11 bankruptcy due to the financial impact of hundreds of civil claims resulting from decades of child sexual abuse and cover-ups. The diocese had been negotiating with plaintiffs' attorneys for months, but its limited self-insurance funds have been depleted due to large settlements. The bankruptcy filing will ensure that all victims with pending litigation will receive some compensation. Parishes and Catholic schools of the diocese are separately incorporated and are not part of the filing. This is the fifth of New York’s eight Catholic dioceses to have declared bankruptcy due to the financial impact of Child Victims Act claims.