Alexandria Becomes 41st U.S. Diocese to File for Bankruptcy Amid Clergy Abuse Claims

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The Catholic Diocese of Alexandria, Louisiana, has begun Chapter 11 bankruptcy proceedings, a move Church leaders say is meant to bring justice and healing to survivors while ensuring the continued mission of the Church in central Louisiana.

Bishop Robert Marshall Jr., who has served as bishop since 2020, said the decision came after prayer, consultation, and careful consideration. “As your bishop, I apologize to abuse survivors for the harm, pain, and suffering they experienced and continue to experience in their lives,” Marshall said in a letter to parishioners, according to Catholic News Agency. “This action is occurring because some past priest-perpetrators sexually abused minors, actions that are evil, sinful, and go against everything the Church and the priesthood represent.”

A Path Toward Healing and Fairness

The diocese reported that 85 survivors have come forward so far, with more expected as the legal process continues. Many of the claims involve incidents that occurred decades ago, some as far back as the 1970s, according to CNA.

The increase in lawsuits stems largely from a 2021 Louisiana law that temporarily suspended the statute of limitations for civil abuse claims. That law opened a three-year window for survivors to file older cases and permanently extended the right to sue for more recent incidents.

To ensure that all survivors receive compensation in a fair and consistent way, the diocese said that Chapter 11 provides the best legal framework. “Without a structured process of this kind, funds would be exhausted in the first settlements or cases that go to trial, leaving nothing for all the other claims waiting to be heard,” the diocese explained on its website, as cited by CNA.

Financial Transparency and Protected Ministries

According to the diocese’s filings, it holds $16.7 million in assets and $9.5 million in liabilities. It expects to contribute $4 million, along with limited insurance proceeds, to a court-approved trust for survivors.

Parishes and schools are legally distinct from the diocese itself and will not be part of the bankruptcy case. The diocese emphasized that daily Masses, Catholic education, and charitable ministries will continue as normal. Restricted funds such as the annual appeal and seminarian support remain untouched.

The case, filed in the U.S. Bankruptcy Court for the Western District of Louisiana, is expected to take 18 to 24 months. The estimated cost is between $1 million and $2 million, CNA reported.

Continuing the Mission Amid Reorganization

Even before the bankruptcy filing, the diocese had begun a long-term plan called “Together as One Church: Embracing the Future of Hope.” The initiative aims to address declining vocations, priest shortages, and parish mergers to better serve the faithful in the coming decades.

“The decision to seek Chapter 11 protection,” Marshall said, came after consultation with diocesan leadership and the Vatican, and was determined to be “the most prudent course,” according to CNA.

A Commitment to Accountability

Since 2019, the Diocese of Alexandria has published the names of credibly accused clergy and implemented the U.S. bishops’ national Charter for the Protection of Children and Young People. “We remain committed to transparency,” Bishop Marshall reaffirmed.

The move follows a growing number of dioceses in the United States that have turned to Chapter 11 as a means to resolve abuse claims comprehensively and equitably. It comes one week after the Archdiocese of New Orleans finalized a $230 million settlement, signaling what many Church observers see as a nationwide reckoning and renewal.

As the process unfolds, the Diocese of Alexandria says its focus remains on two things: justice for survivors and the continuation of its mission to bring Christ’s healing presence to every corner of Louisiana.


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