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Elizabeth Allen


NextImg:Catholic Diocese Announces Bankruptcy Amidst Overwhelming Sexual Abuse Lawsuits

The Catholic Diocese of Sacramento, California has announced its intention to file for bankruptcy, faced with over 250 lawsuits alleging sexual abuse by clergy and church staff.

Bishop Jaime Soto described this move as a means to equitably address the claims, saying, “It’s a very dark legacy in our history, and we have to respond for that. And I have to, as bishop, I have to try to make amends for that.”

The diocese’s approach to file for bankruptcy under Chapter 11 is seen by the church leadership as a way to ensure that all survivors receive some form of compensation. Without this, early cases might drain the funds, leaving subsequent claimants with nothing.

This strategy, aimed at “fairness,” faces skepticism from groups representing survivors.

Melanie Sakoda of the Survivors Network of Those Abused by Priests (SNAP) criticizes this move, asserting, “I don’t think that filing for bankruptcy is a way of making amends to these survivors.”

Her concern extends to the potential limitations this could place on the assets available for survivors and the resultant impact on transparency.

“It’ll make a big difference in what information becomes available to the public about, and to parishioners, about who abused in the Diocese of Sacramento,” Sakoda said.

Bishop Soto, acknowledging the complexity of the situation, expressed his intention to maintain transparency, while also bracing for potential backlash.

He noted, “I’m sure people are going to be mad at me or mad at the church, and there will be some people who try to blame the victims or blame the attorneys.” This candid admission reflects the anticipated polarized reactions to the diocese’s decision.

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The bishop also made a call for empathy towards the survivors, emphasizing the church’s missteps in addressing the abuse.

“It is the sickening sin of sexual abuse, and the failure of church leadership to address it appropriately, that led to this point,” the bishop said.

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The situation in Sacramento is part of a broader context, triggered by a 2020 California law that permitted adult victims abused as minors to file lawsuits.

The majority of these cases date back decades, highlighting the long-standing nature of the crisis. Similar bankruptcy filings by dioceses across California, including San Francisco, Oakland, Stockton, Santa Rosa, and San Diego, illustrate the widespread impact of this issue within the Catholic Church in the state.

The reality of this situation is grim. Church leadership was complicit in covering up the huge number of sexual abuse cases alleged against many of it’s clergy and laymen. It would seem only reasonable for the Catholic church as a whole to be responsible to paying the victims of their vile sexual abuse and coverup.

According to Marketplace, the Catholic church as a whole has at least $73 billion in assets. The Vatican Bank made a profit of nearly $19.5 million dollars and had around $3 billion in assets in 2021.

However not all churches are part of the Vatican economic system. In countries like the United States, there are national churches that have decentralized economic systems, meaning its funds are independent of the Vatican.

The Diocese of Sacramento brought in over $28.6 million in revenue in 2021 and had $132.6 million in assets. Because California passed the law and the Diocese is a national church, it is a local problem and not a global church problem, at least financially.

The whole situation is horrid. The focus needs to be firmly on the need for accountability and rectification of past wrongs by the church. However, this decision to file for bankruptcy may allow for those who committed the sexual abuse to remain anonymous and very well may prevent victims from receiving some restitution and hopefully healing from their church inflicted trauma.

In the end, it is just wrong!

RELATED: Government Watchdog Calls Out California’s Growing Fiscal Crisis: Soaring Deficit, Recession