California diocese weighs bankruptcy over sex-abuse claims

SAN FRANCISCO, Sept 13 (Reuters) – The Roman CatholicDiocese of Stockton, California, is contemplating filing forbankruptcy protection after nearly depleting church fundsavailable to settle sex-abuse

Steven M. Sweat‘s insight:

Quite frankly, the various archdiocese in California brought this crisis upon themselves by harboring sex offenders in their churches.  They further added insult to injury by not negotiating in good faith with the victims of these assaults.  The threat of bankruptcy does not mean that the compensation to the victims will be discharged as debts arising from this type of intentional conduct are not dischargeable.  What the church is anticipating is a Chapter 11 reorganization, which would still require payment on debts but, may reduce certain obligations based upon various factors.

Glotzer & Sweat LLP – Child Sexual Abuse Attorneys in Los Angeles

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