Just days after a major Bay Area Catholic diocese filed for bankruptcy in the face of hundreds of potential sex abuse lawsuits, the Diocese of Oakland announced it is seriously considering doing the same.
In a letter to parishioners that was also sent to media outlets Thursday, Bishop Michael Barber said he"is giving strong consideration to filing for Chapter 11 bankruptcy."the Diocese of Santa Rosa filed for Chapter 11 bankruptcyIn both cases, church leaders cite a state law that opened a three-year window allowing childhood sex abuse lawsuits to move forward despite statute of limitations rules that had prevented older claims.
"After much prayer and thoughtful advice, I believe bankruptcy can provide a way to support all survivors in their journey toward healing in an equitable and comprehensive way," Barber said."It will also allow the diocese to reorganize our financial affairs so we may continue to fulfill the sacred mission entrusted to us by Christ and the Church.
The Chapter 11 process is transparent and"allows all claimants equal access and an equitable share in the assets available to pay claims" while also allowing the church to continue its"mission as the Catholic Church in Alameda and Contra Costa counties," according to the website. A lawyer for a firm representing nearly 100 people with sex abuse claims against the Diocese of Oakland said the potential bankruptcy filing is a strategy to sidestep full transparency and accountability.
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