Church Files Bankruptcy

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Its the Diocese of Wilmington, Delaware.

Here is a bit of the bishop’s statement:
I am today announcing that the Catholic Diocese of Wilmington Inc. has filed for Chapter 11 reorganization under the U.S. Bankruptcy Code. This is a painful decision, one that I had hoped and prayed I would never have to make. However, after careful consideration and after consultation with my close advisors and counselors, I believe we have no other choice, and that filing for Chapter 11 offers the best opportunity, given finite resources, to provide the fairest possible treatment of all victims of sexual abuse by priests of our Diocese. Our hope is that Chapter 11 proceedings will enable us to fairly compensate all victims through a single process established by the Bankruptcy Court.
It has always been my and my predecessor, Bishop Saltarelli’s, highest hope and fervent desire to settle all claims against the Diocese of Wilmington through a mediation process. Our past record as detailed in my May 7, 2009, letter outlines the number of past cases we have settled and the aggregate amount of money the Diocese has paid in settlements. Some months ago, we petitioned the Superior Court to order an Alternative Dispute Resolution process so that a global, equitable settlement for all 142 claimants would be negotiated with the assistance of a court-appointed mediator. On October 6 the court ordered such an ADR process for all cases without long-standing trial dates. Thirty of the 131cases filed against the Diocese have been scheduled for trial, with a set of eight cases to begin trial on Monday, October 19. As has been our policy, we were engaged in negotiations, with the assistance of a mediator, to settle these eight cases. These negotiations continued until today, but we were unable to achieve a settlement. Our concern throughout the negotiations was that too large a settlement with these eight victims would leave us with inadequate resources to fairly compensate the other 133 claimants, and continue our ministry. It is our obligation to ensure that all victims of abuse by our priests are fairly compensated, not just those fortunate enough to secure earlier trial dates.
The Chapter 11 filing is in no way intended to dodge responsibility for past criminal misconduct by clergy – or for mistakes made by Diocesan authorities. Nor does the bankruptcy process enable the Diocese to avoid or minimize its responsibility to victims of abuse. Instead, the Chapter 11 filing will enable the Diocese to meet its obligations head-on and fulfill its responsibility to all victims.
cdow.org/cgi-bin/news/news.cgi?p_id=0355&ppinc=detail
 
OK, so if I understand correctly this is just a church in one area, not the Catholic Church as a whole?
 
OK, so if I understand correctly this is just a church in one area, not the Catholic Church as a whole?
Well, the bankruptcy is for the organization which is responsible for the Catholic churches in one area - in this case, the state of Delaware. But, yes, the headline which appeared in The Times article is misleading. The entire US Catholic Church had not declared bankruptcy. Although, as article says, Wilmington is the 7th diocese to declare bankruptcy due to the sex abuse scandal. There are about 200 Catholic dioceses in the US.
 
Well, the bankruptcy is for the organization which is responsible for the Catholic churches in one area - in this case, the state of Delaware. But, yes, the headline which appeared in The Times article is misleading. The entire US Catholic Church had not declared bankruptcy. Although, as article says, Wilmington is the 7th diocese to declare bankruptcy due to the sex abuse scandal. There are about 200 Catholic dioceses in the US.
Thank you.
 
How sad to know that one, let us support for the church. It’s God’s home let must help them to fight for their right. As what bankruptcy attorneys said regarding this matter, this filing is the latest, sad chapter in the diocese’s decades-long cover-up of these despicable crimes to maintain the secrecy surrounding its responsibility and complicity in the sexual abuse of hundreds of Catholic children.
 
How sad to know that one, let us support for the church. It’s God’s home let must help them to fight for their right. As what bankruptcy attorneys said regarding this matter, this filing is the latest, sad chapter in the diocese’s decades-long cover-up of these despicable crimes to maintain the secrecy surrounding its responsibility and complicity in the sexual abuse of hundreds of Catholic children.
Those are pretty harsh words considering the majority of the US claims were against long-dead priests with no means of defense. The Church has been extremely gracious and contrite in not challenging these claims considering the lack of proof in a high percentage of them and deserves better than the continuous slamming it has been receiving.
 
I’m really going to prove my ignorance here, but… I didn’t even know that a church could file for bankruptcy. I mean, its not an institution that I ever really thought of as being financially capable in the first place. Most if not all of its money comes from donations… Also, reading this topic kinda makes me heart sick. The church has to file for bankruptcy because it ran out of money paying restitutions to victims of abuse.
 
Those are pretty harsh words considering the majority of the US claims were against long-dead priests with no means of defense. The Church has been extremely gracious and contrite in not challenging these claims considering the lack of proof in a high percentage of them and deserves better than the continuous slamming it has been receiving.
That’s a spam posting mate. Even comes with an advert.
 
I’m really going to prove my ignorance here, but… I didn’t even know that a church could file for bankruptcy.
Growing up, I used to think of churches as being somehow exempt from financial worries, or perhaps deserving of special treatment, but they have to pay bills just like any other organization. Heck, even cities can go bankrupt. Vallejo, California, a town of 120,000 people, has been in Chapter 9 bankruptcy for the past two years.
Also, reading this topic kinda makes me heart sick. The church has to file for bankruptcy because it ran out of money paying restitutions to victims of abuse.
Yes, the whole situation is sickening. There are no winners in it. The difficult question is how to find some measure of justice.
 
Several [six?] dioceses have filed for bankruptcy because of lawsuits over sexual misconduct by priests. The bankruptcy protects the diocese from having to sell church buildings and other church properties.

Over the past 50 years, there were pleas for compassion and tolerance for homosexuals, and the result of admitting them to the priesthood and other church positions has been scandalously disastrous.

Not only did they molest children and adolescents, but they also engaged in grossly misrepresenting Church teaching on many subjects AND gave terrible scandal.

When confronted with their misdeeds, these men begged for forgiveness and the psychiatric industry contended they could be rehabilitated with the proper therapy. All of those efforts failed miserably.

The lawsuits were part of that legacy of misplaced trust.

There are other threads here on CAF that discuss the possible causes of and the horrible fallout from these efforts at tolerance.

In addition, here is a comprehensive [although, in my opinion, biased against the Church] article. If you read it, read the Church’s rebuttals and clarifications which tend to occur toward the end.

en.wikipedia.org/wiki/Catholic_sex_abuse_cases
 
One aspect of the scandal(s) is reflected in this article taken from a post on another thread on CAF:

Key words for further search might be “Bella Dodd”

Do You All Know About BELLA DODD? This Is A MUST Read!

The “Prophecy” of Bella Dodd ~ by Christopher A. Ferrara
In light of the current confusion and moral scandal in the Church, it would be well to consider a neglected bit of recent Church history: the public testimony of Bella Dodd, who served as legal counsel to the Communist Party in the United States until her conversion to Catholicism, after which she spent the rest of her life atoning for her role in the communist infiltration of the Catholic Church.

An article in Christian Order magazine (November 2000) recounts how Dodd and her associate, Douglas Hyde, revealed the plan for communist subversion of the Church:
Ex-Communist and celebrated convert Douglas Hyde revealed long ago that in the 1930s the Communist leadership issued a worldwide directive about infiltrating the Catholic Church. While in the early 1950s, Mrs. Bella Dodd was also providing detailed explanations of the Communist subversion of the Church. Speaking as a former high ranking official of the American Communist Party, Mrs. Dodd said: “In the 1930s we put eleven hundred men into the priesthood in order to destroy the Church from within.” The idea was for these men to be ordained and progress to positions of influence and authority as Monsignors and Bishops. A dozen years before Vatican II she stated that: “Right now they are in the highest places in the Church” — where they were working to bring about change in order to weaken the Church’s effectiveness against Communism. She also said that these changes would be so drastic that “you will not recognise the Catholic Church.”

Dodd gave voluminous testimony on communist infiltration of Church and state before the House UnAmerican Activities Committee in the 1950s. In a lecture at Fordham University during that time, Dodd unveiled what would seem to be an uncanny prophecy of future chaos in the Church. The lecture was attended by a monk whose account of the talk is presented in Christian Order:

I listened to that woman for four hours and she had my hair standing on end. Everything she said has been fulfilled to the letter. You would think she was the world’s greatest prophet, but she was no prophet. She was merely exposing the step-by-step battle plan of Communist subversion of the Catholic Church. She explained that of all the world’s religions, the Catholic Church was the only one feared by the Communists, for it was its only effective opponent. The whole idea was to destroy, not the institution of the Church, but rather the Faith of the people, and even use the institution of the Church, if possible, to destroy the Faith through the promotion of a pseudo-religion: something that resembled Catholicism but was not the real thing. Once the Faith was destroyed, she explained that there would be a guilt complex introduced into the Church…. to label the ‘Church of the past’ as being oppressive, authoritarian, full of prejudices, arrogant in claiming to be the sole possessor of truth, and responsible for the divisions of religious bodies throughout the centuries. This would be necessary in order to shame Church leaders into an ‘openness to the world,’ and to a more flexible attitude toward all religions and philosophies. The Communists would then exploit this openness in order to undermine the Church.

Does any of this sound familiar? Unless you have been comatose since Vatican II, you would be aware that Bella Dodd was describing the state of the Catholic Church today. Today, post-conciliar churchmen wallow in guilt over the Church’s “intolerant” past, make public apologies for the sins of dead Catholics (but not their own sins against the living faithful, including the victims of the homo-priest cover-up), and extol the virtues of other religions, thereby de facto abandoning the defined dogma that there is no salvation outside the Church.

Bella Dodd was no prophet. She merely told us what the infiltrators of the Church were planning to do. And lo, they have done it.
 
Here is another relevant post:

From an article on the infiltration of Marxists…
Last year an essay, which appears to be an introduction to Robert Chandler’s book Shadow World, outlined how Gramsci’s passive revolution is infiltrating the Catholic Church. Cliff Kincaid, who is President of America’s Survival, Inc., and Chandler outlined the process in ‘How Marxism Has Infiltrated the Catholic Church’. Even though it’s 16 pages long, it’s a gripping read and highly recommended. Kincaid begins by citing a report by James Tyson, who used to work for Accuracy in Media in the US. Tyson saw the Catholic Church working with Marxist Sandinistas in 1979. The US Catholic bishops strongly supported this move. Also, although Pope John Paul II and President Reagan (1980-1988) actively opposed Communism, a former Maryknoll priest, Blase Bonpane, started negotiations between the Church and the Sandinistas. Today, Bonpane speaks of his successes in this regard at lectures around the world. He advocates building an ‘international peace system’, which is also the focus of the University of Notre Dame’s Peace Studies department. Although the Contras, with Reagan’s aid, won the battle, they ultimately lost the war. The Sandinistas control Nicaragua, managing this with the support of Venezuela’s Hugo Chavez and the Castro-influenced Sao Paulo Forum.
Kincaid also mentions that Tyson alleged that in the 1980s, the US Conference of Catholic Bishops (USCCB) fell under the influence of leftist priests, notably the Revd J Bryan Hehir, known for his lecture series to the Institute for Policy Studies — a left-wing think tank — entitled ‘Matthew, Marx, Luke and John’. The IPS also gave Fr Hehir an award named after a famous Chilean Communist, Orlando Letelier. Today, Fr Hehir is a professor at Harvard University’s John F Kennedy School of Government.
So, we have American Catholic bishops and priests in synch with far-left political movements. But, regular readers will recall that there’s more to the story, namely in the United States itself. Last year, I reported on CCHD donations going to various left-wing community organisations and asked American Catholics not to donate to the annual nationwide collection in November. Some funding even goes to the nefarious ACORN.
Robert Chandler, the author of the aforementioned Shadow World, is a retired US Air Force Colonel and Vietnam War veteran. He has worked as a US Government strategist for many years. He explains how Gramscian thought is at work in the Catholic Church in the United States:
… to overturn the existing order and “Marxize the inner man,” one must create a subversive program of “counter-hegemony” against its supporting culture. The war against the existing culture would leave nothing outside of the struggle, especially Christianity, to negate the established modes of thought and ways of doing things.
Christianity is considered a prime target in preparing the way for a “Marxized America,” since religion, as an independent center of societal values, stands in the way of creating a new culture based on what is deceptively called “social justice” and “change.” Religion, in the Gramsci view, is the foundation for the Western values of individual liberty, private property, and the traditional family, and must be abolished in order for the new communist society to emerge.
Chandler notes that one of Gramsci’s leading proponents is actually a professor of English at the University of Notre Dame. His name is Joseph Butteglieg. Butteglieg has not only translated Gramsci’s Prison Notebooks but is also the co-founder and current president of the International Gramsci Society! He has also addressed Marxist and Communist fora in the United States.
Another Notre Dame faculty member with avowedly left-wing credentials as an activist and advisor to the UN is David Cortright. Cortright is a research fellow at ND’s Kroc Institute for International Peace Studies.
And, speaking of the UN, did you know that the president of their General Assembly in 2008-2009 was one Miguel D’Escoto — like Blase Bonpane, a Maryknoll priest — who was also a former foreign minister of Sandinista Nicaragua? As one might expect, Fr D’Escoto strongly advocates liberation theology.
What does all of this mean for the average American Catholic? Chandler cites an explanation from the late conservative Catholic author, Malachi Martin:
Malachi Martin explained that Gramsci’s quiet, anonymous revolution would do everything in the name of man’s dignity and rights, and in the name of the claims and constraints of Christianity: “Accomplish that, said Gramsci, and you will have established a true and freely adopted hegemony over the civil and political thinking of every formerly Christian country. Do that, he promised, and in essence you will have Marxized the West. The final step — the Marxization of the politics of life itself — will then follow. All classes will be one class. All minds will be proletarian minds. The earthly Paradise will be achieved.”

 
freerepublic.com/focus/f-religion/722955/posts

Excerpt:

When planning to infiltrate, the Communists probe for an institutional weakness to exploit and, in the case of the Catholic Church, perhaps they perceived the weakness to reside in the all-male celibate priesthood. Did Communists send their followers, particularly homosexuals, sexual deviants, and enablers, into seminaries to become priests in order to foster a homosexual culture within the church? Homosexuals, practicing their predilections in an overwhelmingly conservative Catholic community, while given protection by well placed minded superiors, could certainly contribute to the undermining of faith in Catholicism and could unquestionably shake the credibility and moral standing of the church itself down to its very foundations. Undermining Catholic authority has been a clear and often stated goal of the Communist left. Speculation regarding how the Communists attempted to implement their program is reasonable and necessary in order to better understand the present situation.

Two former Communists, Bella Dodd and Manning Johnson, spoke on Communist infiltration of the Catholic Church. Dodd, an important Communist party lawyer, teacher and activist, converted to Catholicism in April 1952 under the tutelage of Bishop Fulton J. Sheen. Stating that the Communist infiltration was so extensive that in the future “you will not recognize the Catholic Church,” Dodd also asserted that:

“In the 1930’s, we put eleven hundred men into the priesthood in order to destroy the Church from within.”

“Right now they are in the highest places, and they are working to bring about change in order that the Catholic Church will no longer be effective against Communism.”

Manning Johnson, a former Communist Party official and author of “Color, Communism and Common Sense” testified in 1953 to the House un-American Activities Committee regarding the infiltration of the Catholic Church:

“Once the tactic of infiltration of religious organizations was set by the Kremlin … the Communists discovered that the destruction of religion could proceed much faster through infiltration of the (Catholic) Church by Communists operating within the Church itself. The Communist leadership in the United States realized that the infiltration tactic in this country would have to adapt itself to American conditions (Europe also had its cells) and the religious make-up peculiar to this country. In the earliest stages it was determined that with only small forces available to them, it would be necessary to concentrate Communist agents in the seminaries. The practical conclusion drawn by the Red leaders was that these institutions would make it possible for a small Communist minority to influence the ideology of future clergymen in the paths conducive to Communist purposes This policy of infiltrating seminaries was successful beyond even our communist expectations.”
 
Growing up, I used to think of churches as being somehow exempt from financial worries, or perhaps deserving of special treatment, but they have to pay bills just like any other organization. Heck, even cities can go bankrupt. Vallejo, California, a town of 120,000 people, has been in Chapter 9 bankruptcy for the past two years.
Heh, I guess you can accuse me of wearing rose colored glasses then. I tend to only see the mysticism of the church and sometimes forget that though it is the Mystical Body of Christ, it resides in a very ordinary way between the local 7-11 and Payless Shoe store. I mean I knew that churches had bills to pay, but your average congregation is usually enough to support the lighting/heat and Priestly pocket change. Admittedly, I don’t know if I would be willing to tithe to a church that is paying off an abuse victim. (Well, maybe I would, if only for the sake of the victim.)
Yes, the whole situation is sickening. There are no winners in it. The difficult question is how to find some measure of justice.
Mm. This is true. I understand the idea of forgiving such offenses- I mean comm’on it’s a church for crying out loud it’s what they DO- but it’s the cover ups that really hurt me. And yeah, I’m sure someone is wondering why does a protestant care what goes on in a Catholic church cause- yeah, yeah, catholicism is the one true faith and all that- I don’t believe that. I believe Christianity is the one true faith, even so, I care for the catholic church because it is part of the Church on a whole, it hurts me to see everyone deserting it in this time of crisis. Oy, catholics pray for your church, don’t ditch it! 😦 It’s a living organism and needs prayer just as much as each individual believer.
 
Mm. This is true. I understand the idea of forgiving such offenses- I mean comm’on it’s a church for crying out loud it’s what they DO- but it’s the cover ups that really hurt me. And yeah, I’m sure someone is wondering why does a protestant care what goes on in a Catholic church cause- yeah, yeah, catholicism is the one true faith and all that- I don’t believe that. I believe Christianity is the one true faith, even so, I care for the catholic church because it is part of the Church on a whole, it hurts me to see everyone deserting it in this time of crisis. Oy, catholics pray for your church, don’t ditch it! 😦 It’s a living organism and needs prayer just as much as each individual believer.
Lot of good points…It is Christianity as a whole that is affected…I got blasted in another thread about the media and the pope…The abuse is a blight, why not have a Corinth style housecleaning and turn the abusers and those involved covering/movement over to the authorities…Let the church just take flack for spreading the gospel and not sin in the camp…The church as a whole/individually is to live above reproach…We reap from what is sown individually and corporately.
 
Several [six?] dioceses have filed for bankruptcy because of lawsuits over sexual misconduct by priests. The bankruptcy protects the diocese from having to sell church buildings and other church properties.

Over the past 50 years, there were pleas for compassion and tolerance for homosexuals, and the result of admitting them to the priesthood and other church positions has been scandalously disastrous.

Not only did they molest children and adolescents, but they also engaged in grossly misrepresenting Church teaching on many subjects AND gave terrible scandal.

When confronted with their misdeeds, these men begged for forgiveness and the psychiatric industry contended they could be rehabilitated with the proper therapy. All of those efforts failed miserably.

The lawsuits were part of that legacy of misplaced trust.

There are other threads here on CAF that discuss the possible causes of and the horrible fallout from these efforts at tolerance.

In addition, here is a comprehensive [although, in my opinion, biased against the Church] article. If you read it, read the Church’s rebuttals and clarifications which tend to occur toward the end.

en.wikipedia.org/wiki/Catholic_sex_abuse_cases
An interesting and important point in this article:
"The John Jay report identified the following factors as contributing to the sexual abuse problem:[19]
  1. Failure by the hierarchy to grasp the seriousness of the problem
  2. Overemphasis on the need to avoid a scandal
  3. Use of unqualified treatment centers
  4. Misguided willingness to forgive
  5. Insufficient accountability "
Look at point number 1… The problem still exists, its the bishops! None have been punish by The Church. They moved these sexual predators from parish to parish, open to abuse more children, that is the crux of many of the lawsuits. I feel the Bishops are just as complicit in these crimes. Neither The Church nor the civil authorities are willing investigate these bishops. Also, while majority of the abuse cases are involving boys, girls have been abused by priests too, we cannot overlook that. I feel that the reason more boys were preyed on was due to ease of access. Pedophiles will choose the easiest target regardless of gender, that’s the nature of the sickness.
 
Whatever happened to the concept of Proof Beyond a Reasonable Doubt? Did it vanish because the Church’s so-called deep-pockets were the target. Why is it that only in these cases was the Statute of Limitations so flagrantly violated by the courts? There are certainly victims involved here but they are not all victims of clerical abuse, tens of thousands are innocent parishioners being robbed blind by a highly biased court system.
 
Lot of good points…It is Christianity as a whole that is affected…I got blasted in another thread about the media and the pope…The abuse is a blight, why not have a Corinth style housecleaning and turn the abusers and those involved covering/movement over to the authorities…Let the church just take flack for spreading the gospel and not sin in the camp…The church as a whole/individually is to live above reproach…We reap from what is sown individually and corporately.
I agree to an extent. The Catholic Church is the largest and one of the oldest (er, what’s the difference between RC and Orthodox?) Christian denomination; they’re the most in the public eye. As I said before, I don’t buy into the ‘one true faith,’ doctrine, but I do recognize that of Christian denominations Catholicism is like the flagship of the Faith (Christianity). What they do reflects on all Christians regardless of denomination. You speak of Christians and the crusades come up. It doesn’t matter *what *denomination you are. Similarly, all individuals have a hand in how unbelievers view the Church, and how they view the Church can affect how they view God.

I can’t say I agree with a Corinth styled house cleaning however, if only because I’m not sure if that wouldn’t cause division in the church. The pulling up of the wheat with the weeds. How many abuse cases are real and how many are people just trying to ride the gravy train? The Catholic Church is also one of the richest denominations.
 
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