Louisiana diocese prepares to file for bankruptcy over clergy abuse claims

Alexandria diocese plans to file ‘prearranged chapter 11’ after settlement with victims to avoid ‘lengthy delays’

A Roman Catholic diocese in north-west Louisiana appears ready to join 40 other organizations of its kind in the US by filing for federal bankruptcy protection as the church’s worldwide clergy molestation scandal continues reverberating, according to a letter obtained by the Guardian.

But the diocese in question – that of Alexandria, Louisiana – is first aiming to reach a global settlement with those who already have pending clergy abuse claims demanding damages from the institution before it then files what it called a “prearranged chapter 11” financial reorganization. As the letter authored by local attorneys for the Alexandria church put it, the purpose of the strategy is to avoid “the lengthy delays and huge professional fees” incurred by the May 2020 bankruptcy filed by Louisiana’s archdiocese of New Orleans.