Catholic diocese in Helena, Mont., files for bankruptcy to resolve sex abuse lawsuits

[Redfairen]

Source: NBC News

The Roman Catholic Diocese of Helena, Mont., filed for bankruptcy protection on Friday to pave the way for a $15 million settlement of lawsuits alleging clergy members sexually abused 362 children over five decades, according to a diocese spokesman.

 “The settlement here will be as much help financially as we can offer to claimants,” the spokesman, Dan Bartleson, told NBCNews.com. “And the bankruptcy puts us in a place at the diocese where we can care for the Catholics who are currently part of the church.”

The lawsuits, originally filed in 2011, claimed that clergy members had abused children from the 1940s to 1980s and that the diocese knew or should have known what was happening.

“It’s widespread … (and) some of the most horrific abuse we’ve dealt with,” Dan Fasy, an attorney with law firm Kosnoff Fasy, which represents 268 of the 362 claimants, told NBC News.


Read more: http://usnews.nbcnews.com/_news/2014/01/31/22524555-catholic-diocese-in-helena-mont-files-for-bankruptcy-to-resolve-sex-abuse-lawsuits

[AtheistCrusader]

1. Deny the bankruptcy.

Liquidate their assets. Be done with it.

[rug]

2. That's not how Chapter 11 works.

[SoapBox]

3. Shut...the...cult...down.

[Dawson Leery]

4. +1,000,000,000,000

[defacto7]

5. Hmmmm...

That's $41,400 each minus legal fees and expenses... about $23.12 each.

[DeSwiss]

6. Now they run to hide in Lady Justice's skirts.

- How can they be bankrupt with all that loot they stole still sitting in Rome? Can't they take out a loan from the Vatican Bank? Why should the taxpayer's and all their victims have to pick up their tab?

Francis? Francis? Oh, Francois? Are you still there?

[awoke_in_2003]

11. Francis is busy...

being fellated by too many worshippers here at DU.

[jwirr]

7. Individual churches should not be able to file for bankruptcy. They are part of a larger group that

oversees them and that larger group should also be held liable. If the larger group was not helping to cover this up they could be excused but all too often they are which makes them part of the crime.

[SwankyXomb]

8. Liquidate them.

And then break up the diocese and sell its property.

[happyslug]

9. To whom?

Last edited Sat Feb 1, 2014, 02:35 PM - Edit history (1)

In chapter 11 there are two options. First is to sell off the assets. In most cases a new organization run by the same people who ran the bankrupt organization buys the assets. This is what happened with GM. In this case the bishop could do so and it is an option for no one else wants the main assets which are the churches themselves. Once the assets are sold the old organization is dissolved.

The second option is to get the group to repay over time. This takes time, and given that donations are the main form of income for any Church, I suspect it is the main option to pay off all of the creditors of the Diocise.

Remember bankruptcy is a CREDITOR remedy. In simple terms assets are to be used to pay ALL creditors, including employees. The benefit of chapter 11 is the court will do want it can to pay ALL creditors. It looks like total debts exceed total assets and all all of the creditors will get something on the dollar of debt. The fight will be over how much to each class of creditors, including employees and victims.

[warrant46]

10. A Popular Tactic for a Criminal Organization

Of Pedophile Sodomists and Rapists

Dioceses and Religious Orders
That Have Filed for Bankruptcy Protection

• Archdiocese of Portland OR (filed 7/6/04)
• Diocese of Tucson AZ (9/20/04)
• Diocese of Spokane WA (12/6/04)
• Diocese of Davenport IA (10/10/06)
• Diocese of San Diego CA (2/27/07)
• Diocese of Fairbanks AK (3/1/08)
• Oregon Province of the Jesuits (2/17/09)
• Diocese of Wilmington DE & MD (10/18/09)
• Archdiocese of Milwaukee WI (1/4/11)
• Congregation of the Christian Brothers (4/28/11)