Diocese of Albany files Chapter 11 bankruptcy in wake of lawsuits

By Sarah Lizee

Olympia, Wash., March 15 – The Roman Catholic Diocese of Albany, New York filed Chapter 11 bankruptcy on Wednesday in the U.S. Bankruptcy Court for the Northern District of New York.

The diocese’s funds have been depleted as more Child Victims Act (CVA) cases have reached large settlements, it said in a statement issued Wednesday.

To date the diocese has been named in over 400 CVA lawsuits, filed between Aug. 15, 2019, and Aug. 14, 2021. More than 50 of those cases have been settled.

The Chapter 11 filing is the best way to ensure that all victim and survivors with pending CVA litigation will receive some compensation, the diocese said.

The diocese plans to develop a reorganization plan that will determine its available assets, along with participation of insurance carriers, that can be used to negotiate reasonable settlements with survivors in addition to other creditors.

The petition lists 200 to 999 creditors, $10 million to $50 million in assets and $50 million to $100 million in liabilities.

Parishes and Catholic schools of the diocese are separately incorporated and are not part of the filing.

The Albany, N.Y.-based diocese filed bankruptcy under Chapter 11 case number 23-10244.

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