Diocese of Fresno to file for bankruptcy to compensate abuse victims

FRESNO, Calif. (KFSN) -- The Diocese of Fresno has announced a plan to file for bankruptcy as it faces over 154 claims from victims of sexual abuse by clergy members.

The diocese says the first few court cases or settlements would likely wipe out its finances.

Instead, the diocese says filing for Chapter 11 bankruptcy would help ensure all its creditors and victims are 'compensated fairly and equitably.'

It says that it provides a framework to bring all parties together under the bankruptcy court's supervision to resolve claims with the resources available.

RELATED: Victim advocates respond to Fresno Catholic Diocese's list of credibly accused clergy

The diocese says that an unsecured creditors' committee would represent victims of sexual abuse, and a fund would be established for distribution to victims.

Advocates from the Survivors Network of those Abused by Priests, also known as SNAP, disagree with the diocese's plan to declare bankruptcy.

"I think it's an indication of their moral bankruptcy, not their financial bankruptcy," said Melanie Sakoda with SNAP.

"It ties the cases up for years, it keeps cases from being heard in the Supreme Court and it does stall justice," added Dorothy Small, who is also an advocate for SNAP.

Small is a survivor herself and says she knows first-hand what victims of abuse by clergy go through.

"It feels like a double betrayal because during the three year period of the open window they were planning on getting justice through litigation," said Small.

Advocates say they hope the diocese will reconsider and work directly with victims and their attorneys to reach fair settlements.

The diocese has addressed claims of sexual assault in the past, publishing a list in 2021 of clergy members who had credible allegations against them.

The list was published after a lengthy investigation into claims of sexual assault against minors within the diocese.

The diocese says it will officially file the petition for bankruptcy in August.

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