THE ARCHDIOCESE IN CALIFORNIA DECLARED BANKRUPTCY DUE TO THE CONSEQUENCES OF PEDOPHILIA

The Roman Catholic Diocese of San Francisco ("RCASF") has declared bankruptcy. The corresponding application for the protection of the organization was filed with the court on August 21, 2023 in accordance with Chapter 11 of the US Bankruptcy Code. The filed application should stop the flow of lawsuits against RCASF, allowing the development of a reorganization plan based on existing assets and insurance payments.

The reason for financial insolvency was numerous lawsuits (over 500) from citizens who became victims of pedophile priests in the past. Many clergymen accused of crimes 30 years ago are already dead or no longer participate in services.

The basis for the mass demand for compensation was Bill 218 of the California Assembly. It allowed victims of sexual violence until December 31, 2022 to apply for compensation after a decade, which would have been impossible under normal judicial practice. The statute of limitations has been renewed by the decision of the California authorities twice already.

The first time it happened was in 2003. Then $68 million was spent on compensation. The Archdiocese sold off part of its real estate and was forced to rely on insurance. However, in 2019, more than 500 applications were received. In a release issued by the head of the Archdiocese, Salvatore Cordileone, the archbishop stated that the RCASF does not have the necessary financial instruments for each trial.

He noted that the cases of such abuses themselves are quite rare. Currently, the church has put into practice educational initiatives and preventive measures to protect children. Cordileone's statement says that the bankruptcy process may be the best option for the victims to receive equal and fair financial compensation.

Cordileone informed the public about the work plans of the religious organization during the judicial procedures. In particular, the organization's employees will continue to receive salaries. RCASF will continue its ministry for 442,000 Catholics in San Francisco and the suburbs. The court application did not include 88 independent parishes (they are self-funded), parish and secondary schools, cemeteries, the University of St. Patrick and a number of charities associated with the work of RCASF.

Representatives of the organization uniting victims of clerical violence (SNAP) reacted to Cordileone's statement with a high degree of skepticism. Doubts are caused by the organization's lack of necessary financial assets. Local TV journalists found several priests among those accused of sexual abuse.

At the same time, the RCASF ministers themselves give refutations, referring to the data of the internal investigation. According to them, it did not reveal any facts confirming the statements made by the alleged victims. Despite this, the head of the archdiocese does not agree to publish the entire list of names of those priests who have been accused of pedophilia.