Archdiocese of New Orleans CHAPTER 11 BANKRUPTCY
On May 1, 2020, the Archdiocese of New Orleans announced plans to file for Chapter 11 bankruptcy protection after being named as a defendant in dozens of clergy sexual abuse lawsuits. Historically, organizations such as Catholic Dioceses have used Chapter 11 bankruptcy as a shield to prevent jury trials and allow the institution to continue business as usual while maintaining its secrets.
Chapter 11 bankruptcy is a liquidation bankruptcy process in which the debtor, the Archdiocese, maintains control of its business and property while the court supervises its restructuring and the implementation of a plan to repay creditors. The creditors in the Archdiocese of New Orleans’ bankruptcy case consist mainly of individual survivors of sexual abuse by priests or other employees of the Archdiocese.
Please visit our Chapter 11 bankruptcy FAQ page for more details about this process. Chapter 11 does not close the door to justice and accountability, but it often compresses the timeline available to a survivor to pursue justice. An important part of this process provides that the court set a “claims bar date,” which is a date marking the deadline by which all survivors must formally file a claim with the court calls a “proof of claim.” After the claims bar date, a survivor could be denied any sort of recovery from the Archdiocese. The bankruptcy court has yet to establish a claims bar date but we expect the court to do so in the coming months.
YOU ARE NOT ALONE. WE ARE HERE TO HELP YOU.
It’s time for justice. It’s time to bring the truth out into the light. It’s time for accountability and healing. We have partnered with local attorney J.R. Whaley of Whaley Law Firm to help child sex abuse survivors in New Orleans find justice and healing. Our law firm of legal professionals and advocates has more than three decades of experience working with survivors of sexual abuse and litigating cases against Catholic dioceses and religious orders nationwide, including those impacted by Chapter 11 bankruptcy. Contact us today. Your information will remain completely confidential.
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