Diocese of Sacramento Files for Chapter 11 Bankruptcy

“Bishop Makes Unfortunate Move on April Fool’s Day.”

(Sacramento, CA) – Today, the Diocese of Sacramento filed for Chapter 11 Bankruptcy. Bishop Jaime Soto’s decision is as predictable as it is unfortunate. Catholic institutions across California have used Chapter 11 Bankruptcy as a legal maneuver to escape and avoid accountability from lawsuits filed during the California Child Victims Act.

Bishop Soto and the Diocese of Sacramento released a statement in March stating, “…the bankruptcy process is the only respectful, and equitable way to address the substantial number of claims by those who have been abused by clergy and other Church Workers. Bankruptcy is a lengthy process, but it provides supervision and transparency for all the parties involved so that an equitable resolution is offered to the victim-survivors of abuse.”

We disagree and believe there was a better path to true transparency and accountability for survivors to have their day in court.

“Bankruptcy deprives survivors of their day in Court and causes unnecessary delay,” stated Jeff Anderson

The Diocese of Sacramento is the fourth diocese to file for Chapter 11 Bankruptcy in California following the close of the Child Victims Act on December 31, 2022. The Diocese of Santa Rosa (3.13.2023), the Diocese of Oakland (5.8.2023), and the Archdiocese of San Francisco (8.21.23) have already filed for Chapter 11 Bankruptcy protection in the wake of child sexual abuse lawsuits. It is believed that other Catholic institutions will soon follow the Diocese of Sacramento’s damaging and evasive plan.