BALTIMORE — The Archdiocese of Baltimore sent a letter to parishioners to announce the decision to file for bankruptcy.
This comes ahead of numerous looming lawsuits. A new law takes effect October 1 which allows victims of child sex abuse to file civil lawsuits, no matter how long ago the abuse occurred.
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In the letter, Archbishop William Lori references the financial strain this legislation will have.
"After consulting with numerous lay leaders and the clergy of the Archdiocese, I have made the decision I believe will best allow the Archdiocese both to equitably compensate victim-survivors of child sexual abuse and ensure the local Church can continue its mission and ministries."
Chapter 11 is one of two types of bankruptcy he says.
Under this bankruptcy, victim-survivors will be "equitably compensated," and the church will continue its mission and its ministries.
The letter says the reorganization process will involve several steps over the next two to three years.
Lori expects the Archdiocese and victim-survivors will then enter negotiations with the hope of agreeing to a plan that includes a trust fund to provide compensation.
