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San Diego Diocese Files for Bankruptcy
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The Catholic Diocese of San Diego this week began the complicated process of reorganization under Chapter 11. The Diocese filed for bankruptcy late Tuesday, just hours before San Diego's first clergy sex abuse trial was to begin. That trial has been halted as a result.
With a million parishioners, San Diego is the largest of five dioceses nationwide to declare itself bankrupt.
Even in bankruptcy, the San Diego Diocese will likely still have to settle the claims of more than 140 people who are suing.
Other dioceses that have sought Chapter 11 reorganization are doing just that. Bankruptcy proceedings in Tuscon, Ariz. resulted in $22 million set aside for settlements.
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