Due to the increasing number of victim’s claims compensation for sex abuse by Church priests and clergy, The Roman Catholic Diocese of Harrisburg located at Pennsylvania, USA, facing bankruptcy, Bloomberg Quint reported.
The Church “has struggled to remain financially viable while funding compensation for survivors and continued litigation by survivors,” the Pennsylvania Diocese said in court papers.
In 2019, Church officials launched a compensation program for victims. The program paid more than $12.5 million to more than 110 victims, according to court papers.
According to media reports, at present, the Diocese faces five lawsuits and potential claims from about 200 victims. Those cases and recent court rulings in the State Court pushed the Church to file the Chapter 11 bankruptcy case in Federal Court in Harrisburg, Pennsylvania, according to court papers.
Up till several Roman Catholic Dioceses have used bankruptcy to negotiate global settlements with victims, often by setting up trusts funded by local parishes, religious educational orders and insurance proceeds.