Archdiocese of Baltimore Files for Bankruptcy Ahead of New Maryland Law on Sexual Abuse

Archdiocese of Baltimore Files for Bankruptcy Ahead of New Maryland Law on Sexual Abuse
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BALTIMORE, MD – The Archdiocese of Baltimore filed for Chapter 11 bankruptcy protection on Friday, a preemptive move ahead of a Maryland state law that would allow survivors of sexual abuse more time to file lawsuits. The law, set to take effect on October 1, eliminates the statute of limitations for such cases, according to the Archdiocese’s court documents.

The state’s Attorney General has indicated over six hundred known survivors of clergy abuse in Maryland, a number the Archdiocese stated it could not confirm. Archbishop William Lori said the bankruptcy filing aims to fairly compensate victims while preserving the Archdiocese’s “limited resources” and allowing it to continue its operations.

David Lorenz, the Maryland leader of the Survivors Network of those Abused by Priests, criticized the move as “unconscionable,” accusing the Archdiocese of sidestepping the new state law.

The Archdiocese of Baltimore, the oldest Catholic diocese in the United States, serves more than 485,000 people across several Maryland counties. Its assets range from $100 million to $500 million, with liabilities estimated between $500 million and $1 billion, as per the bankruptcy filing.

Several other dioceses have also sought bankruptcy protection in recent years, particularly in New York and California, following changes in state laws regarding sexual abuse claims. These filings have led to large settlements, including a $121.5 million agreement in the Santa Fe Archdiocese case in 2022. Many dioceses remain in bankruptcy without finalized settlements.

Based on an original news report by Reuters.