Two years after filing for Chapter 11 bankruptcy protection, the Roman Catholic Diocese of Burlington is pulling out of the reorganization process, citing mounting legal costs, prolonged negotiations, and the lack of a settlement and outcome for claimants who have accused Catholic clergy of sexual abuse. Since filing two years ago, the Vermont Catholic Church’s bankruptcy has developed into multiple overlapping legal battles that could have ramifications across the state for the church’s faithful.
In a statement issued Wednesday, Bishop John McDermott announced that the diocese has filed a motion seeking to exit Chapter 11 with the intention to have a hearing near the end of 2026. He said he hopes the additional time will allow the diocese and the committee representing claimants to continue negotiations and reach a settlement. The hearing is scheduled for December 8.
According to its filing, the…
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