Catholic Diocese of Stockton to Declare Bankruptcy

By Wes Bowers
Lodi News-Sentinel
January 13, 2014

http://www.lodinews.com/news/article_fd02d828-7ca2-11e3-ad38-0019bb2963f4.html

The Diocese of Stockton intends to file for bankruptcy Wednesday, after more than six months of discussing the possibility with its members and financial experts.

Bishop Stephen Blaire released a statement Monday afternoon stating the diocese's financial difficulties can only be resolved for filing for bankruptcy protection.

Blaire said the diocese's attorneys will file for Chapter 11 bankruptcy protection on Wednesday, becoming the 10th in the country to do so.

"This has been a difficult decision," Blaire said in Monday's statement. "Nevertheless, I am convinced this step will allow us to achieve two essential goals."

The first goal, Blaire said, was providing a process to compensate victims of sexual abuse, particularly those who had not appeared in court.

The second goal is to continue the ministries and support they provide to Catholic parishes and communities, Blaire said.

According to several questions about the bankruptcy filing Blaire provided, the diocese has paid more than $14 million in legal settlements and judgments to sexually abused victims over the past 20 years.

Blaire said total payments, including those from insurers and other payors, are more than $32 million.

He said he expects the bankruptcy case to remain in court for as many as two years.

"It is my sincere hope that the reorganization of the diocese through the bankruptcy process will allow the diocese to move ahead by contributing to the healing of victims and by helping us to carry out the mission of the Church in preaching the Gospel, celebrating the Sacraments, and reaching out in love to the poor and vulnerable," Blaire said Monday.

Contact reporter Wes Bowers at wesb@lodinews.com