Diocese of Gallup to file for Chapter 11 Reorganization

GALLUP (NM)
Voice of the Southwest – Roman Catholic Diocese of Gallup

Chapter 11 Reorganization: Questions and Answers

Please note: we will be posting further updates as we receive more information.

To contact Fr. Tim Farrell, media liaison for the Diocese of Gallup, please use the following:
Email: fathertim@qwestoffice.net Telephone: (505)325-9743, ext. 2

The following is Bishop James S. Wall’s letter to all the people of the Diocese of Gallup that was read at all Masses this past weekend:

August 29, 2013

To the Clergy, Religious, and Laity of the Diocese of Gallup,

Dear Sisters and Brothers in Christ Jesus:

First, I would like to thank all of you for your support of the Diocese of Gallup. Since becoming the Bishop of Gallup, I have worked to seek ways to bring healing to those who were harmed by sexual abuse. Unfortunately, since becoming Bishop, the number of claims has continued to increase. These claims relate to events that occurred decades ago. While some of the claims relate to times when the Diocese had some insurance, many relate to times when the Diocese does not appear to have had insurance or the insurance is limited and not likely to cover the damages for which the Diocese might be found liable.

Since taking over as Bishop, I have tried to resolve these claims outside of litigation, unfortunately with limited success. I have also explored the alternatives available to the Diocese which would allow us to treat all of those who have been harmed by workers of the Church in a just, equitable and merciful manner while at the same time being able to continue the mission of the Diocese to bring the Good News of Jesus to all the people within the Diocese and to help those who are hurting and broken to find hope through the charitable work of the Church.

After considering all of the options and after consulting with advisors inside and outside the Diocese, I have determined that filing a petition for Chapter 11 Reorganization for the Diocese of Gallup is the most effective and thoughtful course to take in light of the claims from those who were harmed.

The filing of this petition will begin the process of financial reorganization that is provided under Chapter 11 of the federal bankruptcy code. Under Chapter 11, the Diocese will have the opportunity to present a plan of reorganization that provides for a fair and equitable way to compensate all those who suffered sexual abuse as children by workers of the Church in our Diocese – those who are currently known, those who haven’t yet made the decision to come forward, and those who might come forward in the future.

Chapter 11 will provide for an orderly process by which those who have been harmed can make a claim, and for the Diocese to propose and confirm a plan that will compensate those who were harmed while, at the same time, continue its ministry and mission now and into the future.

Note: This is an Abuse Tracker excerpt. Click the title to view the full text of the original article. If the original article is no longer available, see our News Archive.