Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Archdiocese of Saint Paul and Minneapolis Files For Bankruptcy
Author: Joel R. Glucksman
Date: January 22, 2015
Key Contacts
Back
The Archdiocese of Saint Paul and Minneapolis has been under fire for quite some time regarding alleged sexual abuse by its member priests.
The Archdiocese of Saint Paul and Minneapolis filed for protection under Chapter 11 of the bankruptcy law on Jan. 16, according to The Star Tribune. The filing appears to reflect the Archdiocese’s belief that it cannot meet financial obligations arising from the wave of lawsuits over alleged sexual abuse. The bankruptcy filing will freeze the lawsuits against the church and protect the Archdiocese from creditors while it develops a plan of reorganization.
“I make this decision because I believe it is the fairest and most helpful recourse for those victims/survivors who have made claims against us,” wrote Archbishop John Nienstedt on the Archdiocese of Saint Paul and Minneapolis website the morning of Jan. 16. “Reorganization will allow the finite resources of the Archdiocese to be distributed equitably among all victims/ survivors. It will also permit the Archdiocese to provide essential services required to continue its mission within this 12-county district.”
About two dozen lawsuits have been filed against the Archdiocese of Saint Paul and Minneapolis for past sexual abuse, and the organization has received notice of more than 100 potential claims, The Associated Press reported. It is the 12th U.S. diocese to seek protection under the bankruptcy law as a result of sexual abuse claims.
The bankruptcy filing showed that the archdiocese had estimated liabilities between $50 million and $100 million and estimated assets of $10 million to $50 million, according to The Star Tribune. All of the organization’s top 20 creditors are victims of clergy sex abuse.
Victim advocates decried the decision to file for bankruptcy, arguing that the archdiocese is shirking its responsibility to victims.
“Why is it that when all the dioceses file bankruptcy, they do it on the eve of a trial?” Bob Schwiderski, an advocate for abuse survivors, asked The Star Tribune. “Is it because they can’t put their hand on the Bible and swear to tell the truth?”
Sex scandals, bankruptcy… What’s next for Archdiocese of Saint Paul and Minneapolis? Feel free to comment below.
- Practices: Bankruptcy & Creditors' Rights
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Author: Jesse M. Dimitro
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Author: Jesse M. Dimitro
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Author: Scarinci Hollenbeck, LLC
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
Author: Dan Brecher
What Is a Trade Secret? Key Elements and Legal Protections Explained
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
Author: Ronald S. Bienstock
What Is Title Insurance? Safeguarding Against Title Defects
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
Author: Patrick T. Conlon
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Archdiocese of Saint Paul and Minneapolis Files For Bankruptcy
Author: Joel R. Glucksman
The Archdiocese of Saint Paul and Minneapolis has been under fire for quite some time regarding alleged sexual abuse by its member priests.
The Archdiocese of Saint Paul and Minneapolis filed for protection under Chapter 11 of the bankruptcy law on Jan. 16, according to The Star Tribune. The filing appears to reflect the Archdiocese’s belief that it cannot meet financial obligations arising from the wave of lawsuits over alleged sexual abuse. The bankruptcy filing will freeze the lawsuits against the church and protect the Archdiocese from creditors while it develops a plan of reorganization.
“I make this decision because I believe it is the fairest and most helpful recourse for those victims/survivors who have made claims against us,” wrote Archbishop John Nienstedt on the Archdiocese of Saint Paul and Minneapolis website the morning of Jan. 16. “Reorganization will allow the finite resources of the Archdiocese to be distributed equitably among all victims/ survivors. It will also permit the Archdiocese to provide essential services required to continue its mission within this 12-county district.”
About two dozen lawsuits have been filed against the Archdiocese of Saint Paul and Minneapolis for past sexual abuse, and the organization has received notice of more than 100 potential claims, The Associated Press reported. It is the 12th U.S. diocese to seek protection under the bankruptcy law as a result of sexual abuse claims.
The bankruptcy filing showed that the archdiocese had estimated liabilities between $50 million and $100 million and estimated assets of $10 million to $50 million, according to The Star Tribune. All of the organization’s top 20 creditors are victims of clergy sex abuse.
Victim advocates decried the decision to file for bankruptcy, arguing that the archdiocese is shirking its responsibility to victims.
“Why is it that when all the dioceses file bankruptcy, they do it on the eve of a trial?” Bob Schwiderski, an advocate for abuse survivors, asked The Star Tribune. “Is it because they can’t put their hand on the Bible and swear to tell the truth?”
Sex scandals, bankruptcy… What’s next for Archdiocese of Saint Paul and Minneapolis? Feel free to comment below.