As allegations of sexual abuse against the religious organization topped 100, the Syracuse Diocese filed for Chapter 11 bankruptcy, effectively denying accusers their day in court, according to Syracuse.com. Many of those coming forward with allegations filed under the New York Child Victims Act (CVA), but by filing bankruptcy, the diocese has limited the time those who suffered abuse, often at a very young age, have to come forward.

According to the Syracuse Diocese bankruptcy filing, the organization has assets amounting to between $10 million and $50 million. The filing listed expected liabilities of more than $100 million, most of which is made up of expected settlements in sexual abuse cases.

The Syracuse Diocese is the most recent Catholic diocese in New York to file, following Rochester and Buffalo.

The Reasons for the Syracuse Diocese Bankruptcy Filing

According to Bishop Douglas Lucia, the Syracuse Diocese decided to file bankruptcy in order to ensure that victims of abuse could seek compensation. Filing for bankruptcy makes these victims “creditors” who must prove that the Syracuse Diocese owes them something.

“I feel it is the only way we can address the victims’ claims in a fair and equitable manner,” Lucia told Syracuse.com. He also said that failing to file for bankruptcy protection would make the diocese’s future a “crapshoot.” Indeed, filing bankruptcy will allow the diocese to continue to function while dealing with victim’s claims.

The bishop argued that without the bankruptcy filing, compensation for victims would become first-come-first-serve in which the first victims to file would receive greater compensation than those who came later. Cases heard first might get more compensation than others heard later, the bishop said.

The Syracuse Diocese Bankruptcy and Sexual Abuse Allegations

Victim’s advocates further argue that the Syracuse Diocese is filing bankruptcy in order to cover up the history of abuse alleged by these victims.

“It gives them the opportunity to stop us and the survivors from excavating their secrets, their history, their practices…” an attorney representing victims told Syracuse.com.

The bankruptcy filing also reverses the deadline extension for filers put in place by the CVA. Under the CVA, victims of childhood sexual abuse were given a year-long “look back” window which has since been extended to 2021 due to the global health crisis.

As a part of the bankruptcy filing, creditors and the diocese will set a deadline by which victims must file or risk never being able to seek compensation for their suffering. It’s likely that this deadline will be set before the CVA deadline, according to Syracuse.com. However, at least one attorney will continue to represent victims filing against the individual churches where the alleged abuse took place.

“As your bishop, I must again apologize. I cannot apologize enough for the heinous acts that were perpetrated against the young of our diocese,” Bishop Lucia said. “I ask you all to join me in our diocesan commitment that these acts will never take place again.”

How and When Can Survivors File Claims?

As a part of the bankruptcy process, the Syracuse Diocese will institute a “Victims Fund” to pool funds from the diocese and insurance carriers.

If you experienced sexual abuse by a Syracuse Diocese priest or have been a victim of the Catholic Church sex abuse scandal, you may be able to file a claim to seek compensation from this fund. However, a deadline will be established for those wishing to file, so you may wish to make your claim or begin the process soon.

This article is not legal advice. It is presented
for informational purposes only.