The Catholic Diocese of Harrisburg became the first catholic diocese to seek chapter 11 bankruptcy protection in Pennsylvania on February 19, 2020.

The chapter 11 bankruptcy code typically has to do with a corporation or a partnership. A debtor will propose a plan for whoever filed for the protection to pay back creditors over time while keeping the business open at the same time.

The Catholic Diocese of Harrisburg filed for bankruptcy following the sex abuse scandal that the state of Pennsylvania made into the Catholic Church. The Diocese is going into debt because of the millions of dollars they are paying for clergy sex abuse claims.

The grand jury report that has led to a flood of new claims about abuse from priests came out in August of 2018. The over 800-page report contains dozens of testimonies from victims of all of the six dioceses that account for 54 of Pennsylvania’s 67 counties.

Over 300 priests were cited as predators in the report. The investigation found 1000 child victims identified in the churches’ own records. The report states that they believe, “the real number – of children whose records were lost, or who were afraid ever to come forward – is in the thousands.” 

It was the decision of Bishop Ronal Gainer to declare bankruptcy and file for chapter 11 protection. The Diocese filing for bankruptcy required that they list all of their assets. 

According to WGAL News, the Diocese’s estimated assets are between 1 million and 10 million dollars. It also lists the Diocese’s estimated liabilities range from 50 million to 100 million dollars.

The attorney general, who headed the grand jury report that originally exposed the catholic church’s crimes in Pennsylvania, released a statement regarding the recent filing of the legislation. 

Pennsylvania Attorney, General Josh Shapiro, said, “Our Grand Jury Report uncovered abuse of children by priests, including 45 predator priests in the Diocese of Harrisburg, and a systematic cover-up spanning decades that went from dioceses in Pennsylvania all the way up to the Vatican. It is of no surprise to me that these dioceses who engaged in sophisticated cover-ups of child sexual abuse have found a legal maneuver to skirt responsibility, absolve themselves financially, and continue to avoid transparency. This is yet another attempt to deny survivors the justice that they are owed by the Church.”

The statute of limitations in Pennsylvania had made it difficult or impossible for victims to seek justice in court. However, according to the Washington Post, “a recent appellate court decision has created a path for victims to sue their dioceses.”

Shapiro and other activists are currently working on trying to get legislation passed that will allow for an opening in the statute of limitations to give victims the ability to sue now even after much time has passed. Thus far, this legislation has not made it through the state legislature.