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The Catholic Diocese of Alexandria in Louisiana has become the 41st Catholic diocese in the United States to file for Chapter 11 bankruptcy protection in response to clergy sexual abuse allegations.
The filing was announced on Oct. 31 by Bishop Robert Marshall Jr. in a public letter and video, according to Catholic News Agency today.
Marshall wrote, “As your bishop, I apologize to abuse survivors for the harm, pain, and suffering they experienced and continue to experience in their lives. This action is occurring because some past priest perpetrators sexually abused minors, actions that are evil, sinful, and go against everything the Church and the priesthood represent.”
According to the diocese, 85 survivors have already submitted claims, with additional filings expected once the bankruptcy court sets a formal deadline. Most allegations involve abuse that occurred in the 1970s or earlier, and nearly every priest accused in the claims is now deceased.
A 2021 Louisiana law lifted the statute of limitations on older abuse cases and created a filing window through June 14, 2024, which triggered a significant increase in litigation involving Catholic institutions statewide.
In bankruptcy disclosures, the diocese lists $16.7 million in assets and $9.5 million in liabilities. It has pledged $4 million and limited insurance funds to create a trust for compensating survivors. The diocese argues that Chapter 11 ensures all claims will be handled through one court supervised process rather than allowing a small number of cases to exhaust available funds.
Parishes are separately incorporated and therefore are not part of the bankruptcy estate. The diocese says Masses, schools, and charitable programs will continue without interruption and that restricted donations remain protected.
Bishop Marshall said the filing also comes as the diocese faces declining numbers of priests, seminarians, and Mass attendance. A restructuring effort launched in 2024 titled “Together as One Church: Embracing the Future of Hope” includes potential closures and mergers of parishes.
Marshall called the Chapter 11 reorganization “the most prudent course” after consultation with diocesan leadership and the Vatican. The case was filed in the U.S. Bankruptcy Court for the Western District of Louisiana and is expected to take 18 to 24 months to resolve at a projected cost of up to $2 million.
The diocese published a list of credibly accused clergy in 2019 and said it is committed to following national safe environment policies.
The Alexandria filing follows the Archdiocese of New Orleans’ recent $230 million settlement and adds to the growing list of dioceses across the country turning to bankruptcy amid ongoing revelations of abuse.
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