Fresno Diocese Bankruptcy Archives

Image: Coat of arms of the Diocese of Fresno; via Wikipedia. Following the Catholic Diocese of Fresno’s official Chapter 11 bankruptcy filing on June 27, attorneys say the process of resolving 153 clergy sexual abuse lawsuits could take years, and that survivors may face a long wait for answers and compensation, Kerry Klein reported for KVPR, the public radio affiliate for Fresno and Bakersfield. The Diocese filed for Chapter 11 bankruptcy protection after the lawsuits were brought under California’s Child Victims Act. That law temporarily extended the statute of limitations, opening a three-year window for survivors of childhood sexual abuse to file civil claims. The Diocese, which operates 87 parishes and 21 schools across eight Central Valley counties, stated that its bankruptcy was meant to ensure a “compassionate resolution” of the claims while continuing church operations. But advocates for survivors argue the filing is a legal strategy to avoid jury trials, limit public scrutiny, and cap financial liability. What Chapter 11 Means for the Lawsuits Now that bankruptcy is underway, all pending lawsuits are paused—or “stayed”—in state court and moved into federal bankruptcy court as part of the Diocese’s reorganization. According to bankruptcy documents, the Diocese estimates $50 to $100 million in both assets and liabilities, and between 1,000 to 5,000 creditors. These creditors include the survivors who filed suit, along with other financial stakeholders such as vendors, insurance carriers, and pension holders. As part of the next phase, the court will appoint a claims manager responsible for reviewing abuse claims, determining their validity, and recommending settlement amounts. Attorneys say this process could take two to three years to complete. Was the Bankruptcy Strategically Delayed? Some survivor advocates are raising questions about why the Diocese waited so long to file. A plaintiff’s attorney called the move a “phony tactic” meant to “avoid facing juries and avoid responsibility.” The Diocese originally indicated in May 2024 that it would file by August, but didn’t formally do so until June 2025. Legal experts say it’s not unusual for organizations to take time preparing for bankruptcy, but survivors’ attorneys are now asking the court to compel the Diocese to explain the delay—and to disclose any asset transfers made in the lead-up to the filing. Under bankruptcy law, entities are required to report asset transfers made in the one to two years prior to filing. Earlier transfers, however, are not automatically disclosed, raising concerns among critics that church properties or funds may have been shielded ahead of the declaration. What Survivors Should Expect Next The Diocese will propose a reorganization plan to the court, outlining how it intends to manage debts and compensate survivors. Because this process replaces individual trials with a collective settlement structure, survivors will likely have limited opportunities to testify publicly or pursue additional litigation. Some survivor advocates worry the process will once again sideline victims, and prioritize financial expediency over full accountability and healing. If you’re a survivor of clergy sexual abuse connected to the Diocese of Fresno or any Catholic institution, you may still have rights. Visit our Catholic Church Sexual Abuse Lawsuit Guide or fill out our brief, confidential form for a free case review.

Fresno Diocese Bankruptcy

Fresno Diocese Bankruptcy Update: What Happens Next for Survivors and Lawsuits

Catholic Diocese of Fresno Files for Bankruptcy

Information

About

LEGAL

Fresno Diocese Bankruptcy

Fresno Diocese Bankruptcy Update: What Happens Next for Survivors and Lawsuits

Catholic Diocese of Fresno Files for Bankruptcy

Learn how we helped 100 top brands gain success