Rockville Diocese bankruptcy Archives

Photo: St. Agnes Cathedral in Rockville Centre, NY, seat of the Diocese of Rockville Centre on Long Island; via Wikipedia. The Diocese of Rockville Centre on Long Island, one of the largest Roman Catholic dioceses in the United States, has formally filed for Chapter 11 bankruptcy following its historic $323 million clergy abuse settlement announced in autumn of 2024, Reuters reported Thursday, the same day of the filing. The bankruptcy was spurred by the financial strain created by hundreds of sexual abuse lawsuits, along with economic losses linked to the COVID-19 pandemic. The Diocese stated that the decision to file for bankruptcy was made to ensure “just and equitable compensation” for all clergy sexual abuse survivors. Bishop John Barres said in a video message that continuing to fight the lawsuits individually would have crippled the diocese’s “spiritual, charitable, and educational missions.” He also assured parishioners that their local parishes and schools, which are legally separate entities, would continue operating normally. “Our goal is to make sure that all clergy sexual abuse survivors, and not just a few who were the first to file lawsuits, are afforded just and equitable compensation,” Barres said. The Diocese serves more than 1.4 million Catholics across Nassau and Suffolk counties. It filed for bankruptcy on the advice of financial experts, citing the combined pressures of legal settlements and pandemic-related losses. “What became clear was that the diocese was not going to be able to continue to carry out its mission if it were to shoulder the increasingly heavy burden of litigation expenses,” Barres said. The bankruptcy filing marks a new phase in the Diocese’s long-running legal saga. While the $323 million settlement—approved in September 2024—resolved more than 500 clergy abuse claims and was hailed as the largest Catholic Church settlement in U.S. history at the time, the Diocese has now moved to restructure its finances through federal bankruptcy court. This latest development highlights the continuing financial consequences of the clergy abuse crisis and raises new questions about the Church’s use of bankruptcy as a shield against future litigation. The 2024 settlement came only after survivors rejected an earlier $200 million offer and fought for greater accountability. The filing also distinguishes itself from the earlier settlement in another way: it positions bankruptcy not merely as a resolution to existing claims, but as a mechanism to manage long-term liabilities from additional lawsuits. Similar to the Archdiocese of New Orleans and other dioceses across the country, Rockville Centre’s bankruptcy allows it to consolidate current and future abuse claims into a single proceeding, limiting survivors’ ability to pursue individual trials. A Pattern Seen Nationwide The Diocese’s decision follows a broader national trend. Since 2004, dozens of Catholic dioceses and religious orders have sought bankruptcy protection to handle clergy sexual abuse claims collectively. These filings, while often presented as tools to ensure equitable distribution among survivors, have also been criticized as legal strategies to limit transparency and shield Church assets. Bishop Barres emphasized that parishioner donations would not be used to pay settlements and reiterated the Diocese’s commitment to child protection reforms first implemented in 2003 with the creation of its Office for the Protection of Children and Young People. The Diocese’s bankruptcy is being closely watched by other Church entities nationwide. Legal observers note that the Supreme Court’s 2024 ruling in the Purdue Pharma case, which restricted the ability of bankruptcy courts to extend protections to non-bankrupt affiliates, has made it harder for dioceses to shield parishes and schools. Rockville Centre, in turn, had its parishes file separately for bankruptcy to preserve those protections. As courts determine how the Diocese’s assets will be distributed and how future claims will be handled, survivors hope that this marks not another delay but a step toward lasting transparency. Whether bankruptcy will lead to true reform or simply another restructuring of responsibility remains to be seen. For Survivors of Catholic Church Sexual AbuseIf you are a survivor of clergy abuse within the Catholic Church, know that you still have legal rights, even if the abuse happened decades ago or your diocese has filed for bankruptcy. Survivors across the country are standing together to demand accountability. Visit our Catholic Church Sexual Abuse Lawsuit Guide to learn how you can explore your legal options and take the first step toward healing and justice.You may also receive a free case review by filling out the confidential, secure form below.

Rockville Diocese bankruptcy

Long Island, NY’s Diocese of Rockville Centre Files for Bankruptcy After Historic 2024 $323 Million Settlement

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Rockville Diocese bankruptcy

Long Island, NY’s Diocese of Rockville Centre Files for Bankruptcy After Historic 2024 $323 Million Settlement

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