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Past Sexual Abuse – Catholic Church and Bankruptcies

Past sexual abuse

As more and more child sexual abuse cases against the Catholic church are being brought to light, the church faces a large number of lawsuits. Initially, there were just a handful of lawsuits; however, since the exposure of cases, more people are coming forward to report the abuse they suffered as a child. A California law allowed people to file claims even if the standard length of time to file a claim had passed. As a result, more than 3,000 sexual abuse lawsuits have thus far been filed against the Catholic church in California

For more information and help filing a sex abuse lawsuit in California, please reach out to the California child sex abuse attorney at Beck Law P.C. today.

Catholic Church Bankruptcies

Many Catholic churches and dioceses are contemplating filing for bankruptcy, and many already have filed. The churches are facing astronomical settlements in child sexual abuse cases that haven’t been resolved yet. In addition, they could face additional settlement costs for cases that have not yet been brought. The Diocese of Santa Rosa filed for bankruptcy in March. They are facing at least 200 lawsuits stemming from past child sexual abuse. The diocese claims to have assets that have a value of between $10 million and $50 million, as well as the same amount of money in liabilities. 

The Diocese of Oakland has also filed for bankruptcy. They have 330 pending lawsuits for past sexual abuse. According to their bankruptcy filing, they claim assets of $100 to $500 million along with the same amount of liabilities. The Diocese of San Diego has stated they will file for bankruptcy in the fall, stating that they are facing about 400 lawsuits for past priest sexual abuse claims, and they expect their legal fees to amount to more than $550 million. 

How Bankruptcy Impacts Child Sexual Abuse Claims

The U.S. Bankruptcy Court handles bankruptcy cases. Typically, when a bankruptcy is filed, they put a hold or “stay” on existing litigation that is pending. This simply means that it won’t progress further at this point, but it will generally need to be resolved as part of the bankruptcy. 

Dioceses may rely on the fact that bankruptcy will deter individuals from taking legal action against them. Churches can also face less publicity stemming from child sexual abuse cases. 

Those who have filed claims may receive less money than they would have if the church had not filed for bankruptcy. The victims could still receive compensation, although they might be denied a trial, which is sometimes helpful for seeking closure for the incident. If a victim has not yet filed a lawsuit, they may still be able to file an “adversary proceeding.” This is a legal claim through bankruptcy court. Or they may be able to file a claim through another court, with permission of the bankruptcy court. 

What to Do If You Are a Victim of Child Sexual Abuse

If you are the victim of child sexual abuse, you will want to take action, regardless of the current bankruptcy status of the church. The first step is to discuss the matter with a reputable California child sexual abuse lawyer. At Beck Law, we understand child sexual abuse cases and work hard to obtain compensation for our clients. Meet with us in a private, confidential consultation to talk about the situation and learn your options. Whether you live in San Francisco, San Diego, Los Angeles, or anywhere in California, call us today at Beck Law P.C. at (707) 576-7175. 

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