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Fresno Diocese Enters Chapter 11 Bankruptcy Over Sexual Abuse Claims

The diocese aims to centralize abuse claims under court supervision with a fund for survivors

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Overview

  • On July 1, the Diocese of Fresno filed for Chapter 11 bankruptcy to address more than 150 clergy sexual abuse lawsuits.
  • Bishop Joseph V. Brennan said reorganization will ensure equitable treatment of survivors’ claims and allow diocese ministries to continue.
  • The diocese acknowledged its assets and insurance coverage may be insufficient to cover all claims, raising the risk of insolvency.
  • Survivors’ attorneys filed motions accusing the diocese of delaying bankruptcy proceedings since May 2024 to halt jury trials and discovery.
  • A hearing before Judge René Lastreto II is scheduled for early July in U.S. Bankruptcy Court in Fresno to review the reorganization plan and compensation proposals.