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Why So Many Catholic Dioceses File for Bankruptcy

The Albuquerque headquarters of the Archdiocese of Santa Fe. Nadav Soroker/Searchlight New Mexico republished with permission. 

Across the U.S., 40 dioceses and religious orders have declared bankruptcy. The first was the Archdiocese of Portland, Oregon, in 2004. The most recent was the Diocese of Burlington, Vermont, in late September 2024. The cases vary, but they have one thing in common: The day the diocese filed its petition for bankruptcy is a new benchmark — no one is allowed to file claims against the church for abuses that happened before that date, even if a given state retroactively extends the statute of limitations.

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