Bishop Edward Scharfenberger, the retired head of the Albany, New York diocese, has filed for personal bankruptcy, after a court decision found him personally liable for the failure of a pension fund that left more than 1,000 diocesan employees without retirement benefits.
A jury verdict awarded a $54 million judgment to claimants in the case, and assigned Bishop Scharfenberger 10% of the responsibility. In his bankruptcy filing the bishop reported assets of less than $750,000.
Although dozens of Catholic dioceses have sought bankruptcy protection in the wake of sex-abuse settlements, Bishop Scharfenberger is believed to be the first Catholic bishop to file for personal bankruptcy.