El Paso Diocese declares bankruptcy amid abuse filings, ‘very limited’ financial resources

Bishop Mark Seitz said nearly 20 lawsuits against the diocese led him to file for Chapter 11 reorganization.

In a message to the Texas diocese on March 6, Seitz said the diocese is facing “18 pending lawsuits” for alleged sexual abuse that occurred between 1956-1982.

The alleged abuse occurred “long before society or the Church was aware of the presence and extent of child abuse taking place within its institutions” and “long before the Diocese implemented the strong child protection policies and practices that exist today to guard against these crimes,” Seitz said in the message, which was accompanied by a video posted to YouTube.

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Seitz said he decided to have the diocese file for Chapter 11 bankruptcy after consultation with priests and diocesan officials as well as “prayerful consideration.”

He described it as “the most prudent course of action” because “there are now financial claims pending against the diocese that exceed our means.”

The diocese will work “to equitably compensate those who have been harmed, and to carry on the essential ministries of the Church in our diocese so we can continue to meet the needs of all who rely upon the Church,” Seitz said.

Describing diocesan resources as “very limited,” the bishop said the bankruptcy filing will allow the diocese to streamline its abuse compensation plan into one process overseen by the bankruptcy court, allowing the diocese to “move forward on stable financial ground.”

Apologizing for the abuse inflicted on victims by diocesan officials, Seitz said the process will be a “difficult journey,” though he said the diocese will “continue to serve the Lord with all our hearts through whatever trials may come.”

El Paso is the first diocese in Texas to file for bankruptcy over abuse claims. The southern U.S. state is home to 13 dioceses and two archdioceses.

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