Gallup diocese becomes 9th to file for bankruptcy

November 12, 2013

The Diocese of Gallup, New Mexico has become the 9th Catholic diocese in the US to file for protection under federal bankruptcy laws.

Announcing plans to file a bankruptcy on November 12, Gallup's Bishop James Wall said that the process "will open our diocese to unprecedented public scrutiny which I believed would be a good thing."

In September, Bishop Wall had informed his people that the diocese would file for bankruptcy, as the potential damages from sex-abuse lawsuits exceeded the assets of the diocese. The bishop said at the time that bankruptcy was "the most effective and thoughtful course to take in light of the claims from those who were abused." The diocese faces 13 sex-abuse lawsuits, which will now be halted by the bankruptcy proceedings.

 

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Further information:

• Diocese to File for Chapter 11 Reorganization on November 12 (Gallup diocese)
• Diocese to File for Chapter 11 Protection (Gallup Independent)
• Gallup diocese will become 9th in US to file for bankruptcy (CWN, 9/3)