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The New Orleans Archdiocese Filed for Bankruptcy

On May 1, 2020, the New Orleans Archdiocese filed for bankruptcy. You can read the bankruptcy petition by clicking here.

We currently represent many people who were sexually abused by priests and others associated with the New Orleans Archdiocese.  Attorney Frank Lamothe, based in New Orleans, has been helping abuse survivors with claims against the Archdiocese for more than 15 years.

What Does a Bankruptcy Mean for Abuse Survivors? 

This page is intended to provide abuse survivors with answers to commonly asked questions.  Some of our lawyers have represented abuse survivors in a number of the Catholic bankruptcies, including the bankruptcies of the Christian Brothers, the Diocese of Buffalo, the Diocese of Syracuse, the Jesuits in the Northwest, the Diocese of Spokane, the Archdiocese of Milwaukee, the Boy Scouts of America, and others, so the information on this page is based on our experience in those past bankruptcies.  Please know what has happened in the past is no guarantee of what will happen with the New Orleans Archdiocese bankruptcy, but it will give you some sense of the common issues raised by these bankruptcies that involve abuse survivors.

Most importantly, a bankruptcy does not mean the Archdiocese has no assets or that abuse survivors will automatically get nothing.  To the contrary, the goal of a bankruptcy is to allow a bankruptcy judge to marshal the the Archdiocese’s cash, other assets, and insurance, and then ensure that abuse survivors are compensated in a way that is fair to everyone.

However, in order to be compensated, abuse survivors must file a claim in the bankruptcy by a court-ordered deadline or they may forever forfeit their right to pursue a claim or compensation from the New Orleans Archdiocese.  This deadline may well be shorter than any period of time allowed under existing Louisiana state law.  For that reason it is critically important that abuse survivors contact a lawyer to learn their legal options and timely file a claim.

Frequently Asked Questions

Why Did the New Orleans Archdiocese File for Bankruptcy?

The Archdiocese filed for bankruptcy in order to seek relief from child sexual abuse lawsuits.

By filing for bankruptcy, all lawsuits against the New Orleans Archdiocese are “stayed” (put on pause) and a bankruptcy judge is assigned to oversee all of the claims against it.  Generally speaking, the bankruptcy judge is responsible for determining the Archdiocese’s assets that are available to compensate abuse survivors, including cash, property, and insurance, and then deciding a fair way to use those assets to compensate abuse survivors.

Doesn’t the Bankruptcy Mean the New Orleans Archdiocese Has No Assets?

The bankruptcy absolutely does not mean that the Archdiocese has no assets or that abuse survivors will automatically receive no compensation.  Instead, the purpose of a bankruptcy is to ensure that the Archdiocese’s assets are fairly divided among its creditors, including survivors of sexual abuse who file claims in the bankruptcy.  The first step in the bankruptcy is to determine what assets the Archdiocese has to compensate abuse survivors, including cash, property, and insurance.

Why Should I File a Claim? 

People with any type of claim against the Archdiocese need to know about the “bar date” deadline that will likely require all people with claims against the Archdiocese, including  sexual abuse survivors, to file a claim with the bankruptcy court.  This deadline is called a “bar date” because people who come forward after the deadline may be “barred” from ever filing a claim against the entities that declared bankruptcy.  The “bar date” deadline may also extend to other entities who participate in the bankruptcy, such as the local councils and sponsoring organizations.

The bankruptcy judge has not yet set a “bar date” for the Archdiocese bankruptcy, but these deadlines can be as short as 3-4 months from when an entity files for bankruptcy.  If you were abused and have a claim against the Archdiocese, this means your deadline for filing a claim may be significantly shorter than the time allowed under Louisiana law — the deadline could be as short as a few months.

If you have a claim against the Archdiocese, or anyone associated with it, the time to act is now.  Please contact us to learn how to protect your rights.

Does This Mean the New Orleans Archdiocese Will Automatically Shut Down? 

No.  There have been more than 20 Catholic bankruptcies across the United States, and one of the lead Catholic attorneys is now on record as admitting that the Catholic church has not had to shut down parishes or schools, or reduce their services, as a result of these bankruptcies.  For example, most Catholic Dioceses own a significant amount of property, and rather than sell their property, they take out a loan against their property to help compensate abuse survivors.  Moreover, insurance companies have contributed a significant amount toward the prior bankruptcies, such as an insurance company that paid more than $100 million toward the bankruptcy of the Jesuits.  It is too early to tell how this bankruptcy will affect the New Orleans Archdiocese, but keep in mind that their membership numbers have been dwindling for many years.

What Do I Need to Do to File a Claim in the Bankruptcy?

Please contact us and we can explain the process for filing a claim in the bankruptcy.  In every bankruptcy you begin the process by filing a short “claim form” that advises the bankruptcy court of your claim.  To date, the bankruptcy court in every Catholic bankruptcy has protected the identity of abuse survivors from being publicly known.  The bankruptcy court will decide how abuse survivors should be compensated, but most Catholic bankruptcies have involved each abuse survivor submitting a 4-5 page statement, with a neutral third party then reviewing the statement of each person to decide how much they should receive out of the available assets.