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Law Practice,
Bankruptcy

Apr. 2, 2024

Sacramento diocese joins other California dioceses in bankruptcy

The diocese cited the need to respond equitably to victims of sexual abuse, but plaintiffs’ attorneys are concerned about the loss of accountability and the impact on justice.

The Catholic Diocese of Sacramento filed for Chapter 11 protection on Monday, making it the fourth diocese in California to declare bankruptcy in just over year. The diocese and its creditors will now begin a familiar dance, with plaintiffs’ attorneys pushing the court to speed the process and stop the bishop from spinning off assets.

Each of these cases was brought on by AB 218. This law, which Gov. Gavin Newsom signed in 2019, opened a ...

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