New Orleans Archdiocese says parishes will be asked to help pay for clergy abuse settlements

Reilly said dioceses across the country have argued that it is a better deal for creditors to accept settlement trusts partially funded by all the dioceses’ parishes, rather than — as some creditors will do — pushing for a complete liquidation of the diocese’ assets under Chapter 7 bankruptcy. 

In addition to providing information about the channeling injunction, Aymond said the archdiocese is working to “reduce the number of properties owned by the Archdiocese of New Orleans and our apostolates.” 

“Soaring insurance rates and costly maintenance have impacted our ability to maintain appropriately the over 1,400 pieces of property and remain good stewards of our resources. This work will be a very important factor to determining contributions asked of the apostolates as well,” he said. 

Aymond concluded by stating that he remains committed to ensuring the majority of the settlement trust is paid with the assets of the Archdiocese of New Orleans — including real estate sales — and its insurers. 

“Through these efforts and by the grace of God, we will emerge better prepared for the future and be an even stronger Catholic family,” the 73-year-old Aymond concluded. 

“In closing, please know that I pray for you, the faithful of our Archdiocese of New Orleans, every day. Again, I ask for your prayers for our clergy, religious, lay staff, and those who are working to support us during this challenging time. I humbly ask too for prayers for me as we together ask the Holy Spirit to guide this process to a just conclusion.”

More than two dozen U.S. dioceses, including two in U.S. overseas territories, have entered into bankruptcy proceedings, the vast majority in the past decade. Many dioceses have cited the high cost of settling abuse claims as a major factor in the decision to declare bankruptcy. 

Reilly said that in several of the 24 U.S. states and three territories that have temporarily “revived” the statute of limitations on claims of abuse, multiple Catholic dioceses have been forced to declare bankruptcy amid a mounting number of new abuse claims brought to light during the statute of limitations “revival windows.”

In New York, which opened a two-year window for old abuse claims to be filed in August 2019, six of the state’s eight dioceses have declared bankruptcy, all since 2019.