Diocese of Burlington bankruptcy

The Roman Catholic Diocese of Burlington has filed for Chapter 11 bankruptcy amid a wave of sexual abuse lawsuits, marking a significant moment in the ongoing clergy abuse scandal that has persisted since 2002. Bishop John McDermott expressed deep sorrow over the decision, which aims to address the diocese's financial struggles caused by over 31 active lawsuits and depleted assets following the repeal of the statute of limitations on childhood sexual abuse claims in Vermont. Since 2006, the diocese has settled 67 claims, paying nearly $40 million in total, prompting concerns regarding the equitable distribution of its limited resources among survivors. The bankruptcy will temporarily halt unsettled cases while the diocese undergoes financial restructuring. Despite these proceedings, individual parishes and organizations will remain unaffected as their assets are protected in separate trusts. The diocese's financial challenges have been exacerbated by the need to meet settlement obligations, leading to the sale of properties and liquidation of assets.