New Orleans Becomes 23rd US Diocese To Declare Bankruptcy.
The Archdiocese of New Orleans is preparing to file for bankruptcy, a source familiar with the matter said Thursday evening, as the mounting cost of unresolved clergy-abuse lawsuits and the shutdown of church services due to the coronavirus deliver crushing blows to church finances.
The 227-year-old local institution serving half a million New Orleans-area Catholics will join 26 other American dioceses and Catholic religious orders that have sought financial protection from creditors and claimants since the clergy-abuse scandal reached a fever pitch in 2002.
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