Originally published at crisis magazine
Recently, a friend expressed his frustration with the Justice for Survivors Act signed in the California legislature in 2023. This Act ends the civil statute of limitations for minors who have experienced sexual abuse. While my friend vehemently agrees that abusers ought to get their reckoning, he took issue with the preponderance of claims related to clergy who were long deceased. The result of this preponderance is the necessity for several dioceses in California to file for bankruptcy, while more teeter on financial turmoil. In his mind, why should the Archdiocese of Los Angeles be under financial strain due to the actions of priests who passed away decades ago?
My friend posed an interesting topic for me to reflect on. Being a financial professional who has worked in distressed debt and turnarounds, I am familiar with corporate bankruptcies—both with companies that failed and those that exited. Additionally, I considered the spiritual implications of bankruptcy. Taking both of these perspectives, I believe that a bankrupt diocese serves a proper purpose. As Catholics, we should demand that our leaders accept the necessary penances for their past sins—even if it leads to utter financial failure.
Bankruptcy from a Corporate Perspective
Companies never form
