Archdiocese files for bankruptcy over sex scandal
A financial panel of the archdiocese gave Cardinal Bernard Law permission yesterday to file for bankruptcy, a move that would give a secular court control over its finances and open it up to unprecedented scrutiny.
No Catholic archdiocese in the United States has ever filed for bankruptcy, which requires approval from the Vatican. The step towards bankruptcy troubled some lawyers of alleged abuse victims who are negotiating with the archdiocese toward possible settlements. Attorney Mitchell Garabedian said archdiocese leaders were bluffing in an attempt to gain leverage in the talks.
