Frequently Asked Questions Regarding Possible San Diego Diocese Bankruptcy


The Diocese is considering filing bankruptcy as a way to continue its religious and charitable missions while working toward a fair and equitable way to compensate survivors of abuse and continue the healing process. A bankruptcy will allow the Diocese to minimize the increasing costs of litigation and preserve assets for equitable distribution to abuse survivors. The following are answers to frequently asked questions about the effect of a bankruptcy. Please note, however, that nothing in bankruptcy is certain. Bankruptcy is a transparent process and all assets and potential assets will be examined.


1. There are many types of bankruptcy. What type is the Diocese considering?

The Diocese is considering filing under chapter 11 of the Federal Bankruptcy Code. A chapter 11 bankruptcy is a voluntary bankruptcy used to allow the filer to reorganize its finances and operations and make equitable payments to its creditors while continuing to operate. A chapter 11 will allow the Diocese to determine a framework for addressing and paying abuse claims. While in chapter 11 and during the bankruptcy process, the Diocese will continue its ministry and charitable missions.


2. Will donations to the Annual Catholic Appeal (ACA) be used to fund the Diocesan litigation or settlements with abuse victims?

The ACA seeks donations for specified purposes, specifically Catholic schools, faith formation, Catholic Charities and clergy formation and support. All ACA contributions are maintained in a separate ACA-designated bank account to be used for their designated purposes. These funds will be used only for their specified purposes.


3. Will future donations and contributions to parishes be used to fund the Diocesan litigation or settlement with abuse victims?

Donations and contributions to parishes are to be used for parish purposes. We do not expect donations and contributions to a parish to be used to fund Diocesan litigation or settlement of claims made by abuse victims. Donations allow parishes to continue their ministry and programs.


4. Will retirement funds in the pension plan be affected by the Diocese’s bankruptcy?

The Diocesan pension plans are IRS qualified plans. Such plans are unaffected by a bankruptcy.


5. Are the parish and school funds deposited in CAPS going to be used to fund the Diocesan settlement of abuse claims?

Parish and school CAPS funds are held exclusively for the benefit of each specific parish or school depositor. The funds held in CAPS will not be used to fund the Diocesan settlement of abuse claims.


6. Is insurance available to help pay the litigation expenses and claims of abuse survivors?

There is coverage available that will be used to contribute to payment of litigation expenses and abuse claims.


7. After a bankruptcy is filed, will parishes and schools continue business as usual, including building, capital campaigns, etc.?

Parishes are separately incorporated and are not filing bankruptcy. If the Diocese files bankruptcy, the parishes and schools will continue business as usual.


8. How will a bankruptcy by the Diocese affect school tuition and activities?

We do not expect bankruptcy to effect school tuition and activities.


9. Will parish and school property be sold to settle abuse claims?

We are confident this will not occur.


10. Will parishes have to contribute money to the Diocese’s bankruptcy?

Parishes will likely contribute money in order to receive a release and protection from abuse claims.


11. How much money will the parishes have to contribute to receive protection from abuse claims?

The amounts will vary and are unknown at this time.

  • Letter (English)

    February 9, 2023


    Dear Brothers and Sisters in Christ,


    Three years ago the California state legislature lifted the statute of limitations for lawsuits regarding the sexual abuse of minors. This provided three years for individuals to come forward with legal claims that they had been sexually abused. As a result of this change in the law, the Diocese of San Diego has received approximately four hundred suits seeking monetary damages for alleged acts of sexual abuse by priests, religious and laity in the Diocese. The majority of these suits concern actions that took place more than half a century ago.


    One important aspect of these lawsuits is that none of them claim sexual abuse by any priest of the Diocese of San Diego currently in ministry. This  reflects the reality that the Church has taken enormous steps to root out the sexual abuse of minors in its life and to promote the protection of minors.


    Still, the Diocese must face the staggering legal costs of responding to these new lawsuits. In 2007, the Diocese paid out 198 million dollars to settle 144 claims of abuse that had been brought during an earlier lifting of the statute of limitations. This depleted most of the assets of the Diocese. Even with insurance, the Diocese will not be able to pay out similar sums now. This challenge is compounded by the fact that a bill has now been introduced into the legislature that seeks to eliminate the statute of limitations entirely, leaving the Diocese vulnerable to potential lawsuits forever.


    For all of these reasons, we may be facing a moment where the Diocese enters into bankruptcy in the coming months. Bankruptcy would provide a pathway for ensuring that the assets of the diocese will be used equitably to compensate all victims of sexual abuse, while continuing the ministries of the Church for faith formation, pastoral life and outreach to the poor and the marginalized. It would also provide a fund for future claimants of sexual abuse who have not filed a claim. Finally, bankruptcy would provide a conclusion to the tide of lawsuits covering alleged abuse as long as 75 years ago.


    The parish assets have been held in recent years by individual parish corporations, and before that they were held by the Diocese in trust for each particular parish community. Almost without exception in other Diocesan bankruptcies, parish assets have remained separate. At the same time, parishes in a diocese undergoing bankruptcy typically contribute some limited monies to the funds for claimants.


    The sexual abuse of minors by priests and the way it was handled in the life of the Church constitute the greatest sin of our Church in the last century. We must and will continue to protect minors with ever deeper vigor, provide healing resources to those who have been abused, and use our Diocesan assets to compensate those who were victimized. And we will never forget the harm that we have done.


    I ask your prayers for our Diocese, our parish communities, and especially all victims of sexual abuse in the coming months. May 


    God's grace be with us profoundly in this challenging time.


    With all best wishes, I remain


    Sincerely yours in Christ,

    Robert Cardinal McElroy

    Bishop of San Diego

  • Letter (Spanish)

    9 de febrero 2023


    Queridos hermanos y hermanas en Cristo,


    Hace tres años, la legislatura del estado de California levantó el estatuto de limitaciones para las demandas relacionadas con el abuso sexual de menores. Esto estableció un periodo de tres años para que las personas presentaran reclamos legales de que habían sido abusadas sexualmente. Como resultado de este cambio en la ley, la Diócesis de San Diego ha recibido aproximadamente cuatrocientas demandas por daños monetarios por presuntos actos de abuso sexual por parte de sacerdotes, religiosos y laicos en la Diócesis. La mayoría de estas demandas se refieren a acciones que sucedieron hace más de medio siglo.


    Un aspecto importante de estas demandas es que ninguna de ellas alega abuso sexual por parte de ningún sacerdote de la Diócesis de San Diego actualmente en el ministerio. Esto  refleja la realidad de que la Iglesia ha dado enormes pasos para erradicar el abuso sexual de menores en su vida y para promover la protección de los menores.


    Aún así, la Diócesis debe enfrentar los asombrosos costos legales de responder a estas nuevas demandas. En 2007, la Diócesis pagó 198 millones de dólares para resolver 144 denuncia de abuso que habían sido presentadas durante un levantamiento anterior del estatuto de limitaciones. Esto agotó la mayor parte de los bienes de la diócesis. Incluso con la aseguranza, la Diócesis no podrá pagar sumas similares ahora. Este desafío es agravado por el hecho que ahora se ha presentado un proyecto de ley en la legislatura que busca eliminar el estatuto de limitaciones por completo, dejando a la Diócesis en peligro de seguir recibiendo demandas para siempre.


    Por todas estas razones, es posible que estemos frente a un momento en el que la Diócesis entre en bancarrota en los próximos meses. La bancarrota presentaría un camino para asegurar que los bienes de la diócesis se utilicen equitativamente para compensar a todas las víctimas de abuso sexual, mientras que los ministerios de la Iglesia para la formación en la fe, la vida pastoral y el alcance a los pobres y marginados se seguirían llevando a cabo. También proporcionaría un fondo para futuros reclamantes del abuso sexual que no hayan presentado un reclamo. Finalmente. La bancarrota traería un fin a la marea de juicios que cubren presuntos abusos que ocurrieron hasta hace 75 años atrás.


    Los bienes parroquiales han estado en manos de corporaciones parroquiales individuales en los últimos años, y antes de eso estaban en manos de la Diócesis en fideicomiso para cada comunidad parroquial. Casi sin excepción en otras bancarrotas diocesanas, los bienes de la parroquia han permanecido separados. Al mismo tiempo, las parroquias e esas diócesis han tenido que aportar una cantidad limitada de dinero de los fondos para los reclamantes.


    El abuso sexual de menores por parte de sacerdotes y la forma en que se manejó en la vida de la Iglesia constituye el pecado más grande de nuestra Iglesia en el último siglo. Debemos y seguiremos protegiendo a los menores vigorosamente, brindando recursos de sanación a quienes han sido abusados y utilizando nuestros bienes para compensar a quienes fueron víctimas. Y nuca olvidaremos el daño que hemos hecho.


    Les pedo que en los próximos meses rueguen por nuestra Diócesis, nuestras comunidades parroquiales y especialmente por todas las víctimas de abuso sexual. Que la gracia de Dios nos acompañe profundamente en este momento desafiante.


    Con todos los mejores deseos permanezco


    Atentamente en Cristo,

    Robert Cardinal McElroy

    Obispo de San Diego