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Judge allows clergy abuse claimants to sue for parish assets in Vermont Catholic bankruptcy case
A U.S. Bankruptcy Court judge in Vermont has allowed clergy abuse claimants to sue for parish assets, including an estimated $500 million in local parish holdings, as part of the Roman Catholic Diocese's bankruptcy reorganization. The diocese, which filed for Chapter 11 protection in 2024, faces potential litigation over parish assets placed in trusts, with claimants arguing these funds should cover abuse settlements.
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- Creditors in Vermont Catholic bankruptcy case seek access to an estimated $500M in parish assets
- Court filing alleges Vermont Catholic Church posed ‘ethical proposition’ to shield funds from abuse survivors
- Court says it might dismiss Vermont Catholic diocese bankruptcy case if progress isn’t made soon
- Louisiana judge in abuse case belatedly recuses himself after ruling in favor of church on whose finance panel he sits
- Vermont’s Catholic Church aims to protect Rice Memorial High by selling the parochial school to supporters