ALBANY, NY (WRGB) — The Roman Catholic Diocese of Albany announced Wednesday it has filed for Chapter 11 bankruptcy.

Under a Chapter 11 status, this means all legal actions against the diocese will pause, including lawsuits involving St. Clare's pensioners.

The diocese contends that the St. Clare's crisis was not the reason for filing under Chapter 11.

In a statement, Bishop Edward Scharfenberger pointed to the Child Victims Act resulting in large settlements, leaving insurance coffers depleted.

"I hope that financial outcomes through reorganization bring some degree of peace and a sense that some aspect of justice has been accomplished," the bishop said.

The bishop says the diocese has settled more than 50 sexual abuse claims so far. More than 400 were filed as a result of the CVA.

"We're at a point right now where the next steps seems to be to do this. We don't see any other alternative, and unfortunately, we know it's expensive. It can be time consuming. But, it seems to be the best way to protect everyone. I said from day one that my desire is to get, I realize that, that money cannot possibly compensate survivors of sexual abuse and I continue to apologize to anyone that has suffered so unjustly by this scourge," the bishop said at a press conference Wednesday afternoon.

In a statement the diocese said the bankruptcy filing does not affect parishes and Catholic schools are separately incorporated under New York State’s Religious Corporations Law.

https://cbs6albany.com/news/local/albany-catholic-diocese-files-for-chapter-11-bankruptcy-putting-a-stop-to-lawsuits#