🚨 Alexandria Diocese Files for Bankruptcy Amid Abuse Claims

The Catholic Diocese of Alexandria, which oversees all Catholic churches in Avoyelles Parish and much of central Louisiana, has filed for Chapter 11 bankruptcy reorganization amid mounting financial pressure from clergy sex abuse lawsuits.

Bishop Robert W. Marshall Jr. announced on Oct. 31 that the diocese submitted a Chapter 11 petition in U.S. Bankruptcy Court, making Alexandria the first Louisiana diocese outside New Orleans and the 41st Catholic diocese in the United States to seek court-supervised bankruptcy protection in the wake of the clergy abuse scandal. The filing is intended to pause numerous pending lawsuits and create a plan to compensate abuse survivors while allowing the Church’s day-to-day ministry to continue uninterrupted.

In a letter to the faithful, Bishop Marshall explained that the decision to seek bankruptcy protection came after extensive consultation and prayer.

"This action is occurring because some past priest-perpetrators sexually abused minors, actions that are evil, sinful, and go against everything the Church and the priesthood represent," the bishop wrote.

According to diocesan officials, 85 survivors have already filed sexual abuse claims against the Diocese of Alexandria, many involving incidents dating back decades. Over half of the allegations stem from the 1970s or earlier. Nearly all the clergy accused in these cases are now deceased. A change in Louisiana law in 2021, which temporarily lifted the statute of limitations on child sex abuse cases for a three-year period, opened the door for many older claims to be filed. That special window closed in mid-2024.

Bishop Marshall voiced sorrow and remorse for the harm caused.

"We are at this moment for one reason: some priests sexually abused minors. For that, I feel deeply ashamed. As your bishop, I apologize to abuse survivors for the harm, pain and suffering they experienced and continue to experience in their lives," Marshall wrote.

He acknowledged that many local Catholics would feel disheartened, frustrated or even angry by the situation, but underscored that the diocese’s primary goals now are to do as much as it can, as fairly as it can, to compensate those who have been harmed and to carry on the essential ministries of the diocese despite the financial turmoil.

Financial Overview

The Diocese of Alexandria is relatively small in terms of assets. In its bankruptcy filings, the diocese reported roughly $16.7 million in total assets versus about $9.5 million in liabilities. Church officials have proposed contributing approximately $4 million of diocesan funds, along with any available insurance proceeds, into a compensation trust for abuse survivors as part of a reorganization plan.

"Alexandria is a mission diocese, meaning we already rely upon others to sustain the work of the Church. As such, our resources are scarce," Bishop Marshall noted.

Without bankruptcy protection, diocesan leaders say, a few large lawsuit judgments could exhaust the Church’s funds on hand, leaving other victims with nothing. By entering Chapter 11, all pending lawsuits are frozen and will be channeled into one court-overseen settlement process.

Impact on Avoyelles Parish

Churches and Parishioners

For Catholics in Avoyelles Parish, the news of the diocesan bankruptcy has understandably caused concern. However, diocesan officials stress that the Chapter 11 filing applies only to the diocesan administrative entity, not to individual parishes or Catholic schools. Churches, parish properties and local finances in Avoyelles Parish are not included in the bankruptcy estate, as parishes are separately incorporated under state law. This means that daily Masses, sacraments, religious education classes and charity programs at the parish level will continue normally.

"Our parishes and other Catholic entities are separately incorporated and are not affected by this filing," Bishop Marshall assured.

Regular offertory collections and restricted donations earmarked for specific purposes remain protected and will not be used to pay creditors or lawsuit settlements. Catholic schools and outreach ministries in the region are also expected to operate without interruption. Pastors in Avoyelles have been relaying the message that parish life will carry on as usual for the foreseeable future.

Local churchgoers have expressed a mix of emotions, including sorrow for victims of abuse, disappointment that trusted church leaders betrayed children in the past, and concern about the Church’s reputation. Yet many also feel relief that the diocese is taking steps to address the issue.

Bishop Marshall encouraged the faithful in Avoyelles not to lose heart. Despite the legal and financial cloud, he highlighted the vibrant faith he sees in local communities and said he is confident this good work will continue during the reorganization period. Parishioners are being asked to pray for healing.