Diocese of Rochester New York – Ch. 11 Bankruptcy

On September 12, 2019, the Diocese of Rochester New York filed a petition with the U.S. Bankruptcy Court seeking protection under Chapter 11 of the U.S. Bankruptcy Code. When approved by the court, Chapter 11 allows a debtor (here the Rochester Diocese) to gain a “fresh start” by freeing itself of the claims of creditors by paying those creditors based on a plan that utilizes its available assets.

In the case of the plan proposed by the Rochester Diocese, one group (or class) of creditors consists of those individuals who have “Abuse Claims.” [This includes both child and adult victims to whom the Diocese may be liable.] On January 17, 2020, the Diocese filed a Motion with the Bankruptcy Court seeking approval of the administrative process of determining the claims of the Diocese’s creditors — including those individuals who have “Abuse Claims.” Generally speaking, and if approved by the Bankruptcy Court, the proposed process includes the following:

• A so–called “Bar Date” which is the date by which an “Abuse Claim” is required to be filed in order to be eligible for possible compensation
• The completion of a “Confidential Abuse Proof of Claim” which has to be complete, signed under the penalty of perjury and filed by the “Bar Date”
• The “Confidential Abuse Proof of Claim” can only be filed electronically using a dedicated process/portal or mailed or delivered by overnight courier
• The process is to be governed by a “Confidentiality Protocol.”

The Bankruptcy Court will rule on this Motion and the administrative process will begin.