All Buffalo Catholic Parishes Asked to Join Bankruptcy Plan
The Buffalo Diocese is pursuing a controversial plan requiring all parishes to briefly enter bankruptcy to help settle hundreds of abuse-related claims.
BUFFALO, NY — The Diocese of Buffalo has unveiled a revised strategy to resolve its long-running bankruptcy proceedings, asking every parish within the diocese to participate in a brief prepackaged bankruptcy filing tied to nearly 900 Child Victims Act claims that have been pending for six years.
Under the proposal, each parish would enter bankruptcy immediately before a court hearing to confirm the diocese’s reorganization plan and emerge approximately 48 hours later. Diocesan Finance Council member Monsignor Robert Zapfel said the filings would be narrowly focused on abuse-related claims and would not interfere with normal parish operations, vendor payments, or ministry activities. He argued the approach would provide protection from current and potential future litigation connected to child abuse allegations.
The proposal, however, requires unanimous approval from every parish pastor and trustee. According to Zapfel, a single parish rejecting the plan would cause the entire arrangement to collapse because insurance companies would not agree to a settlement structure that leaves one parish outside the process. He acknowledged that no alternative plan currently exists should the proposal fail to gain full support.
Some parishioners have voiced concerns about the potential impact on parish finances and public perception. Critics questioned whether bankruptcy filings by financially stable parishes could affect creditworthiness or create the appearance of impropriety. Diocesan leaders responded that parishes have received independent legal counsel and emphasized that similar approaches have been used in other Catholic jurisdictions.
If approved by both parishes and the bankruptcy court, diocesan officials said the case could be resolved before the end of the year.
Previously, the UOJ reported that the Archdiocese of St. Louis sought dismissal of abuse lawsuit claims.
