The Archdiocese of New Orleans is preparing to file for bankruptcy protection due to mounting costs from lawsuits and the COVID-19 pandemic.
According to Thursday's reports, the mounting costs from civil suits related to clergy-abuse allegations and a drop in finances from the statewide shutdown on large gatherings have forced the Archdiocese to look at filing for Chapter 11 bankruptcy protection.
Diocesan officials say there will be no interruption to the ministering of parishioners or at New Orleans' Catholic schools because of the legal proceedings.
Filing for Chapter 11 will allow the Archdiocese to pause collection from its debtors while it negotiates a court-supervised reorganization.
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