The Archdiocese of Santa Fe’s (N.M.) chapter 11 bankruptcy efforts have plodded along for three years with no end visible in the case involving more than 400 clergy abuse victims, Santa Fe Mexican reported. Lawyers say three years is a comparatively long time for chapter 11 proceedings but is far from unheard of. It’s in everyone’s interests — the archdiocese’s and the victims’ — to resolve it through chapter 11, attorneys say. Therefore, an eventual settlement is still expected. “The alternatives are so bad that it’s worth it to stay in the game,” Laura Coordes, associate professor of law at Arizona State University, said of chapter 11. The archdiocese seeks to raise an adequate sum, through property sales, donations and insurance, to reach settlements with the victims. In a blog this month, Archbishop John Wester wrote: “We knew when we filed for chapter 11 that it would not be easy. We are making progress, albeit slow progress. Please pray that this arduous and drawn-out process will bring healing to the victims of sexual abuse, to their families, our parishes and this local Church.” Coordes and Albuquerque bankruptcy attorney Dave Giddens said the alternatives to a settlement typically would be for the case to be converted to chapter 7 bankruptcy, in which a trustee would call the shots on the sale of assets. Or the case could be dismissed, and many victims then would file lawsuits individually.
