The Roman Catholic Diocese of Albany announced Wednesday it has filed for chapter 11 protection, CBSAlbany.com reported. Under a chapter 11 status, this means all legal actions against the diocese will pause, including lawsuits involving St. Clare's pensioners. The diocese contends that the St. Clare's crisis was not the reason for filing under chapter 11. In a statement, Bishop Edward Scharfenberger pointed to the Child Victims Act resulting in large settlements, leaving insurance coffers depleted. The diocese said that the bankruptcy filing does not affect parishes and Catholic schools are separately incorporated under New York State’s Religious Corporations Law.
