The Archdiocese of Baltimore’s bankruptcy case has been halted amid the ongoing federal government shutdown due to staffing issues, delaying long-awaited compensation for victims of clergy sexual abuse.
Baltimore public radio station WYPR reported that the pause stems from the U.S. Trustee Program — a division of the Department of Justice (DOJ) that oversees bankruptcy cases — being largely unstaffed during the shutdown. Acting U.S. Trustee David Asbach reportedly filed a motion to stay all proceedings until DOJ attorneys can return to work.
“Although we greatly regret any disruption caused to the Court and the other litigants, the United States Trustee hereby moves for a stay all proceedings related to, including the deadline for responding to, the Motion, until Department of Justice attorneys are permitted to resume their usual civil litigation functions,” Asbach wrote, according to WYPR.
The latest setback has deepened survivors’ frustration after years of waiting. One survivor wrote to U.S. Bankruptcy Court Judge Michelle Harner in August, calling the process “a circus,” WYPR reported.
“What started as a positive situation as the rust of a newly enacted law by the Maryland legislature years ago has developed into what one might describe as a circus,” the survivor said. “Who do the victims believe and what can they believe? Especially when there is almost complete secrecy surrounding this case.”
The archdiocese filed for Chapter 11 bankruptcy on September 29, 2023, just days before Maryland’s Child Victims Act of 2023 eliminated the state’s statute of limitations for child sexual abuse claims, CatholicVote previously reported.
By filing for bankruptcy, the archdiocese effectively set a cutoff for abuse claims while seeking to manage hundreds of anticipated cases collectively. Under Chapter 11, the Church must disclose its assets and negotiate a settlement plan with creditors, primarily survivors.
In September, creditors representing the victims asked Harner to dismiss the archdiocese’s bankruptcy case after more than a year of failed mediation, WYPR reported. If granted, the dismissal would end the church’s bankruptcy protections and reopen the door to individual civil lawsuits.
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