The Catholic Diocese that includes Maryland’s Eastern Shore and Delaware has filed for bankruptcy. The action comes on the eve of sex abuse trials, after the breakdown of talks with 13 alleged victims.
The Diocese of Wilmington is the seventh across the nation and the first on the East Coast in recent years to file for bankruptcy, as a result of sex abuse charges involving priests.
In its Chapter 11 filing, the diocese listed assets of under $100 million and liabilities of up to $500 million. It has spent $6.2 million to settle sex abuse cases since 2002, and expects legal costs this year to go above $1.5 million. It is facing 142 sex-abuse lawsuits.
The diocese of some 230,000 Catholics has a host of economic woes. Shrinking student enrollments at Catholic schools have forced cuts in staff and programs.
Of three dozens schools in the diocese, only two have reported increases in student enrollment this year. Tuition at some of the schools approaches $5,000 per year. Because of the bad economy, many parents are turning to free public schools.
Write a Letter to the Editor on this Article
We encourage readers to offer their point of view on this article by submitting the following form. Editing is sometimes necessary and is done at the discretion of the editorial staff.