It's Official: Diocese of Spokane files for bankruptcy

By becoming only the third diocese nationally to seek shelter in bankruptcy court, the Roman Catholic Diocese of Spokane is hoping the court will help provide a clearer picture of its financial liability in mounting sex-abuse lawsuits and goad its reluctant insurers into paying some of the claims.

The diocese filed for Chapter 11 protection yesterday in U.S. Bankruptcy Court in Spokane, citing total liabilities of about $81 million, with about $76 million of that in sex-abuse claims, according to financial statements filed as part of the bankruptcy proceedings. It has only about $11 million in assets, according to the statements.

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