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Federal judge rejects the Oakland Diocese’s bankruptcy plan

Judge William J. Lafferty said the diocese failed to justify special treatment and disputed valuations in a plan tied to $160 million to $198 million in claims.

  • On Oct 2, Judge William Lafferty rejected the Oakland Diocese's bankruptcy plan, which aimed to resolve nearly 330 sexual abuse claims.
  • Three years ago, the Oakland Diocese filed for bankruptcy due to declining participation and an ongoing financial crisis linked to sexual abuse cases dating between 1960 and 1990.
  • Facing debts between $160 million and $198 million, the diocese proposed selling 13 churches—7 in Oakland—but a nine-member committee appointed by the United States Trustee rejected the plan.
  • Bishop Michael Barber called the Court's decision a "setback," affirming the Church remains committed to providing fair treatment for survivors serving 500,000 faithful Catholics.
  • Noting the Plan's flaws arose from "failures of proof," Lafferty indicated an alternative proposal involving different contributions from the Debtor remains realizable.
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Federal judge rejects the Oakland Diocese’s bankruptcy plan

A federal judge has rejected the Oakland Diocese’s bankruptcy relief plan that would have resolved nearly 330 sexual abuse claims.

·New York, United States
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Winnipeg Free Press broke the news in Winnipeg, Canada on Monday, October 12, 2026.
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