Archdiocese of Baltimore considers bankruptcy due to Child Victims Act, potential lawsuits

BALTIMORE -- The Child Victims Act will take effect on Oct. 1. It's a law that eliminates the statute of limitations for sexual abuse cases in Maryland.

On Tuesday, The Archdiocese sent a letter to its parishioners warning them about the possible financial troubles on the horizon because of the new law.

In the letter, Archbishop William Lori warned of the devastating financial consequences the Child Victims Act would have.

Archbishop Lori says that over the next couple of days, he will figure out how to respond to the new law. One solution he is considering is bankruptcy.

In April, Governor Wes Moore signed the Child Victims Act.     

It's a law that eliminates the statute of limitations for survivors of child sex abuse in Maryland to sue their abusers. 

The signing of the bill came days after the Maryland Office of the Attorney General released a 456-page investigation that details more than 150 people within the Archdiocese of Baltimore allegedly assaulting more than 600 children over the course of eight decades.

Because of the high likelihood that the Archdiocese will face multiple lawsuits, the church is considering filing for bankruptcy, according to the letter to parishioners.  That has some sex abuse victim-survivors upset. 

Archbishop Lori said bankruptcy reorganization would establish a reasonable and equitable method for compensation of victim-survivors while also preserving the many vital ministries of the Archdiocese.