The Catholic Diocese of El Paso has filed for Chapter 11 bankruptcy amid lawsuits alleging child abuse dating as far back as the 1950s, Bishop Mark Seitz announced.
“After consultation with my priest consultants, diocesan advisors, and after my prayerful consideration, I’ve directed attorneys for the Diocese of El Paso to file a petition for Chapter 11 reorganization of the diocese’s financial affairs,” Seitz explained in a news conference Friday, March 6. “Chapter 11 reorganization will allow the Diocese of El Paso to use its available resources to compensate abuse survivors in a single process overseen by a court that seeks to treat all equitably.”
Chapter 11 bankruptcy is a legal process that allows a business to reorganize debts under the supervision of a bankruptcy court while continuing to operate.
Bishop Mark Seitz announces the Diocese of El Paso’s decision to file chapter 11 bankruptcy on March 6, 2026. The decision follows allegations of child sexual abuse between the 1950’s and 1980’s
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The decision to file for bankruptcy comes as the diocese faces 12 lawsuits involving 18 individuals who allege they were sexually abused as minors between 1956 and 1982 in southern New Mexico, which was once part of the El Paso diocese.
Eight separate lawsuits were filed in New Mexico’s Third Judicial District in July 2025, accusing seven priests —Monsignor Albert Chavez, Monsignor Gonzalo Morales, the Rev. David Holley, the Rev. Emilio Roure, the Rev. Wilfrid Diamond, the Rev. Bernard Bissonnette and the Rev. Joaquin Resma — of child sexual abuse.
The six New Mexico churches named in the lawsuit are Our Lady of Health in Las Cruces, Our Lady of Purification in Doña Ana, Immaculate Conception in Alamogordo, Our Lady of Guadalupe in Mesilla Park, St. Anthony in Anthony, and St. Eleanor in Ruidoso.
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Levi Monagle, an attorney with Davis Kelin Law Firm in New Mexico who is representing some of the survivors in the lawsuits, explained that many of his clients had hoped the case would have gone to trial. He said it was not a surprise that the diocese would choose to pursue bankruptcy, as other dioceses in the U.S. have used similar tactics.
“There’s been an increasing trend over the past 20 years towards these kinds of bankruptcies by Catholic dioceses and religious orders when they’re facing extensive clergy abuse litigation,” Monagle said. “It has become a more developed component of their legal playbook.”
He called on the Diocese of El Paso for transparency and to establish a public archive of documents related to abuses. These would be an “invaluable” resource for survivors, scholars and law enforcement, he said.
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Seitz explained that the church will continue to carry on essential ministries. The bankruptcy will not include parishes or schools, which are separately incorporated, Seitz said.
The bishop explained that the church has worked to create a safe space and apologized to the victims in a news release ahead of Friday’s news conference.
“As your bishop, I apologize to abuse survivors for the harm, pain and suffering they experienced and continue to experience in their lives,” Seitz said. “It is my prayer that through this process we can reconcile with each other and walk together towards the loving presence of Jesus Christ in our midst.”
Jeff Abbott covers the border for the El Paso Times and can be reached at:jdabbott@usatodayco.com; @palabrasdeabajo on Twitter or @palabrasdeabajo.bsky.social on Bluesky.
This article originally appeared on El Paso Times: El Paso diocese files bankruptcy over abuse lawsuits