EL PASO, Texas (KTSM) — The clock is officially ticking for survivors of alleged clergy abuse seeking compensation from the Catholic Diocese of El Paso.
During a hearing in Downtown El Paso on Tuesday, April 14, a federal bankruptcy judge signed a final order setting Sept. 11 as the absolute deadline for survivors to file a claim against the church.
The Diocese is currently navigating Chapter 11 bankruptcy reorganization stemming from more than a dozen sexual abuse lawsuits. The allegations date back to the 1950s through the 1980s in Southern New Mexico, which was part of the El Paso Diocese at the time.
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KTSM 9 News was the only outlet inside the courtroom Tuesday as the judge hammered out exactly how and when survivors can come forward — and delivered a major victory to victims regarding the filing process.
Much of Tuesday’s courtroom debate focused on the amount of paperwork survivors would be required to submit.
Insurance companies representing the Diocese pushed back against the proposed timeline and asked the court to force survivors to fill out a “supplemental document” requiring detailed evidence up front.
Both the Diocese and lawyers representing the survivors fought back against the insurers. They argued that demanding extensive evidence right out of the gate could intimidate victims who have not yet come forward. In court, survivors’ attorneys called the insurers’ demand a tactic to limit the number of filings, object to claims, and “drag out the process.”
Ultimately, the bankruptcy judge sided with the survivors and the Diocese, rejecting the insurance companies’ demands for the extra paperwork. This clears the way for the claims process to move forward with fewer hurdles for victims.
The Sept. 11 deadline applies to anyone the church owes money to, including all abuse survivors.
Crucially, the court has made it clear that past actions do not exempt a survivor from this deadline. Even if a survivor previously sued the Diocese, reported their abuse to a priest, or reached a prior settlement, they are still fully eligible — and legally required — to file a brand-new claim by the deadline to be included in the bankruptcy payout. Failure to file by this date means risking the loss of their right to compensation.
Beyond the claims process, the judge also addressed the church’s day-to-day operations.
When a business or entity files for Chapter 11 bankruptcy, its assets are often frozen. However, Chapter 11 does not mean the Diocese is shutting down; rather, it allows the church to stay open while reorganizing its debt to create a payment plan for survivors.
To keep operations running, the judge officially signed off on an agreement between the Diocese and WestStar Bank. The order unfreezes essential accounts, allowing the Diocese to use its own funds to continue paying employees and covering basic daily expenses while the lengthy bankruptcy process plays out.
When the Diocese initially filed for bankruptcy last month, Bishop Mark Seitz stated it was the only viable path to fairly compensate victims without closing their doors permanently.
Details on the secure online portal and mailing addresses for survivors to officially file their claims will be made available in the coming days.
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