Monday, September 19, 2016

What Happens When A Church Files Bankruptcy?

Archbishop Hon and Father Jeff are not using scare tactics.  The jungle is misleading people into thinking that bankruptcy is a positive solution to cleaning the Church.  Some people in the jungle feel that cleaning the church means selling the RMS property and the chancery.  Now, we know why they want to remove the Deed Restriction on the property.  The reason had always been the 75 million dollar property in Yona.  In his comment in the jungle, CNMI lawyer proposed to sell the RMS property and chancery (the bold is mine). 

File Bankruptcy Soon -- Voluntary or Involuntary!
One of the great benefits of bankruptcy is that it gets all litigation involving the debtor (Archdiocese of Agaña) under “one roof,” so to speak, through the process of bankruptcy ancillary proceedings.

Any dispute to which the debtor is a party (plaintiff or defendant) must be decided in the federal bankruptcy court -- beyond the reach of NCW Cult. This would include defamation actions, a quiet title action over the RMS property, RICO claims for fraudulent ordination, and any claims by survivors of abuse that was abetted by institutional cover-up.

There is an Automatic Stay on all civil litigation anywhere in the USA as the bankruptcy court sorts things out.

Frankly, bankruptcy would save the Archdiocese a great deal of money in attorney fees alone, considering all the pending and impending litigation. All attorney fees in such cases must be approved by the court.

God created Purgatory because He is infinitely just, but infinitely merciful. 

Bankruptcy is the civil law attempt to emulate that divine justice and mercy in the financial sphere.

To the extent possible, the just claims of those injured by the Archdiocese and its “employees” operating under a culture of blackmail will be satisfied, while the faithful within the Archdiocese are shown mercy in a fresh start without overwhelming debts.

Selling off the Yoña property and the Chancery would be well worth the purification of our Church.

Needless to say, in bankruptcy ancillary litigation, the actual abusers can be forced to disgorge personal assets and any ill-gotten gains.

Fraudulently concealing assets in bankruptcy proceedings is a federal crime. So it is quite possible that predators who have avoided imprisonment due to running of the statute of limitations may once again find themselves facing the same fate if they are not fully candid about their assets.

The beauty of bankruptcy is that we do not need to wait for the tedious workings of the Chancery to do so.

Even a single survivor can file an involuntary case to place the Archdiocese into bankruptcy.

Let the race to the courthouse begin!

 Below is an article explaining the reality when a Church files for bankruptcy.  According to the article: What happens when a Church goes bankrupt?  

What Happens When a Church Goes Bankrupt?

Faced with the possibility of having to pay more than $100 million in damages to alleged sexual abuse victims, the Archdiocese of Boston is weighing whether to file for Chapter 11 bankruptcy. What happens when a church goes belly up?
Unlike businesses, charitable organizations like churches cannot be forced into bankruptcy by their creditors, but they can opt to file on their own. Such filings are rare, but according to the Boston Globe the Dallas diocese got Vatican permission to file for bankruptcy in 1997 after a jury awarded $119.6 million to the victims of an abusive priest. The diocese never actually filed, but the mere threat of bankruptcy resulted in a settlement for the more modest sum of $31 million.
Once a holy entity like a church seeks a business-oriented remedy like Chapter 11, it has to go through the same procedures as everyone else. Despite the stigma associated with bankruptcy, Cardinal Bernard Law's archdiocese may file as a way of avoiding years of expensive litigation. Filing for Chapter 11 doesn't constitute an admission of guilt: In the business world companies often go straight to bankruptcy court before anyone has won a case against them.
The advantage for the archdiocese is that a bankruptcy filing would stay the civil lawsuits against the church. When a bankruptcy petition is filed, the filing constitutes an automatic federal court injunction that bars anyone from proceeding with a suit against the debtor. So a bankruptcy court—instead of a civil court—would determine what the 450 sexual abuse plaintiffs' claims were worth, if anything. The bankruptcy court's decision is final unless the proceeding is prematurely dismissed, at which point the abuse cases could resume in civil court.
But here's the disadvantage for the archdiocese: If the bankruptcy court decides the church owes the alleged victims a large sum of money, it is going to be obliged to pay them as typical Chapter 11 "creditors" and not necessarily on its own terms. The church would get the opportunity to put forward an initial payment plan, but if the proposed settlement isn't acceptable to the victims, the bankruptcy court could go with a payment plan much less advantageous to the church.
What money would the archdiocese use to pay off its "creditors"? In a typical Chapter 11 reorganization procedure, a business might cut back on its less productive or cost-efficient operations to increase its cash flow. But it's hard to apply concepts like productivity to a religious entity, and since donations have declined dramatically in the wake of the scandal, the archdiocese would probably have a rough time paying off its creditors through income alone. The church might have to liquidate some of its assets. No need to start auctioning off pews, bibles, and religious relics—the Boston Archdiocese has a very worldly $1.3 billion in real estate holdings.


  1. Are the assests of the church worth more than the life of these innocent children? The church hid and moved these pedophiles. Diana, are you saying the church SHOULDN'T be held liable? That the church played no part?

    1. Yep. Even the 2 million dollars the alleged victims are asking is linked to the Yona property. That's the same amount the Archdiocese paid for the Yona Property.

    2. Dear Anonymous at 8:19 am,

      See the following weblinks about those "innocents":

      Everything is linked to that Yona property since the very beginning.

    3. Archbishop Apuron has been saying all along that they wanted to sell the property. Looks like he's been right all along. And looks like they're willing to destroy the church just to get that property.

    4. Tim Rohr Casino !!!!!!

    5. And this is suppose to be a mission poor diocese?

    6. Dear Anonymous at 10:54 am,

      It is a mission diocese, and all the money of the diocese comes from the people. The diocese does not have money of its own. All money comes from the people.

  2. I sure wish the church would've acted appropriately before things got this bad. Apuron and friends sure screwed us.

    Blind obedience, willfull ignorance, and intentional complicity are the culprits.

    1. Dear Anonymous at 9:20 am,

      Do not blame us. We had nothing to do with creating that bill in the first place. You were so adamant and quick in getting that bill passed that you were blind to its ramifications. We have been telling you that they are only after the RMS property and that they will do anything to get it even it means the destruction of the Church, but did you listen??? Noooooooo!

    2. From CNMI lawyer:

      "God created Purgatory because He is infinitely just, but infinitely merciful.
      Bankruptcy is the civil law attempt to emulate that divine justice and mercy in the financial sphere."

      Purgatory and bankruptcy are NOT the same nor are they comparable. Purgatory means the purging or cleansing of sins. Bankruptcy is the taking away of the Church's assets. Does this person believe that assets in itself are sins to be taken away?

    3. it's all about ME TIM, and did it with out holding one single sign up LOL.

    4. Wrong. Tim Rohr was seen holding a sign and walking the picket line on Sep 3
      There was even a picture

    5. So Apuron isn't responsible for this mess?

    6. Dear Anonymous at 1:46 pm,

      No. Archbishop was in Rome when all this chaos broke out. He left Guam AFTER Roy Quintanilla was made public by Tim Rohr. When Doris Concepcion came out, the Archbishop was not here in Guam.

      Remember, it was Tim Rohr who said in the Patti Arroyo talk show who said he knew which victim was victim #1, Victim #2, etc. He admitted in the talk show that he did not want Denton to go first and Quintanilla was willing to go first. He was the one in control of when and what time the victims were to come out in public with their already written speech to the media. These alleged victims did not come out of their own accord.

  3. As anyone can see, CNMI lawyer has advocated the selling of the RMS property and the chancery. The Yona property is worth about 75 million dollars. Who in Guam has this kind of money to purchase this property? No one. Therefore CNMI lawyer and the jungle would be selling this property to foreign investors who have the money.

    1. Ultimately, the Archdiocese remains in control as to timing or necessity of bankruptcy or asset sales, which would likely depend on a financial analysis of the value of the pending claims. This is still unclear.

      “An involuntary case may be commenced only under chapter 7 or 11 of this title, and only against a person, except a farmer, family farmer, or a corporation that is not a moneyed, business, or commercial corporation, that may be a debtor under the chapter under which such case is commenced.” 11 U.S.C. § 303(a) (emphasis added), available at

      Thus, a nonprofit corporation which is acting as such cannot be placed into involuntary bankruptcy.

      Enactment into law of Bill 326-33 seems to be a prerequisite to the Archdiocese of Agaña having significant liability in the first place.

    2. Dear CNMI lawyer,

      You can say all the lawyer mumbo jumbo all you want, but due process always come first. It must FIRST be determined whether the Archbishop is actually guilty or innocent of sexual abuse. The fact that there are too many contradictions and inconsistencies in the testimonies of the alleged victims is questionable and suspect. The problem in the jungle is that a man has already been judged guilty without due process of a trial.

    3. Diana - if you guys really believe in Apuron's innocence then you shouldn't have to worry about Bill 326-33.

    4. Dear Anonymous at 9:52 pm,

      The bill is unfair and intends to destroy the Catholic Church. Already, you have people in the jungle making comments about selling the seminary, which no lawsuit can touch due to the deed restriction.

  4. It's already in the news and talk shows. Vangie Lujan came out in the Patti Arroyo talk show and said that if there is any asset to be liquidated, it should be RMS. It's a good thing Archbishop Apuron placed a deed restriction on the property. With that deed restriction, no lawsuit can touch it. However, the other assets of the church such as the Catholic schools and St. Dominic's nursing home are not immune. They can be liquidated.

  5. If an institution is guilty of covering up crimes, who should be held accountable?

    1. Dear Anonymous at 9:05 pm,

      It should be the people who were involved in covering up the crimes.

  6. So, if the president and other top level managers of a company are guilty of covering up an employees' crimes, then who should be held accountable?

    1. Dear Anonymous at 10:59 pm,

      Then you go after the President and top level managers rather than the company. The company,has other employees who have nothing to do with the crime.

    2. Diana,
      We all know that anyone can file a lawsuit. So, if the company can prove it has rules and regulations in place AND that they have been followed, then it likely won't be held liable. If the company can prove it has done everything proper with other allegations that may have been introduced, then it likely won't be held liable. But if it can be proven that not all measures have been taken to prevent crimes, or it can be proven that a cover-up took place, then you can better believe it can, and most certainly be, held liable.
      There are many instances of companies, governments are sued for not taking preventive measures.