Diocese of Alexandria: 41st U.S. Catholic Diocese Seeks Chapter 11 Protection
Diocese of Alexandria becomes 41st U.S. Catholic diocese in chapter 11, addressing 85 abuse claims with $4M victim trust under Louisiana's lookback window.
The Diocese of Alexandria became the 41st Roman Catholic diocese in the United States to seek chapter 11 bankruptcy protection when it filed on October 31, 2025, facing 85 clergy sexual abuse claims that Bishop Robert W. Marshall Jr. acknowledged "exceed our means." The central Louisiana diocese—designated a "Mission Diocese" that cannot provide basic pastoral services without outside financial assistance—joins other religious institutions that have entered court-supervised restructuring after historic abuse claims and recent lookback legislation. With assets of $16.7 million against disclosed liabilities of $9.5 million before accounting for abuse claims, the diocese pledges $4 million plus limited insurance proceeds toward a victim compensation trust while seeking to preserve its 50 separately incorporated parishes.
The filing follows Louisiana's 2021 lookback window legislation, which eliminated the statute of limitations for child sex abuse claims and created a temporary window for older cases. That window nearly closed in 2024 when the Louisiana Supreme Court initially struck it down, then reversed itself in a 5-2 ruling three months later—extending the filing deadline to June 2027. More than half of the 85 allegations against the diocese date to the 1970s or earlier, with nearly all named perpetrators now deceased.
The Diocese of Alexandria is the first Louisiana diocese outside the Archdiocese of New Orleans to seek bankruptcy protection. The New Orleans archdiocese, which filed in May 2020, reached a $230 million settlement with over 650 victims in December 2025 after five years of litigation.
| Debtor(s) | Diocese of Alexandria |
| Court | U.S. Bankruptcy Court, Western District of Louisiana (Monroe Division) |
| Case Number | 25-31257 |
| Judge | Hon. John S. Hodge |
| Petition Date | October 31, 2025 |
| Plan Type | Pre-plan (early stage case) |
| Scheduled Assets | $16.7 million |
| Scheduled Liabilities | $9.5 million (before abuse claims) |
| Abuse Claimants | 85 |
| Pending Abuse Lawsuits | 37 |
| Proposed Trust Contribution | $4 million + insurance proceeds |
| Parishes | 50 (separately incorporated) |
| Catholic Population | ~35,402 |
| Diocesan Status | Mission Diocese |
| Debtor's Counsel | Husch Blackwell LLP; Gold, Weems, Bruser, Sues & Rundell |
| Financial Advisor | Getzler Henrich & Associates, LLC |
| Claims Agent | Stretto, Inc. |
| Table: Case Snapshot |
Chapter 11 Filing and Proposed Settlement
Pre-Filing Negotiations.
Bishop Marshall disclosed that the diocese had been in negotiations for some months with lawyers representing abuse survivors, seeking what diocesan counsel described as "a global resolution with all claimants which would then be filed as a prearranged Chapter 11 bankruptcy." The diocese retained Louisiana-based mediator John Perry to oversee mediation efforts, though those negotiations ultimately did not produce a consensual pre-filing settlement.
The diocese paid Husch Blackwell LLP a $1 million retainer on May 22, 2025—more than five months before the filing date. Docket records show that over $1.1 million was paid to Husch Blackwell in the twelve months preceding the petition, with $770,496.75 paid directly by the debtor and $366,497.34 drawn from the retainer. By the petition date, approximately $633,500 remained in the retainer for post-petition services. The Voluntary Petition lists the diocese's scheduled assets and liabilities.
Proposed Victim Compensation Structure.
The diocese has outlined a framework for compensating abuse survivors, though final terms will require plan confirmation:
| Component | Proposed Terms |
|---|---|
| Diocesan Cash Contribution | $4 million |
| Insurance Proceeds | Limited amounts (coverage disputed by carriers) |
| Parish Contributions | None (parishes separately incorporated) |
| Protected Funds | Restricted donations, annual appeal, seminary funds |
| Case Duration | Projected 18-24 months |
| Estimated Professional Fees | $1-2 million |
The $4 million proposed contribution represents approximately 24% of disclosed assets. The contribution will be supplemented by insurance proceeds, and multiple carriers have already appeared in the case through counsel.
Professional Retentions.
The case involves the following retained professionals:
| Professional | Role | Approval Status |
|---|---|---|
| Husch Blackwell LLP | Lead Bankruptcy Counsel | Final approval December 9, 2025 |
| Gold, Weems, Bruser, Sues & Rundell, APLC | Local Bankruptcy Counsel | Final approval December 9, 2025 |
| Getzler Henrich & Associates, LLC | Financial Advisor | Final approval December 9, 2025 |
| Stretto, Inc. | Claims and Noticing Agent | Final approval December 10, 2025 |
| Payne, Moore & Harrington, CPAs | Auditor | Approved December 10, 2025 |
| Wiener, Weiss & Madison | UCC Counsel | Application filed December 23, 2025 |
Husch Blackwell's engagement terms. The firm has been retained at discounted hourly rates, with lead partners Mark T. Benedict, Francis LoCoco, and Bruce Arnold billing at $725 per hour.
Gold Weems' local role. The Alexandria-based firm Gold, Weems, Bruser, Sues & Rundell serves as local counsel in the Western District of Louisiana.
Cash Collateral and Banking.
The diocese's banking relationships and cash management require court authorization given Southern Heritage Bank's secured position:
| Term | Details |
|---|---|
| Secured Lender | Southern Heritage Bank |
| Cash Collateral Motion | Filed December 3, 2025 |
| Interim Approval | December 10, 2025 |
| Bank Accounts | Red River Bank (including CDs), Regions Bank, Southern Heritage Bank, First National Bank of Lindsay |
| Status | Interim; final hearing pending |
The court entered a Final Cash Collateral Order authorizing continued use of the diocese's existing cash management system, bank accounts, and business forms. The diocese maintains accounts across multiple Louisiana financial institutions.
Key Parties and Insurance Interests.
Multiple insurance carriers have appeared in the case:
| Party | Representative Counsel | Role |
|---|---|---|
| Diocese of Alexandria | Husch Blackwell LLP; Gold Weems | Debtor |
| Official Committee of Unsecured Creditors | Wiener, Weiss & Madison (proposed); Horowitz Law | UCC Counsel |
| Certain Abuse Claimants | Herman Herman & Katz; Gisleson & Lacoste | Survivor Counsel |
| Continental Insurance Company | Clyde & Co. | Insurer |
| Interstate Fire & Casualty | Troutman Pepper | Insurer |
| 21st Century Premier Insurance | — | Insurer |
| RiverStone Insurance | — | Insurer |
| Kinsale Insurance | — | Insurer |
| Swiss Re International SE | Clyde & Co. | Reinsurer |
| Southern Heritage Bank | — | Secured Lender |
| U.S. Trustee | Region 5 | Case Oversight |
Interim Compensation Procedures.
The court established Interim Compensation Procedures allowing professionals to receive monthly payments during the case:
| Feature | Approved Terms |
|---|---|
| Monthly Fee Summaries | Due by 15th of each month |
| Interim Payment Rate | 80% of fees + 100% of expenses |
| Fee Holdback | 20% of fees |
| Objection Period | 10 days from service |
| First Interim Fee Period | Petition date through December 31, 2025 |
| First Interim Application Due | February 16, 2026 |
| Subsequent Periods | Every four months (120 days) |
A Mission Diocese in Central Louisiana
Geographic and Demographic Profile.
The Diocese of Alexandria serves central Louisiana, spanning 11,108 square miles from the Natchitoches region westward to the Mississippi River parishes:
| Characteristic | Details |
|---|---|
| Territory | 11,108 square miles (27,810 km²) |
| Civil Parishes Covered | Avoyelles, Rapides, Vernon, Natchitoches, Winn, Caldwell, Madison, Franklin, Tensas, Concordia, Catahoula, LaSalle, Grant |
| Total Population | ~389,837 |
| Catholic Population | ~35,402 (9.6% of total) |
| Parishes | 50 |
| Missions | 21 |
| Diocesan Priests | 65 |
| Extern Priests | 13 |
| Religious Priests | 4 |
| Permanent Deacons | 31 |
| Religious Sisters | 17 |
| Cathedral | St. Francis Xavier Cathedral, Alexandria |
The diocese reports approximately 35,402 Catholics, about 9.6% of the region's population, and is designated a "Mission Diocese."
Diocesan History.
The diocese traces its origins to 1853:
- July 29, 1853: Pope Pius IX establishes the Diocese of Natchitoches, covering northwestern Louisiana
- 1910: Pope Pius X renames the diocese as the Diocese of Alexandria, reflecting the relocation of diocesan headquarters
- 1976: Pope Paul VI redesignates it as the Diocese of Alexandria-Shreveport following territorial adjustments
- 1986: Shreveport becomes a separate diocese; the Alexandria diocese returns to its prior designation
The diocese operates as a suffragan diocese within the ecclesiastical province of the metropolitan Archdiocese of New Orleans.
Mission Diocese Designation and Financial Constraints.
The Diocese of Alexandria holds the formal designation of "Mission Diocese," a status conferred by the Holy See indicating that a diocese cannot sustain basic pastoral operations without external subsidies.
Chronic operating deficits. The diocese has operated at a loss for years and serves a largely rural and economically disadvantaged population.
Limited institutional wealth. The diocese lists $16.7 million in scheduled assets.
Concurrent reorganization. Even before the bankruptcy filing, the diocese was implementing a 2024 pastoral reorganization plan involving parish closures and consolidations.
Parish independence. The diocese states that its 50 parishes are separately incorporated under Louisiana state law and are not affected by the filing.
Bishop Robert W. Marshall Jr.
Bishop Marshall was appointed by Pope Francis in April 2020:
| Biographical Detail | Information |
|---|---|
| Date of Birth | June 17, 1959 |
| Birthplace | Memphis, Tennessee |
| Legal Education | J.D., University of Memphis (1983) |
| Theological Education | M.Div., Notre Dame Seminary, New Orleans (2000) |
| Prior Career | Civil attorney (before seminary) |
| Ordination | June 10, 2000 (Diocese of Memphis) |
| Prior Diocesan Roles | Vicar General, Diocese of Memphis (2019); Pastor, Cathedral of the Immaculate Conception |
| Episcopal Ordination | August 20, 2020 (by Archbishop Gregory Aymond) |
| Current Position | Thirteenth Bishop of Alexandria |
In public statements, he has been direct about institutional responsibility: "We are at this moment for one reason: some priests sexually abused minors," he stated. He separately apologized to abuse survivors "for the harm, pain and suffering they experienced."
Louisiana's Lookback Window: Legal Framework
HB 492 and the Elimination of Time Barriers.
Louisiana House Bill 492 changed the statute of limitations for childhood sexual abuse claims:
| Legislative Feature | Details |
|---|---|
| Bill | HB 492 |
| Author | State Representative Jason Hughes |
| Signed by Governor | June 14, 2021 (Governor John Bel Edwards) |
| Senate Vote | 32-0 |
| House Vote | 101-0 |
| Prior Limitation | Claims expired when survivor turned 28 |
| New Rule (abuse after June 14, 1992) | No time limit for filing civil claims |
| Lookback Window (abuse before June 14, 1992) | Initially 3-year window; extended to June 14, 2027 |
Before HB 492, Louisiana's statute of limitations for child sex abuse claims expired when a survivor turned 28 years old.
Supreme Court Rulings (2024).
The lookback window was struck down in March 2024 and reinstated in June 2024:
March 2024: The Louisiana Supreme Court struck down the lookback window as unconstitutional.
June 12, 2024: In a 5-2 ruling, the court reversed itself and upheld the constitutionality of the lookback window. Justices Scott Crichton and Piper Griffin reversed their March votes, joining Chief Justice John Weimer and Justices John Crain and Jay McCallum in the majority.
Chief Justice Weimer wrote: "Child sexual abuse is a unique tort in which the average victim does not come forward until they are 52 years old." Attorney Clé Simon, representing abuse survivors, described the court's self-reversal as "essentially unheard of."
The lookback window now remains open until June 14, 2027.
Claims Profile Against the Diocese.
The abuse claims against the Diocese of Alexandria span multiple decades:
| Metric | Details |
|---|---|
| Total Claimants | 85 survivors |
| Pending Lawsuits | 37 |
| Allegations from 1970s or Earlier | More than 50% |
| Named Perpetrators Deceased | Nearly all |
Catholic Diocesan Bankruptcy Context
The National Pattern.
The Diocese of Alexandria's filing places it within a pattern of Catholic diocesan bankruptcies that began in 2004:
| Metric | Current Status |
|---|---|
| U.S. Catholic Dioceses Filed Bankruptcy | 43 (as of December 2025) |
| Alexandria's Rank | 41st diocese |
| Cases Concluded | 29 |
| Cases Pending | 14 |
| First Diocesan Bankruptcies | 2004 (Archdiocese of Portland; Diocese of Tucson; Diocese of Spokane) |
The geographic distribution of diocesan bankruptcies includes:
| State | Diocesan Bankruptcies |
|---|---|
| California | 8 |
| Minnesota | 5 |
| New York | 5 |
| Other States | 25+ |
Financial Magnitude: $5 Billion (20-Year Total).
A study published in January 2025 documented:
| Category | 20-Year Total |
|---|---|
| Total Expenditure on Abuse Claims | $5,025,346,893 |
| Victim Settlements | 71% of total |
| Other Victim Payments | 4% of total |
| Attorneys' Fees | 17% of total |
| Credible Allegations Recorded | 16,276 |
| Abuse Prevention Spending | $727,994,390 |
| Average Annual Prevention Spending | $36,399,720 |
The same study found that more than 92% of all credible allegations involved abuse that occurred or began in 1989 or earlier.
Recent Major Settlements (2025).
| Diocese | Settlement Amount | Number of Claims | Per-Claim Average |
|---|---|---|---|
| Rochester, NY | $246 million | ~500 | ~$492,000 |
| New Orleans, LA | $230 million | 650+ | ~$354,000 |
| Syracuse, NY | $176 million | 400+ | ~$440,000 |
| Buffalo, NY | $150 million | ~900 | ~$167,000 |
New Orleans Settlement (2025).
The Archdiocese of New Orleans' settlement is a recent Louisiana case:
| Metric | New Orleans Archdiocese |
|---|---|
| Filing Date | May 2020 |
| Settlement Approved | December 8, 2025 |
| Case Duration | 5+ years |
| Total Settlement | $230 million (plus potential $75M from insurers) |
| Parish Contribution | $60 million combined |
| Victim Count | 650+ |
| Creditor Approval Rate | 99.63% |
Key Timeline
| Date | Event |
|---|---|
| July 29, 1853 | Diocese established as Diocese of Natchitoches |
| 1910 | Renamed Diocese of Alexandria |
| 1986 | Shreveport becomes separate diocese; Alexandria returns to standalone status |
| April 21, 2020 | Pope Francis appoints Robert W. Marshall as Bishop of Alexandria |
| June 14, 2021 | Governor Edwards signs HB 492; lookback window opens |
| March 2024 | Louisiana Supreme Court initially strikes down lookback window |
| June 12, 2024 | Louisiana Supreme Court reverses itself 5-2; upholds lookback window |
| May 22, 2025 | Husch Blackwell receives $1 million retainer for bankruptcy preparation |
| October 31, 2025 | Chapter 11 petition filed (Case No. 25-31257) |
| November 6, 2025 | Interim first day orders entered |
| November 20, 2025 | Section 341 meeting of creditors |
| December 9-10, 2025 | Final first day orders; cash collateral interim approval |
| December 23, 2025 | UCC Counsel Retention Application filed |
| June 14, 2027 | Louisiana lookback window scheduled to close |
Frequently Asked Questions
What is the Diocese of Alexandria and why did it file for bankruptcy?
The Diocese of Alexandria is a Roman Catholic diocese serving central Louisiana, encompassing 11,108 square miles with approximately 35,402 Catholics across 50 parishes and 21 missions. The diocese filed for chapter 11 on October 31, 2025, to address 85 clergy sexual abuse claims after Bishop Marshall acknowledged the claims "exceed our means." The diocese is designated a "Mission Diocese," meaning it cannot provide basic pastoral services without outside financial assistance and has operated at a loss for years.
How many abuse claims have been filed against the diocese?
Eighty-five survivors have filed claims, with 37 lawsuits pending against the diocese at the time of filing. More than half of the allegations date to the 1970s or earlier, and nearly all named perpetrators are deceased. Louisiana's law provides a lookback window for abuse before June 14, 1992 and removes time limits for abuse after that date.
What is the proposed settlement structure?
The diocese has proposed contributing $4 million plus limited insurance proceeds to a victim compensation trust. The case is projected to last 18-24 months and cost $1-2 million in professional fees. Final terms will depend on insurance coverage negotiations, potential contributions from other sources, and creditor approval of a plan of reorganization.
What is Louisiana's lookback window and how did it affect this filing?
Louisiana House Bill 492, signed in June 2021, eliminated the statute of limitations for child sex abuse claims occurring after June 14, 1992, and created a lookback window for older cases. That window, initially set for three years, has been extended to June 14, 2027. The Louisiana Supreme Court initially struck it down in March 2024, but the court reversed itself three months later in a 5-2 ruling—a reversal one attorney described as "essentially unheard of."
Are parishes affected by the bankruptcy?
No. The diocese's 50 parishes are separately incorporated under Louisiana state law and are not part of the bankruptcy estate. Restricted donations, including the annual diocesan appeal and seminary funds, are also protected.
What does "Mission Diocese" mean for the bankruptcy?
A Mission Diocese is one designated by the Holy See as unable to provide basic pastoral services without outside financial assistance. The Diocese of Alexandria has operated at a loss for years while serving a largely rural and economically disadvantaged population.
How does this case compare to other Catholic diocesan bankruptcies?
The Diocese of Alexandria is the 41st U.S. Catholic diocese to file bankruptcy due to clergy abuse claims. As of December 2025, 43 dioceses have filed nationwide, with 29 cases concluded and 14 pending. Major 2025 settlements include Rochester ($246 million for ~500 claims), New Orleans ($230 million for 650+ claims), Syracuse ($176 million for 400+ claims), and Buffalo ($150 million for ~900 claims). Over $5 billion has been spent on abuse claims nationwide over the past 20 years.
What happened with the Archdiocese of New Orleans bankruptcy?
The Archdiocese of New Orleans, which filed for bankruptcy in May 2020, reached a $230 million settlement with over 650 victims in December 2025—more than five years after filing. An additional $75 million may come from insurers, and parishes will contribute a combined $60 million. The settlement received 99.63% creditor approval.
What is the current status of the case?
The case is in its early stages with no plan of reorganization yet filed. A Final Cash Collateral Order was entered in January 2026. The Official Committee of Unsecured Creditors has been formed and is seeking to retain counsel. Multiple insurance carriers have appeared through counsel. First interim fee applications are due by February 2026.
Who are the key professionals in the case?
Husch Blackwell LLP serves as lead bankruptcy counsel with Gold, Weems, Bruser, Sues & Rundell as local Louisiana counsel. Getzler Henrich & Associates is the financial advisor, and Stretto, Inc. is the claims and noticing agent. The UCC has proposed Wiener, Weiss & Madison as counsel. Abuse survivors are represented by multiple law firms including Herman Herman & Katz and Gisleson & Lacoste.
For more bankruptcy case analyses and restructuring insights, visit ElevenFlo's bankruptcy blog.
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