Federal judge rejects California diocese’s bankruptcy plan

A federal bankruptcy judge on Oct. 2 rejected the Diocese of Oakland, California’s proposed bankruptcy plan to compensate hundreds of sexual abuse survivors.

The diocese filed for bankruptcy protection in May 2023 to address sexual abuse claims, according to an Oct. 9 report from Berkeleyside.

Oakland Bishop Michael Barber responded to the decision in an Oct. 2 letter to the faithful.

“While today is a setback, we remain committed to providing fair and equitable treatment for the survivors, and to continuing our mission to proclaim the Gospel of Jesus Christ in service to the 500,000 faithful Catholics in our community,” Bishop Barber wrote.

The diocese sought court approval for its plan through Chapter 11, a bankruptcy process allowing it to reorganize its finances and continue operating.

In its ruling, the court found that requirements for approval remained unmet, including insufficient evidence supporting the diocese’s decisions about which assets to retain or sell.

According to Berkeleyside, the committee representing abuse survivors also opposed the plan.

As Zeale News previously reported, Bishop Barber discussed the pending bankruptcy plan in April 2026 when the diocese announced it would close 12 parishes and one pastoral center amid declining Mass attendance and a shortage of priests.

In his Oct. 2 letter, Bishop Barber said the diocese was reviewing the ruling before announcing its next steps. He concluded by asking for prayers and reaffirming his commitment to serving the community. 

“The 120 active priests of the diocese and I pledge to continue our faithful service to you every day with the love and compassion of Jesus Christ. I ask for your prayers and commend you — and all involved in this case — to the intercession of Our Lady Queen of the World, patroness of our Diocese,” Bishop Barber wrote.

The bankruptcy case remains ongoing.