'Til Debt Do Us Part: Canon Law Considerations for Dioceses and Parishes in the Bankruptcy Process
This article examines the growing trend of dioceses within the United States filing for bankruptcy, and the interplay between federal bankruptcy law and canon law. From its early roots, bankruptcy law has evolved from punitive systems that benefitted creditors and punished debtors, to modern laws th...
| Main Author: | |
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| Format: | Electronic Article |
| Language: | English |
| Check availability: | HBZ Gateway |
| Interlibrary Loan: | Interlibrary Loan for the Fachinformationsdienste (Specialized Information Services in Germany) |
| Published: |
2024
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| In: |
The jurist
Year: 2024, Volume: 80, Issue: 2, Pages: 355-403 |
| Standardized Subjects / Keyword chains: | B
Holy See (motif), Verfasserschaft1, Codex iuris canonici (1983). 1284
B USA, Supreme Court / USA / Insolvency / Church administration / Diocese / Church congregation / Church property |
| IxTheo Classification: | SA Church law; state-church law SB Catholic Church law |
| Online Access: |
Volltext (lizenzpflichtig) Volltext (lizenzpflichtig) Volltext (lizenzpflichtig) |
| Summary: | This article examines the growing trend of dioceses within the United States filing for bankruptcy, and the interplay between federal bankruptcy law and canon law. From its early roots, bankruptcy law has evolved from punitive systems that benefitted creditors and punished debtors, to modern laws that aim to balance debtor relief with creditor rights. For Catholic dioceses in bankruptcy, an overarching question regards the legal status of parish assets and the relationship between dioceses and their parishes as juridic persons under canon law. These questions address what assets are available to settle claims against the diocese in the bankruptcy proceeding. While dioceses and parishes are distinct legal entities under canon law, this distinction is often misunderstood by civil lawyers, leading to disputes about the inclusion of parish assets in diocesan bankruptcy estates. An option exists, however, for parishes and other entities such as Catholic schools, social service agencies, and the like, to participate as non-debtors in the diocesan bankruptcy. A recent decision of the United States Supreme Court clarified that this must be done with the consent of the creditors, however. Existing canonical norms on the administration of temporal goods are far-ranging in their assistance to dioceses and parishes in remote or proximate preparation for potential bankruptcy. Attention to these provisions mitigates the legal and financial challenges faced by dioceses and parishes in bankruptcy proceedings. |
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| Contains: | Enthalten in: The jurist
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| Persistent identifiers: | DOI: 10.1353/jur.2024.a945236 |