Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “What are the pros and cons of bankruptcy ?”
A pending bankruptcy has thousands of Minneapolis, Minnesota-area school officials wondering whether the schools they operate will have enough money to continue operating.
The Archdiocese of St. Paul and Minneapolis is bankrupt, and schools run by the archdiocese are worried that millions of dollars of debt from clergy sexual abuse lawsuits could affect their finances. The eighty Catholic elementary schools and ten Catholic high schools in the area serve some 30,000 students.
In recent years, enrollment in area Catholic schools has fallen due to negative publicity about clergy sexual abuse. Falling enrollment has placed a strain on school finances, said Catherine Cory, director of the Murray Institute at the University of St. Thomas.
Interviewed by the Minneapolis Star-Tribune, Bishop Andrew Cozzens, vicar for Catholic education in the archdiocese, said that since schools are separately incorporated, they are not at risk in the bankruptcy. Catholic leaders in the area have repeatedly assured schools that the archdiocese’s decentralized corporate structure should shield schools from bankruptcy fallout.