This article from Angelus tells of the the July 1, 2025, bankruptcy filing of the Catholic Diocese of Fresno, California.  The article makes this comment about the filing:

In the Chapter 11 petition — filed July 1 in U.S. Bankruptcy Court for the Eastern District Court of California, Fresno Division — diocesan chief financial officer Cynthia Martin said that the “volume of lawsuits” puts the diocese “in immediate, dire financial distress,” with the diocese’s “total exposure … likely to exceed its assets.”

The bankruptcy filing would suggest that all assets of the diocese may have to be used or liquidated to pay for liabilities, however, the article also made this statement about some of those assets:

In a separate July 1 letter, provided in both English and Spanish, Bishop Brennan described the implications of the bankruptcy on the diocese’s cemeteries, of which there are at least five.

While the cemeteries are owned and operated by the diocese, “regardless of the Chapter 11 filing, the Diocese of Fresno will continue to own its cemeteries and fulfill its obligations to the Faithful under the terms of both its paid-in-full and financed pre-need contracts,” wrote Bishop Brennan.

Although the contracts are included in the bankruptcy schedules, the diocese plans to file a motion to assume them, and expects no objection, he said.

“Throughout the Chapter 11 proceeding, Catholic funerals and burials will continue uninterrupted as if no bankruptcy had been filed,” Bishop Brennan said in his letter, asking clients to continue their contractual cemetery payments.

Tom Anderson
Funeral Director Daily

Funeral Director Daily take:  I write this column today just to comment on what I might say of business and legal issues in the United States.  To me, it just seems that you have to take an attitude of “you just never know”.

For instance, the diocese is probably correct in assuming that a court will maintain that the church body continuing to operate the cemeteries is a good result for preneed consumers and lot owners. . .and possibly the best result for the congregations.  However, I’ve never been one to count on probable assumptions.  What if some other group puts in a bid to purchase the cemeteries out of bankruptcy or what if the plaintiffs win judgements that can only be satisfied by the sale of the cemeteries?  Who will operate the cemeteries then. . . . and, depending on the jurisdictions laws, what might happen to consumer pre-arrangements?

It’s just a cautionary statement by me that when you are in business it is best to assume that things won’t always be as you think they will be.  Things change over the years and as a business person you need to change your operations at times to “go with the flow”.

More news from the world of Death Care:

Life insurance questions seniors should be asking in today’s economy.  MSN

Cemetery faces financial strain as cremations rise.  BBC News (Great Britain)

Defense Department reviews process for handling remains of fallen warriors.  Department of Defense Information Distribution Service

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