So, let me get this straight. Bankrupt. No more services? No more masses?
How on earth would a priest in the pulpet ever have the guts to ask people to contribute?
Not a good situation.
I don't know the structure in Spokane, but in most places the parishes have some structural independence from the diocese. The buildings are owned by the diocese, but the "parish" itself is not. So, for example, if the diocese has to sell all the church buildings, the good folks at St. Elmo's could start meeting in a Ramada or some such, then accumulate $ to buy a building, etc. That being said, I think it's unlikely that court will liquidate all diocesan property. They are more likely to set up some sort of payment plan, giving victims pennies on the dollar for their claims.
Welcome to the Springtime of Vatican II in the Church of Love.
Actually if nothing has been reduced to a judgement they may be in very good shape. Those claims would be unsecured leaving the secured creditors protected and the unsecured creditors S.O.L.
Of course there are always the cramdown provisions which can force terms on an uncooperative creditor.
It also depends on criminal charges. Criminal debt is not dischargable in Bankruptcy (much like child support). But there must be an ACTUAL criminal case with a order from that court.
If the church sets up a proper debtor in possession managment system, it should not be a problem IF (big IF) they properly disclose and explain EXACTLY what they are doing. Not that they have much choice in Bankruptcy court.