The Catholic archdiocese of Portland in Oregon has become the first in the United States to file for bankruptcy.
The action was taken because of multi-million dollar lawsuits alleging sexual abuse by priests in the archdiocese.
The archdiocese has already paid out more than $50 million to settle abuse actions, but it faces new claims totalling more than $150 million.
The Archbishop of Portland, John Vlazny, said the bankruptcy move was not an effort to avoid responsibility.
