BOB ABERNETHY, anchor: In Oregon, the Roman Catholic Archdiocese of Portland became the first Catholic diocese in the nation to file for bankruptcy. The archdiocese has already paid $53 million to settle sex abuse lawsuits. The bankruptcy filing put on hold two trials in which plaintiffs are seeking a total of $155 million. For now, the archdiocese is protected from creditors. The case is being closely watched across the country, as many other dioceses also face major financial problems in the wake of the priestly sex abuse settlements. Joining us to discuss the implications of the bankruptcy filing is Mark Chopko, general counsel for the U.S. Conference of Catholic Bishops and adjunct law professor at Georgetown University. Mr. Chopko, welcome. Why did the Portland archdiocese file for bankruptcy?

MARK CHOPKO (General Counsel, U.S. Conference of Catholic Bishops): It felt that its back was literally against the wall. After having spent more than $50 million to compensate more than 100 people, the fact that these two lawsuits were going to trial threatened to wipe out the remaining assets of the archdiocese. Now, that would both impair their religious mission and make them unable to compensate another 30 or more people who are also pressing claims against the archdiocese. So the only way it felt it could both continue with its religious mission to serve the people in western Oregon as well as to compensate all of the victims, not just the two going to trial, it had to file this kind of a chapter proceeding.

ABERNETHY: Did the archdiocese have to get permission from the Vatican in order to do that?

Mr. CHOPKO: Under canon law there would be certain permissions that would be required, and I do not know what has gone back and forth between Rome and Portland.

ABERNETHY: But they probably did?

Mr. CHOPKO: They'd have to follow the canon law, and there'd have to be consultation and permissions.

ABERNETHY: Does filing for bankruptcy imply mismanagement?

Mr. CHOPKO: Not at all. It implies that you've been overwhelmed by your creditors and potential creditors.

ABERNETHY: So, briefly, what's the process now? The archdiocese is going into court, and then what happens?

Mr. CHOPKO: They're already in court and the bankruptcy judge will now, over the next month or so, set up a number of schedules that will have to be met for meetings with creditors, formation of committees, and then the preliminary filings. We'll see this unfold over the next two or three months.

ABERNETHY: But does it now become theoretically possible that the court could tell the archdiocese what it has to do in order to come up with some money? For instance, could the court tell the Archdiocese of Portland that it has to sell a high school or get rid of a feeding program, maybe an individual parish?