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Judge rejects claim that stalled diocese bankruptcy case

GALLUP, N.M. — A New Mexico diocese is a step closer to resolving its bankruptcy case after a federal judge rejected a claim that had stalled the proceedings.

The Gallup Independent reports ( ) that the Sisters of the Blessed Sacrament filed a claim against the Diocese of Gallup as it was concluding its Chapter 11 reorganization case.

Attorneys for the diocese say the claim wasn’t filed in a timely matter. The Sisters’ attorney says the organization did not know of the diocese’s bankruptcy case until December 2015, more than two years after its Chapter 11 petition was filed, but the attorneys for the diocese say the Sisters were sent legal notices at the time the claim was filed.

U.S. Bankruptcy Judge David T. Thuma concluded a Monday hearing by disallowing the claim by the Sisters.


Information from: Gallup Independent,