SAN DIEGO (AP) — When the Roman Catholic Diocese of San Diego filed for bankruptcy six months ago, it hoped to find shelter from potentially embarrassing and costly lawsuits from people claiming they were sexually abused by priests.

Instead, the church opened itself up to an unprecedented public examination of its financial affairs and to withering criticism from a judge.

US Bankruptcy Judge Louise DeCarl Adler has used her authority to interrogate church staff, order audits and, in the most recent blow, return individual cases to state court control for immediate trials.

Now, Adler is considering throwing out the whole case — a move that would leave the diocese where it was in February, with little choice but to settle or risk going to trial.

Mediation proceedings continue Thursday before a federal magistrate judge, and Adler delayed a hearing until Tuesday on the dismissal to allow for more talks.

"It's like sitting holding a candle on a pile of dynamite," said Richard Sipe, a former Benedictine monk who has written extensively on church abuse. "The question is how to blow the candle out."

San Diego was the fifth U.S. diocese to seek bankruptcy protection, and with nearly 1 million Catholics, it was by far the largest and wealthiest. The decision automatically suspended civil trials and at least temporarily shielded the church from testimony about what officials knew about the abuse.

At the time, Bishop Robert Brom told parishioners he believed bankruptcy court would be a neutral venue to reach a settlement that would fairly compensate about 150 alleged victims but leave church assets intact.

It has proven to be a noisy forum. Attorneys for people claiming abuse have repeatedly accused the church of lying, forum shopping and abusing the bankruptcy process. In return, church attorneys have claimed they are being victimized by greedy lawyers.

Adler, an experienced bankruptcy judge, has been a stern taskmaster. She has chastised the church for maintaining "Byzantine" records and commented that the diocese had more accounts than billion-dollar corporations that have come before her.