Asbestos Trust Funds
In Summary: Asbestos trust funds were set up by asbestos companies for the victims of exposure-related diseases. After declaring bankruptcy, courts forced the manufacturers responsible for the flood of mesothelioma and other asbestos-linked diagnoses to form trusts to pay future legal claims. An asbestos trust fund allows a victim who has been impacted by the company’s negligence to receive compensation, even though the business is no longer operational.
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What Is an Asbestos Trust Fund?
Asbestos trust funds are the result of corporations voluntarily declaring bankruptcy, or Chapter 11, and taking advantage of a special law passed just for them due to the large number of claims filed. Chapter 11 protects the business from facing any further legal action, whether personal injury or wrongful death claims, and any claims against that company are paid through the asbestos trust.
Due to the amount of money typically received in a mesothelioma case, and that a company’s actions rarely affected only one person, companies that manufactured and distributed asbestos products voluntarily filed for bankruptcy protection, which allowed trust funds to be set up to pay claimants affected by asbestos-related diseases.
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Victims who receive compensation from an asbestos trust fund may use the money however they see fit. In most cases, the money is used to pay medical bills or other expenses due to loss of income. Other times, the victim will use the money to help their family.
What Do I Need to File with an Asbestos Trust Fund?
In order to successfully file a claim through an asbestos trust fund, the victim must prove eligibility. This can be done in one of the followings ways:
- Proof the victim worked at a specific location at a specific time
- Proof the victim was exposed to asbestos from using a specific product
The victim must also provide official documentation to confirm the mesothelioma diagnosis, signed off by a doctor or mesothelioma specialist. The documentation must include results of medical tests, like biopsies and x-rays.
Filing a Claim Against a Company Facing Bankruptcy
Discovering that the corporation responsible for your illness has declared bankruptcy may seem disheartening, but asbestos trust funds are designed to help in those situations. To learn more, speak with an experienced mesothelioma attorney who can guide you or your loved ones through the claims process.
Next Steps for Filing a Legal Claim
When filing a legal claim against a company facing bankruptcy, it’s important to seek the help of a professional — someone who understands how asbestos trust funds work. Lawyers who specialize in mesothelioma claims will help victims receive as much compensation as possible. In some cases, that money may come from multiple trusts. Complete our free case evaluation form to connect with a qualified mesothelioma attorney and receive the compensation you deserve.
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