December 5, 2024

What is an Asbestos Bankruptcy Trust?

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What is an Asbestos Bankruptcy Trust?

Asbestos exposure has been directly linked to devastating illnesses like mesothelioma and lung cancer. Many companies that manufactured or used asbestos products have been held accountable, leading to significant asbestos litigation. However, instead of facing ongoing lawsuits, some companies filed for bankruptcy and, as part of their restructuring, were court-ordered to establish asbestos bankruptcy trusts. These funds are dedicated to compensating victims of asbestos exposure, both current and future.

When pursuing compensation, it’s essential to understand all available options, including asbestos bankruptcy trusts. If you’re ready to explore this path, the experienced mesothelioma attorneys at Serling & Abramson, P.C. offer free consultations to review your case.

What is an Asbestos Bankruptcy Trust?

Asbestos bankruptcy trusts were set up by companies that sought bankruptcy protection due to the volume of asbestos-related claims against them. These companies were court-ordered to set aside funds to cover current and future claims. Since asbestos-related illnesses can take decades to manifest, the trusts were structured to provide compensation to both present and future claimants.

As of today, more than 80 asbestos trusts have been established, containing billions of dollars set aside specifically for asbestos-related claims. These funds were created to streamline the process, allowing victims to seek financial relief without engaging in prolonged litigation.

How Asbestos Trusts Differ from Lawsuits

Unlike traditional lawsuits, where companies pay settlements or trial awards directly, asbestos trusts are pre-funded. This means the money is already allocated for victims, which can lead to faster compensation. Asbestos trust fund claims have grown in popularity as they offer a more efficient and accessible way for victims to secure funds compared to lawsuits, which often require extensive litigation. Trust payouts are generally smaller than lawsuit awards but can still provide meaningful compensation.

Who Are the Victims of Asbestos Exposure?

Victims of asbestos exposure are individuals who were exposed to asbestos-containing materials and developed serious health conditions as a result. These include:

  • Mesothelioma Patients: Individuals diagnosed with mesothelioma, a rare and aggressive cancer, caused primarily by asbestos exposure.
  • Lung Cancer and Asbestosis Patients: Those who developed lung cancer or chronic respiratory diseases due to asbestos exposure.
  • Family Members: Spouses or immediate family members who experienced secondary exposure from asbestos fibers brought home on the clothing of loved ones.
  • Future Victims: Due to the long latency period of asbestos-related diseases, new cases may emerge decades after exposure. Asbestos trusts were designed with this in mind, ensuring compensation is available for both current and future claimants.

Pursuing Compensation from an Asbestos Trust

Compensation from asbestos trusts can be claimed through an asbestos trust claim, which allows victims or their families to access funds set aside by bankrupt companies

When filing a mesothelioma trust fund claim, it’s crucial to work with a law firm that understands the intricacies of each trust’s requirements. Serling & Abramson, P.C. has a dedicated team that will handle all aspects of your claim, ensuring you receive the maximum compensation you are entitled to.

How Asbestos Trust Compensation is Determined

Asbestos trust fund compensation varies based on factors such as the claimant’s medical condition, length of exposure, and trust payout policies. Each trust fund assigns a payment percentage to ensure funds are available for both current and future claimants. For example, if a trust has a payment percentage of 25%, and your claim is valued at $100,000, you would receive $25,000.

Factors that influence asbestos trust compensation include:

  • Type of Disease: Different diseases (e.g., mesothelioma, lung cancer, asbestosis) often yield different compensation levels.
  • Diagnosis Date: When you were diagnosed can impact eligibility and payout.
  • Type of Asbestos Exposure: Details such as the asbestos products you were exposed to and the duration of exposure.
  • Exposure Site: The worksite or product associated with the exposure, and the history of asbestos at the location.
  • Type of Claim (Expedited vs. Individual Review): Expedited reviews provide quicker payouts with set amounts, while individual reviews may involve more investigation but can yield higher compensation.

These criteria ensure each claimant receives a fair payout based on their unique circumstances, including medical expenses, lost wages, and pain and suffering.

Typical Asbestos Trust Payouts

The average asbestos trust payout ranges between $300,000 and $400,000, though some claims may reach $750,000 or more depending on the specifics of the exposure and illness. With around $30 billion currently held in active asbestos trusts, funds are available to provide support for eligible victims.

If multiple products or companies are involved in your asbestos exposure, you may be able to file with multiple trusts, potentially increasing your overall compensation.

Future Victims and the Importance of Asbestos Trusts

One of the primary reasons for creating asbestos bankruptcy trusts is to ensure that future victims are not left without options for compensation. Because of the long latency period of asbestos-related diseases, more individuals may be diagnosed with mesothelioma, lung cancer, or asbestosis in the coming years. Asbestos trusts were established to provide for both current and future claimants, maintaining funds through payment percentages that adjust as claims are processed.

Why Work with Experienced Asbestos Attorneys?

Navigating asbestos trust funds and understanding asbestos liability requires expertise. Experienced asbestos attorneys are familiar with each trust’s requirements, the specific products linked to different companies, and the nuances of asbestos litigation. Serling & Abramson, P.C. has extensive experience handling asbestos claims and will leverage their resources and knowledge to maximize your compensation.

Maximizing Your Mesothelioma Trust Fund Claim

Working with experienced mesothelioma attorneys can significantly impact the outcome of your claim. Serling & Abramson, P.C. has decades of experience with asbestos litigation and understands the strategies needed to maximize trust fund claims. By documenting your exposure, compiling thorough evidence, and ensuring all claims are filed on time, they provide the strongest possible support for your case.

If you or a loved one has been diagnosed with mesothelioma or another asbestos-related illness, reach out to Serling & Abramson, P.C. today for a free, no-obligation case review. They’ll help you understand your rights and guide you through the process to secure the compensation you deserve.