If you are considering filing an asbestos or mesothelioma lawsuit, you might be wondering where asbestos companies, especially those that are no longer in business, get the money to compensate their victims.
Some asbestos companies have filed for bankruptcy under Chapter 11 of the United States Bankruptcy Code. These companies often set up settlement trusts as part of the bankruptcy plan. According to procedures approved by the bankruptcy court, these trusts are organized to process, liquidate, and pay all valid personal injury claims against them.
Exposure to asbestos–a substance that was not declared a hazard to human health until the late 1970s–can lead to debilitating and deadly diseases ten to seventy years after it occurs.
While a certain amount of money has been put away by bankrupt companies, it is the trustees who determine the amount of compensation paid to claimants. Typically, the trusts determine the settlement value of the claim and then apply a payment percentage which is only a fraction of the total value of the claim. Most trusts now pay from 5% to 15% of a claim’s value.
Have you been affected by an asbestos-related disease? An experienced asbestos lawyer can help determine whether a lawsuit or a claim should be made on your behalf.