People have been filing mesothelioma and asbestos-related claims for more than three decades now. Over the years, asbestos companies that recklessly exposed people to asbestos have been forced to pay plaintiffs huge amounts of money. Because of the huge payouts, some companies started filing for bankruptcy. Generally, companies began filing for bankruptcy to avoid liability. Most of the companies that chose to file for bankruptcy were not able to avoid liability. This is mainly because, as part of the Chapter 11 bankruptcy, companies were required to establish trusts that would fund victims of asbestos exposure. This is where asbestos and mesothelioma trust funds originated from.
What are Asbestos and Mesothelioma Trust Funds?
Asbestos trust funds, asbestos bankruptcy trust funds, or mesothelioma trust funds are trust funds created on behalf of bankrupt asbestos companies with a possibility of having an asbestos suit filed against them. Many companies set up trust funds years ago after going bankrupt. They created the trust funds to pay out compensation to victims who had already filed their claims and any individuals who filed claims in the future. Generally, the purpose of asbestos and mesothelioma trust funds is to put aside money for current and future asbestos claims.