Asbestos Bankruptcy Trust Claims

Asbestos litigation led to the creation of asbestos bankruptcy trusts. An asbestos trust reviews and pays claims submitted by people suffering from asbestos-related diseases caused by products made or sold by a company that declared bankruptcy.

Companies that used asbestos have filed for bankruptcy to handle the claims from those affected by asbestos exposure. The first bankruptcy trust was created in 1982 by Johns-Manville. The company manufactured products that contained asbestos. The trust continues to pay claims today.

Asbestos bankruptcy trusts are established pursuant to section 524(g) of the United States Bankruptcy Code. This law enables manufacturers to direct money into trusts to compensate asbestos victims. Asbestos trusts are funded through a combination of the company’s insurance, stock or other assets.

Beginning in the early 2000s, many asbestos companies began filing for bankruptcy in order to reorganize through Chapter 11 bankruptcy proceedings. Reorganizing allowed them to restructure, remain in business and form trusts. The trusts were established to pay damages to current and future victims of asbestos-related conditions like mesothelioma and asbestosis.

To receive compensation, a claim must be filed on behalf of the injured party. Documentation of the asbestos disease along with evidence of asbestos exposure from products manufactured by the company associated with the trust must be submitted. Injured persons may have been exposed to asbestos at work or through household exposure. Proof of an asbestos-related diagnosis, such as mesothelioma, lung and other asbestos-related cancers and asbestosis is required.

Compensation is awarded based on the severity of the medical condition. Each asbestos-related disease is assigned a liquidated value (a scheduled value). Because each trust is funded by the bankrupt company’s assets, it has a limited amount of money to pay all of the company’s victims. This means that many trusts are only able to pay a fractional portion of a claim’s value.

Asbestos bankruptcy trusts continue to accept and pay claims from asbestos exposure victims. More than 60 established asbestos bankruptcy trusts exist today. The total funds available across all asbestos bankruptcy trusts is over $30 billion.

List of asbestos bankruptcy trusts

More than 100 companies have filed for bankruptcy resulting from asbestos-related liability. Here is a list of 40 current asbestos bankruptcy trusts:

• ABB Lummus
• A. C. and S.
• A. P. Green Industries
• Armstrong World Industries
• ARTRA
• ASARCO
• Babcock and Wilcox Company
• Bondex International
• Burns and Roe Enterprises
• C. E. Thurston and Sons
• Celotex Corporation
• Combustion Engineering
• Congoleum Corporation
• Dana Corporation
• Durabla Manufacturing Company
• Federal Mogul
• Flintkote Company
• Fuller Austin Insulation
• G-1 Holdings
• Garlock
• General Motors Corporation
• Halliburton
• Harbison-Walker
• Hercules Chemical Company
• J. T. Thorpe
• Leslie Controls
• North American Refractories Company
• Owens-Corning Fiberglass Company
• Owens-Illinois
• Pittsburgh Corning Corporation
• Plant Insulation
• Plibrico Company
• Porter Hayden Company
• Quigley Company
• Shook and Fletcher
• T. H. Agriculture and Nutrition Company
• U.S. Gypsum Company
• U.S. Mineral Products Company
• Western MacArthur Company
• W. R. Grace and Company

Attorneys can help claimants prepare and submit all the documentation for their claim. Attorneys can help them comply with asbestos trust requirements and filing deadlines.

Eligibility for filing an asbestos bankruptcy claim

Asbestos bankruptcy trusts have eligibility criteria for filing a claim. This criteria includes:

• Proof of asbestos exposure (including length of exposure time and toxic products they were exposed to)
• Proof of an asbestos-related medical diagnosis

Some asbestos bankruptcy trusts have additional eligibility requirements that could impact the ability to file an asbestos claim. For example, families of persons who died from mesothelioma could be eligible to file a claim. Claims must be filed within asbestos bankruptcy trust deadlines.

How many asbestos bankruptcy trusts are there?

More than 60 established asbestos bankruptcy trusts currently exist. This information is from the U.S. Government Accountability Office (GAO).

What is the average payout for an asbestos bankruptcy trust claim?

It can be difficult to estimate a payout amount. It depends on the bankruptcy trust, the severity of the individual's medical diagnosis and the type of medical condition. Those who suffered harm from asbestos exposure may be eligible to collect from more than one asbestos bankruptcy trust.

Do I need an asbestos trust lawyer to file a claim with an asbestos bankruptcy trust?

While it’s not legally required to work with a lawyer in order to file this type of claim, it can be beneficial. Lawyers with bankruptcy trust experience can help claimants navigate the claims process efficiently.

Motley Rice attorneys have been pioneers in asbestos litigation for decades, representing thousands of individuals and families harmed by asbestos exposure. Our legal team helped uncover corporate knowledge of asbestos dangers and has held companies accountable through personal injury, wrongful death and product liability claims.

We continue to litigate asbestos cases nationwide, often taking them all the way to trial when necessary. Whether filing an asbestos lawsuit or trust claims, our team brings deep experience to each asbestos case. Our firm understands the long-term toll asbestos exposure can take not just on the individual, but on entire families.

Read more on our asbestos exposure litigation experience.