There are a number of companies out there that have trusts set aside in order to help pay for needs that have been raised related to exposure to asbestos and the development of mesothelioma.
Victims are Compensated
There are a number of individuals that have taken advantage of these trusts set aside for those who have been exposed to mesothelioma. They have been organized by bankrupt companies so that individuals will always have access to the funds that they are entitled to.
Even though these funds will pay for asbestos exposure, most of the time, those diagnosed with mesothelioma are going to receive the highest payout.
There are Billions Available
There were more than $3.3 billion collected from different asbestos trusts in 2008. A median payout for a claim was $180,000.
Financial Support for Thousands
It seems that the number of people looking to these funds for assistance is on the rise. There were more than 575,000 claims paid in 2008. This can help with treatment as well as money lost from not working.
The Victims are the Patients
Those that are struggling with the cancer are the victims because the companies were not open about the dangers.
Asbestos is often used in a number of different industries because it will be resistant to chemicals and heat. Companies also know that it is cheap. The companies knew this and they did not tell their workers about these dangers. But, more and more people started to catch on and they all began to file claims.
Trusts were set up to help pay the claims. The companies wanted to file for bankruptcy protection so they could still operate. Keep in mind that the amount of the trust is always set up by the bankruptcy court. These trusts have thousands of dollars set aside to pay for these settlements.
The RAND Corporation completed a report and they found that nearly “730,000 people had filed asbestos claims against at least 8,400 corporate defendants.”
There are a number of things that compensation can be used for. If you’re thinking about filing a claim to get access to these trust funds, it is a good idea to contact a good mesothelioma attorney, they can help with filing a claim as well as all the legal proceedings.
Facts About Compensation
- By 2013, there were roughly $30 billion put aside for patients
- Roughly 27.5 million individuals have been exposed while working
- Only 2.5% of the above 27.5 million people have actually filed for compensation
- Between 1980-2002, $70 billion was paid out to the victims
The Johns-Manville Corporation
The Johns-Manville Corporation use to be the top producer of insulation and materials used for roofing. The products had a lot of asbestos in them. The employees were affected and in 1929 they started to file claims. They were even involved in a strike that was rather violent. This took place at asbestos mines in Canada. This company was one of the first ones to file bankruptcy. They did this in the 1980’s. They also started one of the first trusts in 1987. This started a trend for many other companies.
Asbestos Trust Funds – What You Need to Know
These trusts are because of Chapter 11 bankruptcy. Bankruptcy courts forced the companies to set these up because of the claims that were being filed. They were set up to protect the victims.
Understanding Chapter 11 Bankruptcy
Chapter 11 bankruptcy is when a company is able to pay their debt while they continue to operate and do business as they did before. When individuals want to file a claim related to asbestos exposure they must be willing to do this against the trust.
The code does not put a limit on just how many trust funds a victim can file a claim with. It does not put any limits on just how much money a victim can ask for. This means that they may be able to file against a number of different companies. They may even be able to receive money from each and every one of them.
The trusts will have trustees that are going to manage the money that has been set aside. Then when a claim is filed the trustee will oversee that the money is paid out correctly. They may have other duties as well.
Trustees may be expected to:
- Managing any investing of the trust
- Complete all of the tax returns
- Take care of reports to the bankruptcy courts
- Stand in at court