What Are Asbestos Trust Funds?

Asbestos trust fund is a fund that was set aside during a company’s bankruptcy to provide compensation for asbestos victims this includes people who have been diagnosed with mesothelioma, people who have been diagnosed with lung cancer after significant asbestos exposure as well as people that have asbestosis and other non-malignant asbestos diseases.

These funds were created by a federal law that required companies to set aside their assets in a fund solely to compensate as best as victims in exchange for setting aside this money the companies were able to reorganize and exit bankruptcy without being subject to any further suit so for many companies the only way to obtain compensation is to file a claim with that asbestos bankruptcy trust.

Unfortunately many of these trusts were underfunded in comparison to the amount of victims that were harmed by that companies asbestos and as a result it has become more and more important that any claims that can still be pursued in litigation are thoroughly investigated and that a lawsuit is filed in the state where the person resides or was exposed to asbestos.