Bankruptcy

Bankruptcy

Many companies involved with asbestos manufacturing and products have filed for bankruptcy under Chapter 11 of the United States Bankruptcy Code.

Many companies involved with asbestos manufacturing and products have filed for bankruptcy under Chapter 11 of the United States Bankruptcy Code. When a company files for bankruptcy, actions against it, such as lawsuits, are suspended pending a decision by the Bankruptcy Court, which must approve a plan of reorganization.

As part of the reorganization plan, many companies set up settlement trusts. These trusts are organized to process, liquidate, and pay all valid asbestos personal injury claims according to procedures approved by the bankruptcy court. In this case, asbestos claim are filed against the settlement trust rather than against the company declaring bankruptcy. Medical and asbestos exposure requirements vary for each settlement trust. To find out more, contact us today.
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