A mesothelioma diagnosis often comes after years of unknowingly working around asbestos. Many victims seek legal action to hold responsible companies accountable. However, what happens when the company that exposed workers to asbestos has declared bankruptcy?
Contrary to popular belief, compensation may still be accessible. Many asbestos manufacturers were required to set up trust funds to ensure that mesothelioma victims and their families could receive financial assistance.
This guide by Vogelzang Law explains what happens when filing a mesothelioma lawsuit when the responsible company declares bankruptcy and outlines the legal options available to help victims secure the compensation they deserve.
Can You File a Mesothelioma Lawsuit If the Company Is Bankrupt?
Many asbestos-related companies, including manufacturers, suppliers, and contractors, have filed for bankruptcy due to the overwhelming number of lawsuits against them. However, bankruptcy does not mean they are free from liability. Courts have required many companies to create asbestos trust funds, allowing victims to file claims and recover compensation.
Trust funds operate separately from traditional lawsuits. Instead of suing the company directly, claimants submit claims to the fund, which evaluates their compensation eligibility. The process differs from a lawsuit but remains a viable legal option for victims seeking financial support for medical bills and other expenses.
What Are Asbestos Trust Funds and How Do They Work?
Asbestos trust funds were established to ensure victims could still receive compensation, even when companies no longer operated. These funds hold billions of dollars set aside expressly for individuals diagnosed with mesothelioma and other asbestos-related illnesses.
Each trust fund has its own criteria for evaluating claims. The claim process typically involves:
- Submitting medical documentation proving a mesothelioma diagnosis.
- Providing work history records demonstrating exposure to the company’s asbestos products.
- Undergoing a review process where the trust determines the compensation amount.
The Steps to Filing a Mesothelioma Claim with an Asbestos Trust Fund
Filing a claim with an asbestos trust fund follows a structured process:
- Identify the Responsible Trust Fund – Determine which company’s trust fund applies to your exposure history.
- Gather Documentation – Medical records, employment history, and supporting documents must be collected.
- Submit the Claim – The trust fund will require specific forms and evidence to process the claim.
- Await Evaluation and Payment Offer – Trust funds assess the claim based on set criteria and issue compensation accordingly.
Each trust fund has different guidelines and payout rates, making it imperative to ensure proper documentation and claim preparation.
Average Payouts from Asbestos Trust Funds
Compensation amounts vary depending on disease severity, trust fund payment schedules, and the company’s bankruptcy terms.
On average, asbestos trust fund payouts range from tens of thousands to hundreds of thousands of dollars. However, many trust funds operate on reduced payment schedules, meaning victims may only receive a portion of the claim value.
Legal professionals can help claimants maximize compensation by ensuring the correct claims are filed, and all relevant evidence is presented.
Can You Still Sue a Company That Filed for Bankruptcy?
Although direct lawsuits against bankrupt companies are often impossible, additional legal avenues may be available. If multiple companies contributed to asbestos exposure, a victim may have grounds to file lawsuits against other still-operational entities.
Some asbestos trust funds allow claimants to seek compensation through the trust and a lawsuit. This dual-claim strategy can help maximize financial recovery.
Common Challenges in Filing a Mesothelioma Claim Against a Bankrupt Company
Mesothelioma trust fund claims can be more complex than traditional lawsuits. Some challenges include:
- Claim Denials – Some trusts reject claims due to missing or insufficient documentation.
- Low Payout Percentages – Trusts often pay a percentage of the full claim value to ensure funds last for future claimants.
- Multiple Exposure Sources – Determining which company is responsible can complicate the claims process.
Experienced mesothelioma lawsuit lawyers help claimants overcome these obstacles and ensure they receive fair compensation.
How Long Do You Have to File a Mesothelioma Claim?
Time limits for filing asbestos trust claims and lawsuits vary. Most states impose a statute of limitations ranging from one to three years after a mesothelioma diagnosis. For wrongful death claims, deadlines often begin from the date of death.
Missing the deadline can prevent victims and families from obtaining compensation, making early action necessary.
How an Attorney Can Help with Your Asbestos Trust Fund Claim
A mesothelioma lawsuit lawyer can assist with the following:
- Determining eligibility for trust funds and other compensation options.
- Preparing and filing claims with the correct documentation.
- Appealing denied claims and negotiating fair settlements.
- Identifying additional liable parties for potential lawsuits.
Working with legal representation can help maximize compensation and ensure claims meet all requirements.
Next Steps: Filing Your Claim and Exploring Legal Options
Mesothelioma trust funds provide an essential avenue for financial relief, but filing a claim requires careful documentation and adherence to specific requirements. Understanding the process and seeking legal assistance can help victims and families receive the compensation they deserve.
If you or a loved one has been diagnosed with mesothelioma, legal options may still be available even if the responsible company has declared bankruptcy. Consult a skilled mesothelioma law firm today to explore your options and begin the claims process.
Discuss Your Legal Options with a Mesothelioma Lawsuit Attorney
Filing a mesothelioma claim after a company has declared bankruptcy can be a complex process, but compensation may still be available. Vogelzang Law has spent over two decades advocating for individuals and families affected by asbestos exposure, helping them recover compensation for medical expenses, lost income, pain and suffering, and other damages.
Each mesothelioma case is different, and the timeline for resolving a claim depends on multiple factors. Whether filing a trust fund claim, negotiating a settlement, or preparing for trial, Vogelzang Law provides dedicated support at every stage of the legal process.
If you or a loved one has been diagnosed with mesothelioma, explore your legal options as soon as possible. Call (312) 466-1669 today to speak with a mesothelioma lawsuit attorney and learn how to pursue the compensation you deserve.
