What to Know When Filing a Claim for an Asbestos Bankruptcy Trust

If you or a loved one has been diagnosed with mesothelioma or another asbestos-related illness, filing a claim with an asbestos bankruptcy trust may be an important step toward securing compensation. Many asbestos manufacturers have filed for bankruptcy over the years, but they were required to establish trust funds to pay victims harmed by their products. These trusts have collectively paid billions of dollars to claimants, understanding how they work can help you access the financial support you deserve.

1. What Is an Asbestos Bankruptcy Trust?

When companies that made or used asbestos filed for bankruptcy, they were protected from future lawsuits, but only if they established a trust fund to compensate current and future victims. These are known as asbestos bankruptcy trusts, and more than 60 exist today. Each trust operates independently and has its own set of rules for reviewing and paying claims.

2. Who Is Eligible to File a Claim?

To qualify for compensation from a trust, you must generally prove the following:

Diagnosis: You have been diagnosed with an asbestos-related disease (e.g., mesothelioma, asbestosis, lung cancer).
Exposure: You were exposed to asbestos from a product or company covered by that specific trust.
Work History: You may need to show employment or military records demonstrating when and where exposure occurred.

Many trusts provide “Exposure Criteria” and “Medical Criteria” in their Trust Distribution Procedures. These guidelines explain exactly what documentation is needed to prove a valid claim.

3. How Much Compensation Can You Receive?

Trusts pay only a portion of the claim’s value based on a payment percentage, which reflects how much money the trust has available. For example, if a trust values a mesothelioma claim at $100,000 and has a payment percentage of 25%, the payout would be $25,000.

Payment percentages vary widely from trust to trust and may change over time. Some claimants file with multiple trusts to pursue full compensation for their injuries.

4. What Documents Do You Need?

Common documents required include:

Medical records confirming your diagnosis
Proof of exposure (e.g., affidavits, job records, union records)
Work history
Social Security records
Death certificate (if filing on behalf of a loved one)

Each trust has its own documentation requirements. A knowledgeable attorney can help you collect and submit the right materials.

5. Statute of Limitations Still Applies

Filing a claim with a bankruptcy trust doesn’t necessarily prevent you from suing other responsible Even though bankruptcy trusts exist outside the regular court system, you still must file your claims within a limited time. This period depends on:

The state where the claim is being filed
When the diagnosis was made
When the trust was established

It’s important to act quickly to protect your rights.

6. You May Still Be Able to File Other Claims

Filing a claim with a bankruptcy trust doesn’t necessarily prevent you from suing other responsible parties. Many victims pursue a combination of:

Bankruptcy trust claims
Personal injury lawsuits
VA benefits (if applicable)

An experienced mesothelioma attorney can help determine all avenues for compensation.

7. Legal Help Can Make a Big Difference

The claims process can be complex, especially if you’re filing with multiple trusts or dealing with missing records. An attorney who specializes in asbestos litigation can:

Identify all trusts you’re eligible for
File your claims accurately and on time
Maximize your compensation

Most asbestos attorneys work on a contingency basis, meaning you don’t pay unless they recover money for you. For example, The Halpern Law Firm. To find out more information about your eligibility for the an asbestos trust fund, call (800) 505-6000 or fill out this contact form and someone will be in touch with you right away.