Whether the trust is the product of a bankruptcy plan or a state law plan of dissolution, certain factors must be considered. Section 1123(b)(3)(B) of the Bankruptcy Code allows this prospect to be avoided.
To find out more, Lawyer Monthly hears from Ashley B. It states that a plan may provide for the retention and enforcement by the debtor, by the trustee, or by a representative of the estate appointed for such purpose, of any such claim or interest.
Asbestos trust funds are established as separate organizations from the companies that originally used asbestos.Due to the long latency period associated with asbestos exposure, many individuals who were exposed 20, 30 or even 50 years ago have only now been diagnosed with mesothelioma and may be eligible to apply for compensation from the established asbestos bankruptcy trust system.Several asbestos companies, starting in the 1970s and through today, faced a significant amount of lawsuits from current and future asbestos victims and decided to file for bankruptcy protection as a result.Filing for both usually comes about when a single asbestos-related disease was caused by several companies’ negligence.Receiving compensation from an asbestos trust may affect the amount of compensation you receive from a lawsuit against a solvent company.