Why Asbestos Firms Sought Bankruptcy

Until the mid-1970s asbestos was an enormously popular raw material for industrial and household products of all kinds. It provided insulation on every ship the Navy built; wallboard, floor tiles and roofing material in most of the new homes that were built and was used in hundreds of other industrial and construction products. However as the result of multiple medical studies and persistent lawsuits, the asbestos companies finally acknowledged the health problems asbestos fibers had created for hundreds of thousands of American workers and their families.

Since then the courts have held asbestos companies liable for health damages due to their products and hundreds of thousands of claims have been filed against those companies for damages. Asbestosis and mesothelioma was, and is being diagnosed for thousands of Americans annually. Employees from the construction trades, military veterans and workers from dozens of industries filed suits against manufacturers of asbestos and companies who used the material in their products.

Due to the enormity of the health problem and the number of liability claims filed by malignant mesothelioma and asbestosis sufferers, over 70 companies that were producers of asbestos or asbestos products filed for Chapter 11 bankruptcy. Chapter 11 status allowed them to develop a corporate reorganization plan that included compensation for liability claimants.

Establishment of the Asbestos Bankruptcy Trusts

Bankruptcy reorganization plans from these companies are submitted to the court, but include input from debtors and liability claimants. Most companies set up asbestos bankruptcy settlement trusts as part of the plan. These are trusts that are organized to process and pay off asbestos personal injury claims. Asbestos claimants file claims against the asbestos bankruptcy trust rather than against the company that has declared bankruptcy. Some of these trusts hold billions of dollars.

As the courts approved bankruptcy reorganization plans the asbestos bankruptcy trusts began processing claims as administrative matters rather than as the result of lawsuits For many of these companies it has taken a decade or more to reach settlement, which is why there are so many recent completions of the bankruptcy reorganization process.

Filing Claims with the Asbestos Bankruptcy Trusts

The medical requirements and proof of asbestos exposure requirements differ among the various trusts. It is up to the claimant to produce all of the relevant evidence - the medical records, the employment history and medical opinions about possible future health problems. Many claimants file with more than one asbestos bankruptcy trust; for example liability may fall to the company that manufactured the asbestos product and the mining business that produced the asbestos as well.

Getting Experienced Legal Help

Because of the complex process it makes sense to use an experienced asbestos attorney when seeking compensation from the asbestos bankruptcy trusts. Every trust has its own procedure and pitfalls; many people file claims with more than one trust. Below is a partial list of companies that have filed for asbestos bankruptcy - partial because many of these companies had subsidiaries or were subsidiaries themselves and may be involved in multiple bankruptcy filings.

If you have an asbestos related health problem and want an attorney that has experience with the asbestos bankruptcy trusts give us a call at or fill out the brief form at the top of the page. While your former employer may not have an asbestos bankruptcy trust, there may be affiliated companies, such as former suppliers, that do. Tell us about your experiences with asbestos exposure and we’ll take it from there.