Your asbestos compensation: bankrupt companies are not a dead end

What you need to know about seeking asbestos compensation from bankrupt companies is that the companies' money does not simply disappear, and is not gone simply because they are bankrupt. The money and assets the company has are put into a trust, and a portion of that trust is reserved for victims of asbestos exposure.

Victims of asbestos exposure seeking compensation from a bankrupt company must file a claim, and go through the claims process, to receive compensation. With help navigating the claims process, you can still get the compensation you need. Many asbestos companies' response to lawsuits has been filing for bankruptcy, starting with Johns-Manville in 1982, and continuing to this day.

Weitz & Luxenberg would like to explain where the money goes in the process of bankruptcy, who decides where it goes, and how you can make sure the costs of your asbestos disease are covered—not by an asbestos lawsuit verdict, but through the claims process.

Why am I filing a claim, rather than filing a lawsuit?

Asbestos companies have often filed for bankruptcy on the basis that though they are not yet out of money, they know they do not have the money or insurance coverage to the pay all of the people who could seek compensation from them.

One of the advantages of filing for bankruptcy, from the company's point of view, is that all lawsuits against them are put on hold, and no new lawsuits can be filed while the bankruptcy proceedings are going on. Additionally, if the company comes out of bankruptcy after reorganizing, which many do, they no longer owe money to their creditors, and are no longer liable for asbestos exposure.

Because you cannot seek compensation in a lawsuit from an asbestos company once it has filed for bankruptcy, asbestos exposure victims must go through the claims process to seek compensation. The claims process can be bureaucratic and overwhelming the first time you go through it, and most people do not want to go through it more than once.

The quickest route to receiving compensation through the claims process is to get legal counsel. As with a lawsuit, Weitz & Luxenberg attorneys work on a contingency basis: we deduct our fee from the compensation you receive, and do not charge if you receive no compensation.

Who decides how much compensation I receive?

Filing for bankruptcy means the company turns their assets over to the court, and in the case of asbestos companies who anticipate more lawsuits than they could pay, the judge in bankruptcy court sets up a trust for victims of asbestos exposure. The trust is made up of the money and assets the company has, and a court appointed trustee determines just how much money that is.

The trustee's actions are supervised by the trust's advisory board, who are made up of attorneys for the defendant (the asbestos company), attorneys for the plaintiffs, and outside experts. The advisory board monitors the trustee's decisions, and makes sure the process is balanced.

There are less than two dozen active asbestos victim trusts in the U.S., and Weitz & Luxenberg is on most of them. We have experience with how the claims process works, and with a large team and excellent resources, we can make sure that you do not miss any important “file by” dates. The claims process is full of deadlines and technicalities, and rejections based on tiny errors and barely-missed deadlines. We understand that claimants would prefer to receive their compensation when they need it, which is as soon as possible.

Weitz & Luxenberg file your claim, and leave you free to focus on your health

We understand what claims processors are looking for because we have filed many, many claims in our over twenty years as a law firm. We can ensure that your claim does not go through unnecessary rejections simply because you forgot to fill in one blank on a form, or you do not remember the exact address of one of your former jobs, or you missed a deadline by one day.

You have a busy life, and with an asbestos illness in your family, you have concerns outside of juggling deadlines and figuring out what exactly the claims processors need to know. If you would like help ensuring that your claim is filed as quickly and efficiently as possible, contact Weitz & Luxenberg by phone or fill out a form today.