asbestos bankruptcy trust

An asbestos bankruptcy trust is a fund established by companies that used asbestos and later filed for bankruptcy due to asbestos-related lawsuits. These trusts are designed to compensate individuals harmed by asbestos exposure, such as mesothelioma or lung diseases. When a company faces numerous claims, it sets aside funds into the trust, which then distributes payments to eligible victims. This process helps resolve legal liabilities efficiently, providing a structured way for injured parties to receive compensation, even if the original company is no longer in business.