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General information only — not legal advice. Published by Edward & Amaury Solicitors, solicitors regulated by the SRA (no. 800525). How that affects what you read.

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Asbestos Bankruptcy Trust Claims

United States (federal and general)Last reviewed 18 September 2026

When an asbestos-linked company goes bankrupt, federal law lets it set up a trust that takes over its asbestos liabilities, and claims are directed to that trust instead of the courts. Someone with an asbestos disease can often claim from one or more trusts and also pursue companies that are still solvent.

How Asbestos Trusts Work

Direct Answer: Section 524(g) of the Bankruptcy Code lets a company facing asbestos claims reorganise by transferring its liabilities to a trust, protected by a channeling injunction that stops claimants suing the company directly.

To be approved, the plan must be supported by at least 75 percent of the claimants who vote, the court must find that future claims are likely but cannot be quantified, and a legal representative is appointed to protect future claimants. The trust is funded with company assets and future payments and is designed to pay present and future claimants.

Trust Claims and Lawsuits

Someone exposed to asbestos products from several companies may be able to claim from every relevant trust and sue those companies that are not bankrupt. Each trust sets its own submission process, proof of exposure and medical criteria, and its own payment percentage. An attorney experienced in asbestos claims will usually coordinate the two routes.

What You Will Need

Typical evidence includes a diagnosis from a physician, records of your work and exposure history, and identification of the products or sites involved. Gather employment records and medical documents early, since trusts can require detailed proof and some have their own deadlines.

Frequently Asked Questions

What is an asbestos bankruptcy trust?

A fund set up under a Chapter 11 plan to take over a bankrupt company's asbestos liabilities and pay present and future claims.

Can I claim from a trust and also sue?

Often yes. A trust claim is against the bankrupt company, and you can usually still pursue other companies that are responsible for your exposure.

Why can't I sue the bankrupt company directly?

Because the court's channeling injunction sends claims about the company's asbestos liability to the trust.

Does every trust pay the same?

No. Each trust has its own criteria and payment schedule, and payment percentages differ, so amounts vary.

What evidence does a trust claim need?

Generally a medical diagnosis, proof of exposure to the company's products and your work or site history, though requirements vary by trust.

Can I get a mesothelioma or asbestos lawyer without paying upfront?

Often, yes. Many attorneys handling injury and consumer claims work on contingency or fee-shifting arrangements, so you pay no hourly fees upfront, but the terms and treatment of case costs are set out in a written agreement. Read it before you sign and ask how costs are handled.

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Wrongful Death

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Statute of Limitations

Filing deadlines by state

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How Contingency Fees Work

From free consultation to settlement

Read more

Where this applies: Contingency fee rules are set state by state. Check your own state's rules before acting.

Sources for this page

Every rule stated above is based on the primary sources below. Each link goes to the legislation, court rule or regulator itself so you can check it. Last verified 18 September 2026.

  1. ABA Model Rule 1.5 (Fees)

    Model, not law. Each state adopts its own version. Rule 1.5(d) bars contingency fees in most domestic relations matters and in criminal defence.

  2. Cornell LII — contingency fee
  3. 11 U.S.C. § 524(g) — Asbestos trusts and channeling injunctions

    Allows an asbestos trust established under a Chapter 11 plan to assume the debtor's asbestos liabilities, with a channeling injunction sending claims to the trust, subject to conditions including approval by at least 75 percent of voting claimants.

Who wrote and checked this page

Written and published by
Edward & Amaury Solicitors (Edward & Amaury Ltd, company no. 12195443), regulated by the Solicitors Regulation Authority under no. 800525.
Legal review
This page has not yet been through independent legal review. It is written from the primary sources listed below, which you can check directly.
Review dates
Last reviewed 18 September 2026. Next review due 18 March 2027.

Fee rules change. California’s medical malpractice fee limits changed on 1 January 2023, and the QOCS rules in England and Wales changed on 6 April 2023. If you spot something out of date, tell us — we publish corrections.

Think you have a claim? Find out for free.

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Where this applies: Contingency fee rules are set state by state. Check your own state's rules before acting.

Sources for this page

Every rule stated above is based on the primary sources below. Each link goes to the legislation, court rule or regulator itself so you can check it. Last verified 2 August 2026.

  1. ABA Model Rule 1.5 (Fees)

    Model, not law. Each state adopts its own version. Rule 1.5(d) bars contingency fees in most domestic relations matters and in criminal defence.

  2. Cornell LII — contingency fee
  3. Federal Rule of Civil Procedure 54(d) (costs to the prevailing party)

    A losing plaintiff may be ordered to pay the defendant's taxable costs. There is no US equivalent of QOCS.

Who wrote and checked this page

Written and published by
Edward & Amaury Solicitors (Edward & Amaury Ltd, company no. 12195443), regulated by the Solicitors Regulation Authority under no. 800525.
Legal review
This page has not yet been through independent legal review. It is written from the primary sources listed below, which you can check directly.
Review dates
Last reviewed 2 August 2026. Next review due 2 February 2027.

Fee rules change. California’s medical malpractice fee limits changed on 1 January 2023, and the QOCS rules in England and Wales changed on 6 April 2023. If you spot something out of date, tell us — we publish corrections.