How do Injury Settlements Work?
Posted on: July 25, 2024Injury settlements often involve compensating victims of personal injury cases, particularly when it comes to asbestos-related diseases. Companies that produced, used, or distributed asbestos and asbestos-containing products are typically responsible for compensating the victims. However, the sheer volume of legal claims against these companies has led many of them to file for Chapter 11 bankruptcy
When a company files for Chapter 11 bankruptcy, it gains protection from further lawsuits until its debts are resolved. This legal process halts all ongoing and potential litigation, allowing the company to reorganize its finances and address its obligations. Chapter 11 also mandates that these corporations establish a trust fund specifically to compensate current and future victims of asbestos-related diseases such as mesothelioma.
These trust funds are designed to ensure that individuals who develop mesothelioma in the future will still receive compensation, even if the company itself no longer exists. This system provides a measure of financial security for victims and helps streamline the compensation process. By creating these trust funds, the legal system aims to balance the need for companies to manage their debts with the rights of victims to receive fair compensation for their injuries.