Legal term
§524(g) Trust
Updated Jul 20, 20262 sources
In a sentence
A bankruptcy trust that channels all current AND FUTURE asbestos claims against a debtor into a compensation fund — the model other mass-tort bankruptcies try to imitate.
Section 524(g) of the Bankruptcy Code lets an asbestos defendant fund a trust that assumes its liabilities permanently, protected by an injunction channeling every claim — including claims by people not yet sick — into the trust's payment matrix.
Whether non-asbestos torts can achieve similar channeling is the fight underneath the 'Texas two-step' bankruptcies.
