Trust Distribution Procedures

Trust Distribution Procedures, often called TDPs, are the written rules an asbestos bankruptcy trust uses to review and pay claims. They set out which diseases qualify, what medical and exposure evidence is required, and how much each type of claim is worth. Every trust has its own TDP, which is approved by the bankruptcy court when the trust is created.

Origin

TDPs grew out of the bankruptcy reorganizations that began in the 1980s, after companies like Johns-Manville were overwhelmed by asbestos lawsuits. Section 524(g) of the Bankruptcy Code, added in 1994, gave these trusts and their distribution procedures their formal legal footing.

Significance in Asbestos Context

For a patient, the TDP is the rulebook that decides whether a trust claim is paid and how much. It lists the qualifying diseases, from pleural disease up to mesothelioma, the "medical criteria" needed to prove each, and the exposure evidence linking you to that company's products. It sets a "scheduled value" for each disease and often a "payment percentage," the fraction of full value the trust can currently afford to pay. Understanding the TDP tells you what documents to gather, such as a diagnosis, pathology, work history, and product identification, and what your claim is realistically worth. Because there are dozens of trusts, each with its own TDP, a patient may have claims against several at once.

Example Sentence

Her attorney reviewed each trust's Trust Distribution Procedures to confirm which ones recognized her diagnosis and what evidence each required.

Related Terms

Asbestos Bankruptcy Trust, Section 524(g), Scheduled Value, Payment Percentage, Product Identification, Claim Matrix

Notes

• Ask your attorney which trusts your work history may support; each has its own TDP with different evidence rules and values.
• Gather the core proof most TDPs require: a diagnosis and pathology, a work and exposure history, and product identification tying you to specific companies.
• Note the "payment percentage" for each trust; it can change over time and affects how much a scheduled claim actually pays.