Over the past couple of decades, mass tort litigation has expanded a great deal. Because of this trend, many companies, and businesses have been forced to seek out refuge in the bankruptcy courts. There is a unique forum for reconciliation and resolution in the bankruptcy courts when it comes to mass tort liability.
Mass tort settlements under the Bankruptcy Code have the benefit of the centralization inherent in bankruptcy proceedings. There are also a good number of tools available for rationally addressing the significant number of claims that are brought forward every year.
What is very significant and worthy of note is the fact that as mass tort litigation increases, the bankruptcy system will be forced to more and more claims. Throughout the United States, companies are being hit with thousands of claims and they simply do not have the resources to resolve them without the aid of the bankruptcy laws.
It is within the walls of these bankruptcy courts that companies rely on the procedures of bankruptcy as the tools they use to resolve the many mass tort litigation cases that they receive. A mass tort lawyer with a quality mass tort law firm can represent their clients effectively in the courts if they know how to play the game under those specific rules.
Companies that have done harm and have offended should not be allowed to simply run away from the responsibilities of their offenses. A mass tort attorney with credibility knows what to do in these situations. This quality attorney can steer her clients through the sometimes murky waters of the bankruptcy system, and obtain a fair and substantial settlement, in many cases.
In 2014, 97% of bankruptcy cases were personal. That means that they were everyday people and not businesses. When it came to businesses, only 3% of bankruptcy cases were attributed there. A recent Harvard study found that medical expenses account for roughly 62% of bankruptcy filings. Other studies have shown that at least 1% of bankruptcies filed are done so as a result of burdensome student loans.
When it comes to businesses, however, mass tort litigation that is resolved through the bankruptcy system is done so with streamlined tools that the court system provides. That is precisely why a quality lawyer who is familiar with these rules and the entire playing field, in general, can help his clients see the best outcome for their case.
Depending on the nature of the cases, the mass tort litigation system can be very difficult to navigate. The number of cases that come before the courts has burdened them to the point where the cases can drag on and on without a way of knowing when the end will come into view.
As with many things in our current, modern world, the bankruptcy system is taking on more than it ever has before. It makes it even more important in this day and age to have a quality law firm behind you.