Tuesday, May 10, 2022

Pot and Bankruptcy Law, Not a Great Mix

 Pot and Bankruptcy Law, Not a Great Mix


An article posted at JDSUPRA, titled "Even Indirect Income from Cannabis Can Get You Banned From Bankruptcy" notes that "despite widespread trends in state-level legalization and decriminalization of high-THC cannabis and growing acceptance of cannabis among Americans, cannabis and cannabis products remain illegal under federal law".  Accordingly, the article states that  bankruptcy courts have consistently dismissed cases when a debtor directly engages in violations of the Federal Controlled Substances Act ("CSA") or where the debtor's reorganization efforts depend on proceeds derived from CSA violations. The article can be found at https://lnkd.in/eKqHw-Ga

Jim Shenwick, Esq. 212 541 6224 jshenwick@gmail.com


#cannabis
#bankruptcy

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