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Legalization of marijuana continues at the state level including in several new states this November, but it remains illegal at the federal level. Given this illegal status, businesses and individuals directly involved in the marijuana industry have often been unable to obtain relief in federal bankruptcy courts—with bankruptcy courts dismissing marijuana cases because the purported debtor’s conduct is unlawful under federal law. Three cases decided in 2020 highlight potential barriers to bankruptcy protection faced by debtors even when they are only indirectly involved in the marijuana industry.
Continue Reading Marijuana Industry Takes a Big Hit in Federal Bankruptcy Court in 2020