While most bankruptcy cases have denied access to federal bankruptcy courts for cannabis and cannabis-related businesses, a Nevada bankruptcy court allowed a chapter 11 case to continue where the Debtor sought to liquidate, for the benefit of its creditors, its shares in a legal Canadian cannabis business. This decision in In re The Hacienda Company, LLC signifies an increasing comfort level by bankruptcy judges to allow federal bankruptcy relief where the debtor is not continuing to engage in activity in violation of the federal Controlled Substance Act of 1970 (the CSA).… More
Tag Archives: bankruptcy law
Employee of Cannabis Dispensary Denied Personal Bankruptcy Relief
In a case of first impression, a bankruptcy court refused to allow an individual to receive bankruptcy relief because he was, and continued to be, employed by a cannabis business.[1] The United States Bankruptcy Court for the District of Massachusetts (Central Division) recently dismissed the chapter 13 bankruptcy case of a debtor who proposed to use his wages from his employment at a marijuana dispensary to fund a chapter 13 plan of reorganization.… More