Read the full article at LexBlog Bankruptcy Court Tells Debtors They Must Choose Between Bankruptcy Or Being Able To Buy Medical Marijuana Claiming a special circumstances deduction for the medical marijuana, the debtors’ plan provided for a distribution to unsecured creditors of approximately 38%. We have written before about the virtual dead end faced by marijuana companies who try to seek protection in the bankruptcy courts. In their disposable income calculations, the debtors disclosed that they spent $900 per month on medical marijuana. In In re Andrick, the debtors were a husband and wife who filed bankruptcy petitions under Chapter 13 of the Bankruptcy Code.
We have written before about the virtual dead end faced by marijuana companies who try to seek protection in the bankruptcy courts. Almost uniformly, bankruptcy courts have shut their doors on marijuana companies, including their landlords and suppliers. These courts have held that although marijuana use may be legal in a majority of the States, it is still illegal under the federal Controlled Substances Act, and the bankruptcy courts cannot provide relief to debtors who are violating federal law.
Read the full article @ Cannabis Law Report