The Bankruptcy Code's Cannabis Challenge: The Past, Present, and Future of Bankrupt Cannabis Businesses

30 Norton Journal of Bankruptcy Law & Practice NL Art. 1

24 Pages Posted: 8 Nov 2021 Last revised: 10 Jul 2022

See all articles by Claudia Springer

Claudia Springer

affiliation not provided to SSRN

Amir Shachmurove

Brown Rudnick LLP

Jake Ziering

affiliation not provided to SSRN

Date Written: 2021

Abstract

This brief article analyzes the remarkable array of opinions about whether and how "cannabis debtors," a category that includes actual producers and passive and even unknowing participants, whose activities comply with state cannabis law but defy federal statute and policy prohibiting and punishing any link to this once prevalent plant may utilize the United States Bankruptcy Code to attain a desperately needed fresh start. In these cases, it discerns a fearsome series of hurdles. Even so, it distills a bit of guidance for cannabis debtors and their creditors caught in this clash between the Bankruptcy Code, harsh federal criminal statutes, and permissive state law. An official copy can be found via Thomson Reuters' various outlets.

Keywords: cannabis, marijuana, THC, CBD, Bankruptcy Code, bankruptcy, rehabilitation, liquidation, hemp, direct participants, indirect participants, opium, preemption, poison, Marihuana Tax Act, Controlled Substances Act, forfeiture, IRC, IRS, aid, abet, STATES Act, SAFE Banking Act, statutory interpretation

JEL Classification: K10, K11, K12, K13, K14, K19, K20, K22, K23, K29, K30, K32, K33, K34, K35, K36, K39, K40, K41, K42,

Suggested Citation

Springer, Claudia and Shachmurove, Amir and Ziering, Jake, The Bankruptcy Code's Cannabis Challenge: The Past, Present, and Future of Bankrupt Cannabis Businesses (2021). 30 Norton Journal of Bankruptcy Law & Practice NL Art. 1, Available at SSRN: https://ssrn.com/abstract=3832287

Claudia Springer

affiliation not provided to SSRN

Amir Shachmurove (Contact Author)

Brown Rudnick LLP ( email )

Seven Times Square
New York, NY 10036
United States
2122094850 (Phone)

Jake Ziering

affiliation not provided to SSRN

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
102
Abstract Views
464
Rank
492,046
PlumX Metrics