Excerpt from Practical Guidance

Bankruptcy Courts' Buzzkill Of The Marijuana Industry

By Shane Ramsey and David Barnes (August 1, 2019, 12:54 PM EDT) -- This article discusses the federal statutory scheme governing marijuana, its tensions with state laws governing marijuana businesses and the availability (or lack thereof) of the relief provided under the Bankruptcy Code to marijuana-related businesses.

Controlled Substances Act

Since 1970, the federal government has prohibited selling, growing and distributing marijuana through the Controlled Substances Act, or CSA.[1] The CSA categorizes marijuana as a Schedule I controlled substance and makes a variety of activities related to marijuana illegal, including using, selling and manufacturing marijuana; financing businesses that sell or manufacture marijuana; leasing property to any such business; and selling related drug paraphernalia. One...

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