Bankruptcy Code Doesn't Cover Pot Business, 10th Circ. Says

Law360, New York (August 24, 2015, 4:37 PM EDT) -- Colorado residents who own and operate marijuana dispensaries are not entitled to the relief afforded debtors under the U.S. Bankruptcy Code because while growing and selling marijuana is legal in the state, the business remains illegal under federal law, a Tenth Circuit panel ruled Friday.

In a published opinion, three judges on the Tenth Circuit's bankruptcy appellate panel unanimously ruled that a lower court correctly dismissed a Denver-based marijuana business owners' Chapter 7 case. The appellate court, which also ruled the debtors' case couldn't be converted to a Chapter 13, said as it relates to the bankruptcy code, the criminalization of...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Attached Documents

Related Sections

Government Agencies

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Beta
Ask a question!