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...
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