With Federal Bankruptcy Courts Unavailable, Marijuana Businesses Turn to State Options

Federal bankruptcy courts have been unavailable to marijuana businesses due to the Schedule I status of marijuana. The United States Trustee's policy is to move to dismiss or object in each case involving marijuana assets, because they cannot be administered under the Bankruptcy Code.

8 minute read June 01, 2022 at 12:05 AM
By
David E. Sklar and Cheryl A. Santaniello 
With Federal Bankruptcy Courts Unavailable, Marijuana Businesses Turn to State Options

At present, 25 states, including the District of Columbia, have legalized marijuana.

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