Steve Davis, 2015
Leave it up to the federal government to say that states can sell marijuana whether for personal or medical use, making it legal, while at the same time saying it is illegal at the federal level. The result?
Marijuana companies have to pay employees in cash or money orders and can’t deposit money in bank accounts without it being considered money laundering, yet, the federal government explains how to file properly federal tax returns if you are in the marijuana industry.
Now, per the National Law Review, comes an interesting post.
For one, marijuana companies have been unable to file for bankruptcy because that’s falls under federal law and the bankruptcy courts cannot provide relief to debtors who are violating federal law. I know, none of this makes any sense, but it gets better/worse.
If you use medical marijuana and list that as an expense on your bankruptcy petition, per a bankruptcy court in Colorado of all places, that’s a no-go.
In In re Andrick, the debtors who filed for bankruptcy under Chapter 13, had their plan objected to by the U.S. Trustee because again, marijuana and its use is illegal at the federal level, regardless of the fact that the debtor has a valid medical marijuana license.
So, file for bankruptcy to get a fresh start due to mounting medical bills and give up marijuana? Because you can’t do both.
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