Court Confirms Chapter 11 Plan Supported by Income from Marijuana Industry

The proliferation of states legalizing the use, sale and cultivation of marijuana has inevitably led to conflicts between the laws of those states and federal law, which treats marijuana as an illegal substance. Among the key arenas in which those conflicts are being decided are the United States Bankruptcy Courts. Most bankruptcy courts that have been faced with the issue have held that the Bankruptcy Code provides no relief to debtors engaged in the marijuana industry. More.