DOJ: Marijuana businesses can’t seek bankruptcy protection

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Cannabis business owners cannot turn to federal bankruptcy courts when they land in financial hot water, a U.S. Department of Justice official reaffirmed.

Cliff White, director of the DOJ’s U.S. Trustee Program, sent a letter to trustees who deal with consumer bankruptcy cases reminding them that cannabis is illegal under federal law. He noted they shouldn’t handle money from the sale of cannabis-related property, Dow Jones NewsWires reported.

According to White’s letter, his division has seen a spike in the amount of bankryutcy cases in which “marijuana assets” have been disclosed. A spokeswoman wouldn’t disclose a number,

DOJ: Marijuana businesses can’t seek bankruptcy protection is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs

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