| Posted on Sun, December, 10th 2017 by THCFinder
The discrepancy between federal and state laws regarding legal cannabis oftentimes make it tricky for marijuana businesses to operate like a traditional company.
For example, they are unable to utilize traditional banking due to its status as a Schedule I narcotic, and they don’t have the access to a plethora of protections typical businesses consider standard.
One such protection is the right bankruptcy aid, and the U.S. Department of Justice has been quick to remind the cannabis industry that they cannot file for bankruptcy under any circumstances.
No Bankruptcy Aid For Marijuana Businesses, Says the Department Of Justice
In an article published by the American Bankruptcy Institute last Friday, director of the Justice Department’s Executive Office for U.S. Trustees, Clifford J. White III, and the trial attorney for the agency, John Sheahan, explained that cannabis businesses cannot claim bankruptcy because of their lingering Schedule I status.