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Marijuana Bankruptcy? Think Again

Marijuana Bankruptcy? Think Again

By Hilary Bricken on September 3, 2014

Be it the IRS, the Bureau of Reclamation, or the banks, the conflict between state and federal laws on marijuana can cause problems to those in the marijuana industry. You should now add filing for bankruptcy to the list.

When businesses go (or are near to going) under, they typically file for bankruptcy in a federal court to reorganize the business or to liquidate its assets. Bankruptcy can allow debtors to keep their necessary assets and property for day-to-day operations, and it also usually involves an asset distribution plan that keeps creditors from suing the business.

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