No Bankruptcy Relief for Marijuana Business Owners

Recent Colorado Bankruptcy Court decisions have made it clear that owners of Colorado’s Marijuana Businesses are not entitled to bankruptcy protection in many cases.  The rationale is that, because Colorado’s marijuana businesses are illegal under federal law, these business cannot receive the benefits of federal bankruptcy laws.  Colorado Bankruptcy Courts have said: “Unless and until…

The Automatic Bankruptcy Stay

When a bankruptcy is filed, an automatic stay goes into effect pursuant to 11 U.S.C. Section 362.  The automatic stay is an injunction that prevents all actions by creditors including continuing lawsuits, garnishing wages and demanding payment.  The automatic stay begins the moment a bankruptcy is filed.  The automatic stay will generally end when debts…

Chapter 7 Bankruptcy

The average Chapter 7 is an uncomplicated process and takes approximately five to six months. A Chapter 7 Bankruptcy is a liquidation process conducted by a bankruptcy Trustee.  Bankruptcy law affords certain exemptions which can be used to protect personal assets and real estate. Any non-exempt assets can be liquidated in order to raise money…