The U.S. Department of Justice is issuing another reminder that marijuana businesses don’t have a right to bankruptcy proceedings.
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Rep. Jared Polis, D-Colo., co-sponsor of a bill to end federal prohibition of marijuana, is preparing to educate lawmakers on Capitol Hill about marijuana policy, on May 3, 2017, and it seems the event may have another major talking point to address: bankruptcy protection for marijuana businesses.
Starting over in the world of legal marijuana can be very difficult because, as the Tenth Circuit Court of Appeals recently confirmed, there is no bankruptcy relief for marijuana businesses. Without that option, a business failure can mean permanent financial ruin for the cannabis entrepreneur.
It takes a lot of guts to start your own business. There are innumerable challenges you will have to face as a business owner, not to mention the consequences of failing. Luckily, in the United States, if your business fails and you cannot pay your bills you can declare bankruptcy.