In the Media
Pulling the Weed: Bankruptcy Opinion Shows Debt Restructure Path for Cannabis Workers
Read Time: 1 minMember Heidi Urness (Seattle) was interviewed by the ABA Journal in “Pulling the Weed: Bankruptcy Opinion Shows Debt Restructure Path for Cannabis Workers.” She discussed bankruptcy options available to those in the cannabis industry.
“Blumsack paves the way for me to tell clients, ‘Yes, you do have access to the bankruptcy courts,’” she says.
A blanket rule that banned marijuana dispensary workers from obtaining bankruptcy relief did not sit well with Urness, especially considering that their work is legal under so many state laws.
“You might as well have been an arms dealer in the eyes of the bankruptcy courts, but now with Blumsack, you are through the gates,” Urness says. “It gives you a roadmap.”
Along similar lines, Urness says the court is essentially telling dispensary employees: “Thanks for coming to us, but you would be in a better position if you quit your job,” an outcome that she noted could make their debts even worse.
“Outside of bankruptcy, the government will take your [marijuana] money to repay student loans, and the Justice Department has no problem with it,” Urness says as an example.