Debtor’s Alleged Ownership Interest in Cannabis-Related Companies Did Not Compel Dismissal of Bankruptcy Case, Rather Than Conversion to Chapter 7

In In re Roberts, the Bankruptcy Court of the District of Colorado held that a debtor’s alleged ownership interest in cannabis-related companies did not require a dismissal of the case and that a Chapter 7 trustee could administer the debtor’s assets. This represents a significant change from prior decisions from this court, which has usually dismissed any bankruptcy case involving cannabis. The decision may be a signal that an alleged investment in cannabis-related companies alone is not an automatic death knell to a debtor seeking bankruptcy relief or prevent a Chapter 7 trustee from administering estate assets.

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