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As the townsfolk of Lubbock, Texas readied for the annual Fourth on Broadway Independence Day fireworks show and celebration, local car dealer Reagor-Dykes wanted to be front of mind.  So as it had the previous year, it sponsored the event by donating $25,000 to Broadway Festivals, the charitable organization that hosted the event.   Only this year, soon after the last bottle rocket burst, Reagor-Dykes filed Chapter 11.  This sparked a dispute between the Liquidating Trustee [...]

In its June 6, 2022 opinion in Siegel v. Fitzgerald, the United States Supreme Court resolved a circuit split and invalidated a 2017 statute that increased U.S. Trustee fees in 48 states—but not Alabama or North Carolina—as unconstitutional under the uniformity requirement of the Constitution's Bankruptcy Clause. See Siegel v. Fitzgerald, 596 U.S. ___ (2022). U.S. Trustee Fees, a History Proceedings under Chapter 11 of the United States Bankruptcy Code are typically pursued by corporate debtors and often [...]

As the trend to legalize the medical and recreational use of marijuana continues to blaze through the states, federal law, and bankruptcy courts by extension, have not yet followed suit.1 Bankruptcy courts have historically prevented cannabis - and even cannabis-ancillary companies - from filing for protection under the United States Bankruptcy Code2 because marijuana remains illegal under the Controlled Substances Act (CSA) at the federal level.3 Consequently, financially distressed companies in states where marijuana is legal still have [...]