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Cannabis
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one of “apparent first impression” because no on-point decisions had been found, the court noted that, for approval of a Chapter 13 plan of reorganization, the plan is required by statute to be submitted “in good faith and not by any means forbidden by law.” If a plan is not sub- mitted in good faith, it may be dismissed “for cause.” Although neither ‘good faith’ nor ‘cause’ are defined in the bankruptcy code, both terms have been interpreted in case law throughout the country.
The Bankruptcy Court in this case held that, because Blumsack’s proposed plan of reorgani- zation was funded by wages that were derived from participation in a cannabis retail opera- tion and he continued to engage in the canna- bis industry — federally illegal activity — while his bankruptcy case was pending, the plan was not proposed in good faith and was proposed by a means forbidden by law. Specifically, the court found that Blumsack’s job duties “require that he act in violation of federal criminal stat- utes.” Because of this, his plan would require the Chapter 13 trustee to “knowingly adminis- ter wages derived from an active participant in a criminal enterprise.” As such, the court could
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not find, under an objective standard, that the petition had been filed in good faith.
As a result, the Bankruptcy Court dismissed Blumsack’s petition for cause, noting that a lack of good faith is well-established grounds for dismissal for cause. The court also dis- missed Blumsack’s alternative proposed plan for reorganization, despite the fact that it was to be funded by money not derived from the cannabis industry, because even under such a plan, Blumsack “objectively lacks good faith” by seeking the benefits and protections of federal bankruptcy law while simultaneously continu- ing to earn income from conduct that violates federal criminal law. In short, his plan, however funded, was tainted by his continued federally illegal activity.
While Blumsack’s counsel warned of a slip- pery slope, the court was unpersuaded and stated that it “must decide only the case it has before it.” The Bankruptcy Court made clear that its decision was cabined to the particular facts of this case, and that questions of good faith require a case-by-case analysis. None- theless, it is likely that other courts may take their cues from this decision to prevent others
in crisis is asking them if they’re all right. The professionals who spoke with BusinessWest expressed that people may feel they will offend someone, or they’re scared of the answer, or feel like it might give someone the idea of sui- cide, but it just opens the conversation for that person to be vulnerable and honest. If a friend or loved one shows a worrisome change in behavior, one shouldn’t hesitate to ask and get help for that person if they’re willing to accept it.
McKernan added that helping someone look for moments of joy and using grounding techniques can also help them through the moment.
Mental-health healing is not linear, he and others stressed, and some days will be more
employed by cannabis companies or by compa- nies serving the cannabis industry from filing for Chapter 13 bankruptcy.
How far will the reasoning of the court extend? To employees who do not directly participate in distributing cannabis products? To service providers who generate their own income by serving cannabis clients and thereby assisting them with their federally illegal activi- ties? The Bankruptcy Court’s decision provides no guidance on these issues.
Absent congressional decriminalization of cannabis, issues at the intersection of state and federal laws affecting the cannabis industry will continue to be addressed on an ad hoc, case-by-case basis by federal regulatory agen- cies, prosecutors, and courts. For now, we can add individual bankruptcy protections to the growing list of complex issues affecting those working in, or for, the cannabis industry. BW
Michael McAndrew is an associate, and Michael Roundy a partner, at the Springfield- based law firm Bulkley Richardson.
difficult than others. Being educated on the warning signs and symptoms of suicide and suicidal ideation can help save the life of a loved one.
At the same time, no one who has lost someone to suicide should feel it’s their fault — even though avoiding guilt is easier said than done.
The bottom line is, untreated mental illness can lead to suicide, and speaking up is the first step to getting help. “The brain is like any other organ,” Beheshti said, “and we really need to honor it and respect it like any other organ.”
If you or someone you know is having sui- cidal thoughts or ideations, call or text 988 or visit 988lifeline.org for more information. BW
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Suicide
at it that way.”
Piñero agreed, adding that the work “crazy”
is often used when talking about mental-health services, especially inpatient and outpatient treatments.
“It’s about letting people know that there’s no such thing. It’s just people dealing with stressors or dealing with medical conditions that are based on mental health or behavioral health. And that what we’re here to do, to pro- vide assistance, provide help,” he said. “All of us, at some point or another, could be dealing with some type of issue, and all of us could benefit from these types of services. So it’s just making it something that’s more normal and general to everybody.”
One of the best ways to help a loved one
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