On June 9, 2011, in In re McGinnis, 453 B.R. 770 (Bankr. D. Or. 2011), the U.S. Bankruptcy Court for the District of Oregon addressed certain issues arising from a Chapter 13 debtor’s proposed debt adjustment plan.

The court declined to confirm the debtor’s proposed plan as it violated both state and federal law, and because it failed to meet the "feasibility" requirement of 11 U.S.C. § 1325(a)(6). Specifically, the court addressed the validity of a plan that relied largely on income from the debtor’s medical marijuana operations. In making his case for feasibility, the debtor urged the court to consider the Obama administration’s recent pronouncements that the federal government would not interfere with such operations that comply with state law. Important to the court’s reasoning was the fact that these operations were nonetheless still illegal under federal law.

The Facts

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]