Cannabis businesses encounter significant hurdles in accessing federal bankruptcy courts due to the federal illegality of cannabis. This prohibits plant-touching companies, and even those leasing to them, from utilizing the bankruptcy system, which is inherently federal. The Department of Justice supports this stance, leading to complications for cannabis companies facing financial distress. Without the automatic stay provided by bankruptcy proceedings, creditors can pursue aggressive collection efforts, exacerbating the financial struggles of these companies. This lack of access results in heightened complexities in bankruptcy cases, increased financing costs, and overall market inefficiencies. Multi-state operators face additional challenges, as these difficulties compel them to engage in multiple hearings across different states to resolve insolvency issues, rather than being centralized in a single bankruptcy court. The segmented state market fails to improve efficiency despite the need for cross-state considerations during cannabis-related bankruptcies.