[co-author: Alex Xiao]
Executive Summary
In May, 2021, Judge Harlin D. Hale of the United State Bankruptcy Court for the Northern District of Texas, dismissed the chapter 11 cases filed by the National Rifle Association. The court found that the organization filed bankruptcy to gain an unfair litigation advantage and avoid a state regulatory action brought by the New York Attorney General, which is not a valid bankruptcy purpose. This high-profile case demonstrates that although the bar is not high for an organization to procure protection from creditors under the U.S. Bankruptcy Code, a barrier of entry does stand.
In re National Rifle Association of America and Sea Girt, LLC, No. 21-30085 (Bankr. N.D. Tex. May 11, 2021).
Northern District of Texas Bankruptcy Court Dismisses NRA Bankruptcy Cases | Kramer Levin Naftalis & Frankel LLP
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The Kansas Reflector welcomes opinion pieces from writers who share our goal of widening the conversation about how public policies affect the day-to-day lives of people throughout our state. C. Malcolm Ellsworth’s writing has appeared in The New Yorker, The Christian Science Monitor and numerous literary journals. She lives in Eudora.
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