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NRA bankruptcy petition on the chopping block

| May 4, 2021 | Bankruptcy

For those that are hitting hard times lately or that have been struggling for the past year, they have likely heard of the bankruptcy boom within the business community as of late. The multiple high profile business bankruptcy filings have helped normalize the idea of bankruptcy as not a dirty word. And, for those that have been reading these business bankruptcy stories for courage to file their own, they have likely heard of the filing of the filing by the National Rifle Association.

Recent case arguments

Thanks to its high profile, the bankruptcy case of the NRA has dragged on for months. Recently, the New York Attorney General, Letitia James, has argued that the NRA’s case should be dismissed, while the NRA says the court should appoint a trustee or examiner to oversee the NRA’s business dealings.

Testimony

The case is occurring virtually in the North Texas bankruptcy court. Multiple people have already testified, including current and former high ranking NRA officials, like the CEO, Wayne LaPierre. The local attorney, Gerrit Pronske, who is representing the New York AG, has argued that the case should be dismissed based on a bad faith argument. Essentially, the argument is that the NRA is not going out of business or out of money and is only abusing the bankruptcy system to avoid liabilities from their former home, New York. Indeed, Mr. LaPierre admitted that the NRA is fiscally strong, but the attorney for the NRA, Gregory Garman, clime that the NRA has $40 million in unfunded future litigations.

The major takeaways

For New Port Richey, Florida, residents thinking about bankruptcy, they should know that the NRA filing and any business bankruptcy filing is significantly different than a personal bankruptcy. Though, Floridians should take this filing and other high-profile filings to realize that bankruptcy is simply a tool for financial solvency. It helps those who need a financial lifeline get a fresh financial start. But, the first step is to contact an attorney.

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