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[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).

New yorkUnited statesLittle creekDistrict of columbiaHarlind haleWayne lapierreCarbon corpAckerman mcqueen incCircuit courtNational rifle associationNational rifle association of americaCourt holdingSea girtMeml corpUnited state bankruptcy courtJudge harlin