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Snow

Gun rights group NRA files for bankruptcy

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 Guns are displayed inside a store on June 17, 2016 in Lake Barrington, Illinois.

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The National Rifle Association of America (NRA) filed for Chapter 11 bankruptcy on Friday with plans to regroup in Texas, citing opposition in New York.

Chapter 11 bankruptcy allows entities to continue operating while working on a plan to repay creditors. The petition listed assets and liabilities of as much as $500 million each. The group intends to restructure and reincorporate, according to a statement on its website. The gun rights group said the filing will help it “exit what it believes is a corrupt political and regulatory environment in New York,” according to the statement. 

For years, the NRA has received millions of dollars annually from the NRA Foundation, whose donors get a tax deduction. But the Covid-19 pandemic has disrupted the grassroots fund-raisers that have been so successful. The organization has also been beset by complaints over lavish spending and internal battles as it has battled a lawsuit by New York Attorney General Letitia James to dissolve the New York-based organization. Washington D.C. Attorney General Karl Racine filed a separate lawsuit against the NRA’s charitable arm, accusing it of misusing donor funds.

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How does an organization file for bankruptcy and then regroup in another state? Doesn’t filing a bankruptcy prevent reorganizing anywhere for several years? um1
 

 

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41 minutes ago, ajp said:

How does an organization file for bankruptcy and then regroup in another state? Doesn’t filing a bankruptcy prevent reorganizing anywhere for several years? um1

Essentially, there are different types of bankruptcies that you can file. This one in particular is a Chapter 11 bankruptcy, which basically allows them to keep all their assets (material or otherwise) and keep operating while they restructure themselves (downsizing, reducing spending, etc) in a way that makes it possible for them to pay off their debt as fast as possible. true1 

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1 hour ago, ajp said:

How does an organization file for bankruptcy and then regroup in another state? Doesn’t filing a bankruptcy prevent reorganizing anywhere for several years? um1
 

 

What @Snowsaid is essentially the reason.

Chapter 11 allows them to  gain some sort of protection from creditors under the assumption that they’re going to restructure any outstanding debt. 

Its Chapter 7 bankruptcy that is essentially the death of a company or an organization.

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I heard on the radio that a New York governor or somesuch said something like "the NRA's financial position is now at the same level as their moral one... bankrupt" fall9

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