State’s Rights!

Some reactions to the ruling:

The NRA filed for bankruptcy in Texas in response to @NewYorkStateAG Tish James's lawsuit in New York seeking its dissolution for violations of state charity law.

Right out of the gate, Judge Hale says that's not what bankruptcy is for. pic.twitter.com/AogDRvs6Vg

— Adam Klasfeld (@KlasfeldReports) May 11, 2021

The judge found LaPierre's own testimony helpful in justifying his ruling to dismiss the bankruptcy petition, because the NRA chief pretty much said it's about avoiding the NYAG. pic.twitter.com/NU2HVwPflW

— Adam Klasfeld (@KlasfeldReports) May 11, 2021

As in, the NRA has the right to flee the State of New York and post “GTT*” on the door, and then use Federal law to seek bankruptcy protection from the New York AG.

The irony is, Texas was once a debtor’s escape.  Texas, to this day, has some of the most protective debtor laws around.  Until W. convinced the voters of Texas to amend the state constitution, a homestead was exempt from seizure except for taxes or a lien on the property (for mortgage or work done there).  The amount of property protected from a creditor’s seizure is still quite extensive, and the homestead is still protected against seizure for any debts not the subject of liens on the property.

But the NRA can’t flee New York to seek a “level playing field.” Especially when they seek the level playing field in federal court, in Texas.  That’s not the change of venue LaPierre thought it was.

I’m left wondering who the legal genius was who sold them on this strategy.  My guess is they’re no more than three degrees removed from Trump’s legal teams.

*”Gone To Texas.” As I say, once a debtor’s paradise.