Yeah sure. But this whole case isn't about the New York Attorney General merely seeking fair restitution for liabilities or charging them with fair fines.

Instead, what they want is to dissolve the organization.

This second goal is what the NRA will be able to effectively avoid by declaring bankruptcy.

They will be charged in court and pay the fines if they pay the fair prices for the fines for the fraud, ect, but by selling the assets they will be able to get around the real goal of the prosecution which is dissolution of their organization.

If the NRA dissolves, it's members are free to reform under a new org. They can do that in Texas though ironically NY would be better as (apparently) Texas doesn't punish leaders of groups who steal from their members...

They might lose a few things enroute (the name, the url?). But it doesn't seem like it will make much difference to members.

The leaders on the other hand are looking at jail if the company is found guilty (though that will rely on separate prosecutions).

That's what the purpose of this bankruptcy is.

It is to transfer the assets and members to a new organization.

Things like the Virgina headquarters and employees can't just be spun back up overnight. That would be a huge loss, if that happened.

Thus, the purpose of all of this stuff is to move all the assets and members to a new organization, so there is as little friction as possible.

It is because none of this has anything to do with creditors making good faith attempts to get paid back.

What this whole thing is about, is about an attempt by the new york AG, to dissolve the organization, and is not a good faith attempt to make creditors whole.

The whole point of all this stuff, is to sidestep back faith attempts at dissolution, and instead go through the normal process for handling fines/fraud/ect.

The dissolution is what is going to be evaded.