EXPLAINER: With bankruptcy tossed, what's next for the NRA?

FILE - In this Feb. 29, 2020, file photo, National Rifle Association Executive Vice President and CEO Wayne LaPierre speaks at Conservative Political Action Conference, CPAC 2020, in Oxon Hill, Md. Federal Judge Harlin Hale announced his decision Tuesday, May 11, 2021, to dismiss the National Rifle Association's bankruptcy case over whether the powerful gun-rights group should be allowed to incorporate in Texas instead of New York, after 11 days of testimony and arguments. Lawyers for New York and the NRA's former advertising agency grilled the group'sembattled top executive, LaPierre, who acknowledged putting the NRA into Chapter 11 bankruptcy without the knowledge or assent of most of its board and other top officers. (AP Photo/Jose Luis Magana, File)
FILE - In this Feb. 29, 2020, file photo, National Rifle Association Executive Vice President and CEO Wayne LaPierre speaks at Conservative Political Action Conference, CPAC 2020, in Oxon Hill, Md. Federal Judge Harlin Hale announced his decision Tuesday, May 11, 2021, to dismiss the National Rifle Association's bankruptcy case over whether the powerful gun-rights group should be allowed to incorporate in Texas instead of New York, after 11 days of testimony and arguments. Lawyers for New York and the NRA's former advertising agency grilled the group'sembattled top executive, LaPierre, who acknowledged putting the NRA into Chapter 11 bankruptcy without the knowledge or assent of most of its board and other top officers. (AP Photo/Jose Luis Magana, File) (Copyright 2020 The Associated Press. All rights reserved)

NEW YORK – Now that a judge has rejected the National Rifle Association’s bankruptcy bid, blocking its plan to reincorporate in Texas, the gun rights group is back to fighting a lawsuit that threatens to put it out of business.

Harlin Hale, a federal bankruptcy judge in Dallas, dismissed the NRA's case Tuesday. He ruled the organization's leadership sought Chapter 11 protection in bad faith — without informing most of its 76-member board — and did so to gain an “unfair advantage” in its fight with New York regulators.

What does that mean for the NRA and America's long-running battle over guns? Here's a look at where things go from here.

NEW YORK'S LAWSUIT

Hale’s ruling ensures New York Attorney General Letitia James’ lawsuit seeking the organization’s dissolution can continue. James, a Democrat, said Tuesday that discovery is ongoing. The case is expected to go to trial next year.

“The rot runs deep, which is why we will now refocus on and continue our case in New York court," James said.

James sued the NRA in August 2020, alleging executives diverted tens of millions of dollars for lavish personal trips, no-show contracts for associates and other questionable expenditures. NRA chief Wayne LaPierre and three others who have worked for the organization were also sued.

The NRA countersued, alleging James — who once called the NRA a “terrorist organization” — was motivated by political hostility. That case is pending.