Austin Gun Rights Advocate Faces Bankruptcy Challenges After Supreme Court Win

Michael Cargill, an Austin-based gun rights advocate, is navigating a challenging financial landscape despite a recent victory at the U.S. Supreme Court. Cargill has dedicated over a decade to advocating for looser firearm regulations and successfully overturned the Trump administration’s ban on bump stocks. However, his triumph in the courtroom contrasts sharply with the troubling state of his business, Central Texas Gun Works, which is facing nearly $3 million in debts.

The gun shop, registered under the name CTCHGC LLC, is currently in bankruptcy proceedings, with assets significantly outweighing its liabilities. Court documents reveal that Cargill’s business is burdened with roughly five times more debt than its assets. His financial difficulties are compounded by the fact that Cargill’s personal bankruptcy is being handled simultaneously with that of his business, illustrating the depth of his fiscal challenges.

In a desperate bid to manage his finances, Cargill has sought an emergency court hearing to allow him to access cash for payroll. Employees were scheduled to receive their paychecks on Friday, and the motion seeks an expedited hearing, potentially as soon as today or Tuesday. This marks the second time in two years that Central Texas Gun Works has filed for bankruptcy.

Cargill’s current attorney, Stephen Sather, indicated that the sudden passing of Cargill’s former attorney, Kell Mercer, may have contributed to the reemergence of financial troubles. However, Sather emphasized that aggressive actions from creditors attempting to collect debts played a more significant role in the gun shop’s financial distress.

One notable creditor began sending out notices to businesses that owed money to Cargill, claiming a lien on the property and advising them to settle debts directly with the creditor. “When people get these notices, they shut down because they don’t know who to pay,” Sather explained, highlighting the confusion that ensued.

A review of the bankruptcy filings indicates that little progress has been made in reducing the debts owed to major creditors. As of September 2024, the shop owed over $650,000 to Austin-based lender Adrian Jung, and that figure has now risen to over $730,000. Additionally, the gun shop owes nearly $1 million to the U.S. Small Business Administration and more than $35,000 to the estate of conspiracy theorist Alex Jones.

Cargill’s failure to timely file necessary paperwork may jeopardize his protection from creditors in the bankruptcy process. The U.S. trustee overseeing the case, Shane Tobin, has requested that the court consider converting the bankruptcy to Chapter 7 liquidation or dismissing the case due to these delays. If dismissed, creditors could initiate lawsuits against Cargill to recover their funds, potentially leading to a flurry of filings.

A hearing regarding Tobin’s motion is set for Friday. Should Cargill manage to complete the required filings this week, Sather believes it is unlikely the judge will dismiss the case, allowing for further proceedings.

Cargill has been a prominent figure in the gun rights movement in Austin and has actively participated in the Republican Party of Texas. He has gained notoriety for his controversial stances and has engaged with the media to amplify his message. At one point, he hosted a radio show called “Come and Talk It,” a nod to the historic Texas Revolution slogan.

His legal victories include successfully challenging the city of Austin’s prohibition on firearms in City Hall, representing a lawsuit on behalf of Texas Attorney General Ken Paxton. Cargill’s history includes a tumultuous 2012 primary campaign for the Precinct 2 constable seat and a widely publicized altercation where he was filmed body slamming a man he claimed had threatened him.

Recently, Cargill made headlines again when he boasted on social media about thwarting an attempted robbery at his gun store. He indicated that his staff would respond with deadly force if necessary, suggesting that the assailant would “not be going home,” while also commending the swift response of the Austin police, who did not provide comments regarding the incident.

As Cargill continues to fight both in the courts and in managing his financial situation, the outcome of his bankruptcy proceedings may significantly impact his future as a leading voice for gun rights in Texas.