(Reuters) - A lawyer for the National Rifle Association on Wednesday denied claims that its bankruptcy was not filed in good faith and said the filing was not an attempt to evade litigation brought by New York's attorney general.

The lawyer, Patrick Neligan of Neligan, made his statements during the NRA's first appearance in Dallas bankruptcy court since filing for Chapter 11 protection on Friday. The remote hearing was held before U.S. Bankruptcy Judge Harlin Hale largely for the non-profit, which is headquartered in Virginia and incorporated in New York, to obtain authorization to continue running operations as usual and to present the group's bankruptcy goals to the judge.

The NRA, which reported $203 million in assets and $153 million in liabilities, filed for bankruptcy while facing a lawsuit brought by New York Attorney General Letitia James accusing the group and its leaders of self-dealing and mismanagement and looking to dissolve the organization.

The group said in a statement on Friday that it intends to use the bankruptcy process to move its place of incorporation out of New York and to Texas.

"This is not a bad faith filing and we look forward to using Chapter 11 to resolve litigation and to move forward to emerge out of this bankruptcy as a company domiciled here in Texas," Neligan said during Wednesday's hearing.

The question of whether the NRA filed the bankruptcy in good faith could arise if the judge is asked to dismiss the case.

Neligan also noted that the NRA intends to pay its creditors in full. The group said in Friday's statement that its bankruptcy "comes at a time when the NRA is in its strongest financial condition in years."

Neligan also said that the organization is not trying to flee New York regulators by filing for bankruptcy, despite the NRA's statement on Friday that said it intended to restructure in Texas "to exit what it believes is a corrupt political and regulatory environment in New York."

James responded to the Chapter 11 announcement on Friday by vowing to not allow the organization to escape her office's ongoing litigation and saying that "the NRA's claimed financial status has finally met its moral status: bankrupt."

New York's lawsuit, filed in August, accused NRA officials of diverting millions of dollars to fund luxury lifestyles, including vacations and private jets, and to buy the silence and loyalty of former employees, costing the group $64 million over three years. A hearing on the NRA's motion to dismiss the lawsuit is scheduled to go forward in New York state court on Thursday.

James Sheehan, Charities Bureau chief for the New York Attorney General's office, said during the hearing that the NRA is required to comply with the state's regulatory system but that he would not yet be taking a position on the "results" of the bankruptcy.

At the conclusion of Wednesday's hearing, Hale made a plea to the NRA and attorney general's office to scale back the dramatic public statements.

"I would ask that everyone ratchet that part of the case down some, now that we're in bankruptcy court," the judge said. "Bankruptcy is in some ways a miraculous place to be in that debtor has an opportunity to reorganize its affairs and then on the other hand, for the creditors' benefit, the debtor must be 100% transparent ... To the extent that we can, let's treat this as a regular bankruptcy case."

The case is In re National Rifle Association of America, U.S. Bankruptcy Court, Northern District of Texas, No. 21-30085-11.

For the NRA: Patrick Neligan, Douglas Buncher and John Gaither of Neligan

For the New York Attorney General: James Sheehan, Charities Bureau