Souls are in Liberated or Bound states

For the purpose of creation, the God (Para Brahmn, unique form of eternal, infinite Energy ) plays three roles : Bhagavan( Eternal infinite State of bliss) - creates male energy - souls that is seed energy, fragmented parts of Bhagavan Energy. Parmatma (Eternal Infinite State of Knowledge) - Eternal Time Energy which controls creation through control of action-reaction process. Brahmn ( State of Eternity ) - creates female energy - Prakriti

It is combination of soul energy and Prakriti which results in creation. Creation is a cyclic process. As per Vedic Literature, there are 4 cycles: Specie cycle - Birth - Death - Transmigration - Birth. Manvantar Cycle - (one Manvantar = 306, 720,000 years + Sandhi Kala 1,728,000 years ). At the end of each Manvantar, very few species are left and after a gap of sandhi Kala, population start regrowing. Brahma ‘Day (one Kalpa 4.32 Billion years ) - all earth living species get extinguished , but water living species survive. After 4.32 Billion years, earthly life restarts from water borne species.

Brahma’Life ( 311.04 trillion years ) - whole universe is bound up and after a gap of 311.04 trillion years, again process of life creation starts. Souls exist in two states :(i) Free state or Liberated State - comes out from cycle of birth-death-birth (ii)Bound sate - goes through process of birth-death-birth ; Process of Reincarnation. After death, Bound Soul transmigrates and then reincarnates. In Bound State : Our body system consists of Soul surrounded by Causal Body (Ego energy consisting of quantity and quality of accumulated energies of goodness +passion + ignorance)+Subtle Body( intellect + mind + 5 subtle senses) + Physical Body System and follows as per Karma, Species cycle - Birth - Death - Transmigration - Birth, continues till liberated.

When life on earth does not exist, Bound Souls reside in Maha Vishnu Energy and when life cycle restarts, they reappear as per Karma System . Souls in Liberated State reside in Bhagavan Energy. Pure or Liberated Souls are fragmented part of Bhagavan Energy and are eternal. Do only eight elements dissolve into their respective origin in Pralaya (5 elements into mind into intelligence into ego into mahattattva)? or do all 24 elements come into play?

Also, some philosophers include Kaal or Time in the list, bringing up the number to 25, or 26. Some others say there are only 16 elements. etc. etc. It does not, in any way, signify the incompetence of the concerned Saint (who delivered the lectures, which are perfect in every which way, btw), but only my own shortcomings as a human. The individual brahmandas undergo minor dissolution or pralaya at the end of every kalpa, or the day of Lord Brahma, which stretches over 4.32 billion human years.

This pralaya lasts for Lord Brahma’s night, which is another 4.32 billion years. The lower 11 lokas, or worlds, begin to burn due to the cosmic fire called Samvartak. Only Jana-loka, Mahar-loka and Satya-loka remain. This fire is so great, and intense, that the munis and sages and yogis of Jana-loka travel upwards to Mahar-loka. Anyway, this is the minor cosmic destruction. The Great Final Destruction, or Mahapralaya, is the one you are asking about in the question. In that Pralaya, even Lord Brahma dies. This Mahapralaya occurs after 100 years of Lord Brahma i.e. at the end of his Divinity’s life, which is 4320000000 x 2 X 360 x 100 = 311 trillion solar years.

This Mahapralaya is the final destruction of all brahmandas, or solar systems. Analyzing and matching the sizes and figures given in the Puranas, and those concluded in modern science, one can guesstimate that the brahmanda is roughly equal to a solar system, because one brahmanda only has one sun and one moon, and the earth of this particular brahmanda extends 4 billion miles from its center i.e. somewhere around the planet Pluto.

So, in Mahapralaya, all the Jeevatmas, or individuals belonging to the soul category, are drawn back, along with the total material existence (which we call the Universe(s)), into the Divine, Spiritual, and completely inconceivable stomach of Purusha, or Lord Mahavishnu. So, all the souls, including countless Lord Brahmas, rest in the unimaginable Divine Space that is the Womb of God. They rest thus for a total of 311 trillion years - or the duration of Lord Mahavishnu’s inhalation.

This state is called Sushupti, or pralaya of the Jeevatma. This sushupti state is experienced by every living entity during the night, when it falls into a deep sleep. We do not experience any thoughts, dreams, or emotions in deep sleep, because the mind is dissolved or suspended at that point of time. This happens because Paramatma - or the local feature of God residing in every living entity’s heart - embraces the Jeevatma, or the individual soul. Thus, in Mahapralaya, we experience the same total peace, and suspension of the mind, or the material consciousness.

How does this Mahapralaya, (which, by the way, occurs due to the Destructive Divine Dance of Shankara) occur? The total earth element of the universe is pulled into the total water element and so on. The pancha-tattvas dissolve into each other one after the other, and then into the pancha-tanmatras, which, in turn, dissolves into the indriyaas, and so on and so forth. So…

Pancha-tattva (Earth element —> Water element → Fire Element → Air Element → Space Element) + Pancha Tanmatra (smell → taste → form → touch → sound) + Pancha-gyan-indriya (the subtle faculties residing in the souls’s body’s nose→palate→eyes→skin→ears) + Pancha-karm-Indriya (the subtle faculties of the jeevatma such as hands, feet, anus, genitalia and speech, with which it performs all kinds of actions) → munn (mind) → chitta (part of the mind that loves, likes and dislikes things and person) → buddhi (intelligence or part of the mind that makes decisions) → ahankaar (ego) → Mahat-tattva (the total cosmic manifestation) → finally, the Great Power of Material Energy, Mahamaya.

Thus, after all the gross material elements (numbering 26) have merged into their respective causes, only their source remains - Maya. This Maya is a Great, inconceivable, and deluding Power of God, which binds the Jeeva or soul to the cycle of birth, old-age, disease, and death, with the fetters of wealth, family, prestige, fame, knowledge, strength, and power. She also holds a carrot on a stick in the form of the five sense-objects (smell in the form of perfumes, flowers, etc., hearing in the form of music, etc., sight in the form of movies, scenic places, nature, etc., taste in the form of rich food, etc. and touch in the form of sex, mother-son cuddling, etc.).

Thus, having drawn every thing made of matter - visible and invisible - into herself, this Maya, and the Jeevas (souls) enter into the Womb of God, as described above. Therein they rest for a period of 311 trillion years, or for as long as God desires, in the aforementioned state of sushupti, or deep sleep. When God wills to create again, He simply thinks of it, and it happens. As such, all the souls are sent back into the universe to the stations they held formerly in the previous cycle of Creation, much like how players take up their own positions on the 2nd, 3rd, 4th and 5th day of a Test Match in Cricket. Cheers!