From the WOTFAQ:
###When a person is balefired, can he be reborn?
When a person is balefired, can he be reborn?
The description of balefire leaves us one important question: does "burning one's thread from the Pattern" mean that one's soul is destroyed forever, and one can never be reborn? John Novak finally got an answer for this from RJ at a post-TPOD book-signing [Northern Virginia - 21 November, 1998]:
Balefire: I'm right. (This was my question) What this means is, if someone is balefired, the Dark One can't reincarnate them. But they CAN be spun back out into the wheel as normal. Balefire is NOT the eternal death of the soul. He also made a comment to the effect that even in the absence of balefire, there may be circumstances where the Dark One cannot bring someone back.
Also:
###So if a balefired person can be reborn, why can't the DO recycle a Forsaken that's been killed by balefire?
So if a balefired person can be reborn, why can't the DO recycle a Forsaken that's been killed by balefire?
The real question being asked here is: what is the difference between the soul of a Forsaken killed by ordinary means and the soul of one killed by balefire?
Timothy Itnyre explains: "The only difference is that the Forsaken killed by balefire dies in the past; at the moment of contact with the balefire, they are already dead and their soul has gone on to wherever souls go when you're dead. In a normal death, the Forsaken's soul departs at the moment of death. The only difference then is the timing of the soul's departure. This would indicate that the Dark One's inability to resurrect balefired souls has to do with the timing rather than actual physical properties of balefire. In LOC, the Dark One laments his inability to resurrect Rahvin: '"RAHVIN DEAD IN HIS PRIDE. HE SERVED WELL, YET EVEN I CANNOT SAVE HIM FROM BALEFIRE. EVEN I CANNOT STEP OUTSIDE OF TIME"' [LOC: Prologue, The First Message, 15].
"The crucial clue is in the last line where the Dark One says that he cannot step outside of time. The Dark One must claim the Forsaken's soul before it goes off to the afterlife; in the case of a balefire victim, the Dark One would have to go into the past to get the soul. Since the Dark One cannot step outside of time, he cannot save those souls. Therefore, balefire prevents the Dark One from claiming souls."