Bringing Your Claims Against Solar Mosaic and Sunnova in Bankruptcy
The renewable energy revolution has brought an array of opportunities, from once-unimaginable innovations to financial programs designed to make solar power accessible to millions of households. However, every revolution comes with its share of challenges, and recently, a troubling trend has emerged in the solar industry: lenders like Solar Mosaic and Sunnova are filing for bankruptcy, leaving countless borrowers uncertain about their future.
For homeowners seeking to reduce their carbon footprint while saving on energy bills, this development can feel like an unsettling betrayal. Suddenly, the promise of affordable and sustainable energy is clouded by questions of liability, contract disputes, and financial distress.
Amid this turmoil, borrowers are grappling with what these bankruptcies mean for their loans, warranties, and legal rights. While solar panel financing contracts often seem straightforward at the outset, the collapse of a lender can lead to many legal complications.
This is especially worrisome for borrowers, who are left wondering who will now service their loans, what will happen to unpaid balances, and whether their financing terms are still valid. Borrowers need access to legal help to make sense of the shifting dynamics, and that’s where Attorney Macy D. Hanson of The Law Office of Macy D. Hanson, PLLC, can help.
Based in Madison, Mississippi, Attorney Hanson has spent over a decade providing dedicated and compassionate legal representation to clients nationwide. Offering free consultations and a focus on empowering borrowers with knowledge, The Law Office of Macy D. Hanson, PLLC, is committed to standing by borrowers who feel blindsided by their lender's financial collapse.
Attorney Hanson aims to shed light on the unique challenges posed by solar lender bankruptcies and guide clients toward practical solutions. It's important to understand that even when lenders like Solar Mosaic and Sunnova face bankruptcy, your rights as a borrower remain. This guide explains how to bring claims against these companies and why it is essential to act quickly.
Why Are Solar Lenders Filing for Bankruptcy?
Several factors have converged to create financial strain on solar lenders, prompting them to file for bankruptcy. The industry's rapid growth and an influx of new players have created a highly competitive market, with some lenders taking on unsustainable levels of debt to capture their market share.
Additionally, macroeconomic challenges, including inflation, rising interest rates, and supply chain disruptions, are squeezing profit margins across the renewable energy sector. These factors, combined with shifts in government incentives and tax policies, mean that the business models for some lenders are no longer viable.
Another layer stems from the long-term nature of solar loan agreements. Many solar financing agreements are structured to last 20 years or more, meaning lenders rely on consistent repayment from borrowers over time. However, even small disruptions, whether from borrower defaults or operational mismanagement, can escalate and threaten the lender’s bottom line. When a lender's liabilities outweigh its assets, bankruptcy often becomes the last resort.
The Impact on Borrowers
When a solar lender files for bankruptcy, borrowers typically face numerous questions about what comes next. One of the most pressing concerns is determining who now holds their loan. Bankrupt lenders often sell their loan portfolios to third-party servicing companies or debt buyers. This transition can create confusion, as borrowers may be uncertain about where to send payments or whether their original loan terms still apply.
Additionally, bankruptcy can disrupt warranties and maintenance agreements tied to the financing of solar installations. Borrowers may find themselves responsible for costly repairs or maintenance that they believed were covered under their original contracts.
For many homeowners, these unexpected financial obligations only add to the frustration and the feeling of being left in the dark by the very companies that initially promised long-term benefits. If you or someone you know has purchased services from Sunnova or Solar Mosaic, the deadline to file a suit against these providers is October 6.
Why Your Loan Obligations and Your Lender's Don't Disappear
A common misconception is that a lender's bankruptcy erases your loan. This is not the case. Your responsibility to make payments on your solar loan continues. However, and this is a critical point, the lender’s obligations to you also remain fully intact. Bankruptcy does not give lenders a free pass to ignore their legal duties.
Lenders like Solar Mosaic and Sunnova are still accountable for any misconduct related to your loan agreement. This includes issues such as fraud, violations of the Truth in Lending Act (TILA), or the assessment of improper platform fees.
Even if your loan is sold or transferred to another entity as part of the bankruptcy process, the original lender remains subject to these claims. The new loan holder inherits the loan along with any existing legal liabilities tied to it.
Borrowers’ Rights During Lender Bankruptcy
Borrowers should be aware that they retain certain rights even when their lender files for bankruptcy. Under federal and state laws, debt servicing companies and third-party asset purchasers are required to honor the original terms of the financing agreement. However, enforcing these rights often requires vigilance and, in some cases, legal action.
Borrowers who are unsure of their rights or encounter resistance while attempting to resolve their concerns can greatly benefit from consulting an experienced attorney.
Bankruptcies can be resolved in several ways, including Chapter 7 (liquidation) or Chapter 11 (restructuring), and each path carries different implications for borrowers. Going through this process without legal support can be overwhelming. Borrowers will need clear guidance to understand whether they should continue making payments, dispute incorrect charges, or seek legal remedies for contract breaches.
Act Now: The October 6 Deadline
When a company files for bankruptcy, the court establishes a "bar date." This is a firm deadline by which all creditors, including homeowners with legal claims, must file a proof of claim. If you believe you have a claim against Solar Mosaic or Sunnova for any reason, you must act before the October 6 deadline.
Missing this deadline means you will likely lose your right to pursue your claim and recover any money you are owed. The bankruptcy process is designed to resolve all of a company's debts in a structured manner, and late claims are rarely considered. Therefore, time is of the essence.
Lenders Can Become More Aggressive During Bankruptcy
While it may seem counterintuitive, lenders often become more aggressive in their collection efforts during bankruptcy proceedings. Facing immense financial pressure, companies like Sunnova and Solar Mosaic may intensify their attempts to collect on outstanding loans to maximize the assets available for their creditors. This increased pressure can manifest in several possible ways, including:
More frequent and demanding phone calls or letters
Less flexibility with payment arrangements
Quicker moves toward default or foreclosure proceedings if payments are missed
Lenders and their legal teams are focused on their own financial recovery, not on protecting your rights. This is why you should secure experienced legal representation to protect your interests.
Why You Need Attorney Hanson on Your Side
With a proven track record spanning more than 10 years, Attorney Macy D. Hanson has become known for fiercely advocating on behalf of borrowers nationwide. His ability to dissect complicated contracts, communicate clearly with service providers, and take decisive legal action empowers borrowers to take control of their situations.
Bringing a claim against a company in bankruptcy is a complicated legal process with specific rules and procedures. Attorney Hanson can assist with the following:
Evaluating your claim: Attorney Hanson can thoroughly review your loan documents and the circumstances surrounding your agreement to identify any potential claims. This could include fraudulent misrepresentations made by the solar panel installer, TILA violations in your loan disclosures, or other illegal practices.
Meeting critical deadlines: He can help you file all necessary paperwork, like the proof of claim, correctly and on time before the October 6 deadline for Sunnova and Solar Mosaic.
Navigating the bankruptcy court: He will represent you in the complicated bankruptcy proceedings, advocating on your behalf and making sure your voice is heard among the other creditors.
Counter aggressive tactics: If you face aggressive collection tactics from Solar Mosaic, Sunnova, or any company that acquires your loan, he can intervene to protect your rights and handle all communication on your behalf.
Even if you don't think you have a claim, it's wise to get a professional opinion. Many issues, such as hidden fees or TILA violations, are not apparent to the average borrower but can be identified by a trained legal eye.
A Path Forward for Borrowers
The bankruptcy of solar lenders like Solar Mosaic and Sunnova has created a challenging situation for many homeowners. However, you are not without recourse. Remember that these companies are still obligated to uphold their legal duties. You have the right to hold them accountable.
Attorney Hanson recognizes that dealing with a lender bankruptcy is not just a financial matter; it’s a deeply personal one that can affect families, finances, and peace of mind. The Law Office of Macy D. Hanson, PLLC, offers complimentary consultations to assist clients in evaluating their options and recommending targeted solutions for solar litigation.
With the October 6 deadline fast approaching, the time to act is now. Don't risk losing your opportunity to bring a claim. Contact Attorney Hanson today for a free consultation and take the first step toward reclaiming control of your financial future.
