If you live in Central Florida and financed solar panels for your home, you may have discovered something very different from what you thought you were signing up for.
We hear the stories all the time.
People were told the solar panels would dramatically reduce or even eliminate their electric bill. They were told the savings would justify the cost. Some homeowners did not fully understand how large the loan would become or how long they would be paying for it. Others tell us their solar panels are not producing what they expected, and in some cases, the system is not even working properly.
Then they look at the balance.
$40,000. $60,000. $80,000 or more.
And to make matters worse, there may also be a lien connected to the solar panel financing that affects the homeowner’s property.
At The Benenati Law Firm, we have been working aggressively to address this problem through bankruptcy, including pursuing solar panel redemptions and negotiating substantial reductions with solar lenders.
Your Solar Panel Loan May Be More Than Just Another Debt
Many homeowners assume that if they file Chapter 7 bankruptcy, they can simply list the solar loan with their other debts and forget about it. It is not always that simple.
A bankruptcy discharge can eliminate a debtor’s personal liability on many debts, but a valid lien may survive the bankruptcy. That distinction is extremely important with solar panel financing.
This is why our firm does not simply look at the balance owed. We investigate the solar financing and the claimed lien to determine what options may be available.
Depending on the circumstances, one option may be a bankruptcy redemption.
What Is a Solar Panel Redemption in Bankruptcy?
Section 722 of the Bankruptcy Code provides a procedure that, under the appropriate circumstances, can allow a Chapter 7 debtor to redeem certain property from a lien by paying the creditor the value of the creditor’s secured interest rather than simply paying the entire outstanding loan balance. Solar panel cases can present complicated issues involving the panels, the financing documents, UCC filings, fixture liens, the value of the system and the creditor’s claimed security interest.
This is an area where The Benenati Law Firm has been pushing the issue rather than simply accepting the amount that the solar lender says is owed. We have pursued cases where homeowners owed tens of thousands of dollars on their solar financing and sought to reduce the secured amount dramatically. In some instances, we have been successful in reducing solar panel obligations from balances exceeding $80,000 to a substantially negotiated amount.
In certain cases, we have even pursued redemption amounts as low as $1,000.
Every case is different, and no result can ever be guaranteed. The facts, loan documents, liens, property, creditor response and bankruptcy court all matter. But homeowners should know that simply continuing to pay the original solar loan balance may not be the only option available.
Why Reducing a Solar Panel Lien Can Matter So Much
Think about the equity in your house.
You may have a first mortgage. You may have a second mortgage or home equity loan. Then you discover that you also have tens of thousands of dollars tied up in solar panel financing. That solar obligation can become a serious issue when you want to sell, refinance or otherwise deal with your property. If we can legally reduce the amount secured by the solar panels, the impact can be significant.
A homeowner who owes $70,000 or $80,000 on solar panels may feel trapped. Reducing that obligation to a substantially smaller amount can potentially change the financial picture of the home. That is one reason we have devoted so much attention to solar panel redemptions.
Bankruptcy should not just be about eliminating credit cards and medical bills. Our job is to look at the entire financial situation and determine where bankruptcy law may give our clients additional opportunities for a true financial reset.
We Have Seen How Frustrated Homeowners Are With Solar Financing
Some of the most frustrated people who come into our office are homeowners with solar panels. They believed they were making a smart investment in their home. Instead, some ended up with a massive loan, an electric bill that did not disappear, and a solar system that did not deliver what they expected. Some homeowners tell us they did not understand the lien consequences of the documents they signed.
By the time they speak with us, many simply want to know:
Can I get rid of my solar panel loan in bankruptcy?
The answer is maybe.
That does not mean every solar loan can be reduced to $1,000. It does not mean every lien can be eliminated. And we will never promise a result that bankruptcy law does not allow us to promise.
What it does mean is that we are willing to examine the issue, challenge the amount of the secured claim where appropriate, pursue redemption when legally available, and negotiate with solar lenders when doing so may produce a better result for our client.
Solar Panel Bankruptcy Help in Orlando and Central Florida
The Benenati Law Firm has handled bankruptcy cases for Central Florida families for many years. We have seen bankruptcy law evolve, creditors change their practices, and new types of consumer debt become increasingly common.
Solar panel debt is now one of those issues. Our firm has become heavily involved in addressing solar panel financing and solar liens in Chapter 7 bankruptcy because we believe these loans deserve much closer scrutiny than they often receive.
If you have solar panels and are considering bankruptcy, do not assume that you have to continue paying the entire solar loan simply because there is a lien. And do not assume that filing bankruptcy automatically makes the solar panel problem disappear either. The right answer requires looking at the loan, the lien, the solar equipment, your property and your bankruptcy case.
Owe $40,000, $60,000 or $80,000 on Solar Panels? Talk to Us.
If you are struggling with a solar panel loan in Orlando, Kissimmee or anywhere in Central Florida and are considering Chapter 7 bankruptcy, let us look at your situation. There may be options you did not know existed. We have worked on solar panel redemption strategies designed to dramatically reduce what homeowners must pay to resolve solar liens, including cases involving tens of thousands of dollars in solar financing.
Every case is different, and past results do not guarantee future results. But before you assume that you are stuck paying an enormous solar panel loan for years to come, find out what bankruptcy may be able to do.
Give The Benenati Law Firm a call today at 407-777-7777 to find out more about bankruptcy and solar panel redemption in Orlando and Central Florida.
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