How to File a Claim When Your Solar Company Goes Bankrupt

Understanding Solar Company Bankruptcy

When a solar company files for bankruptcy, it doesn't mean your obligations automatically disappear—but it does create opportunities to seek compensation and potentially exit your contract.

Types of Bankruptcy

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Chapter 7 - Liquidation

In Chapter 7 bankruptcy:

- The company ceases operations
- Assets are sold to pay creditors
- Your contract may be terminated
- You may have a claim for damages

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Chapter 11 - Reorganization

In Chapter 11 bankruptcy:

- The company continues operating
- Contracts may be assumed or rejected
- You may receive partial payment on claims
- The process takes longer but may yield better results

Your Rights in Solar Bankruptcy

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As a Customer with a Lease or PPA

You have the right to:

- Continue receiving service (if the company is still operating)
- File a claim for any damages
- Object to contract assumption or rejection
- Participate in the bankruptcy process

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As a Customer with a Loan

Your situation depends on:

- Who holds your loan (the solar company or a third party)
- Whether the loan is secured by the equipment
- The terms of your specific loan agreement

Step-by-Step: Filing a Bankruptcy Claim

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Step 1: Get Notified

When a solar company files bankruptcy:

- You should receive a notice in the mail
- The notice includes the claims deadline (bar date)
- Missing the deadline can forfeit your rights

**Important**: If you don't receive a notice, check the bankruptcy court docket or contact an attorney.

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Step 2: Gather Documentation

Collect all relevant documents:

- Your solar contract (lease, PPA, or loan)
- Payment records
- Correspondence with the company
- Evidence of any problems or disputes
- Sales materials and promises made

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Step 3: Calculate Your Claim

Your claim may include:

**Overpayments**: Money paid for services not received
**Damages**: Losses from misrepresentation or breach
**Future costs**: Expenses you'll incur due to the bankruptcy
**Warranty claims**: Value of unfulfilled warranty obligations

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Step 4: Complete the Proof of Claim Form

The official form requires:

- Your name and contact information
- Amount of your claim
- Basis for the claim
- Supporting documentation

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Step 5: File Before the Deadline

Submit your claim:

- By mail to the claims agent
- Electronically (if available)
- Before the bar date (deadline)

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Step 6: Monitor the Case

After filing:

- Watch for objections to your claim
- Respond to any requests for information
- Attend creditor meetings if beneficial
- Track distributions when they occur

Types of Claims You May Have

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Contract Rejection Damages

If the bankruptcy court allows the company to reject your contract:

- You're released from future obligations
- You have a claim for damages
- Damages are typically capped at one year of payments

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Fraud Claims

If you were defrauded:

- These claims may have priority
- They may not be dischargeable
- You may recover more than contract damages

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Warranty Claims

For unfulfilled warranties:

- Calculate the value of remaining warranty coverage
- Include expected repair/replacement costs
- Document any current equipment issues

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Overpayment Claims

If you overpaid:

- Calculate payments vs. value received
- Include any prepaid amounts
- Document the overpayment clearly

What to Expect from the Process

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Timeline

- **Filing to bar date**: Usually 90-180 days
- **Claims review**: 6-12 months
- **Distribution**: 1-3 years (or longer)

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Recovery Rates

Typical recovery in solar bankruptcies:

- **Secured creditors**: 50-100%
- **Priority claims**: 20-50%
- **General unsecured claims**: 5-20%
- **Some cases**: 0% recovery

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Your Contract Status

The company may:

- **Assume** your contract (continue it)
- **Reject** your contract (terminate it)
- **Assign** your contract (transfer to another company)

Maximizing Your Recovery

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File on Time

Missing the bar date is the biggest mistake. Mark your calendar and file early.

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Document Everything

Strong documentation supports higher claim amounts. Include:

- Detailed calculations
- Supporting evidence
- Clear explanations

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Consider Legal Help

An attorney can:

- Identify all potential claims
- Maximize your claim amount
- Navigate complex procedures
- Object to unfavorable treatment

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Join Forces

If many customers are affected:

- Class claims may be more effective
- Collective action increases leverage
- Shared legal costs reduce expenses

After the Bankruptcy

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If Your Contract Is Rejected

You may be able to:

- Keep the solar equipment
- Have it removed at no cost
- Negotiate with the new owner

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If Your Contract Is Assumed

The new owner must:

- Cure any existing defaults
- Provide adequate assurance of future performance
- Honor the original contract terms

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If Your Contract Is Assigned

The new company:

- Takes over all obligations
- Must be capable of performing
- You may object if they're not qualified

Get Professional Help

Bankruptcy claims are complex, and the stakes are high. Contact Solar Exit Partners for assistance with:

- Calculating your claim amount
- Preparing and filing your proof of claim
- Monitoring the bankruptcy case
- Maximizing your recovery

Don't let your solar company's bankruptcy leave you without recourse. We're here to help you navigate this challenging process.