Your Texas Solar Company Filed for Bankruptcy or Went Out of Business —
What Happens to Your Contract?

No. Bankruptcy of the installer does not automatically cancel the homeowner’s contract. The contract continues to exist as a financial obligation. The bankruptcy may change how warranty and service obligations are administered and may require any pre-petition claims to be filed in the bankruptcy case, but the contract itself does not disappear.

Sunnova’s assets were acquired through the bankruptcy process by Solaris Assets LLC, with operations transitioning to SunStrong Management. Existing Sunnova customers’ contracts and warranty obligations are generally being administered through that transition. A homeowner with a Sunnova contract should track communications from the successor entity and document every service request and response.

Freedom Forever filed Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware on April 15, 2026. The bankruptcy case is ongoing as of the date this page was last updated. The homeowner’s contract does not automatically disappear, but warranty and service obligations may be administered through the bankruptcy court. If you financed the panels through Mosaic Funding or another lender, the loan is owed to the lender — not to Freedom Forever — and the lender obligation continues.

Mosaic Funding filed Chapter 11 in 2025 and was acquired by Solar Servicing LLC in September 2025. Loan servicing generally transferred to the successor entity. A homeowner with a Mosaic loan should track loan statements and payment instructions from the current servicer. The loan obligation continues — it does not disappear because of Mosaic’s bankruptcy.

Generally yes. Continuing to make payments is generally the safest course of action until a qualified Texas-licensed attorney has reviewed the documents and provided specific advice. The decision to stop making payments must only be considered under advice and representation of a qualified attorney. Stopping payments without legal advice may result in default, damage to credit, collections, or other consequences.

UCC-1 financing statements are sometimes filed by solar companies or finance companies in connection with a solar transaction. UCC-1 liens, where filed, are filed against the solar equipment, not against the home. Even though the lien is on the equipment, it can sometimes raise questions during a home sale. The installer’s bankruptcy generally does not remove a UCC-1 — release typically requires resolution of the underlying obligation.

Warranty obligations during and after bankruptcy depend on how the bankruptcy court structures any asset sale or plan of reorganization. Some bankruptcies result in a successor entity continuing service under the original warranty terms. Others result in service obligations being terminated or restructured. A homeowner should document every warranty request and response — that documentation may matter later.

Generally yes — but the claim may need to be filed in the bankruptcy case by specific deadlines (claims bar dates). DTPA claims that arose before the bankruptcy filing generally survive but require coordination with the bankruptcy proceedings. A qualified attorney may review whether the specific situation requires filing a proof of claim and how the §17.505 60-day pre-suit notice interacts with the bankruptcy.

The AG investigation (announced April 6, 2026) and the Freedom Forever bankruptcy (filed April 15, 2026) proceed on separate tracks. State regulatory enforcement actions generally have different procedural rights than private creditor actions in bankruptcy. A homeowner with a Freedom Forever contract may have claims under both proceedings — though the practical mechanics of asserting them differ.

Filing a complaint at oag.my.texas.gov is free and adds to the public record. It is independent of any private legal review or bankruptcy claim. Many Texas homeowners do both — file a complaint AND organize documentation for individual review.