Filing For Bankruptcy With Solar Panels In Las Vegas

As science advances, everyday people eventually get to reap the benefits. One major focus of scientists is finding renewable sources of energy. In Las Vegas, Nevada, our weather primes our homes to take advantage of energy from the sun. Solar panels help many households save on their electricity costs. But they can be pricy to install, and a homeowner can run into trouble if they fall behind on their solar panel monthly payments. When that happens, it may be because that person is facing financial issues from a large number of sources. If that is the case, they may be able to resolve their issues by filing for chapter 7 or chapter 13 bankruptcy.

Chapter 7 is the number one form of bankruptcy in Nevada. Chapter 7 bankruptcy clears limitless amounts of unsecured debt, making it invaluable to households struggling with medical bills, credit card debt, and more. However, it can’t clear secured and priority debts, and only those who meet certain income criteria will qualify. The second most popular option for households struggling with debt in Nevada is chapter 13 bankruptcy. This form of bankruptcy takes debts and reformulates them into a payment plan that lasts either 3 or 5 years. Secured and priority debts must be paid in full, but the debtor may be able to have some or all of their unsecured debts cleared without repayment, depending on their financial situation as a whole. But there are many factors that can affect which chapter of bankruptcy is best for you, including your intentions with your solar panels. Want to discuss your situation with an experienced Las Vegas bankruptcy lawyer with no risk or obligation? Schedule your free consultation with Vegas Zero Down Bankruptcy Lawyers today by calling 702-842-0700.

Filing For Bankruptcy With Solar Panels In Las Vegas legal consultation scene with documents and scales on desk

What if I Lease My Solar Panels?

In bankruptcy, debtors can choose to continue or abandon any active leases. Apartments and vehicles are commonly leased assets, but it isn’t uncommon for solar panel companies to set up customers in a lease plan. This might be the more affordable way to install solar panels into one’s home. But there may come a time when the cost savings no longer pay for the solar panel costs. Or, the debtor may plan to move soon and wish to unburden themselves from their solar panel lease. What that person’s options are will largely depend on the terms of their lease. But a debtor filing for bankruptcy can abandon a lease without the typical fees and penalties associated with doing so. This could be a savings of thousands of dollars, which might even pay for the bankruptcy filing itself.

Both chapter 7 and chapter 13 debtors can abandon their leases in bankruptcy. In chapter 13 bankruptcy, the debtor will need to be able to afford their payment plan if they wish to keep their solar panel lease. In chapter 7 bankruptcy, the debtor may be required to sign an agreement reassuming the lease. This is a fairly simple agreement that should continue with the same terms the debtor was following before filing for bankruptcy. But if the debtor is unsure, they should have the agreement reviewed by a bankruptcy attorney.

What if I Pay for My Solar Panels in Monthly Installments?

Instead of renting a solar panel with a lease, a homeowner can purchase their solar panels with a loan and make monthly payments until the balance is paid in full. The options for solar panel owners who pay in monthly installments in bankruptcy are slightly different than for leases. Both chapter 7 and chapter 13 bankruptcy debtors can surrender financed solar panels to clear the associated debt. In some cases, the solar panel company may choose not to retrieve the solar panels from the bankruptcy debtor. Removal can potentially cost thousands of dollars more than it would be worth to retrieve a solar panel that may need maintenance and repairs before it can be used by anyone else. This may sound good for the debtor, but it isn’t if the solar panel services are disabled. This could become a huge obstacle if the debtor ever wishes to move or sell their home.

If a chapter 7 debtor wants to keep their solar panels, they may be required to sign a reaffirmation agreement to do so. A chapter 13 bankruptcy debtor will need to be able to afford their solar panel payments to keep them. However, in chapter 13 bankruptcy, the debtor may be able to cram down their payments if the loan balance is higher than the solar panels’ market value. The debtor will need to thoroughly review their bills to see if the return from their solar panels is worth the monthly cost.

What if My Solar Panels are Already Paid Off?

When your solar panels are paid in full, there is no contract to reaffirm or abandon. So in that way, the issue becomes simpler for a homeowner with solar panels filing for bankruptcy. But even assets owned outright must be protected in bankruptcy. These protections are known as bankruptcy exemptions. Each state has its own bankruptcy exemptions available for different categories of assets, like a house, motor vehicle, household goods and furniture, retirement savings, and more. If the solar panels are a permanent fixture on the home, they should be included in the homestead exemption. Otherwise, that debtor’s bankruptcy attorney may need to get creative to protect their client’s solar panels in bankruptcy.

Nevada’s homestead exemption in bankruptcy is currently $605,000. This represents how much equity a bankruptcy debtor can protect in their home, rather than how high of a market value home can be protected in bankruptcy. So if a debtor has a million-dollar home but still has $500,000 remaining on their mortgage, their equity falls within Nevada’s homestead exemption limits. If the debtor is right on the borderline, they should consider using their wildcard exemption to protect their paid-in-full solar panels. Nevada’s wildcard exemption protects up to $10,000 equity in any asset of the debtor’s choosing. The downside here is that the wildcard exemption will no longer be available to use to protect the debtor’s other miscellaneous assets that aren’t covered by existing exemptions.

Don’t File for Bankruptcy with Unanswered Questions. Schedule Your Free Phone Consultation with our Experienced Legal Team Today.

Your debt issues could have started long before you ever installed solar panels in your home, or your solar panel costs could be one of the primary expenses you wish to be rid of. Chapter 7 or chapter 13 bankruptcy could provide a path to freedom from debt, whether or not you have solar panels in Nevada. But self-represented debtors are prone to mistakes in bankruptcy, which could lead to negative repercussions like debts being excluded from discharge, assets being seized, and more. It’s best to learn as much as you can about the process before filing a petition for chapter 7 or chapter 13 bankruptcy in Las Vegas. You don’t have to come out of pocket to consult with a skilled legal professional about your potential case. Our team offers free, convenient, and private consultations by phone. Get started with Zero Down Bankruptcy Lawyers today by calling 702-842-0700.