QUESTION
Does this loan originator have the right to repossess the panels?
Asked on Mar 01st, 2017 on Bankruptcy - Ohio
More details to this question:
I had installed solar panels last year to help save on long-term energy costs. However, due to some unforeseen medical debt due a serious medical condition denied by health insurance, might end up declaring bankruptcy. Does this apply to this kind of loan?
7 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Most loans used to buy property have a "purchase money security interest" which means the lender can probably repossess the property.
Answered on May 24th, 2017 at 5:34 AM
You would have to read the contract to see if you granted the lender a security interest in the panels. They would rather have the money than the panels, of course, so you could ask them for more time to pay without threatening bankruptcy.
Answered on May 19th, 2017 at 8:39 AM
Without more information, it is hard to hazard a legal response for you. You will need to pay an experienced BK lawyer for a couple of hours of their time to review your BK file, and the legal documentation associated with these solar panels. Good luck!
Answered on May 19th, 2017 at 8:37 AM
Read your contract! I would bet that the solar company has a security interest in your entire house for the panels which were attached. That is a SECOND MORTGAGE. Don't pay, and you could lose your house along with those money saving solar panels. Read the contract which you clearly did not do before you signed up for this dubious opportunity.
Answered on May 19th, 2017 at 8:37 AM
1 Award
You have to look at the documents and see if they retained a security interest in the panels. If they did, then they are secured and they can repossess. If they did not, then they are unsecured and they can not repossess. This is true whether you file a bankruptcy or not.
Answered on May 19th, 2017 at 8:36 AM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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The Company would have the right to take back the panels, or you could reaffirm the debt and keep them.
Answered on May 18th, 2017 at 9:59 AM
Bankruptcy Attorney serving Cleveland, OH
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Benson Law Firm
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All debts and all assets must be included in the bankruptcy.
Answered on May 18th, 2017 at 9:59 AM