Solar Panel Lien Removal in Bankruptcy Orlando & Central Florida
By Juan C. Burgos, Esq. | Florida Bar #84056 | Bankruptcy Attorney, Orlando FL
Direct answer: Bankruptcy discharges your personal liability for a solar loan, but the UCC-1 lien on your home can survive it. Florida law may give you two real fixes: pay the panels' actual value instead of the full loan balance (Chapter 7 §722 redemption), or restructure the debt inside a Chapter 13 repayment plan (§506(a) cramdown). Which one fits depends on your income, the lender, and how the lien was filed — here's how each works.
What Brings You Here?
A title company flagged a solar lien before closing
A UCC-1 fixture filing or PACE assessment surfaced during a title search and your sale or refinance is on hold.
Your solar installer went out of business
The company that sold and installed your panels no longer exists, but the loan and the lien are still there.
You're considering Chapter 7 or Chapter 13
You want to know what happens to the solar loan and the lien specifically, not just your other debts.
A PACE or Ygrene assessment surged on your tax bill
A clean-energy financing assessment you may not remember agreeing to is now attached to your property taxes.
Free Solar Lien Case Review
Tell us about your lender, your installer, and what's blocking you — a closing, a refinance, or just peace of mind.
Call Us: (407) 505-4190Why a Normal Lien-Removal Motion Doesn't Work
Most residential solar financing is secured by a UCC-1 fixture filing, not a mortgage. That distinction matters. A fixture filing attaches to the panels as personal property affixed to your home — similar in concept to a purchase-money security interest (PMSI) on a car — rather than as a lien against the real estate itself the way a second mortgage would be. Because it isn't a mortgage, the tools attorneys normally use to deal with junior mortgage liens in bankruptcy generally don't apply the same way to a solar UCC-1.
What can apply, depending on your case, is redemption under 11 U.S.C. §722 in a Chapter 7, or a cramdown under 11 U.S.C. §506(a) in a Chapter 13.
Chapter 7: §722 Redemption
Section 722 lets a debtor keep certain tangible personal property securing a dischargeable debt by paying the lender the property's current replacement value in a lump sum — not the amount left on the loan. Solar panels installed years ago and now showing normal wear can carry a real, appraised replacement value far below what's still owed on the financing.
Chapter 13: §506(a) Cramdown
Section 506(a) lets a Chapter 13 plan split a secured claim into a secured portion (up to the collateral's current value) and an unsecured portion (the rest), paid over the life of the plan. For solar debt, that can mean paying the panels' real value through the plan while the remaining balance is treated like your other unsecured debt.
Why this gap matters
Solar loans are often originated for the full installed cost of the system — commonly in the tens of thousands of dollars — while the panels' actual replacement value years later, based on age, condition, and depreciation, can be a small fraction of that. Whether redemption or cramdown makes financial sense for your specific loan depends on an appraisal and your case type; this is not a guaranteed outcome and requires a case-by-case review.
Is Your System Financed as a Loan, or a Lease/PPA?
Not all residential solar installations are financed the same way, and the redemption and cramdown options described above apply only to a system purchased through a financed loan secured by a lien — not to a solar lease or a Power Purchase Agreement (PPA). If a separate company still owns the panels and you pay them monthly for the electricity or use of the system rather than owning it outright, you likely have a lease or PPA rather than a loan.
Why this distinction matters
Leases and PPAs are generally treated in bankruptcy as executory contracts under 11 U.S.C. §365, not as secured debt. That means they typically can't be redeemed under §722 or crammed down under §506(a) the way a financed loan can. The choice is usually binary: assume the contract (keep paying under its existing terms and cure any missed payments) or reject it (the provider may remove the system, and any resulting claim is generally treated as unsecured and can be discharged). Which category your system falls into is a threshold question that has to be answered from your actual financing paperwork before any strategy can be recommended.
PACE and Ygrene Assessments Are a Different Problem
If your solar system (or other home improvement) was financed through a Property Assessed Clean Energy (PACE) program — Ygrene is one PACE administrator active in Florida — the financing isn't a personal loan or a UCC-1 fixture filing. It's a tax assessment attached to your property and collected through your county property tax bill. That changes both how it behaves in bankruptcy and how it might be challenged outside of bankruptcy.
PACE contracts are subject to federal Truth in Lending Act (TILA) and Regulation Z disclosure requirements. If the required disclosures weren't properly provided at signing, a rescission claim may be available depending on your specific facts and timeline — this is a fact-specific question that needs a document review, not a general promise of outcome.
My Solar Installer Went Out of Business — Who Do I Even Pay?
Several solar installers that were active in Florida in recent years have since closed, filed for their own bankruptcy, or stopped operating under their original name. If the company that sold and installed your system is gone, two things are usually still true: the lender who financed the purchase is still owed money, and the lien or assessment they hold is still attached to your home.
Two protections worth understanding if your installer is no longer in business:
The FTC Holder Rule
Under 16 C.F.R. §433, when a seller's financing is arranged or referred by the seller, the loan holder can, in some circumstances, be subject to the same claims and defenses you could raise against the seller. Whether it applies to your specific loan depends on how the financing was structured.
Florida Chapter 520 disclosure rules
Florida's retail installment sales statute imposes specific disclosure requirements on certain home-improvement financing. A contract that didn't meet those requirements may be challengeable outside of bankruptcy entirely — worth reviewing before assuming bankruptcy is the only path.
Filing Chapter 7 for other reasons too?
If credit card debt, medical bills, or other unsecured debt is part of the picture, see our full Chapter 7 bankruptcy page for how the whole process works, not just the solar piece.
Learn About Chapter 7 →Frequently Asked Questions
Will I lose my solar panels if I file for bankruptcy in Florida?+
Not automatically. Whether you keep the panels depends on your case type and, if the debt is secured, whether you can address the lien through redemption (Chapter 7) or a plan payment (Chapter 13). This is case-specific and should be reviewed with an attorney before you file.
Does filing bankruptcy remove a lien from my house?+
Not by itself. A bankruptcy discharge wipes out your personal obligation to pay a debt, but a properly perfected lien can survive the discharge and remain attached to the property unless it's separately addressed — through redemption, a cramdown in a Chapter 13 plan, or another lien-specific process.
Can I sell my house if there's a solar lien or UCC filing on it?+
Usually yes, but the lien typically has to be paid off, released, or otherwise resolved at or before closing, which is often when it gets discovered. The sooner it's identified, the more options you have — waiting until days before closing narrows your choices.
My solar company went out of business — who do I even pay?+
You still owe the lender who financed the purchase, not the installer. Check your loan statements for the lender's name if you're unsure. Separately, the FTC Holder Rule and Florida's Chapter 520 disclosure rules may give you claims against that financing depending on how it was set up.
Is my solar loan legally the same as a mortgage?+
Usually not. Most residential solar loans are secured by a UCC-1 fixture filing against the panels as personal property, not a mortgage against the real estate. A PACE or Ygrene assessment is different still — it's a tax assessment, not a loan or a mortgage. Which one applies to you affects which legal tools are available.
How long does §722 redemption or a Chapter 13 cramdown take?+
Timelines vary by case. Chapter 7 redemption is typically resolved within the timeframe of the bankruptcy case itself (often a matter of months), while a Chapter 13 cramdown plays out over the life of your repayment plan, generally three to five years. An attorney can give you a realistic timeline once your specific facts are reviewed.
Attorney Juan Carlos Burgos
Active Member of The Florida Bar
Serving Clients in: English · Español · Português
Legal Notice: This page is for general informational purposes only and is not legal advice. Reading it does not create an attorney-client relationship. Laws, statutes, dollar amounts, and procedures can change after this page was published — do not assume anything here is current or factual. Contact an attorney to confirm how the law applies to your specific situation before relying on this information. Juan Burgos Law is a law firm duly licensed to practice law throughout the State of Florida. Juan Burgos Law is a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.
Government & Legal Resources
U.S. Courts: Chapter 7 Basics · Cornell LII: 11 U.S.C. §722 · Cornell LII: 11 U.S.C. §506 · CFPB: PACE Financing Rule · Florida Statute §520.23 · FTC Holder Rule (16 C.F.R. §433)
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