Freedom Forever Files Chapter 11 Bankruptcy — What Homeowners Need to Know (2026)

$500 million in debt. 50,000 to 100,000 creditors. Court documents stating no funds will be available to unsecured creditors.

That is the financial reality of Freedom Forever LLC as of April 15, 2026 — the day the second-largest residential solar installer in the United States filed Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware. Case number 26-10522. Filed just nine days after Texas AG Ken Paxton opened a fraud investigation against them.

Your solar loan is a separate contract with a separate lender, and it survives Freedom Forever's bankruptcy. That is the single most important sentence in this article, and most news coverage buries it. Mosaic, GoodLeap, Sunlight, and Dividend will keep billing you regardless of what happens to Freedom Forever. But — and this is the part that changes everything — when an installer collapses and cannot deliver the services that justified the loan (warranty, production guarantee, monitoring), the FTC Holder Rule and state consumer protection laws open the door to full loan cancellation or 40-60% reduction.

Stick with me. I'll walk you through the exact numbers, the three scenarios Freedom Forever customers fall into, the Sunnova/SunPower playbook that is about to repeat, the legal theory that makes your position stronger than you think, and — toward the bottom — the two outcomes we get for customers in exactly your situation.

The Numbers That Matter

From court filings:

• Liabilities: Between $500 million and $1 billion
• Assets: Between $100 million and $500 million (a massive gap)
• Creditors: Between 50,000 and 100,000
• Largest unsecured creditor: Mosaic Funding IX at $114 million
• Other major creditors: JA Solar, Trina Solar, Jinko Solar, Silfab Solar, Home Depot
• Critical filing language: "No funds will be available for distribution to unsecured creditors after administrative expenses are paid"

That last line is the one to read twice. If Freedom Forever owes you money — for a botched install, an unhonored warranty, a roof leak they caused — you are an unsecured creditor, and the court has already signaled that unsecured creditors get nothing.

This is Chapter 11, not Chapter 7 — meaning Freedom Forever is attempting to reorganize rather than liquidate. They intend to keep operations running. But "intend to keep operations" and "will actually honor your warranty" are two very different sentences.

The Three Scenarios Freedom Forever Customers Fall Into

Scenario 1: Your install is incomplete.

Panels on the roof but system not turned on. Permits not pulled. Interconnection not done. If this is you, you are in the worst position — but also the one with the most legal leverage.

Freedom Forever collected your deposit, took your loan proceeds (which went directly to them, not you), and failed to deliver the finished product. Your solar loan lender — Mosaic, GoodLeap, Sunlight — will argue you still owe the full loan because they paid Freedom Forever on your behalf. They are wrong about that. Under the FTC Holder Rule, when the product financed by a consumer loan is materially defective or undelivered, the lender is subject to the same claims and defenses you have against the seller.

Do not keep paying the loan without legal eyes on the situation. Do not sign anything Freedom Forever or its lender sends you. Document what is on your roof with photos and dates.

Scenario 2: Your system is installed but not working right.

This is the biggest bucket. Underproducing system, inverter failures, monitoring dead, roof leaks from the install, a 25-year production guarantee that was supposed to pay you for underperformance — all of it is now in limbo.

Here's the trap: Sunnova and SunPower went bankrupt in 2024, and homeowners learned the hard way that bankruptcy reorganizations can void production guarantees. SunStrong Management took over Sunnova and SunPower accounts and then refused to honor the original warranties, saying in writing: "We did not assume Sunnova Production Guarantee or Limited Warranty obligations." That is the same playbook likely to run with Freedom Forever. Expect a successor entity, expect warranty disputes, expect a $10/month monitoring fee to appear for something that used to be included. (Full SunStrong breakdown.)

If your system is not performing, you need the evidence locked down now, not later. Pull 12 months of production data. Pull your guarantee paperwork. See Freedom Forever's production guarantee problems for more.

Scenario 3: Your system works, but you are still paying a loan.

Legally, your solar loan continues despite the bankruptcy — Mosaic, GoodLeap, Sunlight, Dividend will keep billing. Practically, the FTC Holder Rule and state consumer protection laws give you significant leverage when the installer cannot deliver the warranty and services that justified the loan in the first place. Many of these cases end in full loan cancellation (equipment retained) or 40-60% loan reduction.

The Legal Landscape — What You Actually Have on Your Side

The bankruptcy is not happening in a vacuum. This context is what most news articles leave out:

Texas AG investigation (April 6, 2026): Nine days before the bankruptcy, Texas AG Ken Paxton issued Civil Investigative Demands to Freedom Forever alongside Sunrun, Lone Star Solar, and CAM Solar. Over 100 formal complaints on file. Paxton is investigating misrepresented savings, faulty equipment, and deceptive contract terms. (Full breakdown.) The investigation does not pause because of the bankruptcy — and the evidence the AG is forcing Freedom Forever to hand over becomes ammunition for your individual case.

Mosaic Funding IX — $114 million owed: Mosaic is the primary solar loan servicer for a huge percentage of Freedom Forever customers. When your installer owes your lender $114 million, the relationship gets interesting fast. New York AG Letitia James already sued Solar Mosaic in March 2026 alongside Attyx/SUNco for their role in solar fraud. (Full Mosaic breakdown.)

Prior litigation context: Freedom Forever already had a broad set of litigation claims against it before filing bankruptcy — widely reported as one of the reasons for the Chapter 11 filing.

What You Need to Do This Week

1. Stop engaging directly with Freedom Forever customer service. Every interaction is being logged. Every email you send can be used. You are dealing with a company in active bankruptcy litigation.

2. Document everything right now. Photos of panels, inverters, any damage. Screenshots of your production monitoring (before they turn it off or start charging for it). Copies of your contract, production guarantee, and warranty paperwork. Save 12 months of electric bills pre-solar and post-solar.

3. Do not stop your loan payments on your own. I know that sounds counterintuitive. But stopping payments without a legal strategy tanks your credit and gives the lender a slam-dunk lawsuit. The right way to attack a solar loan tied to a bankrupt installer is through the FTC Holder Rule, state consumer protection statutes, and (in some cases) the bankruptcy court itself — not by defaulting.

4. File a proof of claim in the bankruptcy if you have damages. The court will set a "bar date." If you miss it, you lose your place in line entirely. Even though current filings say unsecured creditors may get nothing, filing preserves your rights for future developments.

5. File a complaint with the CFPB and your state AG. The CFPB handles solar loan servicing complaints. Your state AG handles consumer protection. Both create the paper trail that supports individual settlement negotiations.

6. Get a free case review.

Here Is What Actually Happens When We Take Your Case

We are not a referral mill. We review every case before we take it. If you meet the criteria — and most homeowners reading an article like this one do — here is what typically happens:

Outcome #1: Your contract gets completely canceled. You keep the system.

Read that again. That $30,000 loan, that $80,000 loan, that $150,000 loan — gone. Wiped. And the equipment on your roof? You keep it. It is yours. Hire a local electrician or solar tech to clean it up and tie it in properly, and you have got a functioning solar system for the cost of a service call.

Not a typo. That is the best-case outcome, and it is what we push for on every case we accept.

Outcome #2: Your loan gets massively reduced. Typically 40% to 60%.

Every case is different, but the pattern is consistent:

• A $150,000 loan knocked down to around $75,000
• A $70,000 loan cut to $35,000
• A $175,000 loan restructured to something you can actually live with

If we cannot completely kill the contract, we fight like hell to get the principal slashed — and we have a track record of doing it.

If we take your case and cannot deliver either outcome?

You get 40% of your fee back after we have exhausted every angle. That is our guarantee, in writing. Nobody else in this space puts that on paper. We do — because we only take cases we believe in.

The Bottom Line

Freedom Forever's bankruptcy is not an isolated event. It is part of a wave — Sunnova in 2024, SunPower in 2024, Pink Energy, ADT Solar, Momentum Solar in various states of disarray. The entire first-wave residential solar industry is collapsing under its own weight, and customers are the ones left holding the bag unless they fight back.

You are not stuck with a bad contract because the company is in bankruptcy. You may actually have more leverage now, not less. The bankruptcy creates documentation, creates public record, creates successor-liability questions, and — critically — creates a moment in time where your lender is scrambling and more willing to negotiate than they will ever be again.

Do not wait for a SunStrong-style successor to show up and tell you your warranty is void. Do not wait for your monthly loan payment to become a problem. The 90-day window after a major bankruptcy is when the best outcomes get negotiated.

Related Reading

• Texas AG Investigates Sunrun and Freedom Forever for Solar Fraud
• SunStrong Won't Honor Sunnova & SunPower Warranties — CT AG Investigates
• Freedom Forever Production Guarantee Not Honored
• Freedom Forever Complaints in Texas
• Sunnova Bankruptcy — What Happened to Customers
• Solar Company Went Out of Business — Your Options
• How to Cancel a Mosaic Solar Loan
• Mosaic Solar Loan Complaints
• How to Get Out of a Solar Contract Legally