Mosaic Bankruptcy Update: Can Texas Homeowners Now Seek Relief for Solar Loan Fraud?
Mosaic Emerging from Bankruptcy: What Texas Homeowners Need to Know About Seeking Relief
Solar financing company Mosaic has recently emerged from bankruptcy proceedings, leaving many Texas homeowners asking an important question:
Can I now pursue legal claims against Mosaic for solar fraud or deceptive financing practices?
For many consumers, the answer may be yes.
If you were misled about solar installation, financing terms, system performance, or lien placement—and your loan was funded or serviced by Mosaic—the end of bankruptcy may reopen important legal avenues.
This article explains what Mosaic’s bankruptcy means and how Texas homeowners may now seek relief under the Texas Deceptive Trade Practices Act (DTPA) and related laws.
What Happened in the Mosaic Bankruptcy?
Like several solar financing companies in recent years, Mosaic entered bankruptcy amid financial instability in the residential solar industry. Bankruptcies in this space often arise after:
Widespread contractor failures
Incomplete or defective installations
Regulatory scrutiny
Litigation involving deceptive sales practices
When a company files bankruptcy, most lawsuits and collection efforts pause under the “automatic stay.” Consumers often cannot continue litigation without court approval.
Now that Mosaic has emerged from bankruptcy, the automatic stay may no longer prevent certain claims—depending on the bankruptcy plan and discharge terms.
That means homeowners who were previously stalled may now evaluate whether their claims can proceed.
Does Mosaic’s Bankruptcy Eliminate Homeowners’ Claims?
Not necessarily.
Bankruptcy can restructure debt, discharge certain liabilities, and limit some claims—but it does not automatically erase:
Fraud claims
Texas DTPA claims
Claims against co-defendants
Claims against installers or sales companies
Loan defenses under consumer protection principles
In many cases, even if claims against the bankrupt entity are limited, claims may still exist against:
Solar sales companies
Installers
Third-party lenders
Assignees of the loan
Entities that participated in deceptive sales practices
Each situation depends heavily on the bankruptcy confirmation order and the specific language of the plan.
Common Issues in Mosaic Solar Loan Cases
Texas homeowners who financed solar systems through Mosaic often report:
Promises of “no-cost” or “free” solar
Inflated income projections from energy savings
Systems that were never fully installed
Roof damage
Forged electronic signatures
UCC-1 liens placed on homes
Transfer of servicing without disclosure
Pressure sales tactics
In some cases, Mosaic funded loans despite incomplete installations or unresolved complaints.
When these facts exist, Texas law may provide remedies.
The Texas Deceptive Trade Practices Act (DTPA) and Solar Loans
The Texas Deceptive Trade Practices Act protects consumers from false, misleading, or deceptive acts.
In solar financing cases, DTPA claims may arise when:
Material facts were misrepresented
Energy savings were exaggerated
Financing terms were concealed
Consumers were misled about ownership or lien consequences
Under the DTPA, homeowners may seek:
Economic damages
Additional damages for knowing conduct
Attorney’s fees
In some cases, rescission or cancellation
Importantly, DTPA liability may extend beyond the original solar seller in certain circumstances.
What About Arbitration Clauses?
Many solar financing agreements, including Mosaic, contain arbitration provisions. That does not eliminate your claim; instead, it changes the venue where the legal fight takes place.
In some cases, clients can maintain a lawsuit despite the arbitration clause.
Can Homeowners Now File Lawsuits Against Mosaic?
Now that Mosaic has emerged from bankruptcy and the automatic stay is lifted, certain claims may now proceed—subject to the confirmed plan’s terms.
Because bankruptcy plans can include complex discharge and injunction provisions, a careful legal review is necessary before filing suit.
Solar Company Bankruptcy Does Not Automatically Protect Lenders
A key issue in many solar cases is whether financing companies can avoid responsibility by blaming the installer.
Texas law does not automatically shield a lender when:
The lender was closely involved in the sales process
The loan was structured to facilitate deceptive practices
The lender benefited from misrepresentations
Consumer protection principles apply
Each case is fact-specific.
What Texas Homeowners Should Do Now
If your solar loan involved Mosaic and you believe fraud occurred, consider:
Gathering your contract and loan documents
Obtaining installation records
Reviewing any bankruptcy notices received
Preserving communications with the installer or lender
Avoiding admissions in collection calls
Seeking legal review before signing modifications
Timing matters. Some claims may be subject to limitations periods.
Frequently Asked Questions
Is Mosaic still collecting on loans after bankruptcy?
In many cases, loan servicing continues or transfers to another entity.
Does bankruptcy mean my debt is forgiven?
Not automatically. Bankruptcy primarily affects the company’s liability—not necessarily individual loan balances.
Can I stop paying my solar loan?
Stopping payments without legal review can create foreclosure or credit risks.
What if the solar company that installed my system also went bankrupt?
You may still have claims against Mosaic.
Seeking Relief After Mosaic’s Bankruptcy
The end of a bankruptcy case often marks the beginning of renewed legal evaluation.
For Texas homeowners, Mosaic’s emergence from bankruptcy may present an opportunity to:
Reassess stalled claims
Evaluate DTPA remedies
Examine lender liability
Determine whether arbitration or litigation is appropriate
Every case depends on the documents, representations made, and the specific bankruptcy plan terms.
If you believe you were affected by deceptive solar financing practices involving Mosaic, you can schedule a free consultation to evaluate your legal options.