Legal Question in Business Law in California

Re: My liability in a bankruptcy

The most likely thing is that the failed company's contracts would be sold in bulk to someone else, and you would end up writing rental checks to a different payee.

However, this is not the only possibility. It's also possible that the current company would be reorganized in a Chapter 11 bankruptcy, and nothing would change from your perspective.

There is also a slight, maybe only theoretical, risk that some solar-cell manufacturer or vendor would claim that it owned part or all of the apparatus and would try to do a repossession. In this respect, it would be helpful be have the installing/renting firm put a representation into its agreement that it is the owner of all the equipment at the time it is installed, and that it has the right to install and rent it to you.

I don't see any risk of a lien on your home from suppliers or investors who are not in contract with you and do not provide any notice of lien at the time the work is done. Further, if you comply with the rent-payment terms of your contract, that is additional protection against liens.