Very bad situation, advice please!

[Guest ann9787]

I am scheduled to go to court this Thursday for my BR. Needless to say my credit is completely shot! I planned on keeping my car and paying it off over the next two years, but talk about bad timing - I was in an accident several days ago and the car is now totalled! I owe about $8k more than it's worth to make matters worse. I don't know if I can still include the car in the BR, but regardless of that, I now need a car and doubt anyone would finance me!!!

 

Maybe I could get a car with a 24% interest rate but my God, that is horrendous. I have about $2K to put down maximum and may be able to get my boyfriend to co-sign, but I don't have my last two years tax returns. I can show a decent income recently via bank statements, but that's about all.

 

I don't even know where to begin to start and was hoping someone might be able to point me in the right direction. I would greatly appreciate any advice, thanks!

[MarvBear]

Re: the currently open auto loan that was totaled....did you have GAP insurance?

 

You are currently in a bankruptcy proceeding? CH 7 or 13?

[Guest ann9787]

Hi,

 

I'm going through chapter 7 and I don't know for sure yet if I have gap insurance but I would doubt it..... I will find out for sure tomorrow morning.

[MarvBear]

First things first, find out definatively if you have GAP insurance before proceeding. You will need to look at your retail installment contract papers.

 

Your BK would need to be discharged IMO.

[Guest ann9787]

I was also wondering, what do the insurance companies go by when determining the value of a car? I looked my car up on edmunds.com and the trade-in value is $13,186, the Private party value is $14,964 and the Dealer retail is $16,904. I actually owe less than I thougt - $14,704.00 so I'm right at the private party value......

 

Does the insurance company have to pay me the replacement cost of the car?? Because it would cost me $16,904 to purchase this car now at the dealership that I bought it at.... If that's the case, would I receive the difference from my insurance company???

 

Thanks!!

[MarvBear]

Personally, me not being very knowledgeable regarding insurance settlements, I think there are a number of members affiliated with the insurance business who might weigh in on your thread and help you out with your question.

[mcourt83]

If you have $2,000, why not buy a $2,000 car?

[Guest ann9787]

I can't imagine what I could get for $2K..... I'm an interior designer and I have to meet clients all the time and I need a reasonably good looking car, nothing extravagant - my car that just got totalled is a 2000 lexus, a five year old car. I'm hoping to get something similar but who knows what I'll end up with...

[Guest ann9787]

Hi Marvbear,

 

Well I just found out that I do not have gap insurance.... I am definetely at a deficit with this car now and am wondering if I can include the amount in with my BR........

[MarvBear]

Best to consult quickly with your attorney IMO.