Car totalled, but filed bankrupcy...

by jen44922 » Sun May 03, 2009 12:52 am

My son totalled my car we think. I owe lots of money, Way more than it is worth, but have filed bankrupcy. What happens now? Will they cut me a check to pay on my bankrupcy payments or how does that work?

Total Comments: 3

Posted: Sun May 03, 2009 01:53 am Post Subject:

The insurance will pay the lienholder up to the value of the vehicle in exchange for the title. You will still owe the remaining part of the loan the same as if the accident never happened.

Posted: Mon May 04, 2009 04:49 am Post Subject:

Just wondering....Jen, do you have a gap insurance? If you have one that would lessen your worries a bit since the gap would pay the difference between the claim check and loan.

Is the car listed in the bankruptcy?

~Jeremy

Posted: Mon May 04, 2009 05:13 am Post Subject:

Jen, if you haven't reaffirmed the auto loan you might not have to pay for the remaining amount on the car. But most of the lenders would require the debtor either to reaffirm the loan or surrender the vehicle.

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