Q: Please help. Car totalled after bankruptcy
I have a chapter 7 that has been discharged since November 2015....I did NOT reaffirm and am currently on payments. The car was hit by a drunk driver the other day and insurance deemed it totaled. The loan is 13k but car is only worth 8k. Insurance is in the process of sending payment to Leinart holder, that happens to the rest of the balance? Do I have to pay the other 6k?
A: Yes. You could have and should have purchased GAP insurance to cover this contingency.
A:
You'll want to call a member of the Ill Trial Lawyers Assn about your injury case. They give free consults. Law only gives you the book value. Hopefully you got "gap" insurance. A consumer lawyer should also look over the contract but by the time you bought the car most lease companies had learned.
If it's your insurance check with them.
Save all records as it may qualify as a casualty loss on your taxes.
A:
Your debt was discharged.
When you didn't reaffirm, they only had the right to get back the car which is what they are doing when they get the check.
They probably didn't do a reaffirmation because they suspected that the bankruptcy judge wasn't going to approve it because you were under water so much.
They also knew you had insurance and they would get paid if something happened to the car because they were listed as loss payee.
You could pick up a couple of extra bucks by arguing with the driver's insurance that your car was worth more than what your insurance company paid. Also, there was probably a deductible that wasn't paid.
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