Car Totaled --- Now What?

[dasmom]

I have filed Chapter 7 and am waiting for discharge by early March 2011.

Had car accident today in which the other driver was at fault. No one was seriously hurt.

My car is 12 years old, low miles, great engine. Very heavy front end damage including structural. Insurance company of other driver is going to total the car.

I was hoping to keep this car for at least another 5 years!

I am a single parent, no public transportation system where I live. I drive 20 minutes to take my child to school for special academic needs and then commute another 15 minutes to go to work. Then of course I do the reverse at the end of the day.

I will definitely need to get another reliable car very soon and will definitely need financing.

Any suggestions on how to even begin this process with poor credit?

Thanks

dasmom

[dasherkin]

start saving now for a downpayment. by march you might be able to get a car with roadloans or cap one. the interest rate will be crazy, but you should be able to get it, i was discharged 12-29 and i was approved through road laons for 2,000 down and i can get a car for 16,000

[Kuya]

Will you get any money from their insurance for the total? Is it enough to buy a cheapo car to get you by for a while?

If you NEED financing . . the good news is that sometimes you can get back on your feet (credit wise) shortly after discharge. Creditors will give you a higher rate for sure, but they also know that you can't file BK again for a long long time. So you WILL pay them one way or another.

Once you are officially discharged . . try Cap One. if all else fails you can try RoadLoand . but with RL be prepared to pay 18 - 25% and have some cash to put down.

Good luck

[BrokeinMD]

Dasmom - sorry to hear of your accident! You should speak to a personal injury attorney, and get yourself checked out. You may feel differently after the adrenilin wears off. About the car, report the accident to your insurance co. If you have rental on your policy, get a rental car. I would also work with my own company to look at the car, have them total it, and let them get it back from the person who hit you. If you handle the property damage portion through your insurance, you'll get a check quicker. That's been my personal experience.

[ValleYum]

I really agree with BrokeinMD. This scenario happened to me - felt fine until the next morning... I ended up with a double cervical fusion.

Also, if the other party's insurance gives you a check for your car MAKE SURE to read the back of the check before you sign as they may try to have you release them of all liability for both your car and personal injury. Someone here will chime in with the proper term and even better advice than mine I am sure.

I hope you continue to be okay and get a new car quickly as soon as you can - maybe you BK attorney will have some input for you?? {{{hugs}}}

[BrokeinMD]

I worked in personal injury years ago. And Yes, Valle, you're right! Thanks for the reminder! Above your signature, you write on the property damage check, "Property Damage Only - Not a Release of Claims" and sign underneath. You do that even if your insurance company gives you the check.

[dasmom]

Thanks for your quick responses. I just got more information and it looks like I'll have to get a car before the discharge.

The car rental fees and storage fees for my totaled car will add up to more than I can afford pretty soon. The other driver's insurance company will reimburse some of those costs, but I might have to pay them out of pocket first.

I will have to do some research on reliable used cars that cost up to what the insurance company will pay. My timing is hopefully going to be within a week as long as the insurance company cuts the check.

I will also check with my bk attorney to see if their office has any suggestions.

Thanks,

dasmom

[BrokeinMD]

Do you have car rental on your insurance policy, Das? I used my insurance, and the guy that hits you pays 100%. Your company will get the money back off them. I had a rental for a month until I got the car I wanted, which was another 10 days or so of me looking around for a car. You really should talk to a personal injury attorney.

[dasmom]

I don't have rental coverage or collision -- just the minimum required by state law. My car was pretty old.

We have a lemon law in my state, so I am going to limit my search to reputable used car dealers. Maybe pick 3 - 5 dealers to start the search with. The lemon law does not apply to auctioneers, etc.

I'm thinking a 2000 model year might still be in my budget. I just need a basic, reliable, commuter car.

[ValleYum]

Just please don't rush so fast that you don't "dot the i's and cross the t's" - as far as making sure the initial payment is for property damage only.

Why should you be out of pocket and have to pay for storage? Can't the other guy (or his insurance) pay for this?

[BrokeinMD]

Crap. I would tell the person's company who hit you that you will be giving their claim # to a car rental place, and they will pay it until they settle the Total claim and you are in your vehicle. I would also advise my insurance company of the other guys insurance company not willing to pay the 100%. They may be able to pay you the difference, and the insurance co. would pursue the other person's company for the difference. Then tomorrow, if you hurt like hell, you can add that you're going to go to the doctor and get checked out, so they need to send you an Application for Benefits, (form insurance co's need you to fill out to pay your medical for claims such as this) if you do not have PIP or medical on your car. If you do have PIP or medical on yours, get the Application from them. When you go to the doctor, again, you give the other guys insurance company and claim #. Nothing out of pocket for you. PM me if you need more help with this. You can call the shots, and they will comply, as they are 100% liable. If they don't, you sue.

[Timbbey]

I just went through this! I am a single Mom of 3 and filed for Chapter 7 11/17/10. Two days before Xmas (and on my way to finish shopping) my car burst into flames! The fire dept came and had to use the axe to get to the source! Anyway, it was a 93 (no payments). My insurance covered 2/3 of the cost of a rental. Just today I got the final figures of what the will pay.

I also cannot take out a loan until my discharge in February. I am going to borrow my uncles car until then and use the insurance money as a down payment once the discharge happens.

[sequinfamily]

We discharged in November. We were approved in January for the 2000 down up to 18k with RoadLoans too... but when I went in to the Chevy dealer to look they approved me with GM financial with 19% interest on a brand new Aveo. The payment is far less than we budgeted, and we are going to make double payments on it hoping to get the principle down and to prove ourselves for a while to refinance it in a year. And, it is much bigger inside than I thought it would be! The trunk handles a trip to Sams Club just fine, and both my kids are in car seats (5yr old in a Graco Nautilus in the 5pt harness and a 9yr old in a Britax Parkway highback booster) and fit just fine in the back.

[sequinfamily]

Oh - and GM Financial let me do no money down - so we put the 2000 we had saved into our emergency fund. Even though we are making double payments on the car our emergency fund was a little low so we decided to do that instead of putting it down.