gap and term life on auto

[rodney]

Our chapter 7 bankruptcy was discharged in Feb, 2009....two months later our camper and car were repo'ed. Later we received a check from the camper for refunded gap and term life insurance. We went to the dealer to see about getting that for the car too..and was told GMAC closed it and took the money in April of 2009...after the discharge. Can they legally do this?

[justbroke]

Our chapter 7 bankruptcy was discharged in Feb, 2009....two months later our camper and car were repo'ed. Later we received a check from the camper for refunded gap and term life insurance. We went to the dealer to see about getting that for the car too..and was told GMAC closed it and took the money in April of 2009...after the discharge. Can they legally do this?

Did you get these policies through different companies? If you purchased GAP through GMAC, it's to cover the difference between the balance of your loan, and the amount received from the auction or sale of the car. They are entitled to that money... from what I can tell.

You'd need to read your GAP policy.

I'm guessing here, but maybe the Camper lender didn't actually get any proceeds from the GAP policy, so the policy is refundable to you. However, perhaps GMAC did get the GAP policy applied so there is no refund.

[rodney]

Thanx for the heads up...I think that may be the case. The lady at the dealership told me when you get financing through GMAC most often you get your gap through them too.
Regardless, I feel like a huge weight has been lifted off my back...and I don't feel as ashamed as I originally did. Hopefully my company will call me back this fall like they promised and I can go back in debt free. If anything, I really learned a lot about credit do's and don'ts from this experience. I will never put myself in this situation again!