totalled vehicle

[yumyum]

Hello. My first post here. My spouse and I had our 341 meeting on Sept 16, and we planned on re-affirming our vehicle. The Saturday before we got the reaffirmation papers, it was totaled in a wreck. We actually got the reaffirmation papers on Monday. Called our lawyer, and was told not to worry about the reaffirmation agreement.

The insurance paid out their part of the vehicle, and have about $5200 left on the loan. I did get GAP insurance when I got the vehicle 3 years ago. Talked to the finance company yesterday as I haven't heard anything back from the GAP insurance place, and they gave me a phone number to call. She did tell me that it could take up to 6 months for them to pay .

My question is do I have to continue to pay on this until GAP pays? We were caught up on payments (in fact, my last payment was cashed on that Tuesday after the wreck). Also, I heard that the company that handles our GAP insurance may not pay everything to cover the rest of the loan (did a search on Google). Since we didn't reaffirm our vehicle, are we still liable for this? I want to get another vehicle after we get discharged on Nov 16 (yaaa!), but we can't handle two vehicle payments.

I tried calling my lawyer yesterday, but he was out so I am going to try again today but wondered what you guys thought.

Thanks.

[Chowder]

You will get posts that say you are responsible for any deficiency. Possibly true in a technical sense, but not much of a reality generally speaking.

The difference you are talking about would be close to what the creditor would lose at the auction anyway. Any deficiency from that transaction would be discharged in your BK.

It'll be interesting to hear your Attorney's take on this.

[kenshirley]

In my life, experience has shown that you can pay for insurance all of your life and when you need it the companies can be very hard to deal with.
I never buy extended warranties or things like that from dealers either. I learned the hard way.

[OhioFiler]

The lender can pursue the GAP insurer if they choose. It's really not your concern. Your debt is going to be discharged. My guess is the bank is happy the car was totaled.

[yumyum]

Well, could my truck loan be discharged? After all, we wanted to keep it since I loved that truck, and kept it as an asset (or whatever it is called) and planned on reaffirming it. Of course, we didn't get that far (reaffirming it). It was wrecked about 2 weeks after our 341, and I also don't want anything to hold up our discharge, set for Nov 16.

Hopefully I will hear back from my lawyer today.

[LimpDisc]

In my life, experience has shown that you can pay for insurance all of your life and when you need it the companies can be very hard to deal with.
I never buy extended warranties or things like that from dealers either. I learned the hard way.

I totally agree with you about 99.9% of the add ons the dealer trys to sell buyers. However, the Gap insurance is actually a good deal if you're upside down by a large amount. I think our insurance company offers the same coverage for a fraction of the dealer cost.

[yumyum]

Talked to the paralegal who is handling our case. She said that it will be discharged, and not to worry about it Told her that I will still pursue the GAP insurance company to pay up since I don't feel like our finance company should be stuck with the remainder to be charged off when I got the GAP insurance when I bought the vehicle.

So, come on Nov 16 !! My wife's bday is Nov 17 so what a wonderful bday present (I guess if you call filing bankruptcy a wonderful thing..I don't). But still is nice to get this behind us to start a new phase in our life.

When I get another SUV, I'll still be getting GAP, but will see if our insurance carrier can provide this instead of a 3rd party.

Still would like to hear other thoughts, though.