Ugh! Husband's truck was hit in parking lot . . . .Should we fix it???

[basketsbears]

Hi,

Not sure how to handle this. Husband's truck got was hit in a parking lot. The right front headlight and side will need to be repaired. Still OK to drive and everything.

We file BK this summer - probably June. We bought the truck new this past December, only has about 2,500 miles (thought he was going to cry), and we have debated if we will keep it or not. Our interest rate is OK 7.4%, but term is 75 months - payment $570. We have a 2009 Jeep, interest rate 9.9%, $495 month will be paid off June 2015.

So, we are planning on not reaffirming either vehicle. Not sure if we will keep them or not. That being said, if we are not sure if we should keep truck, should we get it fixed? My husband thought we would be in trouble with Ally if we don't. Insurance should cover all but $500 - but it will be hard to come up with. I believe we will end up getting it fixed though.

We just do not know what to do. If we paid the $500 deductible is that considered a "luxury" cost?

Thanks!

Lynn

[keepmine]

Repairing damage to an auto is not a luxury.

[basketsbears]

I didn't think so - but I didn't want to chance it after we get $ to fix it, then somehow find we did the wrong thing.

[LadyInTheRed]

I agree that paying a decutible to get a vehicle repaired is not a luxury, but it doesn't really matter. If you are going to pay cash, you can spend money on whatever you want before you file Bankruptcy, whether it's a luxury or not. Whether you should spend the money is a different question.

[ess]

You don't plan to file until summer and in the meantime you still plan to drive it. Get it fixed it is illegal to drive with one headlight so spending the money to fix it is not a luxury it's a safety measure. Talk to the body shop that's fixing it some will factor in the deductible so you don't have to pay it.

[basketsbears]

Thank you - I think the headlight still works, it is just kinda "broken" around it. Sorry I know that sounds dumb. I thought that some body shops helped keep the cost of the deductible down - so that will help too!

We have been kinda stressed, as my tuition this summer is double what I thought it was going to be $3,000 instead of $1500 - so just trying to figure how in the world are we going to get all this extra $$$$$$.

[Drazil65]

IDK, if you are not going to reaffirm and the posibility of not keeping the vehicle in the long run can you see if you can get someone to fix it without going through the insurance company? If you have to put a claim in and pay the deductible you also run the risk that your rates will go up. Even though it is not supposed to happen I have heard that some people have issues with their insurance rates after filing so maybe if the damage is minor it might be cheaper to fix it on your own (don't give the insurance company more reason to raise your rates)? With your payments being very high maybe you start looking around for cheaper, older cars and once you file let the high priced cars go.

[basketsbears]

We have thought about getting rid of both, keeping both, keeping one. My husband really doesn't want to talk about the BK at all until we actually file, although he did say before this happened he doesn't want to keep the truck. He prefers smaller trucks and this one is huge (for us anyway), and the ironic thing is we purchased this in December in case we somehow end up in Ch 13 to make sure we had 2 good vehicles that would last. I admit, we overbought and would have never purchased a truck this expensive if we wouldn't be filing. I know that probably doesn't make any sense - but it is what it is.

We will be filing a 7 this summer. If we decide to surrender it and not pay and retain, when can we stop paying without the repo happening before we file? Also, both of our car loans are with Ally. I thought I read somewhere on here if you have 2 loans, and you return one car, that then they will take back the other car even if the payments are being made. Also (sorry for all the questions) - I am assuming that if we BK Ally and return one or both vehicles, they would not loan to us again???

Thanks for the advice on the insurance too. We have GEICO and my husband has not contacted them yet - so we will see what happens today. I may ask if he take it to dealer to give him estimate on cost of damage.

IDK, if you are not going to reaffirm and the posibility of not keeping the vehicle in the long run can you see if you can get someone to fix it without going through the insurance company? If you have to put a claim in and pay the deductible you also run the risk that your rates will go up. Even though it is not supposed to happen I have heard that some people have issues with their insurance rates after filing so maybe if the damage is minor it might be cheaper to fix it on your own (don't give the insurance company more reason to raise your rates)? With your payments being very high maybe you start looking around for cheaper, older cars and once you file let the high priced cars go.

[SMinGA2]

Its impossible to predict with absolute certainty. Personally I would not let it go more than 30-45 days, just to be careful. Such as if the payment is due on the 15th and late after the 25th and the intention is to file on July 1st: I'd maybe skip the May payment, certainly skip the June payment. But the tricky part is: what if your attorney says he'll file on the 1st and doesn't get around to it until the 15th? You live in fear if you DO skip May. Of course, you could also call up Ally in May and ask them to defer a payment. Some lenders will do that once a year or so.

We will be filing a 7 this summer. If we decide to surrender it and not pay and retain, when can we stop paying without the repo happening before we file?

[AngelinaCat]

Don't just go to the dealership for an estimate, but go to several--at least two--independently owned body shops for estimates. Chances are good that the body shops will be much lower than the dealership.

[basketsbears]

Thanks everyone! My husband called GEICO today and it will be covered by uninsured motorists so no deductible! Whew!