Should I fix my car that I'm going to get rid of?

[micahCT]

I've been talking about filing chapter 7 for years but, being sued by credit card collections now for the second time and having my bills exceed my income, I'm thinking I might finally pull the trigger in the next couple months. I have a car that I plan on ditching in BK, the payments are way upside down.

Anyway, my neighbor backed into this car a couple weeks ago and smashed out the headlamp and bumper cover. Her insurance just cut me a check for $1,200 to get it repaired.

What do I do?

I'd love to put that money towards a new beater car (I'd like to outright buy something for < $2k because I need a car after I lose this one in BK*) but I feel like this would be an ethical (or possible legal) problem. I mean, the car has other wear and tear, but should I (and can I) pocket the money and not fix the car?

[frogger]

but I feel like this would be an ethical (or possible legal) problem.

I think that you know the answer already.

[bcohen]

The money is designated to pay for repairs to your car. You could certainly get away with spending it on something else, because your lender is not going to bother coming after you with an AP over $1200. However, no one here is going to advise you to pocket the money.