I bout a car in 2006 with GAP insurance. I filed for bankruptcy in June 2009, and it was discharged October 2, 2009. I reaffirmed the car loan.
I was involved in an accident last week and my car is totaled. Allstate (the other drivers insurance) said that they are claiming liability for the accident (pretty obvious, he rear-ended my while I was stopped) and that since the vehicle was financed by Toyota, they will give Toyota the cash value of the car. If that is less than the payoff amount, I will have to pay the difference.
Now, here are my questions:
1. Did my GAP insurance stay in tact throughout the bankruptcy and reaffirmation? I was looking over the paperwork and the only thing that raises some concern is the following statement:
"If you default under Your retail or lease contract, We may cancel this Agreement, and any cancellation refund shall be retained by Us and will reduce the balance due on Your retail or lease contract." I’ve never received notice of a cancellation, and Toyota said that their records show that I bought GAP insurance.
2. Let’s say that my GAP insurance is no longer available and I have a balance to pay. Can I sue the other driver for the difference?
3. Kind of irrelevant, but how quickly does the process move? I’ve already bought a brand new car, but the dealership is holding the contract for me pending the conclusion of this claim. As soon as I can get a letter or something the deal is done, I will pick my new car up.
Thanks.
,Maybe a link or something.Anyway Thanks