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CalAttorney2, Lawyer
Category: Consumer Protection Law
Satisfied Customers: 10244
Experience:  I am a civil litigation attorney representing individuals and businesses.
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My credit score is 450. I was in an accident and my 2015

Customer Question

My credit score is 450. I was in an accident and my 2015 leased car was totaled. My insurance company is saying my car did not have collision or comprehensive coverage, which is a requirement of my lien holder and I was paying GAP coverage through my lien holder. There is a $24,000 loan that I am being told will not be covered.
I have filed a complaint with the PA State Insurance Commissioner and I am trying to decide if I should sue the insurance company or just file for bankruptcy. But here is my question...I have been to many dealerships, applied for poor credit auto loans, personal loans, you name it and I have tried it but no one will give me another car with that $24,000 over my head at the moment.What do I do? I need a car for work but have no money.
Submitted: 1 year ago.
Category: Consumer Protection Law
Expert:  CalAttorney2 replied 1 year ago.

Dear Customer,

I am very sorry to learn of this situation.

Unfortunately, you may need to find a co-signer to help you get an auto loan.

The problem that you are facing here is that (as you stated in your question), you are facing a distinct possibility of filing for bankruptcy protection - in which case, if you were to have just taken out a new loan, your new creditor would be stepping in line to lend you money they would never recover (so they could charge you 500% interest on the loan, and it still wouldn't make a difference, the loan would not be of any value to the lender as the risk of loss would outweigh the likelihood of any gain).

I would recommend speaking to a local consumer protection attorney (even if you have to pay for an hour's worth of their time) to review your claim against the insurance company - they can help you make that decision about whether it is worth filing bankruptcy vs. filing a lengthy "bad faith" claim against the carrier.

If you go through the bankruptcy, following your bankruptcy discharge you will likely find that you are going to be more a far more viable debtor for new loans (such as a car loan) now that your other debts are discharged.

If you speak to an attorney about the bad faith claim, and find that it is viable (worth pursuing) following a review of your claims, etc. you could then consider pursuing a civil claim and strategy (including trying to push for an early settlement) to help you recover some of the money necessary to pay off the outstanding loan balance.

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