I recently totaled out a new car... don't have any idea why we didn't have gap... Anyway, I owe after insurance about $9500.00. Our credit is reasonable about 630... I have offered a settlement amount of $8200. They said that the credit report will reflect that: settlement: paid in full. (will also get the 1099 form) Is it worth the $1300 to have that on the credit report?

Ideally, you would want them to report it paid in full... ESPECIALLY with a settlement that is THAT high (86%!? They're not doing you many favors here). You should be shooting WAY lower in the first place but if they agree to that much, you should demand that it reflect paid in full.

Im not exactly sure how it works with a totaled car... is it still considered a repo? If so, the repo on your credit is more what you should be worried about.

RE: the 1099... you can be forgiven of the tax on this "income" (as they call it) if you are insolvant. That means that if, at the time of settlement, your DEBTS outweigh your ASSETS, you are insolvant.

Lets say you are a home owner and your home is worth $500,000 and you are currently paying a $300,000 mortgage on it. (for this example, lets also say that this is your only debt and your only asset). That means that you have $200,000 of equity (an asset) and $300,000 in debt. YOu are insolvant and you can be forgiven of this tax by filing a Form 982 (<- click that for a copy of this form).

Hope this helps!

Hello, no you don't owe after you total a car and the insurance pays the value of the car ( you may owe the deductable) This just does not make since that you could have full coverage on a car.

I am thinking something is wrong right there.

It sounds like they are not offering you enough money for your car, it sounds more like attorney time, than settlement time right now.