So they are going to give you about 12K?
I would see if you can negotiate more. It's worth a try.
Shitty situation, but I would buy back the car and get it fixed myself. I mean it is an excellent time to mod the car, pick up an Invidia exhaust ($1000), Sport tail lights ($350), see if you can find a new hatch and rear bumper at a wrecking yard (>$1000) If not about ($2000). Then just forget about painting the car, vinyl wrap the thing as it sits and drive it till she dies.
The car would still be great, it would be paid off, and you may even have a little extra money from the settlement.