2002 Volkswagen Passat Timing Belt Broke, Bent Valves, Need

Just my Luck lately!! My Timing belt went out. My mechanic charged me $500 to replace timing belt-didn't work as Valves were bent. My mechanic is now recommending a used engine which will cost over $3000. Sad part is that I am still making payments on this car as it sits in my back yard. Some say to spend another $500 to have valves worked on as it would not be guaranteed to run the way it should. What would you do? Have Valves worked on, replace engine with used or give it up?