Originally Posted by
spdracr39
I had this happen on a three month old Trek Madone. The part of the frame where the hanger attaches broke and caused the derailleur to go into the wheel. Frame trashed, derailleur trashed, chain bent, but the wheel survived. I happened to be going slow ( 10mph) at the time. My choice was to turn it in as a frame failure and pay for the derailleur and associated parts and labor or a derailleur failure and buy a frame. The LBS went to Trek first and they replaced the frame under warranty without any issues. I had to pay right at $500.00 for transferring parts and replacement parts. I thought it kinda sucked at the time but it is pretty much standard procedure for most brands. If it really was the hanger that failed it is not really a frame issue. They should at least offer you at replacement frame at crash damage discount. You might could go to Shimano and file warranty on the broken parts.
This is really good advice, except that the OP said he could not afford $400 for a repair that he was quoted. So, my guess is that while a crash replacement is probably the best option, that is off the table due to economics.
I would not recommend repairing it yourself because if the repair fails, you might not like the results.