2001 Chevy S-10 Do I need a new engine for my 2001 S-10?

Oil was full. Coolent was 1/4 full in the reserve tank when my truck suddenly made a whistleling sound then a clatter and locked up all within 1/4 of a mile. I am told ithe engine now has no compression at all. I was told it could have gotten hot but the gage did not indicate this. I was also told the timeing belt could have gone out (sorry, meant to say timeing chain) but either way the engine was damaged. I still owe a little over $2,000 on this truck. What is your best advise.