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How essential is this converter? The repairs would come to about 1400 and I don't know if this car is even worth that much.
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For everyday operation, not essential. If you want your check engine light to clear and pass your annual emissions inspection (provided your state has one), very essential. With newer cars (manufactured in 1996 and later) they were equipped with two oxygen sensors, one before the converter, and one after it. The first sensor works like any other oxygen sensor, monitoring the air/fuel ratio and making sure the mixture is optimal. The second sensor is used by the ecu to make sure the converter is actually working by comparing its signal output against the output of the first sensor. If the signal between the two sensors are a close match, then the ecu will assume that the catalytic converter is no longer operating and that is why your check engine light was triggered.