Engine tilt

The frame horns are probably bent.

Is there a fix? What are the consequences for driving it? 

Any ideas on the rear suspension--yes it has the door gasp issues too but wondering it was lowered would raising it close the gap?

They can be bent back; just make sure the transaxle yoke is installed when it's done so it still bolts up afterward. You can drive it the way it is, but if your car is a swingaxle then the rear alignment probably isn't the same on both sides. The transaxle is leaning too, and that could be giving slightly different camber measurements.

The problem with the door gap issue is the back of the body is falling around the framework, and needs to be shimmed back up and then secured properly. There are guys on here who've done it and there may even be a thread describing the procedure.

Check that the frame horns are not rusted (don't drive is rusted through).  The cold be weak or abused and bent.  There are reinforcing kits. Engine will need to come out. Reindexing rear torsion bars won't correct the door gaps because you are changin angle of the control arms and not the rear steel support frame pieces.  1/16' is nothing to worry about - most are near 1/4" difference.