6 months until payoff...what to expect, what should we do?

[qwertysue]

exactly 6 months until our last payment is made.

I do know that we should pull credit files to review for mistakes--when should that be done?

What else should we be doing to prep for payoff?

Thanks!

[lrprn]

Taking a close look at all three credit reports for yourself (and your spouse if there is one) is a good place to start. Then start filing disputes online first to correct any errors. It takes up to 30 days to see the corrections made, so having 4-5 more months to go through the process is a good use of your months that are left.

If online disputes get stalled or the credit agencies push you back to the original creditor or collector, then you need to start documenting your disputes in writing sent with a return receipt.

When we were about six months out from our last payment, we also started re-evaluating all the things we put off for five long years - house repairs, car repairs, replacement cars, etc. - to figure out what they were going to cost us. Then we started budgeting so we could move forward quickly getting those things done after our official closing came (in our case, we got our closing papers from our local court about two months after we made our last payment).

It's great that you are thinking ahead! Do keep in mind that even after you make your last payment, depending on your local court and how fast your trustee moves to complete his/her audit of your case accounting and the paperwork moves along, it could be another 2-5 months before you get your official "case closed" notice from the court. Doesn't mean you can't start thinking ahead though - good for you!

[Flamingo]

What we did:

Waited a few months after receiving our discharge to pull all three credit reports - the reason being the discharge will change a whole lot on your credit reports and it's best to allow that to take place before you make any disputes. Otherwise you may be just wasting time and effort now to change things.

Asked our attorney what, if anything, we needed to do - in our situation, we bought out of our plan one year early in April 4/06. Our attorney advised us the trustee will be in touch with us as to what was going on and that is what occurred. In early June 2006 we received a letter from the trustee explaining what would be taking place over the next few months and that we could expect a discharge in 60 to 90 days. We received our discharge at the end of August 2006. When you make your last payment, call your attorney for any information or instructions you may need.

Congratulations for getting through and best of luck to you!