Does the 90/70 day rule apply in 13?

[chloe0724]

If you are making a payback plan, do these rules still apply?

[woeisme]

Yes, they still apply. However, my lawyer told me that if the CH 13 proposed payback % was on the high side, the creditors would be less likely to object, but they can still object to luxury charges right before filing. I was worried about $1800 that i spent on dental work less than a month before deciding to file, but in my initial meeting with my lawyer, he didn't seem to think it would be a problem, both because he could argue it was non-luxury and because he didn't think they'd object anyhow. I ended up taking another couple of months to get the entire attorney fee together, so ended up beyond the 90 days on it anyhow, and am at 65% payback plan (although with the # of creditors who didn't file, will be more like 75% to those who filed). So there was no problem in my case, but I've read others on here who did have problems with amounts charged even though they are in CH 13, so I'd avoid making any charges in the 90 days before filing just to prevent the possibility of problems.

[HHM]

Yes, the 70/90 day rule applies (as do all the fraud rules) in a chapter 13. But it is quite rare to see an objection in a chapter 13 (but it does happen, there was a member of this forum a little while back that got an objection from AMEX in his chapter 13).

Unless you have a large charges (in excess of $1,000) within that time frame, I would not delay filing a chapter 13 just because of the 70/90 day rule.