My lawyer said we needed one months payment for our chapter 13 bankruptcy because a Sheriff Sale Date was filed. We paid it but someone we know said that we will get that money back. Is this true??
You wrote, "How does a "good faith" payment work in Chapter 13 bankruptcy??
... We paid it but someone we know said that we will get that money back. Is this true??"
A: If your case is dismissed prior to confirmation, a partial or full refund of chp 13 plan payments is a probable outcome.
This would be a sub-optimal result.
While I don't practice in Ohio, you are required by law to begin your Chapter 13 Plan payments 30 days after your case was filed. Some lawyers collect this payment at the time the case is filed so that it can be made immediately.
Your best bet is to ask your attorney about this.
Youvwouldbonly get that payment back if your case gets dismissed prior to confirmation. If you really hope to keep the property then it sounds as though you don't really want the case to be dismissed. If you filed only to buy some extra time to move, then that might be a different story.
Unless the "someone you know" is a bankruptcy attorney who has reviewed your file thoroughly, I wouldn't be relying on his/her advice. Your lawyer has been retained to represent you and if you aren't willing to take his/her advice, you may not be satisfied with how things progress in your case. Hope this perspective helps!