Although lower courts have disagreed, the Second Circuit joined three other circuits in holding that a standing trustee may not retain the percentage fee when chapter 13 cases are dismissed before confirmation. Consequently, ‘13’ debtors with confirmed plans pay standing trustees’ fees.

The Second Circuit shows how a properly structured leveraged refinancing avoids attack as a fraudulent transfer despite the Supreme Court’s effort at narrowing the ‘safe harbor.’

Second Circuit exercises ‘hypothetical’ appellate jurisdiction when finality is murky.